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

The U.S. telemedicine market size was valued at USD 38.04 billion in 2022 and is projected to grow at a CAGR of 15.1% during the forecast period. 

In recent years, the U.S. has witnessed an exponential demand for virtual care in the management of chronic diseases. This, along with the recent outbreak of the COVID-19 pandemic, telemedicine has demonstrated its utility in managing population suffering from infectious diseases. This technology has a high potential to revolutionize the delivery of healthcare services by providing a real-time view of patient’s critical parameters to healthcare providers and reducing the burden of costs on the patients.

The utility of telemedicine is vital in the context of various epidemics and for combating infectious diseases. By implementing these solutions, healthcare providers can provide care from a distance by identifying disease symptoms and ensuring the situation is controlled. This allows for early diagnosis and treatment, which in turn reduces the burden on the healthcare system.

The COVID-19 pandemic resulted in increased use of these services among U.S. patients. The Centers for Medicare and Medicaid Services (CMS) expanded coverage under Medicare for telehealth visits to facilitate the patients’ and physicians' access to telemedicine.

LATEST TRENDS

Expanding Role of Artificial Intelligence (AI) in Telemedicine Identified as a Significant Market Trend

One of the recent U.S. telemedicine market trends includes an expanding role of artificial intelligence in telemedicine. There have been several technological advancements in devices, with the increasing importance of the incorporation of artificial intelligence and machine learning. The use of machine learning and artificial intelligence in the implementation of telehealth services, analyzing patient data, integrating wearables, and other connected devices into RPM systems is one of the latest trends in the U.S. market.

Furthermore, the introduction of artificial Intelligence-powered booths in the country also expanded the role of AI in delivering healthcare virtually.

DRIVING FACTORS

Cost Benefits of Telemedicine to Boost the Demand for Products & Services 

One of the key factors driving the U.S. telemedicine market growth is the economic benefits of using these products and services for healthcare management. The use of this technology has consistently demonstrated a considerable impact in the reduction of potentially avoidable admissions to the emergency department and a reduction in unnecessary hospital admissions and readmissions.

The adoption of teleconsultations and digital technologies is proving helpful in addressing the issue of high healthcare management costs. Teleconsultations offer low-cost services and also help in the reduction of the work burden on healthcare professionals. The confluence of these factors is anticipated to boost market growth.

• For instance, as per the study published in January 2023 in NCBI, between April 1, 2020, and June 30, 2021, the total cost savings ranged from USD 147.4 to USD 186.1 per visit. This study was based on the completed telemedicine visits at Moffitt Cancer Center (MCC).

As per the survey conducted in July 2020, the adoption of telemedicine before COVID-19 pandemic was comparatively lower (4.7%), which increased to 18.7% after the pandemic.

RESTRAINING FACTORS

Technological Barriers in Rural Areas to Hinder Market Growth

Despite the high potential of this technology, infrastructural and technological barriers in rural areas are hampering the adoption of these products and services amongst the end-users, in turn limiting the market growth up to a certain extent. Furthermore, the lack of the availability of high-speed internet with high bandwidth, storage integration, and data transmission is another factor impeding the market growth.

• For instance, according to an article published in the Journal of Medicine, Law, and Ethics in December 2021, around 24 million individuals in the U.S. live in digital deserts, that means they do not have broadband access. This includes 1.4 million living on Tribal lands and 19 million people in rural communities.

SEGMENTATION

By Type Analysis

By type, the market is segmented into products and services.

The services segment dominated the market in 2022. This is attributable to the increasing number of healthcare settings adoption and providing telemedicine services, rising government reforms for reimbursement, and the growing trend for outsourcing services, such as teleradiology in the U.S.

Whereas, the product segment is expected to witness significant growth during the forecast period. This growth is attributed to the rising technological advancements and new product launches for telemedicine.

By Application Analysis

By application, the market is categorized into teleradiology, telepathology, telecardiology, telepsychiatry, teledermatology, and others.

The teleradiology segment held the highest market share in 2022. The segment’s growth was attributed to the advancements in cloud based technology, integration of artificial intelligence in image analysis, and the dearth of radiologists in rural areas leading to increasing usage of teleradiology services.

The telepsychiatry segment is anticipated to witness strong growth during the projected period. This growth is majorly due to the high adoption of digital health products and services for mental health, especially during the COVID-19 pandemic.

By Modality Analysis

Based on modality, the market is divided into real-time, store-and-forward, and others.

The store-and-forward segment held the leading market position in 2022. The use of store-and-forward technology is employed in specialties, such as dermatology, pathology, and radiology. The growing adoption of telemedicine in these fields is expected to drive the growth of the store-and-forward segment.

The real-time segment is expected to witness strong growth during the projected period. The rising adoption of teleconsultation is driving the segment growth.

• For instance, according to an article published on HHS.gov, the proportion of real-time visits conducted through telehealth witnessed a significant rise, increasing from 0.1% in February 2020 to 43% in April 2020.

By End User Analysis

By end user, the market is classified into healthcare facilities, homecare, and others.

The healthcare facilities segment held the largest U.S. telemedicine market share in 2022. Key factors supplementing the segment’s dominance include the increasing number of virtual consultation service providers, increasing government initiatives for the adoption of virtual medicine technology among healthcare providers, and the use of telecommunication tools to train doctors in medical colleges. For instance, in March 2020, The Federal Communications Commission (FCC) launched two programs to assist eligible healthcare providers in procuring and implementing telehealth technology. These programs aim to enhance telehealth outcomes in the long run.

The homecare settings segment is estimated to witness the fastest growth during the forecast period. The growth of the segment is attributed to the increasing geriatric population and increasing prevalence of chronic diseases among the U.S. population.

KEY INDUSTRY PLAYERS

The market is moderately fragmented, with increasing competition due to the growing number of new entrants. Some noticeable players operating in the market include Teladoc Health Inc., American Well, Ping An Good Doctor, and GlobalMed. A strong customer base, a well-established network to offer various services, and a strong focus on strategic collaborations to expand market presence are some of the strategies adopted by these players to maintain their market position.

Some other key players operating in the market with a significant market presence include Doctor on Demand Inc., MeMD, MDLIVE Inc., Encounter Telehealth, and others. The growing adoption of different strategies, including partnerships & collaborations and product advancements, to boost the expansion of their market share.

LIST OF KEY COMPANIES PROFILED:

• American Well (U.S.)


• MDLIVE Inc. (U.S)


• Teladoc Health Inc. (U.S.)


• Doctor on Demand Inc. (U.S.)


• MeMD (U.S.)


• Encounter Telehealth (U.S.)


• Global Med (U.S.)


• SnapMD (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2023 – Philips and CoxHealth collaborated for the co-development of an in-house virtual care solution.


• April 2022 – Andor Health and Medical University of South Carolina (MUSC Health) partnered for the implementation of an AI tool to improve virtual health services.


• October 2021 – Mercer joined IMPACT’s virtual first care collaboration to identify risks and address gaps in virtual healthcare.

REPORT COVERAGE

An Infographic Representation of U.S. Telemedicine Market

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The market report provides a detailed analysis of the market. It focuses on key market segments such as type, application, modality, and end user. Additionally, it includes detailed insights on market dynamics, new product launches, key industry developments such as mergers, partnerships, & acquisitions, and the impact of COVID-19 on the market. Besides this, the report also offers insights into technological advancements in the market and highlights key industry dynamics. The report also provides the competitive landscape of the key companies at the U.S. level.

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