Teledermatology Market Size, Share & COVID-19 Impact Analysis, By Type (Products & Services), By Modality (Store-and-forward (Asynchronous), Real-time (Synchronous) & Others) By End User (Healthcare Facilities, & Home Care), and Regional Forecast, 2020-2027

The global teledermatology market size was valued at USD 4.83 billion in 2019 and is projected to reach USD 44.86 billion by 2027, exhibiting a CAGR of 24.3% during the forecast period. 

Teledermatology is the use of several communication technologies to expand the reach of a dermatologist to those in need of their specialized knowledge. It is primarily store-and-forward (asynchronous) in nature, and includes storage of images on digital devices such as smartphones and computers and then transferred electronically to a referring dermatologist. This market is poised to experience a lucrative growth across the forecast period owing to the increasing rates of skin conditions driven by ageing population and shortage of dermatologists. This leads to long waiting time for patients to receive consultations. In USA, which has around 4.4 dermatologists per 100,000 populations, the patients have to wait for almost a month for their dermatology appointment.

Teleconsultations, in general, re driven by the growth in partnerships between pharmacies, insurance companies and retailers with telehealth companies due to greater awareness about the benefits such as lower costs and better accessibility offered by virtual visits. For instance, Walgreens, which is one of the largest drugstore chains in the U.S., launched their Skin Care Platform in partnership with Dermatologist On Call in 2016 to provide services to their customers.

Teledermatology players such as Curology and Apostrophe have adopted unique business models, where patients receive online consultations with dermatologists, personalized treatment plan and skin care products for monthly fees, which are as low as USD 20.

Teledermatology Amid COVID-19 Pandemic

The impact of the COVID-19 pandemic on this market is expected to reflect a sturdy growth across the analysis period. This is due to the significant acceleration in the adoption of telemedicine/teledermatology during the COVID-19 pandemic. The lockdowns and social distancing rules enforced to control the spread of the coronavirus led to a significant reduction in the number of patient visits/consultations. A survey with dermatologists in the U.S. conducted by the American Association of Dermatology in 2020, reported almost a 43% decline in weekly patient consultations during the lockdown period as compared to the pre-COVID level. In France, there was a 60% decline in specialist consultations and 40% decline in general practitioner (GP) consultations during the lockdown. The decline in patient visits and relaxation of regulations led to a huge uptake of telemedicine among physicians including dermatologists.

The proportion of dermatologists in the U.S., who provided telehealth consultations, almost tripled during the COVID-19 lockdown period. Moreover, increasing initiatives from various private and public organizations to control the spread of the disease will further support market growth. Moreover, regulations were relaxed and coverage for virtual consultations was expanded to ensure that physicians are able to provide care to patients. On March 30, the Centers for Medicare & Medicaid Services (CMS) announced regulatory changes to make it easier for patients in the U.S. to receive medical care through global telemedicine market services. Based on the data published by the American Academy of Dermatology, the proportion of dermatologists in the U.S. that have adopted telehealth has almost tripled from 15% in 2017 due to rapid spread of COVID-19 pandemic.

LATEST TRENDS

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Incorporation of Artificial Intelligence (AI) To Drive The Market Growth

One of the key trends to the growth in this market is incorporation of artificial intelligence. Healthcare organizations are swiftly scaling up telemedicine programs and embracing consultations at a long-distance. Novel advances in deep learning, a form of artificial intelligence (AI), has been implemented while diagnosing cases of melanoma from lesion images through teledermatology. The smartphone industry estimated that next-generation devices and its extensive adoption will put deep learning-capable hardware in the hands of consumers everywhere in the coming decade. For instance, in March 2019, 3Derm and Draper announced a collaboration agreement, under which the organizations created automated abilities for 3Derm’s dermal imaging systems with the application of artificial intelligence to automate prolonged inflammatory skin disease, management such as eczema and psoriasis.

DRIVING FACTORS

Growing Adoption of Telehealth Among Patients and Providers to Propel Market Growth

One of the key drivers to the growth in the market is increasing receptivity among patients and providers. For instance, in a survey conducted by the National Business Group on Health in 2017, around 96% of employers with 500 or more employees in the U.S. said that they will provide insurance coverage for telehealth services by 2019. Hence, the aforementioned factor assisted in market growth across the forecast period.

Increasing Incidence of Skin Conditions is Propelling Growth of the Market

There has been a significant rise in the number of dermatological services due to the growth in the rates of skin conditions such as skin cancer, eczema and psoriasis. For instance, as per the American Association of Dermatology, around 50 million people in the U.S. suffer from acne, 30 million from eczema and 7.5 million from psoriasis. Around 9,500 people in the U.S. are diagnosed with skin cancer every day. Hence, the growing rate of skin disorders will strongly propel teledermatology market growth.

