U.S. Telehealth Market Size, Share & COVID-19 Impact Analysis, By Type (Products and Services), By Application (Telemedicine, Patient Monitoring, Continuous Medical Education, and Others), By Modality (Store-and-forward (Asynchronous), Real time (Synchronous), and Remote Patient Monitoring), By End User (Healthcare Facilities, Homecare, and Others), and Country Forecast, 2023-2030

The U.S. telehealth market size was worth USD 48.56 billion in 2022 and is projected to grow at a CAGR of 17.9% during the forecast period. 

The U.S. has witnessed a significant rise in e-visits for virtual health services in the past few years. The increasing adoption of telemedicine, improved awareness about virtual healthcare, and government funding for the betterment of healthcare services have supported the U.S. telehealth market growth. The market has also witnessed an increasing number of industry players and start-ups. The increasing focus of key players on launching innovative products is further supplementing the market growth.

• For instance, in April 2022, American Well launched Musculoskeletal (MSK) and Dermatology programs in its virtual care segment. Under this program, patients could receive care from their familiar healthcare provider while also benefiting from personalized digital interactions that help ensure the continuity of treatment, especially for chronic conditions.

The COVID-19 pandemic resulted in the extensive use of these services among U.S. patients. In March 2020, the Centers for Medicare & Medicaid Services (CMS) expanded Medicare coverage for virtual visits to facilitate the patients and physicians to access telemedicine.

LATEST TRENDS

Technological Advancements to Emerge as a Significant Market Trend

Virtual health technologies are revolutionizing healthcare delivery for underserved populations, and the market for such technologies is rapidly evolving. The U.S. healthcare sector has witnessed an increasing trend of utilization of these solutions in recent years. In the past, health services were mostly limited to in-office visits. However, with technological advancements, patients can now communicate with clinicians via digital platforms to schedule appointments, check lab results, and consult with medical coordinators via video conferencing.

Innovations in the products and services have been identified as a significant trend in recent years. For instance, an Implantable Cardiac Monitor (ICM) is one of the special inventions pertaining to virtual services. ICMs are electrophysiology devices used for long-term monitoring of a patient's heart electrical activity to detect arrhythmias.

• In July 2021, Abbott launched Jot Dx, an implantable cardiac monitor, which enables remote detection and enhances the accuracy of diagnosing cardiac arrhythmia.

This innovative technology positively impacts these services by enabling physicians to remotely monitor patients' heart conditions and detect potential cardiac issues in real-time.

DRIVING FACTORS

Growing Adoption of Telehealth among Patients and Providers to Propel the Demand for Products & Services

One of the key factors that has driven the U.S. market is the rising adoption of these products and services among patients. Some of the benefits offered by this technology include better access to care, convenience, cost-effectiveness, reduced patient travel and wait times, along with an increased emphasis on patient satisfaction. These factors have led to an increase in adoption of these products & services as a part of the healthcare system by healthcare professionals and patients.

• For instance, according to data published by the joint project funded by the United Health Foundation, Morehouse School of Medicine, and the National Center for Primary Care in 2022, approximately 66% of the primary care clinicians in the southeastern U.S. states reported telemedicine usage in their daily practice.

RESTRAINING FACTORS

Poor Reimbursement Policies Coupled with Technological Barriers to Create Growth Hurdles

Lack of favorable regulatory and reimbursement policies is stated to be one of the major restraints to the adoption of these services in the country. In the U.S., Medicare provides limited coverage and payment for various services. In addition, the current reimbursement policies limit the coverage for a patient located in a rural area or specific care setting such as hospitals and clinics. It only covers limited services and real-time consultations, which leads to less reimbursement for the consultations.

During the pandemic, the U.S. government took various administrative steps to expedite the adoption of these services. However, the latest amendments published by the Centers for Medicare & Medicaid Services in February 2023 stated that the public health emergency implemented during the pandemic would end by May 2023 and the extended online health facilities based on the Consolidated Appropriations Act of 2023 would end by December 2024. This, in turn, is expected to slow down the growth of the U.S. telehealth market.

SEGMENTATION

By Type Analysis

Based on type, the market is bifurcated into products and services.

