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 (Real-time (Synchronous), Store-and-forward (Asynchronous), and Remote Patient Monitoring), By End-User (Hospital Facilities, Homecare, and Others), and Regional Forecast, 2021-2028

The global telehealth market size was USD 144.38 billion in 2020 and is projected to grow from USD 90.74 billion in 2021 to USD 636.38 billion in 2028, at a CAGR of 32.1% in the 2021-2028 period. The market exhibited a stellar growth of 135.2% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a positive demand shock across all regions amid the pandemic.

The adoption rate of telehealth is increasing dramatically, especially in 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 November 2020, One Touch Telehealth announced a new software release, Version 5.0. With the rise in video telehealth amid COVID-19, virtual care is suitable for any user type in any healthcare setting. The new release will help in expanding the operational efficiencies within workflows

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Effects of COVID-19: Pandemic has Surged the Demand for Telehealth Usage

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 hospitals and healthcare professionals. 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.

This 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 services. For instance, according to Mckinsey, in April 2021, around 84 percent of physicians were offering virtual visits, and approximately 57 percent would prefer to continue offering virtual care. Additionally, Teladoc Health Inc. reported a virtual consultation to reach between 8 million to 9 million in 2020, which is double of 4.1 million virtual consultations provided in 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 services in India. The factors mentioned above are anticipated to open new growth opportunities for the market.

LATEST TRENDS

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Growing Number of Partnerships, Acquisitions, and Venture Capital Funding is a Vital Trend

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 a significant rise in investment by equity firms is boosting the market growth. For example, in April 2020, Tyto Care, an Israeli-based company, received USD 50 million investment from Insights Partners to expand its devices for remote clinical examinations, especially in the U.S., Asia, and Europe.

Several new companies are emerging with solutions and software for virtual consults and remote monitoring. Even the existing players strive to incorporate unique specialties such as mental health, dermatology, cardiology, general medicine, and others in their services. For instance, Optum procured patient monitoring company Vivify Health that delivers a cloud-based, device-agnostic, and ecosystem-connected remote care management platform.

DRIVING FACTORS

Active Government Initiatives for Telehealth Solutions is Set to Propel Growth

Telehealth has been successful in overcoming the distance barrier and ensuring healthcare delivery in remote locations. The majority of the population, especially in underdeveloped countries, lives in rural areas without 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, favoring the market's growth. For example, in March 2020, the Federal Communications Commission in the U.S. established programs to help healthcare institutions deploy telemedicine technology.

Moreover, the governments of several nations support the incorporation of electronic intensive care units (e-ICU), which permit remote patient monitoring through two-way cameras, high-speed internet, and electronic devices. Thus, extensive governmental support and the implementation of favorable policies to encourage telehealth solutions are boosting the growth in the market.

Rising Healthcare Cost to Drive Market Growth

Healthcare costs increase significantly due to the rising prevalence of chronic diseases and the growing geriatric population. According to the Centers for Medicare and Medicaid Services, it is projected that national health care spending in the U.S would increase to USD 4.01 trillion in 2020 compared to USD 3.81 trillion in 2019. 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 the one hand, can deliver quality healthcare and, on the other hand, can reduce the cost burden. Since telehealth successfully fulfills these requirements, it is rapidly deployed in all healthcare facilities. This, in turn, is likely to grow the market.

RESTRAINING FACTORS

Technological Barrier to Pose a Major Hindrance to Market Growth

Despite the huge potential of teleconsultation, technological and infrastructure barriers are one of the key reasons inhibiting the expansion of the market in developing countries. The adoption of digital health platforms requires deploying the latest telecommunication devices, high-speed internet with high bandwidth, and storage capacity to integrate and transmit medical data, which is still lacking in many developing countries. High costs for installing necessary systems, devices, and equipment associated with real-time measurement of healthcare parameters stand as a crucial market restraint. 

In addition to this, the high installation costs of information and communication technology (ICT) and the lack of expertise to operate sophisticated devices are the key issues that hamper the telehealth market growth.

SEGMENTATION

By Type Analysis

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Increasing Number of Virtual Visits to Foster the Services Segment

On the basis of type, the market can be segmented into products and services. The services segment is estimated to dominate the market throughout the forecast period. Significant increases in the number of virtual consultations, increasing start-ups funding, and emerging reimbursement policies for teleconsultations are the primary factors attributable to the segment's growth. For instance, in April 2020, telehealth adoption reached up to 17 percent of all outpatient/office visit claims with evaluation and management (E&M) services.

