Telemedicine Market

Global Telemedicine Market Size (2023 to 2028)

The global telemedicine market was worth USD 60.15 billion in 2023 and is estimated to grow by USD 149.56 billion by 2028, witnessing a healthy CAGR of 19.98% from 2023 to 2028. The current COVID-19 pandemic, increasing adoption of remote patient monitoring, and cost-effective treatment options propel telemedicine market growth.

Global Telemedicine Market Share Insights:

• Based on type, the services segment is anticipated to register a CAGR of 21.24% from 2022 to 2027.
• Based on the application, the teleradiology segment has shown considerable domination in 2021 and accounted for a share of 26.75%.
• Based on the delivery mode, the web-based led the telemedicine market and held 70% of the share in 2021.
• Based on the end-user, the tele-hospital segment had the leading share, accounting for 55% of the telemedicine market share in 2021.
• North America was the largest regional market in the global telemedicine market in 2021 and held 35% of the share. However, the Asia-Pacific region is anticipated to have the fastest CAGR during the forecast period.
• AMD Global Telemedicine Inc., Allscripts Healthcare Solutions Inc., and Koninklijke Philips NV are notable players in the telemedicine market.

MARKET DRIVERS:

The growing demand for remote healthcare is a key factor driving the growth of telemedicine.

The awareness of remote healthcare has grown notably in several countries in recent years, and people are positively adopting such solutions to care for their medical needs. The growing aging population, rising patient count suffering from chronic diseases, and shortage of healthcare professionals are majorly resulting in the increasing demand for remote healthcare. Telemedicine is an effective solution that can help patients seek healthcare services from their homes. Above that, telemedicine is a convenient and cost-effective way to get healthcare services. During the recent COVID-19 pandemic, many people worldwide have preferred seeking healthcare services using telemedicine to avoid contact with the coronavirus and due to measures taken such as lockdowns and social distancing. In the coming years, telemedicine is expected to become more accessible and affordable and turns out to be an effective platform for patients to get quality healthcare at convenience.

The rapid adoption of technological advancements is boosting the telemedicine market growth.

Due to recent technological developments such as high-speed internet, mobile devices, video conferencing software, and others, it has become so easy for healthcare providers to offer telemedicine services to needy patients.

The growing global aging population is expected to fuel the telemedicine market's growth rate.

As per the data published by the World Health Organization (WHO), one in every six people is expected to be 60 years or more by 2030, and the total population of 60 years worldwide is expected to reach 1.4 billion by 2030. Therefore, the need for healthcare services is rising significantly with the growing aging population. However, some aged people cannot visit healthcare facilities to check their medical needs. In such cases, telemedicine can provide remote care to patients.

In addition, factors such as the growing patient population suffering from chronic diseases, shortage of healthcare professionals, favorable reimbursement policies for telemedicine services in some countries, and improved patient outcomes are supporting the telemedicine market growth. Furthermore, a growing emphasis on preventative care, increasing partnerships and collaborations, and growing awareness among people regarding telemedicine services are expected to fuel the market's growth rate.

MARKET RESTRAINTS:

A lack of awareness of Telemedicine is expected to restrict the market's growth rate slightly.

Less awareness among people regarding the advantages of telemedicine and people's hesitation towards adopting telemedicine due to the belief that they can get an appropriate and accurate diagnosis and medical treatment at hospitals are hampering the market growth to a considerable level. In addition, Internet connectivity issues in some parts of the world limit the market's growth rate. Telemedicine entirely depends on internet connectivity, and patients cannot get quality treatment without a proper internet connection. Furthermore, the scarcity of people who can handle telemedicine devices and software is inhibiting market growth. In addition, Telemedicine technology needs some trained people to set up.

Impact of COVID-19 on the global telemedicine market:

The outbreak of COVID-19 has created a positive impact on the healthcare sector. The Telemedicine market became popular during this pandemic period. COVID-19 is providing immense opportunities for telehealth solutions. People around the world are opting for virtual consultation instead of direct consultation not to stay safe. The manufacturers are focused on developing virtual apps to make seamless communication between doctors and patients; thus, the market growth of Telemedicine has had a positive impact during the pandemic. 