The services segment accounted for the largest U.S. telehealth market share in 2022. There has been a significant change in the policies related to these services as governments and healthcare systems have realized the potential it has in chronic disease management, reducing the burden on the existing healthcare infrastructure and saving costs.

Over the last few years, a large number (over 150) of legislations were introduced in the U.S. to improve the reimbursement of these services. In addition, the recent COVID-19 pandemic boosted the usage of these services in the country. Moreover, increasing launches of these services in the country are driving the segmental growth.

The products segment would exhibit significant growth in the coming years. This can be attributed to the increasing product launches and advancements in technologies to offer these services.

By Application Analysis

Based on application, the market is segmented into telemedicine, patient monitoring, continuous medical education, and others.

In 2022, the telemedicine segment captured the largest share of the market. The growth of the segment is attributed to the rising government initiatives to promote these products & services and increasing awareness about telemedicine among the general population.

On the other hand, the patient monitoring segment would exhibit strong growth over the forecast period. This growth is majorly due to the high adoption of remote patient monitoring products by healthcare professionals.

By Modality Analysis

Based on modality, the market is divided into real-time (synchronous), store-and-forward (asynchronous), and remote patient monitoring.

In 2022, the store-and-forward (asynchronous) segment held the dominating market position. Important factors supporting the dominance of the segment include the increasing adoption of this modality among dermatologists, radiologists, and pathologists offering these services.

The real-time (synchronous) segment is anticipated to grow at the fastest rate during the forecast period. The increasing use of teleconsultations during the COVID-19 pandemic is the main reason for the growth of this segment. Moreover, the greater clinical efficiency of this modality, improved physician-patient interaction, and its ability to treat more complex cases of chronic disorders further support the segment growth.

By End User Analysis

On the basis of end user, the market is segmented into healthcare facilities, homecare, and others.

The healthcare facilities segment accounted for the largest market share in 2022. This is attributed to the favorable reimbursement policies and increasing initiatives for the incorporation of these products & services in hospitals across the country. For instance, according to the American Medical Association’s 2021 Telehealth Survey Report, around 85% of physicians use these products & services to provide healthcare services to their patients.

On the other hand, the homecare segment is anticipated to register strong growth over the forecast period. According to an article published in December 2020, since the start of the COVID-19 pandemic, the adoption of such products & services among home health agencies in Maryland has doubled.

KEY INDUSTRY PLAYERS

The U.S. telehealth market space shows a fragmented structure as it is witnessing an increasing number of entities entering the market. However, Teledoc Health Inc. holds a leading position in the market owing to the growing number of virtual visits and paid memberships, along with a strong customer base of the company.

Some other noticeable players operating in the market with a substantial market presence include MDLIVE Inc., American Well, Doctor on Demand Inc., Dictum Health Inc., CirrusMD, and others. These companies are adopting various strategies such as product advancements, collaborations, and partnerships to expand their market share. For instance, in August 2021, American Well acquired SilverCloud Health and Conversa Health. Through this acquisition, the company added two new programs to its telehealth platform that offer established longitudinal care and behavioral healthcare.

LIST OF KEY COMPANIES PROFILED:

• American Well (U.S.)


• MDLIVE Inc. (U.S)


• Teladoc Health Inc. (U.S.)


• Doctor on Demand Inc. (U.S.)


• Dictum Health Inc. (U.S.)


• Grand Rounds Inc. (U.S.)


• Included Health, Inc. (U.S.)


• CirrusMD (U.S.)

KEY INDUSTRY DEVELOPMENTS: 

• March 2023 – Masimo and Temple Health signed a collaboration to advance remote patient monitoring and telehealth via automation.


• August 2022 – Australian company Coviu launched its virtual care platform in the U.S.


• June 2020 – American Telemedicine Association (ATA) and Royal Philips collaborated to increase the adoption of these products & services across the industry.

REPORT COVERAGE

The market research report provides a detailed analysis of the market. It focuses on key market segments such as type, application, modality, and end user. It also includes detailed insights on market dynamics, new product launches, key industry developments such as mergers, partnerships, & acquisitions, and the impact of COVID-19 on the market. Besides this, the report also offers insights into technological advancements in the market and highlights key industry dynamics. The report further examines the competitive landscape of the industry.

Report Scope & Segmentation