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. For example, in May 2020, Philips, a global health technology, launched wearable Biosensors (BX100). This self-adhering patch permits patients to move everywhere, simultaneously tracking their movement, heart rate, respiratory rate, and temperature. This is expected to expand the products segment.

By Application Analysis

Telemedicine Segment to Dominate Backed by High Usage of Virtual Consultation Apps

On the basis of application, the market is divided into telemedicine, patient monitoring, continuous medical education, and others.  The telemedicine segment accounted for the maximum portion of the market in 2020. 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. For example, as per the MDPI (Multidisciplinary Digital Publishing Institute) journals survey, around 89% of patients prefer to accept telemedicine as an acceptable form of medical care and thus likely augment segmental growth. Additionally, as per Mckinsey's research, the number of telehealth visits has been reported 50 to 175, higher than pre-pandemic.

The growing emphasis on continuous patient monitoring for older adults, advancements in medical data integration, 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 impact the patient monitoring segment positively.

The continuous medical education segment is anticipated to grow due to the advantage of tele-education in reaching remote locations and training healthcare professionals to improve the quality of care delivery. The rising uptake of self-monitoring mobile apps and the increasing emphasis on healthy lifestyles will boost the other segment during 2021-2028. 

By Modality Analysis

Real-time Mode of Delivery to Show Maximum Growth Owing to Cost-effective E-visits

The market is segmented into real-time (synchronous), store-and-forward (asynchronous), and remote patient monitoring based on modality. 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 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 to diagnose diseases and second opinions are expected to favor the expansion of the store-and-forward segment. Furthermore, many radiologists are now adopting teleradiology services to serve more patients, which, in turn, are augmenting the growth of the store-and-forward segment.

By End-User Analysis

Active Government Support to Favor Growth of the Healthcare Facilities Segment

The market is categorized into healthcare facilities, home care, and others in terms of end-user. The healthcare facilities segment dominated the market in 2020. Increasing deployment of telemedicine to reduce the work burden on healthcare professionals and government-funded projects are the primary factors for the dominant share of the segment. The growth of the homecare segment is likely to be propelled by the rising prevalence of chronic diseases and the gradual shift towards home care services. The use of video or audio conferencing platforms to interact and share knowledge of the latest developments in the medical field is anticipated to drive the others segment.

REGIONAL INSIGHTS

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The market size in North America stood at USD 62.72 billion in 2020. 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, a replica of a home incorporated with mHealth tools to monitor the occupants. Furthermore, in May 2020, according to Mckinsey, there is a substantial rise in the use of telehealth services in the U.S. Consumer adoption of these services rose by 46% in 2020 compared to 11% in the previous year 2019 to avoid contact to covid-19. Such technological advancements and increasing demand are poised to surge the market in North America.

In Europe, the market is projected to grow owing to the favorable regulatory scenario, rapid adoption of remote monitoring devices, and adequate infrastructure. For example, according to Healthcare IT News, in 2020, the Digital Healthcare Act (DVG) officially approved doctors in Germany to prescribe medications via apps to their patients. The 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 an exclusive distribution agreement is likely to foster the market in China. High unmet patient populations and increasing healthcare spending are estimated to fuel the market's growth in Latin America and the Middle East and Africa.

KEY INDUSTRY PLAYERS

Huge Client Base to Help Teladoc Health to Hold the Dominant Position

In terms of telehealth 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 remarkable growth in the number of teleconsultations due to 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 grow and 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.

LIST OF KEY COMPANIES PROFILED:

• American Well (Boston, U.S.)


• MDLIVE Inc. (Sunrise, U.S)


• Teladoc Health Inc. (Purchase, U.S.)


• Doctor on Demand Inc. (San Francisco, U.S.)


• Dictum Health Inc. (Oakland, U.S.)


• Grand Rounds Inc. (San Francisco, U.S.)


• OpenTeleHealth (Balticagade, Denmark)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• May 2021 – Veradigm, a business unit of Allscripts Healthcare, announced an agreement with Lash Group, a patient support services business. This agreement will enable specialty medications to be available for management within the Veradigm AccelRx platform, which restructures the specialty enrollment process for users of Veradigm, Allscripts, and other electronic health records (EHR) software vendors.


• January 2020 - Teladoc Health acquired InTouch Health which will provide the company with more than 450 hospitals.

REPORT COVERAGE

The global telehealth market research report presents an inclusive global market assessment by offering valuable insights, facts, industry-related information, and historical data. Numerous methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, the report offers a detailed analysis and information as per the key market segments, helping our readers to get a complete overview of the global market. In addition to this, the report also provides various key insights such as the prevalence of key chronic diseases, aging 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.

Report Scope & Segmentation