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The global telehealth market size was valued at USD 61.40 billion in 2019 and is projected to reach USD 559.52 billion by 2027, exhibiting a CAGR of 25.2% during the forecast period.
Information and communication technology holds the capability to address the challenges in providing high quality, accessible, and affordable healthcare services in the developed and developing countries. Telehealth uses information and communication technology to overcome distance barriers and improve access to healthcare. It is emerging as a modern method to cater to the health needs of the patient population outside the traditional healthcare settings.
The rate of adoption of telehealth is increasing dramatically, especially in the field of radiology, cardiology, behavioral health, and online consultation. The market is getting a significant boom with the rising start-ups funding and the launch of products, especially for virtual consultations. For example, in April 2019, InTouch Health announced the launch of Solo, an end-to-end fully integrated virtual care platform, which is suitable for any user type in any healthcare setting.
Effects of COVID-19 Pandemic: Demand for Telehealth Surges Backed by Fear of Virus Transmission
The sudden outbreak of the COVID-19 pandemic has brought the world to a standstill. The whole world is fighting this pandemic with an increased burden on the hospitals and healthcare professionals. With elective surgery getting postponed and reduced hospital visits, the demand for medical devices is showcasing a downfall. However, this has also opened new market opportunities for digital health platforms. The demand for virtual consultations is estimated to increase by many folds amid the present crisis.
Telehealth has emerged as a powerful weapon in the war against the COVID-19 pandemic. People are actively adopting teleconsultation and remote monitoring services. The high emphasis on social distancing between the patient and the physicians is one of the major factors for the rising uptake of these services. Furthermore, the queries of people related to coronavirus infection and the fear of virus transmission while travelling to hospitals have surged the demand for online consultations. For example, Teladoc Health Inc. reported a 60% increase in the number of virtual consultations and reached 2 million in just three months from January to March 2020, when compared to the fourth quarter of 2019.
Apart from this, the governments of many countries are actively coming up with new policies and reimbursement guidelines to promote the usage of digital health platforms. The World Health Organization (WHO) recommended telemedicine in its “strengthening the health system response to COVID-19” policy. In the U.S., the Centers for Medicare & Medicaid Services (CMS) has expanded the reimbursement for telehealth. In March 2020, the Ministry of Health and Family Welfare (MoHFW) issued guidelines for telemedicine practice in India. The factors mentioned above are anticipated to open new growth opportunities for the market.
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Growing Number of Start-up Businesses to Augment Market Growth
Nowadays, care delivery is not only confined to the traditional healthcare setting. Online video or audio consultation with the physician is now becoming the new normal. Cost-effectiveness of teleconsultations, reduced outpatient department (OPD) waiting times, and easy access are the key factors owing to which the preference for e-visits has increased drastically. This has also attracted many start-up businesses and significant market investment by the equity firms.
For example, in April 2020, Tyto Care, an Israeli-based company, received USD 50 million investment from Insights Partners for the expansion of its devices for remote clinical examinations, especially in the U.S., Asia, and Europe. Several new companies are emerging with this type of telehealth solutions and software for virtual consults and remote monitoring. Even the existing players are striving to incorporate new specialties such as mental health, dermatology, cardiology, general medicine, and others in their services.
Increasing Government Initiatives is Set to Propel Growth
Telehealth has been successful in overcoming the distance barrier and ensuring healthcare delivery in remote locations. Majority of the population, especially in the underdeveloped countries, lives in rural areas where there is a lack of access to quality healthcare. Hence, the governments of many countries are now focusing on providing healthcare facilities in rural areas through virtual care platforms.
For this, the government is developing pilot projects and policies, which is favoring the growth of the market. For example, in March 2020, the Federal Communications Commission in the U.S. established programs to help healthcare institutions in the deployment of telemedicine technology.
Rising Healthcare Cost to Drive Market Growth
The healthcare cost is increasing significantly owing to the rising prevalence of chronic diseases and the growing ageing population. According to the Centers for Medicare and Medicaid Services, the U.S. spent around 17.7% of its GDP or USD 3.6 trillion on healthcare in 2018. Moreover, a large portion of the USD 3.6 trillion is spent on people with mental and chronic health conditions. The scenario is moreover the same for many countries. This has increased the need for technology-driven platforms that on one hand can deliver quality healthcare and, on the other hand, can reduce the cost burden. Since telehealth successfully fulfills these requirements, it is being rapidly deployed in all the healthcare facilities. This, in turn, is expected to augment the market growth.
Technological Barrier to Pose a Major Hindrance to Market Growth
Despite the huge potential of telehealth, technological and infrastructure barriers are one of the key reasons which is inhibiting the expansion of the market in the developing countries. The adoption of digital health platforms requires the deployment of the latest telecommunication devices, high-speed internet with high bandwidth and storage capacity for the integration and transmission of medical data, which is still lacking in many developing countries. In December 2017, the internet penetration in urban India was at 64.8% as compared to 60.6% in 2016. However, in rural India, the internet penetration was at 20.2% in December 2017, from 18% in 2016.
In addition to this, the high installation costs of information and communication technology (ICT), as well as the lack of expertise to operate the sophisticated devices are the key issues that are hampering the telehealth market growth.
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Increasing Number of Virtual Visits to Foster the Services Segment
On the basis of type, the telehealth market can be segmented into products and services. The services segment is estimated to dominate the market throughout the forecast period. Significant increase in the number of virtual consultations, increasing start-ups fundings, and emerging reimbursement policies for teleconsultations are the primary factors attributable to the growth of the segment. For instance, in June 2019, Zava, a telemedicine service provider, received USD 32 million investment from the equity firm, HPE Growth, which is expected to drive the service segment.
