The global telemedicine market was worth USD 50.14 billion in 2022 and is estimated to grow by USD 124.66 billion by 2027, witnessing a healthy CAGR of 19.98% from 2022 to 2027. The current COVID-19 pandemic situation, increasing remote patient monitoring, and cost-effective treatment options are majorly driving the growth of the telemedicine market.
Telemedicine was developed with the help of telecommunication and information technology to transfer medical history, imaging, and health informatics data from one place to another. In earlier days, the support was through telephonic and radio, replaced with video telephony and advanced diagnostics methods. The data is maintained with the servers and database installed in the application and with the help of some medical devices that can be managed at home. The patient gets effective treatment without visiting hospitals as telemedicine enables monitoring the patient’s health through remote access. It improves the interaction between the doctor and patient and delivers pharmaceutical care through tele-pharmacy. The U.S. Food and Drug Administration (FDA) regulates the equipment and software used in Telemedicine.
In 2017, as per a research publication released by the American Medical Association journal, telemedicine visits had a CAGR of 261% from 2015 to 2017. In developed countries like the U.S., the trend toward e-health consultation is accelerating the use of Telemedicine due to the growing use of smartphones and flexibility. As to the U.S. Government, NASA, and the Public Health Department, the telemedicine market saw huge investments recently.
The global telemedicine market has seen significant growth due to COVID-19.
Telemedicine plays a vital role in preventing various infections like COVID-19. This infection is widespread worldwide, where patients suffering from chronic illness require immediate care from doctors. With the help of telemedicine technology, patients can get treatment from experts by merely sitting at home. This attribute will likely drive the demand for telemedicine market growth in 2020.
Through telemedicine, effective healthcare services can be provided in remote areas, which is anticipated to boost the market significantly. Telemedicine has been the best part for people living in rural areas. Through these healthcare services, people who live in remote areas can get diagnosed with the latest technology and get the best treatment with high-quality medicines.
The growing number of launches and increasing adoption of software, smartphones, and healthcare IT solutions are further expected to fuel the telemedicine market’s growth rate.
In addition, the growing number of launches and adoption of software, smartphones, and healthcare IT solutions are further expected to fuel the growth rate of the telemedicine market. Telemedicine improves patients' convenience, as there will be no need to wait in the waiting rooms. There are many smartphone applications that we can use by logging on at the scheduled time with the physician or doctor. These applications take telemedicine market growth to the next level. The Cost-Effectiveness of telemedicine is a big plus to see notable growth soon. Telemedicine is available at an affordable cost as it requires fewer resources. Therefore, they offer healthcare services at a lower price comparatively. This factor will drive the market's demand to the extent in the coming years. Telemedicine can also help to deliver quality care for every patient as doctors get more time to interact with the patients online, and they provide quality healthcare services. Also, people can seek advice from skilled people online with these healthcare services.
Lack of awareness of telemedicine is expected to restrict the market's growth rate slightly.
Some people found that going to the hospital will ensure proper diagnosis and treatment procedures, slightly degrading the market demand. In a few geographies, poor internet connection facilities are the improvement areas for the telemedicine market growth. In some areas, the lack of internet connection is also restraining the development of the market. Telemedicine entirely depends on internet connectivity, where patients cannot get quality treatment without a poor internet connection. The shortage of skilled technicians is a big challenge to the global telemedicine market. Telemedicine technology needs some trained people to set up. The lack of these people in undeveloped countries is slowly impeding the demand for the telemedicine market.
COVD-19 impact 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 to 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 period.
Due to the pandemic situation and the social distancing move caused by the Coronavirus, Telemedicine and telehealth's adoption has increased significantly, and predicted there would be no turning back. As per a survey conducted by SSCG Media Group in March 2020, due to the COIVD-19 outbreak, around 53% of the health practitioners (specialized in infectious disease, pulmonology, cardiology, and oncology) in the United States are now using Telemedicine.
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.
An American Management Consulting Firm, McKinsey & Company, stated in their recent publications that over 30% of people are canceling their visits to hospitals and showing interest in taking healthcare assistance via Telemedicine.
With the support received via COVID-19, it is evident that the global telemedicine market will have significant growth in the coming future.
Market Size Available
2021 to 2027
2022 to 2027
By Type, Application, Delivery Mode, End-User, and Region
Various Analyses Covered
Global, Regional & Country Level Analysis, Segment-Level Analysis, Drivers, Restraints, Opportunities, Challenges, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities
North America, Europe, Asia Pacific, Latin America, Middle East, and Africa
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:
Based on type, the hardware segment led the telemedicine market in 2021, owing to the demand to increase the production of tools required in telemedicine technology. It includes medical peripherals, webcams, speakers, microphones, screens, video conferencing devices, laptops, and monitors.
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.
On the other hand, 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. The increasing trend towards online monitoring services by using various applications available is expected to thrive the demand for this segment.
Telemedicine Market - By Application:
Based on the application, the teleradiology segment dominated the telemedicine market in 2021 due to the increasing number of patients with cardiovascular problems and the rise in e-visits due to this infection.
On the other hand, telecardiology and telepathology segments are projected to have prominent growth rates with the rise in smartphone users and the growing demand for the internet of things across the world.
Other segments such as teledermatology, teleneurology, emergency care, and home health care perform well during the forecast period.
Telemedicine Market - By Delivery Mode:
Based on the delivery mode, the cloud-based deployment model plays an essential role in delivering telemedicine as it enhances the system's performance, broadening the market's demand.
Meanwhile, increased awareness of telemedicine users, the introduction of technologically advanced solutions, and the proliferation of cloud-based solutions will facilitate the acceptance of visualized healthcare delivery solutions in the coming years. In addition, the increasing need for immediate medical assistance for remote patients has led to the introduction of telemedicine solutions for video conferencing. This segment leads to the growth of the Telemedicine market.
Telemedicine Market - By End-User:
Based on the end-user, the tele-hospital type accounted for a promising share in the global telemedicine market in 2021. The rise in efficiency in discussing a patient's treatment procedure with another clinician or doctor through video conferences is spurring the market's demand. In addition, telemedicine allows a person to get diagnosed or treated by professionals through teleconference, which is very helpful for older people who cannot travel long distances to the hospitals. The factor mentioned above is leveraging the demand of the market.
Telemedicine Market - By Region:
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. Growing usage of internet applications is another significant factor in helping Telemedicine grow in this region. North American telemedicine startup 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 Markets in the Middle East and Africa have had slower growth over the past few years due to less knowledge of the usage of the internet of things and a lack of skilled professionals. However, the increased funding for the telehospitals and 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, the addition of 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 and is 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 provide an economic benefit to the industry. The industry is expected to see 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:
The global telemedicine industry size is predicted to reach USD 124.66 billion by 2027, registering at a CAGR of 19.98% during the forecast period 2022 to 2027.
On the basis of application, the teleradiology segment is expected to dominate the global telemedicine market from 2022 to 2027.
The U.S. led the global telemedicine market in 2021 accounting for more than 30% share.
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