The global Telehealth Market size was USD 62.22 Billion in 2022 and is expected to register a revenue CAGR of 36.1% during the forecast period.
Increasing incidence of chronic diseases, especially associated with the growing elderly population, growing need for early disease detection and diagnosis using remote health monitoring systems, increasing application of smartphones as well as rapid technological improvements and advances in the field of Telehealth services are expected to drive market revenue growth during the forecast period.
Telehealth is the application of technology and telecommunication networks to provide healthcare to patients who are geographically distant from their doctors. The demand for convenient healthcare, along with the scarcity of many overloaded medical professionals (particularly primary care practitioners), has made telemedicine an increasingly significant aspect of most countries' healthcare infrastructure, particularly in the U.S. According to Philips Future Health Index (FHI), telehealth was chosen by 61% of younger doctors as the preferred digital health technology, surpassing Artificial Intelligence (AI) (53%). For many years, the health care system has been attempting to bridge the gap between the unmet demand & supply side, and telehealth is one plausible alternative. Rising demand for teleconsulting services and a rush of technological advancements, most notably AI and machine learning, are driving the future of telehealth.
Telehealth technology advancements and new trends have also made this strategy more accessible and these advances include communication networks, Augmented or Virtual reality-based wearable devices and technologies, remote patient monitoring systems, as well as 5G & Edge cloud. According to a report from the Centers for Disease Control and Prevention (CDC), telehealth visits increased by 154% in 2020 as compared to 2019. Telehealth solutions such as eHealth, mHealth, and telemedicine deliver treatment to the patient's home, enabling remote screening and triage and assisting in the proactive management of patients in low-cost situations. mHealth (or mobile health) is made accessible through mobile phone or tablet applications that collect bodily parameters and indicators for quantitative inputs from users and deliver this information to the patient. eHealth is a general concept for healthcare practice that is assisted by electronic processes. Electronic health records (EHR), personal health records, lab systems, interoperability, as well as data portability are all examples of eHealth technology. Telemedicine is typically used to supplement primary healthcare services, medical specialties, intensive care units, and emergency departments. Technology improvements have resulted in more sophisticated telehealth visits, which include video conferencing options, wider access to broadband internet, the latest upgraded healthcare monitoring apps on smartphones, and simple ways to collect biometric information of the patients through interoperable Electronic Health Records (EHRs) systems. Telehealth technologies are changing the way healthcare is delivered to disadvantaged communities or individuals who would otherwise face long travel times to receive specialized care and medical assistance, patients with multiple chronic conditions, and anyone trying to balance a variety of responsibilities between family, work, and other social engagements and community activities. This enhanced accessibility of telehealth interactions can be beneficial and help facilitate the continuity of healthcare services, especially among these populations. This is a major factor driving market revenue growth.
People use telehealth services in a variety of ways without even realizing it. In addition to emergency care, the telehealth industry has extended to cover a wide range of clinical care and services, including mental health counseling, virtual consultations with medical specialists, digital analysis of lab or x-ray results, and remote health condition monitoring. Since telehealth services have grown in popularity and demonstrated their efficacy, insurance companies are more willing to cover this sort of health care. For instance, Medicare (U.S.) covers virtual check-ins with patients, e-visits, and mental health condition treatments, resulting in successful health reimbursement plans and insurance coverages, boosting the revenue growth of the market.
Driver: Rapid technological advancements such as the latest upgraded healthcare monitoring apps, and wearable technology in the field of Telehealth services
The telehealth industry has been subjected to rapid technological developments and innovations in healthcare-based services. Increasing usage of smartphones for daily purposes has led to the development of the latest & upgraded healthcare-related apps & services, which include payment workflow integration, video-conferencing, co-pay, digital appointment scheduling, etc. These technological upgrades have now become a standard in every telehealth product today. According to the Commonwealth Fund, the U.S. (50%) and Sweden (58%) had the largest percentage of medical practices that provided four online features in 2019: requesting appointments, seeking prescription refills, accessing test results, and reviewing visit summaries.
Many people are adopting the latest wearable technologies such as fitness trackers, smartwatches, and other types of wearable technology. Wearers of these devices can monitor their own health statistics, such as heart rate, sleep, and mobility. When wearers have simple access to their own health data, it makes sharing it with their primary care physician that are much easier.
