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, 2023-2030

The global telehealth market size was valued at USD 128.12 billion in 2022 and is projected to grow from USD 142.96 billion in 2023 to USD 504.24 billion by 2030, exhibiting a CAGR of 19.7% during the forecast period.

The adoption 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-up funding and the launch of products, especially for virtual consultations. For example, in March 2023, Koninklijke Philips N.V. introduced a Virtual Care Management portfolio to strengthen its presence in this space. This program is aimed to reduce the burden on hospital staff as well as reduce the cost of care. Similarly, in January 2023, American Well launched the Comprehensive Behavioral Health Program to address the increasing mental health crisis. Through this program, healthcare providers offer integrated solutions that incorporate virtual therapy and psychiatry, coaching, as well as digital mental health programs. The confluence of the above-mentioned factors is anticipated to propel the global market growth.

COVID-19 IMPACT

Pandemic has Surged the Demand for Telehealth Usage

The sudden outbreak of the COVID-19 pandemic brought the world to a standstill. The whole world experienced an increased burden on hospitals and healthcare professionals due to this pandemic. However, this has also opened new market opportunities for digital health platforms. The demand for virtual consultations increased by many folds amid the 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 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 the 4.1 million virtual consultations provided in 2019.

LATEST TRENDS

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

In terms of global telehealth market trends, 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, which delivers a cloud-based, device-agnostic, and ecosystem-connected remote care management platform.

Moreover, operating companies are also undertaking strategic initiatives, such as partnerships and collaborations, to strengthen their market presence. For instance, in January 2023, Koninklijke Philips N.V. expanded its partnership with Masimo to enhance the monitoring capabilities of home applications with the Masimo W1 advanced health tracking watch. This device will be integrated with Philips's enterprise patient monitoring ecosystem, which will lead to significant progress in the field of telemonitoring in this market. Similarly, in March 2022, Vitalchat, Samsung, and EQUUM Medical joined forces to promote these services in rural hospitals. The partnership launched Access4Health program to offer support for technology, grants, and physician expertise.

DRIVING FACTORS

Active Government Initiatives for Adoption of these Solutions are Set to Propel Market 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.

Further, the governments are 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 incorporating 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 these solutions are anticipated to boost the market growth during the forecast period.

Rising Healthcare Cost to Drive the Telehealth 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, the national healthcare spending in the U.S. in 2021 was USD 4.3 trillion, which grew by 2.7% compared to that of in 2020. From 2021-2030, this spending is estimated to grow by 5.1% per year. 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 it successfully fulfills these requirements, it is rapidly deployed in all healthcare facilities. This, in turn, is likely to grow the market.

RESTRAINING FACTORS

Budget Constraints and Lack of Reliable Digital Infrastructure to Hinder Growth Prospects

Reliable broadband connectivity is critical to provide seamless telehealth services. The American Telehealth Association Practice Guidelines recommends a minimum bandwidth of 384 Kbps or higher for telehealth services.

Lack of confidence in the reliability of the existing network is considered as one of the major reasons for the slow adoption of these technologies. For instance, a survey of healthcare executives in the U.S. found that the provision of telehealth services fails 15% of the time, majorly due to bandwidth issues. The same survey found that 70% of the respondents consider the availability of reliable digital infrastructure as critical for adopting these services.

Also, the lower penetration of the internet in the low-and-middle-income countries when compared to the developed nations limits the access to these services thereby is likely to impede the adoption. Although healthcare facilities are investing in these initiatives and programs, there is a gap between the budget required and earmarked for providing these initiatives.

SEGMENTATION

By Type Analysis

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Increasing the Number of Virtual Visits to Foster the Services Segment 

On the basis of type, the market is segmented into products and services.

The services segment is estimated to dominate the market in 2022 and is expected to maintain its dominance 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, the adoption of these technologies reached up to 17 percent of all outpatient/office visit claims with evaluation and management (E&M) services.

