The global telemedicine market size was USD 68.61 Billion in 2021 and is expected to register a revenue CAGR of 26.3% during the forecast period. Increasing need for treatment and remote diagnosis of various chronic diseases such as diabetes, cancer, and heart diseases, among others, growing concerns regarding Hospital Acquired Infections (HAI), technological advancements in telehealth and telecommunication industries such as introduction of chatbots, and incorporation of Artificial Intelligence (AI) among others are some of the key factors expected to drive market revenue growth. In addition, rising awareness about benefits of telemedicine such as cost-effectiveness and increasing aids and grants by governments of various countries across the globe to encourage telemedicine industry, especially in pandemic and post-pandemic times are some other factors expected to drive revenue growth of the market over the forecast period.
On 16 March 2022, US President Biden signed the Consolidated Appropriations Act of 2022 into law which covers various measures that extend the Medicare telehealth permits and flexibilities, which were adopted as a result of COVID-19 outbreak to improve access to care, for a further 151 days after the Public Health Emergency (PHE) ends, roughly a five-month span.
In March 2020, the US Department of Health and Human Services (HHS) issued a notice allowing healthcare personnel to use video conversations through Zoom, Skype, Apple Facetime, Hangouts Messenger, and Facebook Messenger, among others to provide virtual consultations and therapeutic solutions. Additionally, Department of Health and Human Services also suggested healthcare practitioners inform patients regarding privacy risks while using these third-party applications and that while using such apps, doctors should activate all encryption and privacy options. Implementation of such regulations is driving adoption of telemedicine globally.
Telemedicine services are being widely used, especially since COVID-19 pandemic. Telemedicine industry includes a wide range of clinical care and services, including mental health counselling, virtual consultations with medical specialists, digital interpretation of lab or x-ray results, and remote health condition monitoring, in addition to emergency care. Insurance companies are increasingly extending their support to this type of health care. Adoption of telemedicine services have increased and have proven to be efficient, due to which the trend of using these services is expected to gain traction in the years to come. For example, Medicare, which is a government national health insurance program in the United States, covers virtual check-ins with patients, e-visits, and mental health condition treatments, resulting in successful health reimbursement schemes and insurance coverages.
Increasing acceptance of telehealth and telemedicine technology for personal medical care among individuals globally is supporting market revenue growth to a significant extent. For instance, Telehealth patient monitoring for diabetic retinopathy reduced patient visits by 14,000 visits, according to the Los Angeles Country Health Services. Blue Cross and Blue Shield of North Carolina made reimbursement in telemedicine industry and enabled doctor visits through video conferencing and phone calls in the same manner as face-to-face sessions are conducted. They planned this program till March 2020; however, later they extended it till 30 September 2022 as a result of increased demand and need.
Driver: Rise in number of chronic ailments arising from the need for virtual medical consultations and rapid technological advancements
Prevalence of various chronic diseases such as cardiac arrest, cancer, respiratory disorders, injuries, diabetes, Alzheimer's disease, influenza and pneumonia, kidney disease, and septicemia, among others are rapidly increasing, due to which the need for virtual medical consultations and treatment is also gaining traction. In addition, increasing awareness among patients and their family members to prevent themselves from Hospital Acquired Infections (HAI) such as Bloodstream Infection (BSI), pneumonia, Urinary Tract Infection (UTI), and Surgical Site Infection (SSI) is another major factor driving telemedicine market revenue growth.
Moreover, there has been a significant cost reduction after deployment of telemedicine for both patients and healthcare facilities. As per the National Library of Medicine, when compared to traditional in-home care plan, telehealth saves USD 361 per patient or USD 13,713 per year. It also saves time and service can be provided at ease from their homes. Technological advancements such as artificial intelligence, Machine Learning (ML), Internet of Things (IoT), introduction of chatbots, and presenting healthcare setup through an organized application can ease the entire medical process. Increased use of smartphones globally for everyday tasks is resulting in creation of new and improved healthcare-related apps and services, such as payment workflow integration, video conferencing, co-pay, digital appointment scheduling, and others. According to the Commonwealth Fund, in 2022, the United States (50%) and Sweden (58%) had the highest percentage of medical practices offering four online capabilities such as scheduling appointments, requesting prescription refills, accessing test results, and reviewing visit summaries. The above mentioned factors are creating high demand for digital medical platforms and are expected to drive market revenue growth over the forecast period.
Restraint: Rapid increase in telehealth care scams and frauds
Number of telehealth-care frauds is significantly increasing and has become a serious concern for both patients and healthcare personnel as unauthorized sources can practice false claims or a doctor’s name and account-related information can be used to receive money from patients and insurance companies. Poor data-centric security solutions is a major factor restraining telemedicine market revenue growth.