Due to the pandemic and the social distancing move caused by the Coronavirus, Telemedicine and telehealth adoption have increased significantly, and it predicted there would be no turning back. As per a survey conducted by SSCG Media Group in March 2020, due to the COVID-19 outbreak, around 53% of health practitioners (specialized in infectious disease, pulmonology, cardiology, and oncology) in the United States are now using Telemedicine. Furthermore, as per a report published by Civic Science, in the United States, adults' use of Telemedicine has risen from 18% to 30% from Feb '20 to Mar '20. In addition, an American Management Consulting Firm, McKinsey & Company, stated in their recent publications that over 30% of people are canceling their hospital visits and showing interest in taking healthcare assistance via Telemedicine. Therefore, with the support received via COVID-19, it is evident that the global telemedicine market will have significant growth in the coming future.

REPORT COVERAGE:

This research report on the global telemedicine market has been segmented and sub-segmented based on type, application, delivery mode, end-user, and region.

Telemedicine Market - By Type:

• Technology
  • Hardware
  • Software
  • Telecommunications
• Service
  • Remote Patient Monitoring
  • Store-and-Forward
  • Real-Time Interactive

Based on type, the technology segment captured the major share of the global market in 2022 and is expected to continue dominating the market during the forecast period. Under the sub-segments, the software segment is forecasted to register the fastest CAGR during the forecast period due to ongoing research on developing and introducing new Telemedicine applications. Rising support from the IT industry is also leveling up this segment to move forward. The United States had over 800,000 online consultations as of December 2019. This indicates the usage of telemedicine software is growing at a good pace in the United States, as per a survey. The hardware segment held a substantial share of the global telemedicine market in 2021 and is expected to grow at a noteworthy CAGR during the forecast period. The growing demand for devices required to deliver telemedicine services, such as medical peripherals, webcams, speakers, microphones, screens, video conferencing devices, laptops, and monitors, is driving the segment's growth.

Conversely, the services segment occupied a considerable share of the worldwide market in 2022 and is expected to register a healthy CAGR during the forecast period. The growing adoption of telemedicine services between healthcare providers and patients and the increasing need to provide quality healthcare to remote areas are propelling segmental growth. The remote patient monitoring segment is growing significantly in the global telemedicine market and is expected to showcase a healthy CAGR for the forecast period. In addition, the increasing trend towards online monitoring services by using various applications available is expected to thrive growth for this segment.

Telemedicine Market - By Application:

• Tele-Cardiology
• Tele-Radiology
• Tele-Pathology
• Tele-Dermatology
• Tele-Neurology
• Emergency Care
• Home Health
• Others

Based on the application, the teleradiology segment dominated the telemedicine market in 2022 and is anticipated to witness a notable CAGR during the forecast period. Factors such as the growing need for radiological services in remote places and the convenience and cost-effectiveness of teleradiology are propelling segmental growth. In addition, increasing usage of teleradiology by healthcare providers to deliver remote diagnostic services is another major factor contributing to the segment's growth.

The telecardiology segment is expected to account for a considerable share of the global market during the forecast period owing to the increasing number of patients with cardiovascular problems and the rise in e-visits.

On the other hand, the telepathology segment is another notable segment among all. It is expected to grow at a promising CAGR during the forecast period owing to the rising adoption of telemedicine, the increasing number of smartphone users, and the growing demand for the internet of things worldwide.

Other segments, such as tele-dermatology, tele-neurology, emergency care, and home healthcare, are anticipated to perform well during the forecast period.

Telemedicine Market - By Delivery Mode:

• Web-based
• Cloud-based
• Others

Based on the delivery mode, the cloud-based segment is expected to hold a major share of the global telemedicine market during the forecast period. The adoption of cloud-based delivery mode has grown significantly in recent years. The scalability, flexibility, and cost-effectiveness of cloud-based delivery primarily drive the growth of the cloud-based segment. In addition, the cloud-based delivery model can offer enhanced security to patients' sensitive data, further boosting segmental growth.

The web-based segment is anticipated to occupy a substantial share of the worldwide telemedicine market during the forecast period.

