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Telemedicine Market Size, Share & COVID-19 Impact Analysis, By Type (Products and Services), By Modality (Store-and-forward (Asynchronous), Real-time (Synchronous), and Others), By Application (Teleradiology, Telepathology, Teledermatology, Telecardiology, Telepsychiatry, and Others), By End-User (Healthcare Facilities, Homecare, and Others), and Regional Forecast, 2023-2030

Region : Global | Format: PDF | Report ID: FBI101067

 

KEY MARKET INSIGHTS

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The global telemedicine market size was valued at USD 87.41 billion in 2022 and is projected to grow from USD 94.44 billion in 2023 to USD 286.22 billion by 2030, exhibiting a CAGR of 17.2% during the forecast period.


Telemedicine has showcased tremendous growth in recent years. It not only helps patients connect with physicians remotely, but can also aids in reducing the cost burden of healthcare. Owing to these advantages, physicians and hospitals are looking forward to adopting digital health technologies in their practice. This has also encouraged the government to develop regulations and reimbursement policies revolving around telehealth.


Developments in this industry have made healthcare affordable and accessible to all. The increasing remote delivery of healthcare services including acute care and expansion in radiology, cardiology, behavioral health, and others have resulted in the development of new business and healthcare models surrounding telehealth. The market is gradually becoming highly competitive with the launch of various platforms and entry of new players with huge funding. For example, in March 2023, OpenLoop, a start-up company, raised USD 15 million in series A funding to advance virtual care delivery. The company introduced a new nationwide insurance payer network to offer reimbursement services to its clients.


COVID-19 IMPACT


Virtual Consultations Gained Traction During Pandemic


The sudden onset of the COVID-19 pandemic resulted in a significant increase in the usage of digital health solutions. As hospitals saw a notable rise in the admission of COVID-19-positive patients, the burden on the healthcare sector increased tremendously. Furthermore, the postponement and cancellation of elective surgeries and appointments decreased patient volume in hospitals and clinics. This posed an urgent need for physicians to adopt telehealth to connect to their patients.


With social distancing becoming the new normal, the demand for teleconsultations and digital health services was at its peak during the pandemic. The majority of virtual visit service providers showcased a tremendous increase in the number of users and subscribers. 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 as compared to the fourth quarter of 2019.


Apart from this, many government organizations are embracing telehealth through new policies and reimbursement guidelines. In March 2020, the Federal Communications Commission in the U.S. established programs to help healthcare institutions deploy this technology. Similarly, in March 2020, India’s Ministry of Health and Family Welfare (MoHFW) issued telemedicine practice guidelines. The rising number of government initiatives is anticipated to boost the adoption of these technologies, thereby opening new growth opportunities for the market.


LATEST TRENDS


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Introduction of AI-based Clinics


Artificial Intelligence-powered booths have emerged in local malls in the past few years. The system includes a smart medicine cabinet that can dispense more than 100 medications. In November 2018, Ping An Good Doctor announced the launch of a tiny unstaffed clinic that incorporated Artificial Intelligence (AI). Patients who required immediate consultations could sit in the three-square meter booth and consult with a doctor, which functioned through AI.


The AI machine collects the patient’s medical history and provides a diagnosis strategy, which will then be transferred to a clinical expert. These miniature clinics are called “One-Minute Clinics.” These clinics can then connect patients with a clinician on Ping An Good Doctor’s in-house medical team. Such AI-based clinics can be set up anywhere from schools to shopping malls and pharmacies to highway service stations. Additionally, in February 2023, Vitalchat launched AI-enabled E-Sitter to transform inpatient telehealth for hospitals. This solution is powered by voice and movement, offering hands-free technology. Hence, such innovations in digital health offer tremendous opportunities for the market to exhibit a positive growth trajectory during the forecast period.


DRIVING FACTORS


Significant Reduction in Healthcare Cost Burden to Boost Market Growth


The increasing prevalence of chronic diseases and growing out-of-pocket expenditures have led to a significant rise in healthcare cost. 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 2020. The per person spending was USD 12,914 in 2021. Furthermore, according to Eurostat, healthcare cost was a financial burden for 34% of the population in 2017, while 11% perceived such costs as a heavy financial burden on the household budget.


The adoption of digital technologies and teleconsultations can be a useful tool for addressing this issue. Teleconsultations offer cheaper services and also reduce the work burden on healthcare professionals. According to an article published in UC Regents in January 2023, telehealth has saved an estimated USD 33.5 million in travel-related costs during the COVID-19 pandemic period. This is the primary reason behind government organizations emphasizing on deploying digital health technologies, thereby favoring the telemedicine market growth.


Adoption of Advanced Technologies to Foster Market Growth


With the advent of advanced technologies, such as Machine Learning (ML), Artificial Intelligence (AI), Internet of Things (IoT), virtual hospitals, and telehealth apps, the adoption of these technologies is increasing rapidly. Apps developed based on machine learning algorithms can help in the diagnosis of chronic diseases such as cancer, COVID-19, rare diseases, and others.


