Pediatric Rehab Goes Digital:
The Next Frontier in Children’s Health Tech
Investors are turning their focus to digital platforms that address the overlooked needs of pediatric rehabilitation—here’s why it’s a market ready for growth.
When people think of digital health, they often picture remote diagnostics, wearable devices, and AI-enabled care platforms—mostly designed for adults. But beneath the surface of innovation lies a largely untapped segment of healthcare: pediatric rehabilitation.
From physical and occupational therapy to speech and developmental interventions, children with complex, chronic, or temporary conditions rely on rehab to regain function and meet critical milestones. Yet, despite its vital role in long-term outcomes, pediatric rehabilitation has lagged behind in digital transformation.
That’s changing—and fast.
The Case for Innovation in Pediatric Rehab
Pediatric rehab is not just adult therapy scaled down. It requires age-specific approaches, multi-specialist coordination, and deep involvement from families and caregivers. Yet many rehab teams still rely on disconnected tools or adult-centric platforms that don’t reflect the needs of children or their care teams.
This gap creates significant friction in real-world pediatric rehabilitation care. Families often struggle to understand and remain engaged with home exercise programs, which can reduce adherence and slow progress. Research examining barriers to participation in pediatric rehabilitation identified three key categories affecting adherence: insufficient access, insufficient trust, and insufficient involvement, which collectively create systemic barriers to optimal outcomes. Providers also face challenges, as they often lack centralized tools to effectively coordinate interdisciplinary care across physical, occupational, and speech therapy services. Evidence from pediatric populations shows that structured, interdisciplinary programs can produce lasting improvements in body function and activity participation, as demonstrated in pediatric leukemia survivors through comprehensive rehabilitation approaches (Tanner & Hooke, 2019).
At the system level, healthcare organizations miss critical opportunities to track outcomes and scale effective interventions due to fragmented data and the absence of real-time feedback loops. Use of digital health platforms have the technical capability to capture and track data that can be used for more timely adjustments to therapy plans.
It’s not a surprise then that startups focused on pediatric rehab are attracting interest. They sit at the convergence of several key health trends: digital therapeutics, remote patient engagement, family-centered care, and new remote therapeutic monitoring reimbursement.
Why Investors Are Paying Attention
Several key factors are drawing investor attention to the pediatric rehabilitation space. First, market demand is substantial: approximately 1 in 6 children in the United States has a developmental disability, and the COVID-19 pandemic has exacerbated needs, with surging pediatric rehabilitation referrals due to missed developmental milestones and escalating mental health concerns (Zablotsky et al., 2019; American Academy of Pediatrics, 2022). Second, the digital health landscape remains largely geared toward adult populations, leaving pediatric rehabilitation underserved and fragmented. Most existing solutions lack the adaptability or regulatory tailoring needed for children’s developmental stages and interdisciplinary care.
Third, hospitals and clinics are increasingly ready for adoption. As children’s hospitals modernize their infrastructure, many are actively seeking digital platforms that seamlessly integrate therapy planning, data collection, and patient-family communication—particularly those supporting hybrid care models that blend in-person and virtual interventions. Finally, given the target market, the sector presents an opportunity for social impact alongside financial returns.
The Rise of Specialized Platforms
Instead of retrofitting adult-oriented digital health tools, more startups are focusing on platforms specifically tailored to the needs of children. These purpose-built solutions include gamified therapy interfaces that engage and motivate young users through interactive, play-based formats. Research has shown that gamified rehabilitation can significantly improve adherence and engagement in pediatric populations, especially for children with neurological and developmental conditions (Pimentel-Ponce M et al., Neurologia, 2024).
These platforms also incorporate interdisciplinary dashboards that enable collaboration among physical therapists (PT), occupational therapists (OT), and speech-language pathologists (SLP), fostering more integrated care plans and improved clinical coordination. Effective interdisciplinary communication is recognized as integral in achieving better functional outcomes in children receiving rehabilitation services. (Styczen L et al. , J. Interprof Care, 2024).
Remote monitoring tools and artificial intelligence are evolving to capture not only gross motor movement but also speech patterns, fine motor behaviors, and broader developmental trends. These capabilities allow therapists to adjust treatment plans between visits and provide more personalized interventions.
Additionally, family-facing mobile apps give caregivers a tool to fit exercises into their family routines, track progress, and help therapy teams stay connected—an approach that has been shown to improve adherence to home exercise programs (Medina-Mirapeix F et al., Eur J Phys Rehabil Med. 2017 ).
One such example is the YourSteps™ Pediatric Rehabilitation Platform, which was designed specifically for the pediatric therapy ecosystem. By integrating physical, occupational, and speech therapy workflows and offering tools for both in-clinic and home-based care, platforms like YourSteps are redefining what patient-centered innovation looks like. In doing so, they address longstanding gaps in engagement, continuity, and scalability within pediatric rehabilitation.
A Sector Ripe for Smart Capital
As investors evaluate their next move in digital health, pediatric rehabilitation may be one of the smartest and most meaningful bets. The space offers clear differentiation from oversaturated adult markets, a pathway to engagement with patient families and providers, and, most importantly, the chance for children to lead fuller, more independent lives.
A recent white paper published by Ziegler, a specialty investment bank, further supports the strong investment potential in this area:
Growing Market: The pediatric healthcare market is experiencing significant growth, driven by various industry tailwinds.
Holistic and Multi-Modal Delivery: Providers are increasingly adopting a holistic approach, incorporating expanded services (speech, occupational, physical therapy) via multi-modal delivery models, including hybrid care with the goal of improved patient outcomes.
·Reimbursement Trends: New reimbursement codes lend financial viability of pediatric healthcare ventures.
M&A Activity: There is active M&A activity within the digital healthcare sector, indicating strong investor interest and potential for growth.
The digital health world has spent the past decade proving that innovation can transform care. The next decade may prove that children deserve their own revolution—and the tools to thrive.
Want to learn more about the future of pediatric rehab tech? Stay tuned as more innovators, clinicians, and investors turn their attention to the smallest patients with the biggest potential.