The advent of modern digital technologies, smartphones, and computers are providing medical professionals an opportunity to virtually diagnose, treat, and monitor their patients' care. Many people are now receiving remote healthcare services from medical professionals using various telehealth apps. For instance, Teladoc Health is the most well-known telehealth service provider in the U.S. It provides users with 24/7 access to doctors through phone or video chat, allowing them to receive medical care wherever they are and whenever they need it. Teladoc Health Medical Group is made up of over 7,000 licensed care professionals who collaborate on over 100 virtual healthcare clinical protocols to provide evidence-based treatment at scale. On 6 October 2021, Teladoc Health, the global leader in whole-person virtual care, announced that its primary care service, Primary360, has become available to commercial health plans, employers, and other organizations sponsoring healthcare for families in the U.S.
Access to telehealth services has become convenient as more individuals now have access to the Internet and a device that quickly connects, such as a smartphone. With the growth of 5G services, more mobile devices are able to connect without disruption or speed concerns affecting calls. Patients and clinicians can view each other's facial expressions and have more in-depth dialogues about health issues and experiences through video conferencing. In March 2020, the U.S. Department of Health and Human Services (HHS) released a notice authorizing healthcare professionals to conduct virtual consultations and treatment approaches using video discussions like Zoom, Apple Facetime, Hangouts Messenger, Skype, Facebook Messenger, and others. Furthermore, HHS advised medical practitioners to tell patients about the privacy risks associated with third-party apps, and that while using such apps, doctors should enable all encryption and privacy settings.
Restraint: Concerns regarding technical issues, poor broadband connectivity, cybersecurity issues as well as strict and time-consuming regulatory procedures
While telehealth has evident benefits and is expected to increase substantially over the next decade, it still creates certain technical and practical challenges for healthcare practitioners. There is a significant expenditure involved in restructuring IT staff duties and purchasing equipment. Building a good telehealth program requires extensive training. To ensure a solid ROI, medical physicians and other medical staff must be taught about the new technologies. Furthermore, many clinicians are concerned about technical issues related to telemedicine, such as bad broadband connectivity, which could result in patient mismanagement. Cybersecurity concerns are widespread, as the quantity and capabilities of linked medical devices grow, posing new threats to data security. Healthcare monitoring solutions have the potential to be breached or hacked, therefore security and privacy remain a primary concern preventing patients from implementing telehealth services, hindering the market growth. Furthermore, malfunctions or bugs in the hardware, as well as power outages, can affect patients’ health management and diagnosis, putting healthcare operations at risk. Moreover, delaying a planned software update could be much riskier than skipping a doctor's appointment. These are major factors that are expected to hamper market growth. In addition, strict and time-consuming regulatory procedures, as well as a lack of governance standards are key factors hindering the market growth.
During this global epidemic, telehealth is evolving as an effective and long-term alternative for COVID-19 precaution, treatment, and patient healthcare management. Telehealth is connecting the gap between people, physicians, and health systems, allowing everyone, particularly symptomatic patients, to be diagnosed remotely and connect with medical physicians via virtual network interfaces, reducing the spread of the virus to large populations and healthcare workers on the frontlines. According to CDC, the number of telemedicine visits grew by 50% in the first quarter of 2020 compared to the same time in 2019, with a 154% rise in visits noted in surveillance week 13 in 2020 compared to the same period in 2019. CDC is encouraging the general public and medical professionals to embrace telehealth options for non-urgent communications in order to relieve the strain on emergency rooms and clinics. For instance, the Centers for Medicare & Medicaid Services (CMS) expanded access to Medicare telehealth treatments under President Trump's administration, allowing patients to get a broader range of services from their doctors without needing to commute to a hospital or clinic.
These policy adjustments depend on the regulatory flexibility given by the President's declaration of national emergency. Under the 1135 waiver authority and the Coronavirus Preparedness and Response Supplemental Appropriations Act, CMS is increasing these benefits on a provisional and emergency basis. Medicare covered the expenses for office, hospital, and other visits provided via telemedicine across the country, including in patients' homes, under this new waiver from 6 March 2020. Telehealth is now available to a variety of clinicians, including doctors, nurse practitioners, clinical psychologists, and licensed clinical healthcare workers. Furthermore, the HHS Office of Inspector General (OIG) is allowing healthcare providers to cut or waive cost-sharing for telehealth consultations paid for by federal healthcare program.