The product segment is projected to grow during the forecast period owing to the increasing demand for tablets and other telecommunication devices and the rapid adoption of wearable patient monitoring devices. According to the American Hospital Association Survey, in 2016, 65% of the hospitals in the U.S. have computerized telehealth systems, representing an increase of 4% from the previous year. This market is expected to expand the products segment.
Telemedicine Segment to Dominate Backed by High Usage of Virtual Consultation Apps
Based on application, this market is bifurcated into telemedicine, patient monitoring, continuous medical education, and others. The telemedicine segment accounted for the maximum portion of the market in 2019. The rising adoption of telemedicine software, increasing number of doctors joining virtual consultations apps such as Practo, and others would contribute to the dominance of this segment. The growing emphasis on continuous patient monitoring for elderly people, advancements for the integration of medical data, and the launch of wearable remote monitoring devices are likely to propel the patient monitoring segment. According to the American Telemedicine Association, 1 million Americans use remote cardiac monitors. This is expected to positively impact the patient monitoring segment.
The continuous medical education segment is anticipated to grow owing to the advantage of tele-education in reaching remote locations and training the health care professionals for improving the quality of care delivery. The rising uptake of self-monitoring mobile apps and the increasing emphasis on healthy lifestyles are projected to boost the others segment during 2020-2027.
Real-time Mode of Delivery to Show Maximum Growth Owing to Cost-effective E-visits
Based on modality, this market is segmented into real-time (synchronous), store-and-forward (asynchronous), and remote patient monitoring. The real-time segment is likely to show remarkable growth during the forecast period owing to the rising demand for e-visits and comparatively less cost of e-visit than face-to-face consultations. The remote patient monitoring segment is estimated to grow due to strategic collaborations, technological advancements, and the introduction of new products. In January 2019, UnitedHealth Group announced the acquisition of Vivify Health, Inc., a remote patient monitoring company, which is expected to fuel the remote patient monitoring segment.
The increasing use of digital images in teleradiology and telepathology for the diagnosis of diseases and second opinions are expected to favor the expansion of the store-and-forward segment. Furthermore, many radiologists are now adopting the teleradiology services in order to serve more patients, which, in turn, are augmenting the growth of the store-and-forward segment.
Active Government Support to Favor Growth of the Healthcare Facilities Segment
In terms of end-user, this market is categorized into healthcare facilities, homecare, and others. The healthcare facilities segment dominated the market in 2019. Increasing deployment of telemedicine to reduce the work burden on healthcare professionals and government-funded projects are the primary factors for the dominant telehealth market share of the segment. Growth of the homecare segment is likely to be propelled by the rising prevalence of chronic diseases and the gradual shift towards homecare services. The use of video or audio conferencing platforms to interact and share knowledge of the latest developments taking place in the medical field is anticipated to drive the others segment.
North America Telehealth Market Size, 2019b (USD Billion)
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The market size in North America stood at USD 26.14 billion in 2019. The increasing preference for teleconsultation, strategic presence of key players, and favorable health reimbursement are expected to drive the market in this region. Researchers at the University of Manitoba are developing a Smart Suite, which will be a replica of a home incorporated with mhealth tools to monitor the occupants. Such technological advancements are poised to surge the market in North America.
In Europe, the market is projected to grow owing to the favoring regulatory scenario, rapid adoption of remote monitoring devices, and adequate infrastructure. Asia Pacific is anticipated to register a remarkable growth during the forecast period owing to the improving healthcare scenario, technological advancements in digital imaging, and high rural population. Furthermore, the entry of GlobalMed Telemedicine in China through exclusive distribution agreement is likely to foster the market in China. High unmet patient population and the increasing healthcare spending are estimated to fuel the growth of the market in Latin America and the Middle East and Africa.
Huge Client Base to Render Leading Position to Teladoc Health
In terms of the market revenue, Teladoc Health held the leading position, which can be attributed to the huge client base of the company and the increasing number of virtual visits and paid memberships. The company is witnessing a remarkable growth in the number of teleconsultations owing to the favorable health reimbursement and COVID-19 crises. Furthermore, the company is focusing on expanding its network in various countries through strategic collaborations, which, in turn, is expected to strengthen its position. For instance, in January 2020, Teladoc Health acquired InTouch Health, which will provide the company with a network of more than 450 hospitals and healthcare facilities.
The market research report presents a comprehensive assessment of the global market by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, the report offers a detailed industry analysis and information as per market segments, helping our readers to get a comprehensive overview of the global market analysis. In addition to this, the report also provides various key insights such as the prevalence of key chronic diseases, ageing population data, new product launches, regulatory and reimbursement scenario for key players, statistical overview of the internet users and penetration, and recent industry developments such as mergers, acquisitions, and partnerships.
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Value (USD billion)
By End User
The value of the global telehealth market was USD 61.40 billion in 2019.
Fortune Business Insights says that the market is projected to reach USD 559.52 billion by 2027.
The value of the market in North America was USD 26.14 billion in 2019.
The market is projected to rise at a CAGR of 25.2% during the forecast period (2020-2027).
The services are the leading segment in this market.
The rising healthcare cost and increasing government initiatives are the key factors driving the global market.
Teladoc Health Inc. and American Well are the top players in the global market.
North America is expected to hold the highest market share.
The increasing number of start-up businesses is the key trend of the market.
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