Telemedicine and telehealth industries are completely dependent on Internet connectivity and there are many developing and underdeveloped countries, especially in Asia and Africa which lack proper connectivity. Hence, they do not even have the basic requirement to avail of virtual medical consultation and treatment. Poor internet connection is a major factor impacting market revenue growth over the forecast period. As healthcare monitoring solutions have the potential to be exploited or hacked, consumers' concerns about security and privacy continue to impede them from using telemedicine technology, limiting revenue growth of telemedicine market. Furthermore, hardware failures or bugs, as well as power outages, can impact negatively patient health monitoring and diagnosis, threatening healthcare operations. Such technological barriers are a major factor limiting revenue growth of the telemedicine market.
Unlike most industries, telemedicine market registered robust revenue growth during Covid 19 pandemic. As a result of social distancing and similar norms and regulations telemedicine market is expected to continue to gain traction during pandemic and post-pandemic period. Remote medical consultations and healthcare services are being preferred by individuals and virtual visits have emerged as the new normal. MHealth, and ePharmacies are certain sectors of telemedicine industry that gained traction during pandemic and contributed significantly to market revenue growth in future. For instance, the European National Institute for Health and Disability Insurance initiated a pilot study in December 2020 to monitor COVID-19 patients remotely before and during their hospitalization as part of an overall medical approach supported by digital technology. Increasing government initiatives to encourage telehealth and telemedicine industry such as in March 2020, Federal Communications Commission launched a program to aid healthcare facilities in the deployment of telemedicine in the country. Such stringent government norms and initiatives is supporting telemedicine market revenue growth over the forecast period.
Based on end-use, the global telemedicine market is segmented into hospitals and healthcare facilities, homecare, mhealth, and others. The mhealth segment accounted for the largest revenue share in 2021. For transferring patient medical information, mhealth makes use of electronic technologies such as video conferencing, emails, and smartphones. This technology has aided healthcare providers by effectively extending their access to remote places. In addition, it is also convenient for elderly people and physically-disabled persons or the ones suffering from chronic illness. Moreover, costs get minimized for hospitals (infrastructure development and overhead costs) and for patients (transportation and front desk costs) as well. Increasing use of mobile phones, growing awareness regarding infections (especially after the Covid 19 outbreak), and a shift in individual’s preference from conventional to modern mobile healthcare platforms are a few major factors driving revenue growth of the segment. Furthermore, mergers and collaborations of private equities with healthcare firms are another cause boosting revenue growth. For instance, on 18 June 2020, when Covid 19 was at its peak Philips joined with the American Telemedicine Association (ATA) to support development and usage of telemedicine services to a significant extent.
Based on application, the global telemedicine market is segmented into teleradiology, telepathology, teledermatology, telecardiology, telepsychiatry, and other applications. Telecardiology provides Primary Care Practitioners (PCPs) with accurate diagnoses hence increasing their confidence to treat cardiac patients with more confidence and conviction. This online therapeutic solution is also used for determination and treatment of pediatric cardiovascular disease, chronic sudden cardiac death, and life-threatening events such as myocardial infarctions. Medical consulting time is reduced, for instance, CT scans and MRIs take a longer time, but with telecardiology, it becomes faster. Also, in cases of high-risk instances such as emergency or trauma or some severe neurological injury that needs immediate treatment and diagnosis, teleradiology is the best available option. Other factors including rising frequency of chronic diseases, growing Research & Development (R&D) efforts connected to eHealth, and technological advancements in the healthcare business are expected to drive revenue growth of the segment.
Teledermatology segment is gaining traction over the forecast period owing to lack of dermatologists and increasing rate of skin diseases. For instance, as per the Reports of Walk-in Dermatologists Management LLC, there is an availability of only 3.3 dermatologists for every 100,000 persons. Furthermore, in March 2020, Dermatology Online Journal conducted a survey in which 90% of patients preferred telehealth services even after Covid 19. Also, 80% of patients recommended virtual medical services or telemedicine services to others.
Mode of Delivery Outlook:
Based on mode of delivery, the global telemedicine market is segmented into cloud-based, and on-premise. Cloud-based telemedicine or telecloud segment accounted for largest revenue share in 2021. Factors such as increased bandwidth by extending telemedicine services, especially focusing on rural health populations, and cost incurred in data storage is also reduced as companies are paying only for the cloud. Recovery of patients’ medical documents is easier as compared to physical storage which can be affected by various natural disasters and other physical disturbances. Outbreak of Covid 19 pandemic was another major factor that made remote monitoring and providing therapeutic solutions or cloud-based telemedicine the only available option. For instance, in March 2020, the Italian Doctors Association, over 50 doctors died while treating Covid 19 patients which showed the necessity of cloud-based telemedicine or virtual visits. Most people prefer cloud-based telemedicine over conventional ways.
On-premise segment is expected to register a steady revenue growth rate over the forecast period. Factors such as data security providing entire control over data to authorized individuals is expected to drive revenue growth of the segment over the forecast period. Moreover, certain populations are rigid in their ways, especially in underdeveloped and developing countries, and prefer face-to-face medical consultation and clinical care and other conventional ways. Such behavioral traits are boosting revenue growth of on-premise segment.