Based on end-user, the global telehealth market has been segmented into products and services. The product segment is further segmented into hardware and software. The services segment is further fragmented into teleconsulting, telemonitoring, and Tele-education. The services segment is expected to register a rapid revenue growth rate during the forecast period owing to the expanding field of remote patient monitoring. Among these, the tele-consulting segment accounted for a significant revenue share as it has become the core of telehealth services and solutions. Teleconsultations are a secure and effective way of assessing suspected cases and guiding the patient’s diagnosis and treatment, which is reducing the risk of disease contamination and transmission. These teleconsultations allow many critical clinical services to continue operating on a regular and continuous basis, both in preparation for and during a public health emergency. Real-time telehealth (also called live telemedicine) provides ease and accessibility to medical consultations between doctors and patients anywhere. Live telehealth involves two-way communications (phone consultations and video conferencing) that help healthcare providers and patients to connect and communicate in real-time. Real-time telehealth allows for routine medical history checks, basic ocular examinations, psychological evaluations, and even ophthalmic diagnostics. For instance, Apollo Clinic's Tele Clinic project aims to offer world-class health care services to patients' preferred locations and time.
The product segment is expected to grow at a steady CAGR during the forecast period. Among these, the software segment accounted for a significant revenue share. Telehealth software allows for the effective and convenient delivery of healthcare at a distance. Telehealth software is particularly used to deliver clinical services. The greatest telehealth software now enables physicians and patients to communicate via 2-way video or to share images or recorded video. Telehealth consultations, with this visual input and improved connection with the patient, can be a feasible alternative to in-person visits. Many countries like Germany and Norway now reimburse for telehealth services, particularly distant visits through 2-way video. For instance, Doxy.me is a straightforward, safe, and secure telehealth software application that works in any browser. It does not require any software to be downloaded or configured, is simple to use, and can usually connect with Electronic Health Records (EHR) or Practice Management (PM) software.
Based on application, the global telehealth market is segmented into Telepsychiatry, Teleradiology, Telepathology, Teledermatology, Telecardiology, and other applications. According to the National Institute of Mental Health, one out of every five adults in the U.S. suffers from mental illness (or roughly 46.6 million people as of 2017). According to a National Council of Behavioral Health research, there is a nationwide shortage of mental health professionals in 77% of U.S. counties. Telepsychiatry is a technique that employs technological devices to deliver psychiatric care to patients who are geographically distant from a psychiatrist or those who prefer to be comfortable at home. According to the American Psychiatric Association (APA), telepsychiatry encompasses several services, including psychiatric assessments and diagnoses, personalized counseling sessions, family or group therapy, and medication adherence. According to the American Psychological Association, there is significant evidence that telepsychiatry can lead to improved results and high client satisfaction ratings. They showcase the considerable benefit of providing a realistic, convenient, cost-effective, and successful alternative to in-person psychiatric services. Telehealth may increase therapeutic access for those with impairments, financial concerns, transportation issues, and other impediments. This increased accessibility allows therapists to assist more patients. Therapists might earn more money by expanding their potential customer base.
Teleradiology is the transmission of medical patient scans and images that have been electronically digitized. Remote Radiology, often known as Teleradiology, has grown in popularity and utility within many radiology clinics and medical institutes across the U.S. Teleradiology has benefited these businesses as a result of technological improvements, a dearth of experienced radiologists, and the need for better and improved clinical services. Teleradiology allows for near-instant monitoring of medical imaging findings. This allows physician practices and hospitals to provide better patient care by diagnosing and treating patients more quickly and efficiently.
