Telemedicine technology was never a part of mainstream medical practice a few years back. However, in the last three to five years, the dynamics of the healthcare industry have changed due to a shift to direct-to-consumer telemedicine services, which gained significant attention from both investors and patients.
Furthermore, the advent of the coronavirus pandemic has also significantly bolstered the adoption of telemedicine services, significantly changing both consumer as well as provider practices.
Telemedicine and telehealth have emerged as a significant alternative for healthcare providers to improve care delivery, especially during a crisis. The technology holds the promise to solve some of the most significant problems related to global healthcare systems, such as access to care, cost-effective delivery, and distribution of limited providers.
Telemedicine improves healthcare access by enabling remote patients to obtain clinical services, including emergency and intensive care services. The technology can also help improve health outcomes by enabling patients to get the diagnosis and treatment for a condition at an early stage, thus saving clinical costs. Furthermore, telehealth supported ICUs have also been shown to offer reduced mortality rates, complications, and length of hospital stays.
According to a recent market intelligence study published by BIS Research, the global telemedicine market is estimated at $21.55 billion in 2019 and is expected to reach $123 billion by the end of 2030. The market is expected to grow at a CAGR of 17.66% during the forecast period 2020-2030.
Factors Influencing the Telemedicine Market
The global telemedicine market is influenced by several factors. Some of these factors are the growth drivers responsible for boosting the demand for telemedicine and thus causing market growth. Some of these drivers include:
- Increase in demand for virtually-delivered care: In the initial years, when this concept of telemedicine was launched, the demand for it was low. The adoption of telemedicine and consultation has picked up in the last decade, owing to the benefits such as low cost, accessibility, and reduced waiting time. However, with the spread of COVID-19, there has been a tremendous surge in the demand for telemedicine.
- Increased reimbursement for remote care services: With the adoption of telemedicine services, a surge in reimbursement for remote care services has been witnessed, especially in North America. Owing to the coronavirus pandemic, Medicare beneficiaries will be receiving a wider range of healthcare services from their healthcare providers without the hassle of traveling to a healthcare facility.
- Urgent need to reduce the cost of care: The ever-increasing cost of healthcare services is a major cause for concern, and these costs are expected to continue to increase owing to the growing geriatric population. With the help of telemedicine, it is expected that overall healthcare costs will be reduced by removing the physical boundaries that can help patients to manage their health over time.
- Growing regulatory approvals: Several regulatory agencies, such as the U.S. Food and Drug Administration (FDA), are extensively approving digital health platforms and services to increase patient access, especially during the pandemic conditions, thus increasing competition in the marketplace.
In addition, there are certain market restraints and opportunities that are also likely to influence the market severely. The restraints include reluctance by physicians, lack of information and communications technology infrastructure in rural areas, and data privacy. Further, the opportunities that have the potential to boost the growth of the market include accelerated growth in the post-COVID-19 world, increase in funding for the telehealth start-up ecosystem, and remote monitoring.
Telemedicine Market Segmentation
The segmentation of the global telemedicine market for the purpose of study is done on the basis of component type, technology, medical specialty, mode of delivery, type, and region. The component type of the segment of the telemedicine market is further categorized into hardware, software, and services. In 2019, the hardware segment dominated the market with maximum market share, and it is expected to dominate in terms of market revenue share in the future as well. Based on the technology segment, the telemedicine market is further segmented into real-time video, remote patient monitoring (rpm), store and forward, and others.
The medical specialty segment of the market is sub-segmented into teleradiology, telecardiology, telepathology, tele-ICU, telepsychiatry, teledermatology, and others. The others segment include telestroke, tele-endocrinology, telegynecology, teleophthalmology, and telenephrology. Amongst all the sub-segments of the telemedicine market by medical specialty, teleradiology generated the highest revenue in 2019, followed by the telepsychiatry division. However, by the end of 2030, telecardiology is anticipated to surpass all other medical specialties and attain a double-digit CAGR during the forecast period. Also, telepsychiatry/behavioral health is anticipated to be the second-fastest growing segment during the forecast period.
In terms of mode of delivery, the telemedicine market is categorized into cloud-based and on-premise segments. As of 2019, cloud-based telehealth systems held the largest market share. The segment is anticipated to grow with a double-digit CAGR during the forecast period from 2020 to 2030. The segment is also expected to remain as the leader, accounting for an estimated 60% of the overall market in 2030. The high growth rate and market share for this segment are primarily attributed to the increasing preference of healthcare providers for cloud-based systems.
The telemedicine market is also categorized into two types, tele-hospitals/clinics and tele-homes. As of 2019, the tele-hospitals/clinics segment led the market and accounted for 54.87% of the overall market. However, the tele-home segment is anticipated to account for 55.76% of the overall market in 2030. The tele-home segment is also anticipated to attain a double-digit CAGR during the forecast period, 2020-2030. The demand for this segment is primarily due to a surge in the aging population and the prevalence of chronic diseases in which monitoring of vital signs is essential.
In terms of region, the telemedicine market is divided into North America, Europe, Asia-Pacific, and Rest-of-the-World. As of 2019, North America held the largest market share, followed by Europe. However, during the forecast period, Asia-Pacific is anticipated to be the fastest-growing region. The growth from the Asia-Pacific region is primarily attributed to the acceleration of telemedicine solutions during the COVID-19 pandemic. The crisis significantly removed the barrier for the adoption of digital health tools and changed patient behavior.
Impact of COVID-19 on Telemedicine
COVID-19 has significantly transformed how outpatient care is delivered in healthcare organizations. To reduce the risk of viral transmission to either patients or healthcare workers within their practice, providers across the world deferred elective and preventive visits, such as annual health check-ups. Many hospitals around the world have also converted in-person visits to telemedicine visits.
COVID-19 has significantly bolstered the adoption of telemedicine. It has perhaps changed the ways patients and healthcare providers used to interact with each other. Due to the lockdown and social distancing measures to prevent the risk of infection, people are refraining from going to clinics and healthcare organizations to consult doctors. This situation has significantly increased the adoption of telemedicine among the masses.
Major Players Operating in the Market
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Allscripts Healthcare Solutions, Inc. |
AMD Global Telemedicine, Inc. |
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American Well |
Cisco Systems, Inc. |
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Crossover Health, Inc. |
Doctor On Demand |
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General Electric Company (GE) |
iCliniq |
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Intel Corporation |
International Business Machines Corporation (IBM) |
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Koninklijke Philips N.V. |
MDLIVE, Inc. |
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Poly |
Teladoc Health Inc. |
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VirTrial Inc. |
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Global Telemedicine Market Research
For more information, download a sample of the industry report by BIS Research, which provides critical insights into the market. This comprehensive report draws on research from a mix of primary interviews and secondary research, along with analytical tools that have been used to build the forecast and predictive models.
About the Publisher: BIS Research is a global market intelligence, research and advisory company that focuses on emerging technology trends that are likely to disrupt the market. Its team includes industry veterans, experts, and analysts with diverse backgrounds in consulting, investment banking, government, and academia.