Based on regional analysis, the telemedicine market in North America accounted for the largest revenue share in 2021 owing to factors such as rapidly increasing adoption of technologically advanced healthcare platforms, increasing disability and mortality rate in North America, and need for virtual consultations for disease monitoring and data reports. For instance, a report by National Center for Chronic Disease Prevention and Health Promotion states that six in 10 adults suffer from a chronic disease and 76% of hospitals use telemedicine to communicate with patients. Major market players such as Teladoc, Doctor on Demand, and MDLive are operating their businesses in this region, and this coupled with increasing investments in R&D activities by major players, are expected to support revenue growth of the market in this region. In addition, supportive government norms and regulations with regards to remote medical monitoring is another major factor driving North America market revenue growth. For instance, adoption of the Affordable Care Act (ACA) aims at providing immediate and remote healthcare accessible to all. The Centers for Medicare & Medicaid Services (CMS), also expanded access to medicare telemedicine services, allowing users to receive a greater range of services from health practitioners without having to travel to a medical facility. From 6 March 2020, medicare is paying for medical, offices, and other consultations for Covid-19 patients through telemedicine in the country. Such initiatives are expected to support North America market revenue growth during in the forecast period.
Market in Asia Pacific is expected to register faster revenue growth rate over the forecast period due to prevalence of various chronic diseases. Increasing healthcare costs, rising population majorly in countries such as India and China, and lack of physicians to cater to large number of patients are other major factors driving revenue growth of the telemedicine market in this region. In November 2022, The Royal Melbourne Institute of Technology (RMIT) and the European Connected Health Alliance (ECHAlliance) introduced an innovative digital health ecosystem in Australia that aimed at strengthening interaction and connections among patients, researchers, technology developers, policy experts, healthcare professionals, and the community. Moreover, increasing need for virtual consultation and report analysis since COVID 19 outbreak is expected to continue to drive Asia Pacific market revenue growth in the upcoming years.
The Europe telemedicine market is expected to account for significantly large revenue share in the global market during the forecast period, due to increasing prevalence of various chronic diseases and disorders and rising awareness regarding benefits of telemedicine among patients and their families. As per the reports of the Global Cancer Statistics 2020, Europe accounted for 22.8% of all cancer diagnoses and 19.6% of cancer deaths globally. Continuous technological advancements and new product launches to cater to ongoing demand is also expected to drive Europe market revenue growth. In August 2020 for instance, a new digital healthcare firm named HealthHero was launched targeting the Europe market. The European Commission proposed and announced the EU4Health program as part of a COVID-19 recovery response package on May 29, 2020. The goal of the project is to raise €5.1 Billion (USD 5.46 Billion) for digitalization of Europe's health sector and to promote future cross-border health preparedness. On October 5, 2020, Germany's Digital Healthcare Act (DVG) made it lawful for physicians to prescribe digital mobile applications to their patients for the first time. Under the legislation, healthcare professionals can recommend digital health apps to customers, which can be reimbursed by the country's national health insurance. App makers must show that their apps can improve consumer care to the German Federal Institute for Drugs and Medical Devices (BfArM). Furthermore, integration of healthcare facilities with new and more advanced technologies such as Internet of Things (IoT), Artificial Intelligence (AI), and data analytics is expected to continue to support revenue growth of the Europe market.
Competitive landscape of the global telemedicine market is fragmented and highly competitive with major players operating on global and regional levels. Key players are engaged in bettering R&D programs and introducing better products at lower prices and forming strategic alliances to expand their market reach. Partnership and collaborations, agreements, new product launches, regional expansions, mergers, and acquisitions are among other growth tactics used by the leading companies to expand their market presence. The market scenario is changing, and the market is expected to be more fragmented and highly competitive in the days to come, as medium and small-scale telemedicine companies are entering the regional and global market with funding from private equity firms. Some major companies in the global market report include Teladoc Health, MDLive, Doctor on Demand, IcliniQ, Amwell, MeMD, Plushcare, Health Tap, Virtu Well, and United Health Group.
On 28 July 2021, Amwell invested USD 320 million acquired two digital health startups to expand its offerings beyond telehealth consultations. SilverCloud Health, a digital mental health platform, and Conversa Health, which provides automated virtual healthcare, are both being acquired by the virtual care company. According to company executives, the combination of the two companies' technology will help Amwell stand out from other telehealth providers.
Segments Covered in the report
This report offers historical data and forecasts revenue growth at a global, regional, and country levels, and provides analysis of market trends in each segment, sub-segment, region, and country from 2022 to 2030. For the purpose of this report, Reports and Data has segmented the global telemedicine market based on end-use, application, mode of delivery, and region:
Telemedicine Market Report Scope
Segments covered By End-use Outlook, Application Outlook, Mode of Delivery Outlook, Regional Outlook
By End-use Outlook
Hospitals and Healthcare Facilities
By Application Outlook
By Mode of Delivery Outlook
Middle East & Africa