Furthermore, rising preference for remote patient monitoring using technologically advanced products will also supplement the market growth. For instance, in October 2022, AMC Health and GE Healthcare signed a collaborative agreement to offer virtual care at homecare settings. In March 2020, the UAE’s Ministry of Health started working with telecom operators to build its first virtual hospitals. Thus, increasing investment in virtual hospitals is set to augment the market growth.


RESTRAINING FACTORS


Poor Infrastructure and Technological Barriers to Hinder Market Expansion


Technological and infrastructural barriers in middle and low-income countries might hinder the adoption of this service. The deployment of digital health technologies requires the latest telecommunication devices, high-speed internet with high bandwidth, and large storage capacity for the integration & transmission of medical data, which is still a challenge in many developing countries.


Moreover, the high cost of installation and lack of skilled healthcare professionals are some of the other major factors restricting the growth of the market.


SEGMENTATION


By Type Analysis


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Increasing Deployment of Teleconsultation by Hospitals to Favor Services Segment


Based on type, the market is segmented into products and services. The services segment accounted for the maximum revenue share of the market in 2022. Teleconsultation services substantially reduce the waiting time for consultations and referrals. This is why an increasing number of hospitals are providing or deploying e-consultation services, which, in turn, is favoring the services segment growth.


According to an article published in the Times of India in February 2023, the number of free telemedicine consultations in India crossed 100 million during the month. Such a high number is indicative of the increasing adoption of telemedicine services, thereby propelling the growth of services segment.


The introduction of technologically advanced medical devices that can be connected wirelessly and integrated with mobile phones will aid the product segment's growth. Besides, the rapid adoption of wearable patient monitoring devices is expected to drive the segment’s expansion.                                                                                       


By Modality Analysis


Rising Number of E-Visits to Boost Demand for Real-time Telehealth Solutions


On the basis of modality, the market is segmented into real-time, Store-and-Forward (S&F), and others.


The real-time segment is expected to witness lucrative growth owing to the drastic rise in the number of e-visits. According to the On-demand Virtual Care Benchmark Survey, 32.1% of doctors in the U.S. had an on-demand virtual care service in 2018. This is likely to propel the growth of the real-time segment.


The increasing application of telehealth in the diagnosis of diseases, especially in dermatology and radiology, is expected to favor the expansion of the store-and-forward segment. Moreover, the rising internet penetration, even in rural areas, coupled with a significant increase in the number of smartphone users, is projected to augment the growth of the others segment.


By Application Analysis


High Demand for Diagnostic and Image Interpretation Services to Spur Adoption of Teleradiology Services


Based on application, the market is fragmented into teleradiology, telepathology, telecardiology, telepsychiatry, teledermatology, and others.


The teleradiology segment dominated the market in 2022 and is expected to maintain its dominance throughout the forecast period. Factors attributable to the expansion of this segment are advancements in Store-and-Forward (S&F) technologies and dearth of radiologists in rural areas. According to the Canada Association of Radiologists (CAR), there will be a need for 1,700 new radiologists during the period of 2019-2040. This factor is expected to drive the teleradiology segment.


The increasing demand for digital health products and services for behavioral health, especially during the COVID-19 pandemic, is a key factor expanding the telepsychiatry segment. As per the Excellus BlueCross BlueShield survey, 22% of the e-visits made by the Excellus BlueCross BlueShield members in 2018 in the U.S. were for behavioral health, which included conditions, such as bipolar disorders, attention disorders, depression, and anxiety. Furthermore, in October 2022, the Union Ministry of Health & Family Welfare of India rolled out tele-mental health services across the nation. The network consisted of 23 tele-mental health centers of excellence, which will work with the International Institute of Information Technology, Bangalore and the National Institute of Mental Health and Neurosciences (NIMHANS).


The rapid adoption of remote cardiac monitoring devices and m-health apps for tracking the heart and pulse rate is a prominent factor augmenting the growth of the telecardiology segment. The increasing number of dermatology visits and rising demand for dermatoscopes are likely to propel the teledermatology segment growth. The surging telemedicine applications in urology, neurology, chronic diseases, and others are also expected to propel the growth of the segment.


By End User Analysis


Increasing Number of Government Initiatives to Boost the Adoption of Telemedicine among Healthcare Facilities 


In terms of end user, the market is segmented into healthcare facilities, homecare, and others.


The healthcare facilities segment is expected to dominate the market. The increasing number of government-funded pilot programs for telemedicine, use of telecommunications tools to train doctors in medical colleges, and rising number of service providers for virtual consultations are the primary factors poised to surge the healthcare facilities segment during 2023-2030.


The homecare segment is projected to witness the fastest CAGR over the forecast period. Primary factors responsible for the growth of this segment are significant cost-saving in healthcare services expenditure and rising geriatric population. Furthermore, the adoption of telemonitoring to eliminate the need to visit hospitals is projected to fuel the segment’s growth in the future.


REGIONAL INSIGHTS


North America Telemedicine Market Size, 2022 (USD Billion)

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The market in North America stood at USD 41.85 billion in 2022. The presence of major players, such as Teladoc, MDLive, and others, as well as strong government support and increasing teleconsultations are driving the market growth in this region. According to the American Medical Association’s survey, 93% physicians reported a definite advantage of using digital health tools in 2022. This number was 85% in 2016. Furthermore, the percentage of telehealth visits grew from 14% in 2016 to 28% in 2019, and then increased to 80% in 2022. This is likely to boost the market growth in North America.


