The healthcare industry finds itself in one of its most uncertain — and exciting — periods in decades. Driving this change is the healthtech space, which encompasses everything from traditional electronic health record software to telemedicine platforms to AI-powered diagnostic apps to digital healthcare providers and pharmacies.
It’s a diverse, rapidly evolving segment of an industry that accounts for about 18% of U.S. economic activity, according to the Centers for Medicare and Medicaid.
“Increasingly, healthtech is the engine of the broader healthcare economy, which affects all of our lives to some degree,” says Steve Streit, a technology industry veteran who invests in established and growth-stage companies in healthtech and adjacent industries.
Streit and other healthtech experts are watching six healthtech trends with special interest right now as we move into 2025.
1. Tailwinds for Direct Primary Care
Truly exciting developments in healthtech automation and AI are happening at the same time as a “return to basics” among many patients and providers. This is leading to a surge in interest in direct primary care, where patients and providers form deeper relationships based around a “human touch” and shared desire to achieve longer-term health goals.
Direct primary care faces some obstacles, such as the subscription-based model preferred by many providers that can put it out of reach financially for lower- and middle-income patients. However, some direct primary care providers accept insurance or offer “sliding scale” fees, enabling wider reach. In the near future, technology may allow providers to expand their patient panels without sacrificing care quality or work-life balance.
2. Expansion for Digital Pharmacies
One of the most promising developments in healthtech is the rise of digital pharmacies. These platforms, such as Capsule, are leveraging improved user interfaces, AI-driven prescription management, and streamlined delivery logistics to offer patients greater convenience and accessibility.
By reducing wait times, simplifying medication adherence, and improving affordability, digital pharmacies are becoming an integral part of the healthcare ecosystem. As technology improves, these services will likely expand to serve an even broader demographic, including those with chronic or complex medical conditions.
3. Continued Growth of App-Based Telemedicine
Telemedicine saw a surge in adoption during the COVID-19 pandemic, and its popularity has continued to rise. While companies like Hims and Hers are targeting younger, healthier demographics, other providers are focusing on patients with specialized medical needs.
For example, Paloma Health, an app-based provider backed by Streit and other healthtech investors, specializes in thyroid care. This trend highlights how telemedicine is evolving beyond general consultations to cater to niche healthcare needs, making specialized care more accessible and efficient.
4. Gen AI and Better Front-end Software Boosts Independent Practitioners
The artificial intelligence “hype cycle” is cooling off a bit in the healthtech space, but some experts say that’s actually good news for its future.
“There will be less hype in the coming year and a lot more balanced conversation about the how and thinking through the future of these tools,” says Dr. Margaret Lozovatsky, vice president of digital health innovations with the American Medical Association.
These tools include scheduling software, consumer electronic health records, LLMs tailored to medical applications such as note-writing and insurance billing, and much more. In 2025, we’ll see them make independent medical practices more efficient and capable, putting them on better competitive footing with larger health systems and allowing them to remain open for longer.
5. Advancements in Wearable Health Technology
Wearables have long straddled the line between consumer technology and medical-grade health monitoring. While early iterations, such as Fitbit, faced challenges in proving long-term viability, newer devices like the Apple Watch have demonstrated real-world applications for health tracking.
As wearable technology evolves, more specialized health-focused devices are expected to enter the market. These innovations will enable real-time monitoring of vital signs, chronic disease management, and early detection of medical conditions—potentially reducing emergency hospital visits and improving
6. AI-Enabled Diagnostics Gain Traction
AI-driven diagnostic tools are already proving their capabilities in fields such as dermatology, where they can identify skin cancer with greater accuracy than human practitioners. As these technologies improve, they will expand into other areas of healthcare, enhancing diagnostic precision and efficiency.
While some providers may initially resist AI-driven diagnostics due to concerns about accuracy and professional displacement, the potential to save lives and streamline workflows is undeniable. By 2025, AI is expected to play a larger role in mainstream diagnostic processes, reinforcing its value in modern medicine.
Key Healthtech Statistics 2025: AI, Telemedicine, and the Future of Healthcare
Genetic Variation & Medication Response: Adverse Drug Effects & Hospital Admissions: Virtual Primary Care Satisfaction: Healthcare Workforce Shortage:
What’s Next for Healthtech?
In an industry changing as quickly as healthtech, “trend pieces” like these can look out of date almost as soon as they’re published.
That could be the case here as well. However, seasoned healthtech experts like Steve Streit believe that while all of these trends will make themselves felt (if they haven’t already) in 2025, most are multi-year — if not multi-decade — stories. For better or worse, we’ll all be feeling their impacts for some time to come.
Along with who knows what else. After all, this is a dynamic space we’re talking about. Next year, we’re likely to have a whole new slate of healthtech challenges, opportunities and curiosities to occupy our attention.
For a broader look at how technology is evolving across industries, check out our latest insights on emerging tech trends and how they are shaping the future of innovation.
Frequently Asked Questions (FAQs)
How does AI improve healthcare efficiency?
AI enhances efficiency by automating administrative tasks, improving diagnostics, optimizing patient scheduling, and assisting in medical research. These applications help reduce costs and improve overall patient outcomes.
What are the potential risks of AI in healthcare?
AI presents risks such as data privacy concerns, potential biases in algorithms, and over-reliance on automated diagnostics. Ensuring ethical AI development and human oversight is crucial for its responsible integration.
How can patients ensure the security of their health data with digital health technologies?
Patients can protect their health data by using platforms with strong encryption, enabling two-factor authentication, and understanding how their data is stored and shared. Blockchain technology also offers promising solutions for healthcare security.
Final Thoughts
Steve Streit and other industry experts believe these innovations are not just passing trends but long-term shifts that will continue to impact healthcare for years—if not decades—to come. As new challenges and opportunities emerge, the healthtech space will remain a focal point for advancements that enhance patient care, optimize provider efficiency, and improve overall health outcomes.
As technology continues to evolve, staying informed about these trends will be essential for healthcare professionals, patients, and investors. The future of healthtech is bright, and 2025 promises to be a year of significant breakthroughs and transformative developments.