RESTRAINING FACTORS

Poor Reimbursement Facilities In Developing Countries Will Limit Product Adoption

In spite of many countries coming up with reimbursement policies for these services, improper and inadequate reimbursement, especially in developing countries, still possess a major restriction for the adoption of teledermatology. The cost of health care in developing countries has always been a crucial issue. Hence, developing economies have adopted this services in a hurry without proper strategy and planning.  

SEGMENTATION

By Type Analysis

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Services Segment to Grow at Faster Pace during 2020-2027

On the basis of type, the market includes services and products. The services segment held a dominant teledermatology market share in 2019. It substantially reduces the waiting time for consultations and dermatological referrals. This is one of the prominent reasons for increasing number of hospitals providing or deploying teledermatology services, which in turn is favoring the services segment. Owing to the shortage of dermatologists in the U.S., the average waiting time for a dermatological consultation has increased from 28.8 days in 2014 to 32.2 days in 2017, according to Merritt Hawkins Survey. This has resulted in increasing adoption of virtual visits and remote diagnostics services.

The products segment is expected to grow owing to the increasing sales of dermatoscopes that can capture more defined images for correct diagnosis.

By Modality Analysis

Store-And-Forward (SAF) Segment to Witness a Significant Growth During the Forecast Period

The store-and-forward (SAF) segment is expected to witness lucrative growth rate across the forecast period. Teledermatology is largely dependent on SAF modality as the images of the skin become necessary for diagnosis. The increasing use for second opinions and strong government support are the major factors for the growth of this market segment. According to an article published in the journal Telemedicine and e-Health, around 72% of the active non-governmental programs utilized SAF in the U.S in 2017. This is expected to drive the growth of the SAF segment.

The real-time segment held a considerable market share across the forecast period. Large number of video consultations for acne, hair loss, and cosmetic purposes are anticipated to boost the segment.

By End-user Analysis

Homecare Segment Is Anticipated to Witness Significant Growth during the Forecast Period

The homecare segment is expected to witness substantial growth rate across the forecast period. The primary factors responsible for the growth of this segment are significant cost-saving in the health expenditure and rapid adoption of homecare services. Furthermore, telemonitoring and educating the elderly patients, thus eliminating the need to visit hospitals, are projected to augment the segment growth.

The healthcare facilities segment held lions share owing to increasing number of government-funded pilot programs for teledermatology and the use of telecommunications tools to train the doctors in medical colleges.

REGIONAL INSIGHTS

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The market size in North America stood at USD 2.04 billion in 2019. Presence of several large scale players such as DermatologistsOnCall, MDLive, and others, strong government support, and increasing teleconsultations are expected to drive the market in North America. Across all the regions, the COVID-19 pandemic has made a significant acceleration reforms and adoption of telehealth by governments, physicians, health systems, insurance companies, which is expected to continue to drive the market in the forecast period. Even in a country like India, which has been severely lagging till now in relation to telehealth reform, the Ministry of Health and Family Welfare with NITI Aayog released the official guidelines for telemedicine practices in March 2020.

From a regional perspective, China, Singapore and Australia in APAC and Sweden, UK and France in Europe have been the early adopters of telehealth in the region due to a more established regulatory and reimbursement ecosystem.

KEY INDUSTRY PLAYERS

Emergence of teledermatology-specific companies will Rise Market Competition

The market is gradually shifting to fragmentation owing to increasing number of startups and remarkable distribution network of major companies in developed and emerging countries. The major key players operating in the market are MetaOptima, Ksyos, Nihon 3Gen, 3Derm, FirstDerm, Maple and others. 

LIST OF KEY COMPANIES PROFILED:

• 3Gen (U.S.)


• Ksyos (Netherlands)


• MetaOptima (Canada)


• 3Derm (U.S.)


• VigNet Inc. (U.S.)


• Maple (Canada)


• MDLIVE Inc. (U.S.)


• CureSkin (India)


• Ping an Good Doctor (China)


• FirstDerm (U.S.)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• May 2020 – DermTech, announced the launch of its DermTech Pigmented Lesion Assay, a telemedicine solution to enable remote use of its non-invasive adhesive patch test for melanoma detection.


• April  2020 – Sakhiya Skin Clinic in India, announced the launch of cost free skin care treatment facilities via teledermatology platforms.

REPORT COVERAGE

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