Delivery Mode Outlook:
Based on Mode of Delivery the global telehealth market is segmented into cloud-based/web and call centers. Cloud-based telehealth or the telecloud market accounts for a large share of the telehealth market. Major companies prefer cloud-based services for telehealth as they are safe, secure, and provide easy recovery of patients’ medical records compared to physical data storage, which can be affected by various natural disasters and other physical disturbances. As a result, costs incurred in data storage are reduced as major companies are paying for cloud-based. Furthermore, telehealth can assist healthcare companies to save time by providing physicians and patients with secured, protected, and user-friendly access to patient information and records from anywhere via internet access. Some industries are now using protected HIPAA-compliant cloud-based- based services for the storage of medical records, which provides patients’ access to their test results online 24/7, lowering costs associated with paper records, increasing patient access to their data, and saving time for everyone who needs to access medical records. For instance, Spruce Health is a mobile app that provides an all-in-one HIPAA-compliant healthcare system that consolidates calls, voicemails, texts, secure communications, fax, video, and telemedicine. Telehealth can also help to reduce crowding in hospitals and healthcare facilities, which leads to lower infection rates.
Based on end-user, the global telehealth market has been segmented into healthcare providers, hospitals, and clinics. The healthcare providers segment is expected to grow at a significant CAGR during the forecast period. Healthcare providers can customize treatments for patients using telehealth through an ecosystem of healthcare devices and services. Telehealth provides the ability for rapid patient diagnosis and health management by using real-time data, obtained from medical sensing devices through cloud computing software or server, enabling them to routinely monitor vital signs in patients. Users, patients, and the communication module work cooperatively to ensure an effective and secure transmission.
The market in North America was accounted for the largest revenue share in the global market in 2021. The U.S. is expected to experience significant growth in the Telehealth Market due to strong government regulations and guidelines and the presence of a better-established healthcare framework in the region. On 18 August 2021, Biden-Harris Administration announced significant expenditures to boost telehealth and telemedicine services in rural and remote communities, as well as to extend telehealth innovations and quality across the country. This funding totaling more than USD 19 million, is going to be provided to 36 award recipients by the Health Resources and Services Administration (HRSA) of the United States Department of Health and Human Services (HHS). This aspect is predicted to drive the growth of the market in the region. Teladoc, Doctor on Demand, and MDLive are among the major market participants competing in this region, which is improving R&D capabilities, making essential adjustments as well as investing in new technologies, driving the market revenue growth in this region
The market in Asia is expected to register a steady revenue CAGR over the forecasted period, owing to the rising incidence of cases of chronic diseases and growing demand for sophisticated telehealth services. The market in Asia Pacific is growing due to increased demand for upgraded remote healthcare monitoring healthcare systems among the aging population and patients with chronic conditions. On 12 May 2022, KT Corporation, a South Korean telecommunications leader, announced a collaboration with HurayPositive, a health tech firm, to develop and implement a telehealth service for chronic disease management in Vietnam.
The market in Europe is anticipated to witness moderate revenue growth in the coming years owing to the successful health reimbursement plans, latest product launches, rise in government funding as well as strong and effective government support and initiatives. On 29 May 2020, The EU4Health program was proposed and announced by the European Commission as part of a COVID-19 recovery response package. The effort intends to raise €5.1 billion for the digitalization of the EU health sector and to support preparedness against future cross-border health hazards. Germany's Digital Healthcare Act (DVG) legally enabled physicians in Germany authorization to prescribe digital mobile applications to their customers for the first time on 5 October 2020. Healthcare practitioners can prescribe digital health apps to customers under the legislation, which can be compensated by the country's public health insurance. App developers should demonstrate to the German Federal Institute for Drugs and Medical Devices (BfArM) that their apps can improve consumer care.
Competitive landscape of the global Telehealth Market is moderately consolidated with few key players operating on global and regional levels. Key players are engaged in platform development and strategic alliances to expand their respective portfolios and gain a robust footing in the global market. Major companies in the global market report include Teladoc Health, Inc., MDLIVE, Doctor On Demand by Included Health, Inc., American Well Corporation, iCliniQ, FOLX Health, PlushCare, BetterHelp, and Maven Clinic Co.
Segments Covered in the report
This report offers historical data and forecasts revenue growth at a global, regional, and country-level, and provides analysis of market trends in each of sub-segments from 2019 to 2032. For the purpose of this report, Reports and Data has segmented the global telehealth market based on product type, application, end-user, and region:
Telehealth Market Report Scope
Segments covered By Component Type Outlook, Application Outlook, Delivery Mode Outlook, End-use Outlook, Regional Outlook
By Component Type Outlook
By Application Outlook
By Delivery Mode Outlook
By End-use Outlook Healthcare Providers