Telemedicine Market

How big is the telemedicine market?

The global telemedicine market was worth USD 50.13 billion in 2022. The global telemedicine market is predicted to be worth USD 60.15 billion in 2023 and USD 149.56 billion by 2028. The global telemedicine market is expected to witness a healthy CAGR of 19.98% from 2023 to 2028. The recent COVID-19 pandemic situation, increasing remote patient monitoring, and cost-effective treatment options are majorly driving the growth of the telemedicine industry.

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 telephone and radio, which was 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 telemedical devices that can be managed at home. The patient gets effective treatment without visiting hospitals, as telemedicine enables monitoring of 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 Journal of the American Medical Association, telemedicine visits had a CAGR of 261% from 2015 to 2017. In developed countries like the U.S., the trend towards online consultation is accelerating the use of Telemedicine due to the growing use of smartphones and flexibility. The U.S. Government, NASA and the Public Health Department for the development of the telemedicine market saw huge investments. Health professionals developed this Telemedicine to ensure quality services to patients living in rural areas. As stated by the National Institute of Health, in 2014, more than 42% of American hospitals are well-equipped for the proper implementation and functioning of telehealth, excluding improved Tele-connectivity infrastructure, telemedicine equipment, training, and value-added managed services.

Impact of COVID-19 on the global telemedicine market:

Due to the pandemic situation and the social distancing move caused by the Coronavirus, the adoption of Telemedicine and telehealth has increased at a high level and 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. As per a report published by Civic Science, in the United States, the use of Telemedicine by adults has risen from 18% to 30% from Feb’20 to Mar’20. An American Management Consulting Firm, McKinsey & Company, has stated in one of their recent publications over 30% of people are canceling their visits to hospitals and showing interest in taking healthcare assistance via Telemedicine.

MARKET DRIVERS:

Pandemic situations such as the recent COVID-19 are increasing the need for solutions such as telemedicine, which is estimated to drive the global telemedicine market growth. Telemedicine plays a vital role in preventing the spread of various infections like COVID-19. This infection is widely spreading worldwide, and 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 is very likely to drive the demand for telemedicine market growth in 2020.

Through telemedicine, effective healthcare services can be provided in remote areas, which is anticipated to provide a significant boost to the market. Telemedicine has been the best part of 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 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.

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. They offer healthcare services at a lower price comparatively, which is expected to drive the telemedicine market in the coming years. Telemedicine helps in enhancing quality care for every patient. As doctors get more time to interact with patients online, they deliver quality healthcare services. Also, people can seek advice from skilled people online with these healthcare services.

MARKET RESTRAINTS:

Lack of awareness of telemedicine is expected to restrict the growth rate of the market slightly. Some people found that going to the hospital will ensure proper diagnosis and treatment procedures, which is slightly degrading the market demand. Specific knowledge of the services available in Telemedicine will make the telemedicine market grow. In a few of the 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 growth of the market. Telemedicine is entirely dependent on internet connectivity, where the patient cannot get quality treatment if there is a poor internet connection. The shortage of skilled technicians is a big challenge to the 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.

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

By technology, the services segment held the major share of the global telemedicine market in 2022 and is likely to continue its dominance throughout the forecast period. Under the sub-segments, the remote patient monitoring segment is expected to register a promising growth rate during the forecast period. The increasing trend towards online monitoring services by using various applications available is expected to raise the growth for this segment.

The hardware segment accounted for a considerable share of the global market in 2022 and is expected to grow at a notable CAGR during the forecast period due to the rise in 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 predicted to witness a promising CAGR in the worldwide market during the forecast period due to the ongoing research on the development and introduction of new applications of Telemedicine. 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, and this indicates the usage of telemedicine software is growing at a good pace in the United States, as per a survey.

Telemedicine Market - By Application:

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

Based on application, the teleradiology segment captured a substantial share of the global market in 222. The rise in the evisits number due to this infection is promoting the growth of the teleradiology segment.

Tele-cardiology and telepathology segments are estimated to have a prominent growth rate with the rise in smartphone users and growing demand for the Internet of Things across the world. The growing number of patients suffering from CVDs, increased awareness regarding the potential benefits of telemedicine among the patient population of CVDs and technological advancements are propelling the growth of the telecardiology segment in the global telemedicine market.

Other segments such as teledermatology, teleneurology, emergency care, and home healthcare are expected to perform well during the forecast period.

 Telemedicine Market - By Delivery Mode:

• Web-based
• Cloud-based
• Others

Based on delivery modes, the cloud-based segment led the telemedicine market in 2022 and is expected to grow at a prominent CAGR during the forecast period. The cloud-based deployment model is playing an essential role in Telemedicine as it enhances the performance of the system, which is propelling the segmental growth in the global market. Meanwhile, increased awareness of telemedicine users, the introduction of technologically advanced solutions, and the proliferation of cloud-based solutions are to facilitate the acceptance of visualized healthcare delivery solutions in the coming years. 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:

• Tele-Hospitals
• Tele-Homes

Based on End-User, the Tele-hospital segment is estimated to occupy the major share of the global market during the forecast period. The rise in efficiency in discussing the treatment procedure of a patient with another clinician or doctor through video conferences is driving segmental growth. Telemedicine allows a person to get diagnosed or treated by professionals through teleconference, and this is very helpful for older people who cannot travel long distances to the hospitals. The factor mentioned above is leveraging the growth of the tele-hospital segment.

Telemedicine Market – By Region:

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

The global telemedicine market was led by North America in 2022 due to the emergence of the latest technologies and also the introduction of various applications in the medical sector. Growing usage of internet applications is another significant factor in helping Telemedicine to 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 are contributing well to the growth of the market by leveraging the available resources and the market demand.

Europe is following North America, dominating the most significant shares of the global telemedicine market with increased revenue in most of the countries.

The Asia Pacific has been growing at a faster rate over the past few years. The rise in the geriatric population and growing disposable income in urban areas are magnifying the growth of the telemedicine market. Also, increasing support from the government in initiating these techniques in rural areas is expanding the shares of the market in the Asia Pacific.

The Middle East and Africa have had slower growth for the past few years due to less knowledge of the usage of the Internet of things and also a lack of skilled professionals. The increased funding of the telehospitals and the growing incidence of chronic diseases in MEA are causing an inclined growth rate for Telemedicine in this region.

KEY MARKET PARTICIPANTS:

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