Telemedicine Market - By End-User:

• Tele-Hospitals
• Tele-Homes

Based on end-user, the tele-hospitals segment slightly had a better share than the tele-homes segment in 2022. As a result, the tele-hospitals segment is anticipated to witness a moderate CAGR during the forecast period, whereas the tele-homes segment is predicted to register the fastest CAGR. The growth of the tele-homes segment is majorly driven by the rising desire from patients to take treatment from the comfort of their homes, increasing adoption of remote patient monitoring, and favorable initiatives by some governments.

Telemedicine Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Geographically, the North American telemedicine market led the global market in 2021 due to the emergence of the latest technologies and the introduction of various medical sector applications. The growing usage of internet applications is another significant factor in helping Telemedicine grow in this region. North American telemedicine start-up companies like Health Tap, Break Through, American Well, MD Live, Doctor on Demand, Pager, WellPsyche, Talk Space, and LifeDojo contribute to the market's growth, leveraging the available resources and the market demand. As a result, the U.S. telemedicine Market Size was estimated to hike at a remarkable CAGR during the forecast period.

The European telemedicine market was worth USD 11.32 billion in 2022 and was the second leading region, followed by North America in 2021. The European region also dominated global Telemedicine with the most significant market shares with increased revenue in most countries.

The Telemedicine Market in the Asia Pacific is growing faster than in the past few years. The rise in the geriatric population and growing disposable income in urban areas magnify the telemedicine market's growth. Also, increasing government support in initiating these techniques in rural areas expands the market shares in the Asia Pacific.

The Latin American Telemedicine Market is projected to grow at a CAGR of 17.23% between 2022 and 2027. Mexico and Brazil are the most lucrative markets in this region.

The telemedicine market in the Middle East and Africa has grown slower over the past few years due to less knowledge of the internet of things and a lack of skilled professionals. However, the increased funding for telehospitals and the growing incidence of chronic diseases in MEA are causing an inclined growth rate for Telemedicine in this region.

KEY MARKET PLAYERS:

Companies like AMD Global Telemedicine, Honeywell Life Care Solutions, Philips Healthcare, Cerner Corporation, Medtronic, Inc., GE Company, Lifewatch, McKesson Corporation, InTouch Technologies, Teladoc Health, Global Med, and others are playing a pivotal role in the telemedicine market.

Recently Walgreens announced the expansion of its mobile health app. It currently provides MDLive telemedicine services in 25 states. "Walgreens provides customers with convenient and connected services. Enhance the digital experience to give patients choices when using care," said Adam Pellegrini, Vice President of Digital Health at Walgreens. 

The competition of healthcare retailers has been a problem for many practices for some time. However, adding the telemedicine component makes this option more compelling for patients. It can undermine patient loyalty if practices do not keep up with today's healthcare consumer preferences.

Philips Healthcare, Beam Healthcare, GE Healthcare, and Bosch Healthcare are vital players in the telemedicine market. Actors are always involved in producing this wide range of services and software that can be used for patient monitoring, self-care, and post-operative monitoring.

The beam is a top health medicine company, a text-based intelligent telehealth service designed to enable billable telehealth for primary care providers. An end-to-end solution was captured for telemedicine visit reimbursement to create a doctor service that can streamline the reimbursement process for doctors' online visits. The app handles the billing process directly and sends the bill to the insurance provider without the doctor or patient spending a little effort.

Suppliers invest in research and development to develop technologically advanced systems that give them a competitive advantage over other providers and benefit the industry economically. The industry expects several mergers and acquisitions over the next few years. Companies are taking proactive steps to gain market share and provide a diversified product portfolio.

RECENT HAPPENINGS IN THE MARKET:

• In April 2019, InTouch Health announced the release of Solo. This product can help any health care setting for any patient using its fully integrated, end-to-end digital care system.
• In April 2019, Comcast collaborated with the Independence Health Group to develop new patient care and communication platform.
• In May 2019 - Cirrus ® Inc., a telemedicine company, raised USD15 million to reach the next level and improve its position in the global telemedicine market.
• In 2017, ZH health care partnered with the Curavi Health Telemedicine Company to provide workflow and Electronic Health Records (EHR) tools to help deliver telemedicine and nursing home care services.
• In 2016, Doc+, a Russian digital health firm, combined telemedicine with a digital house through which doctors could offer consultations, sick notes, prescriptions, and several electronic diagnostic tests.