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The new crown pneumonia epidemic has accelerated the transformation of people's daily lives to digitalization. The new generation of information technologies such as 5G , big data, and artificial intelligence have reshaped the medical service model . The transformation of the kinetic energy of the health business has injected new impetus, showing the value and potential of digital medical services.

01｜Definition, Characteristics and Industry Panorama

The World Health Organization promulgated the "Global Digital Health Strategy (2020-2024) ", which defines " digital health " as online medical services, telemedicine and mobile medical services. Frost & Sullivan pointed out that digital health refers to the provision of services or products through digital technology to meet the health needs of individuals. China's digital health market mainly includes: digital medical service market, over-the-counter drug e-commerce market, health consumer goods e-commerce market, and other markets (information technology infrastructure, marketing services and others). Digital health services are an important part of digital health. This paper believes that digital medical service refers to the digital upgrade of disease monitoring, screening, diagnosis, treatment, and rehabilitation in real time based on various medical, pharmaceutical, medical insurance and hospital management data, linking hospitals, pharmaceutical equipment, enterprises, medical insurance institutions, etc. to achieve dynamic interaction. , to provide residents with convenient, efficient and inclusive medical services. The industry has the characteristics of high barriers to entry, integration of online + online resources, strong user stickiness, and cooperation and integration of comprehensive payment institutions. Table 1 : Characteristics of China's digital healthcare service market 

Digital medical services can be divided into three layers: technology layer, data layer and application layer: 

Figure 1 : Panorama of digital health services

02｜Industry scale

China has a huge healthcare market, and digital health spending is massive and steadily growing. According to the Frost & Sullivan report , China's total medical and health expenditure in 2020 will be the second largest in the world , increasing from 4.6 trillion yuan in 2016 to 7.2 trillion yuan in 2020 , with a compound growth rate of 11.8% ; 2020-2025 and The CAGR for 2025-2030 is 9.7% and 7.7% , respectively . However, China's per capita health care expenditure ranks only ninth among the top ten countries with the highest GDP in the world, and there is huge room for growth. As life expectancy continues to increase and the population structure changes, combined with the continuous improvement of people's living standards, the demand for medical and health services in China is even stronger. As an important part of medical and health services, digital medical services are showing a rapid and continuous growth trend. In 2021 , the scale of China's digital health market is 433 billion yuan, and it is expected to increase to 4.2 trillion yuan by 2030 , with a compound growth rate of 30.9% . The digital migration rate is expected to 

Figure 2: 2016-2030 China's digital health market size and penetration The  digital health service market is growing rapidly. 

Internet hospitals are the main platform for providing digital medical services. The establishment of the first Internet hospital , Wuzhen Internet Hospital, has created a precedent for the innovative model of " Internet + medical health " in China , marking the beginning of the vigorous development of the digital medical service market. Among them, the market size of the digital medical service industry in 2021 is 74 billion yuan, and it is expected to increase to 739.5 billion yuan in 2030 , with a compound growth rate of 37% , which is 7 percentage points higher than the compound growth rate of digital health , and the market size has increased tenfold. 

Figure 3 : 2016-2030 China Digital Health Service Market Scale 

Success factors of China's digital medical service market: The  provision of digital medical services requires the integration and coordination of various medical resources, and the operational barriers to entry are extremely high. The success factors of the digital medical service market mainly include the establishment of Internet hospitals, comprehensive online + offline service capabilities, integration with public medical insurance, and cooperation and innovation of commercial health insurance products.

Table 2 : Success Factors of China's Digital Health Service Market

03｜Market competition pattern

Participating subjects are gradually enriched to jointly build a digital medical service ecosystem. Internet medical platforms mostly focus on online consultation services, and extend business lines such as medical services and health management services. Typical institutions include WeDoctor, Chunyu Doctor, Haodafu Online , etc. As a pioneer in China's digital medical service industry, WeDoctor It provides comprehensive digital medical services in China and is the largest digital medical service platform in terms of the number of Internet hospitals as of 2020 and the number of digital medical consultations provided in 2019 . Pharmaceutical e-commerce was initially deployed in online prescription drug sales, and later expanded to online consultation, chronic disease management and other medical services. Typical institutions include Jingdong Health and Ali Health. Medical informatization was initially mainly reflected in online appointments, and later expanded to medical record management informatization, AI imaging, and AI diagnosis and treatment. Typical institutions include Entrepreneurship Huikang, Neusoft Group, and Dashi Intelligence. Online insurance institutions are an extension of online medical services. Most of them adopt a model that is embedded in designated insurance products. A few institutions, such as ZhongAn Insurance and PICC, adopt an independent operation model. The business lines are relatively complete, but the overall online medical business is not very independent. , the industry layout needs to be deepened. Internet giants continue to flood into the digital medical service track. According to relevant information, the major players in China's digital medical service market provide all or part of the following services: online appointment, digital diagnosis and treatment, electronic prescription, public medical insurance settlement, dispensing and disease management services. In the post-epidemic era, digital medical services have been accelerated in an all-round way. Internet giants have gradually made breakthroughs in medical technology from upstream Internet hospitals and pharmaceutical e-commerce to downstream physical medical institutions. Baidu, Ali, Tencent, JD.com and other old Internet medical players have formed a stable medical map, and new players such as ByteDance, Meituan, and Pinduoduo are also pouring into this track. At the end of 2021 , ByteDance registered and established Xiaohe Medical Device Company, Meituan Longzhu invested in a surgical robot company, and Tencent Teana Lab’s AI technology cross-border cooperation with Nuoerkang ”cochlear implant " .

04｜Industry Development Trend

Health-oriented digital medical services will gradually improve. Through close connections with other major players, the digital medical service platform will enhance medical service capabilities and improve the efficiency of medical service payers, thereby providing individuals with more convenient, effective and affordable medical services, continuously improving user experience and solving industry problems. pain points and promote the digitization of the traditional medical service system. At present, China's digital medical service market presents four major development trends:

❶The medical service industry continues to digitize;

❷ Further improvement of the medical service payment system;

❸The penetration rate of health-oriented digital medical service model continues to increase, and the data chronic disease management model rapidly expands;

❹ Rapid development of membership-based medical services and specialist medical services.

Table 3 : China's digital health service market trends