Nov 20
2024
Digital Health Adoption is Surging, But So Is Consumer Distrust
By Dara St. Louis, executive vice president and a founding partner, Reach3 Insights.
Many of us know exactly how many steps we’ve taken today. A quick glance at our phone or other fitness tracker makes quantifying certain aspects of our health a literal no-brainer. But while digital health is integrating snugly into everyday life for many Americans, there’s a catch: For every digital health evangelist, a similar number of Americans don’t trust big tech to use their health data responsibly.
In a study of 1,012 Americans 18 and older, we uncovered a tension between growing adoption and lingering trust issues that poses a unique challenge for companies in the healthcare tech space. Companies that can strike the right balance between innovation and trust could win over both sides of the trust spectrum, especially among younger, tech-savvier generations.
Digital Health Adoption Continues to Surge
Our latest digital health research suggests Americans are ready and willing to use technology to help them manage their health needs. Our latest digital health research reveals significant growth in the adoption of health-related technology among Americans:
? 66% of Americans now use health-related devices (up from 18% in 2021).
? 72% of Americans are using health-related apps, a sharp increase from 55% in 2021.
Fitness wearables and health apps have become mainstream, especially among younger generations:
? 29% of Gen Z and 23% of Millennials are particularly drawn to holistic wearables.
These users aren’t just downloading apps—they’re using them regularly. In fact:
? 88% of users actively engage with their health and wellness apps, especially for tracking: Fitness, nutrition, sleep, and mental health.
Mental health app usage is particularly notable among younger users, as 26% of Gen Z and 31% of Millennials use mental health apps. Many Americans say they’re open to AI playing a role in their health as well:
? 53% of respondents have positive or very positive feelings about AI in health and wellness.
? 17% specifically seek out applications that use AI.
? Over two-thirds might be interested in AI for digital health, especially for: Fitness, diagnosis, and screening applications.
The average American seems excited for digital health integration on the part of healthcare tech providers. There’s just one issue.
Americans Don’t Trust Big Tech with Their Health Data
The convenience is appealing, but when it comes to handing over sensitive health data, many are hitting pause. We saw this skepticism crop up several times in our research: The tech is promising, but Americans’ relationship with Big Tech is a stumbling block.
Fifty-seven percent of Americans believe tech companies could bring down the cost of healthcare, but 53% say they would never trust these companies with their personal health data. Over time, Americans have developed more reservations about Big Tech’s involvement in healthcare, with 44% expressing concerns in 2024 (up from 28% in 2022). Data privacy remains a key issue, as 49% of consumers are afraid it may be misused by the companies.
But they trust traditional healthcare providers. Around 90% of Americans trust their doctors with personal health data, and nearly 80% trust hospitals. About one-third of consumers are actively sharing health tracker data with their healthcare providers, indicating an opportunity for healthcare technology companies to facilitate and enhance the adoption of health tech products & services.
If Big Tech wants to close the trust gap in its health sector, companies may wish to place greater focus on embodying the security practices and general principles that traditional healthcare providers offer.
Balancing innovation with trust
The future of digital health is promising, with almost half of Americans wanting more tech involvement in health and wellness over the coming decade. They expect they’ll spend more on health tech during that time, signaling significant opportunities for healthcare leaders to innovate and provide meaningful solutions.
If health tech companies want to bring the skeptics on board, they’ll need to take purposeful steps to enhance wellness while reassuring people that their most sensitive information is secure. Consumers are already ill at ease about the frequency of data leaks, as a Pew Research Center study suggests 81% of Americans believe the risks of data collection now outweigh the benefits.
With skepticism rising as sharply as adoption, the companies that can bridge this gap are the ones that will thrive in the future of healthcare—potentially earning the trust normally reserved for traditional healthcare providers.
There may also be an opportunity for traditional healthcare providers to help bring these innovations to consumers: Consumers already trust them but may not see them as harbingers of tech innovation.
In either case, prioritizing the richest-possible consumer insights in the health space will be a necessity for elevating both consumer trust and patient outcomes.