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, 2021-2028

The global teledermatology market size was USD 10.80 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with market witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, this market will exhibit a stellar growth of 123.5% in 2020. The market is projected to grow from USD 14.32 billion in 2021 to USD 68.54 billion in 2028 at a CAGR of 25.1% in the 2021-2028 period. The sudden fall in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Teledermatology uses several communication technologies to expand the reach of a dermatologist to those in need of their specialized knowledge. Teledermatology is primarily store-and-forward (asynchronous) and includes storage of images on digital devices such as smartphones and computers and then transferred electronically to a referring dermatologist. The market is poised to experience lucrative growth across the forecast period due to the increasing rates of skin conditions driven by the aging population and shortage of dermatologists. This leads to a long waiting time for patients to receive consultations. For instance, in August 2020, according to Walk-in Dermatology Management, LLC, for every 100,000 people, there are only 3.3 dermatologists available to treat them.

Teleconsultations, in general, are 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, In May 2020, DermTech announced its DermTech Pigmented Lesion Assay, a telemedicine solution to enable remote use of its non-invasive adhesive patch test for melanoma detection.

Key players such as Curology and Apostrophe have adopted unique business models. Patients receive online consultations through online platforms with dermatologists, personalized treatment plans, and skincare products for monthly fees as low as USD 20.

Increased Adoption of Teledermatology to Bolster Industry Progress

The impact of the COVID-19 pandemic on the 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 lockdown and social distancing rules enforced to control the spread of the coronavirus, which, in turn, 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 a 43% decline in weekly patient consultations during the lockdown period compared to the pre-COVID level. There was a 60% decline in specialist consultations in France and a 40% decline in general practitioner (GP) consultations during the lockdown. The decline in inpatient visits and relaxation of regulations led to a massive uptake of telemedicine among physicians, including dermatologists. Additionally, according to Dermatology online journal, in December 2020, a questionnaire completed by teledermatology patients during the COVID-19 pandemic specified that more than 90% of patients would use telehealth services again, and around 80% of patients would recommend the services to others.

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. Furthermore, regulations were relaxed, and coverage for virtual consultations was expanded to ensure physicians could 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 telemedicine services

LATEST TRENDS

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Incorporation of Artificial Intelligence (AI) To Drive Market Growth

One of the key trends to the growth in the market is the 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), have been implemented while diagnosing cases of melanoma from lesion images through teledermatology. The smartphone industry estimated that next-generation devices and their extensive adoption would put deep learning-capable hardware in the hands of consumers everywhere in the coming decade. For instance, in May 2021, Google announced a dermatology tool powered by artificial intelligence, which will assist users in understanding issues related to their skin, hair, and other areas.

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 example, 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 they would provide insurance coverage for telehealth services by 2019. Also, in November 2020, One Touch Telehealth announced the launch of a new software release, Version 5.0; as the rise in video telehealth during a pandemic, virtual care is suitable for any user type in any healthcare setting. This will help in the expansion of the operational efficiencies within telehealth workflows. Hence, the aforementioned factor assisted in market growth across the forecast period.

Increasing Incidence of Skin Conditions is Propelling Market Growth

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 growth rate of skin disorders will propel the teledermatology market growth.

RESTRAINING FACTORS

Poor Reimbursement Facilities in Developing Countries Will Limit Product Adoption

Despite many countries coming up with reimbursement policies for teledermatology services, improper and inadequate reimbursement, especially in developing countries, still possess a significant restriction for the adoption of these services. The cost of health care in developing countries has always been a crucial issue. Hence, developing economies have adopted these 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 2021-2028

On the basis of type, the market includes services and products. The services segment held a dominant share in 2020. It considerably minimizes the referrals and patients do not have to wait in long ques to get treated. Owing to the shortage of dermatologists in the U.S., the average waiting time for a consultation has increased from 28.8 days in 2014 to 32.2 days in 2017, according to the Merritt Hawkins Survey. This has resulted in the increasing adoption of virtual visits in a number of hospitals further favoring the services segment.

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 Significant Growth during Forecast Period

The store-and-forward (SAF) segment is expected to witness a lucrative growth rate across the forecast period. Teledermatology is largely dependent on the SAF modality as the images of the skin become necessary for diagnosis. The increasing use of teledermatology for second opinions and strong government support are the major factors for the segment's growth. 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 teledermatology 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 Observe Significant Growth during Forecast Period

The homecare segment is expected to witness a substantial growth rate across the study period. Key factors accountable 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 make hospital visits, are projected to augment the segment growth.

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

REGIONAL INSIGHTS

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North America stood at USD 4.62 billion in 2020. Presence of several large-scale players such as DermatologistsOnCall, MDLive, strong government backing, and increasing teleconsultations are expected to drive the market in North America. Across all the regions, the COVID-19 pandemic has made 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 in telehealth reform, the Ministry of Health and Family Welfare with NITI Aayog released the official guidelines for telemedicine practices in March 2020. Furthermore, in May 2020, according to Mckinsey, there is a considerable rise in the use of telehealth services in the U.S., consumer adoption of telehealth services has risen by 46% in 2020 compared to 11% in the previous year to avoid contact to COVID-19.

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

KEY INDUSTRY PLAYERS

Emergence of Teledermatology-specific Companies will Raise Market Competition

The market is gradually shifting to fragmentation due to the increasing number of startups and the great 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)s


• Ping an Good Doctor (China)


• FirstDerm (U.S.)

KEY INDUSTRY DEVELOPMENTS:

June 2021 - Hims & Hers announced the acquisition of dermatology startup Apostrophe. The acquisition will help company to augment its scale in dermatology and to provide consumers with advanced and personalized dermatology treatments faster.

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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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product launches, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments.

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