Additionally, the increasing number of care centers providing these services and the increasing trend for outsourcing services such as Teleradiology in emerging nations have also contributed to the dominance of the segment. For instance, in October 2022, Teleradiology Solutions (TRS), a global provider of remote radiology services, launched a new center at Andhra Med Tech Zone (AMTZ). With the establishment of this hub, TRS aims to offer remote radiology services to government hospitals across India and rural health centers throughout the country

The products segment is projected to grow during the forecast period owing to increasing demand for tablets and other telecommunication devices and the rapid adoption of wearable patient monitoring devices. For example, in September 2022, RxDefine introduced RxTelehealth, a new solution for life science brands. With this, the company aimed to strengthen its healthcare engagement platform. Similarly, 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 product 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 2022. The rising adoption of telemedicine software and the 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 these visits has been reported to be 50 to 175, higher than pre-pandemic. Moreover, according to the article published in the HindustanTimes, in April 2022, Ayushman Bharat Health and Wellness Centers located across India started providing telemedicine services as the country's health ministry strives to enhance remote medical consultation services with specialized healthcare providers, particularly for individuals living in remote regions.

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 2023-2030. 

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 the 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, increasing adoption, and new products. For instance, in March 2023, Vijaya Hospital in Chennai, India, announced the adoption of an Artificial Intelligence (AI)-based contactless Early Warning System (EWS) and Remote Patient Monitoring (RPM), known as Dozee. Additionally, 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 is 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, is augmenting the growth of the store-and-forward segment. For instance, a study published in the journal Actas Dermo-Sifiliográficas in 2019 stated that store-and-forward teledermatology was introduced in Chile to compensate for the lack of dermatologists present in the country. The study concluded that this modality was extremely beneficial for remote areas of the country.

By End-user Analysis

Active Government Support to Favor Growth of the Healthcare Facilities Segment 

The market is categorized into healthcare facilities, homecare, and others in terms of end-user.

The healthcare facilities segment dominated the market in 2022. 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. For instance, in December 2020, LINE Healthcare Corporation launched a news service called LINE Doctor, which is currently being offered at certain medical clinics in Japan.

The growth of the homecare segment is likely to be propelled by the rising prevalence of chronic diseases and the gradual shift toward home care services. In addition, the increasing number of partnerships and collaborations between operating players to offer these services at homecare settings further supports segment growth. For instance, in April 2023, Omron Healthcare collaborated with Tricog to enter the remote home heart monitoring and management segment. In this collaboration, Omron Healthcare aims to expand its presence in the home heart monitoring & management segment.

REGIONAL INSIGHTS

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The market size in North America stood at USD 59.35 billion in 2022. The increasing preference for teleconsultation, the strategic presence of key players, and favorable health reimbursement are expected to expand the telehealth market share 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. Such technological advancements and increasing demand are poised to surge the market in North America. Furthermore, according to a study published by RAND Corporation in November 2022, around 11% increase was observed in Americans in willingness to use video telehealth from March 2019 to March 2021. This increasing preference also supported regional growth.

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, in September 2022, 53 European countries adopted the first-ever digital health action plan to leverage digital health transformation in Europe. Additionally, 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 market is anticipated to register remarkable growth during the forecast period owing to improving healthcare scenarios, 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 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 the 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 April 2023, Koninklijke Philips N.V., in collaboration with Teladoc Health Inc., partnered with Mater in Queensland, Australia, to deliver an innovative neonatal virtual care program offering patients, parents, and bedside clinicians in Central Queensland with 24/7 access to senior neonatologist support.

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.)


• OpenTeleHealth (Denmark)

KEY INDUSTRY DEVELOPMENTS:

• March 2023 - Bharath Home Medicare and Raphacure entered into a strategic collaboration in remote patient monitoring and domiciliary care.


• January 2023 - Sound Physicians Telemedicine and Health Services Management (HSM) announced a partnership to offer services in Florida and Texas.


• January 2023 - Teladoc Health, Inc. launched a digital application that offers personalized whole-person care to individuals.


• August 2022 - Teladoc Health Inc. partnered with Cloud DX to improve remote patient monitoring offerings in Canada.


• February 2022- GlobalMedia Group, LLC announced that its eNcounter telehealth software suite, ClinicalAccess Station Lite, and several diagnostic examination cameras received the CE mark, allowing the company to expand its services to the European Union.


• 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.

REPORT COVERAGE

An Infographic Representation of Telehealth Market

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The 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 market segments, helping our readers to get a complete overview of the global market. In addition, the report also provides various key insights such as the prevalence of key chronic diseases, aging population data, new product launches, regulatory and reimbursement scenarios 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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