Europe is anticipated to be the second leading region in the market in terms of share, which can be attributed to the implementation of supportive government guidelines for using digital health and rising prevalence of chronic diseases. According to the British Skin Foundation, at least 100,000 new skin cancer cases are diagnosed every year in the U.K. This increases the cost burden on the country. Thus, the U.K. government deployed Telederm, a tele-dermatology service, which provides diagnosis of over 50,000 skin cancer patients annually without the need for a hospital appointment, resulting in effective cost savings. This is anticipated to surge the market expansion in the region.


As smartphones and cameras have opened new opportunities for the market, a plethora of start-up companies, such as InstaDoc, FirstCheck, and others are building their base in Asia Pacific, which is anticipated to foster the market in the region. Further, the Latin America and Middle East & Africa regions are anticipated to display significant growth due to the growing number of pilot projects and increasing use of telemedicine to overcome the shortage of physicians.


KEY INDUSTRY PLAYERS


Teladoc Health Inc. to Hold Leading Position in the Market by Collaborating with Other Market Leaders


Teladoc Health Inc. dominated the telemedicine market share in 2022. A large customer base, an established network of GPs & specialists, and strategic collaborations are the major factors that have helped the company dominate this industry. American Well, Ping An Good Doctor, and GlobalMed also held significant shares of the market. Delivery of novel services for the treatment of various chronic diseases and strong focus on expanding their geographical presence are expected to favor the growth of these companies.


However, increasing investments and unique business models of start-up companies are anticipated to change the competitive landscape of the market in the upcoming years. These firms are receiving high funding from equity firms for expanding their businesses. For instance, in April 2022, Avi Medical, a German healthtech startup, received a series B funding of USD 54.5 million (€50 million) to expand its telemedicine platform. The company’s patient-facing app helps monitor their health. Similarly, in June 2019, Zava received funding of USD 32 million. The company said that it was planning to use this capital to expand its services in this market and across Europe.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • March 2023 - Temple University Health System (Temple Health) and Masimo expanded their collaboration to include various new devices and technologies in telehealth and Remote Patient Monitoring (RPM) offerings.

  • September 2022 – Medyseva, an Indian healthtech start-up, raised USD 0.18 million (INR 15 million) in pre-series funding to expand access to telemedicine in rural India.

  • March 2020 – VivaBem, a Brazil-based telehealth start-up, collaborated with Sweden-based Dokter.se and raised USD 2.5 million to expand its services in Brazil.

  • 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.

  • January 2019 – UnitedHealth Group announced the acquisition of Vivify Health, Inc., a remote patient monitoring company.


REPORT COVERAGE


An Infographic Representation of Telemedicine Market

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The global telemedicine market research report offers an elaborative analysis of numerous factors affecting the global market. Information on trends, drivers, opportunities, threats, and restraints of the market can further help stakeholders gain valuable insights into the industry. The report also offers a detailed competitive landscape by presenting information on key players, along with their strategies. The market analysis also offers comprehensive data on the market’s forecast.


Report Scope & Segmentation






























































  ATTRIBUTE



  DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 17.2% from 2023-2030



Unit



Value (USD billion)



Segmentation



By Type, Application, Modality, End User, and Geography



By Type




  • Products

  • Services



By Application




  • Teleradiology

  • Telepathology

  • Teledermatology

  • Telepsychiatry

  • Telecardiology

  • Others



By Modality




  • Store-and-forward (Asynchronous)

  • Real-time (Synchronous)

  • Others



By End User




  • Healthcare Facilities

  • Homecare

  • Other



By Geography




  • North America (By Type, By Application, By Modality, By End User, and By Country)

    • U.S.

    • Canada



  • Europe (By Type, By Application, By Modality, By End User, and By Country/Sub-Region)




    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Scandinavia

    • Rest of Europe




  • Asia Pacific (By Type, By Application, By Modality, By End User, and By Country/Sub-Region)




    • China

    • Japan

    • India

    • Australia

    • Southeast Asia

    • Rest of Asia Pacific




  • Latin America (By Type, By Application, By Modality, By End User, and By Country/Sub-Region)




    • Brazil

    • Mexico

    • Rest of Latin America




  • Middle East & Africa (By Type, By Application, By Modality, By End User, and By Country/Sub-Region)




    • GCC

    • South Africa

    • Rest of Middle East Africa




Frequently Asked Questions

The value of the global market was USD 87.41 billion in 2022.

The global telemedicine market size was valued at USD 87.41 billion in 2022 and is projected to reach USD 286.22 billion by 2030.

The value of the market in North America was USD 41.85 billion in 2022.

The telemedicine market is projected to register a CAGR of 17.2% during the forecast period of 2023-2030.

The services segment is set to lead the global market.

A significant reduction in healthcare costs and technological advancements 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 largest market share.

The introduction of AI-powered apps for the diagnosis of COVID-19 and advancements in telecommunication technologies are expected to drive the adoption of this service.

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