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The telemedicine market was valued at approximately USD 38,289 million in 2020, and it is expected to witness a revenue of USD 168,396 million in 2026, with a CAGR of 28% over the forecast period, 2021-2026.
Telehealth has emerged as an essential component of healthcare during the COVID-19 pandemic. According to the research article published in JCO Global Oncology-An American Society of Clinical OncologyJournal, 2020, during the SARS-CoV-2 pandemic, physical distancing was put in place to minimize the spread of coronavirus disease. This resulted in the adoption of most of the outpatient oncology appointments to telemedicine. Though the telemedicine services were integrated into most of the healthcare systems even before the onset of the pandemic, the services were extensively used only during the COVID-19 crisis, which is majorly attributed to a lack of in-person visits and limitations and restrictions on travel, which encouraged clinicians to adapt to telemedicine-based consultations even more during the COVID-19. Thus, the COVID-19 crisis is expected to have a significant positive impact on the growth of the telemedicine market globally.
The major factors for the growth of the telemedicine market include the rising healthcare costs, technological innovations, increasing remote patient monitoring, and growing burden of chronic diseases.
Healthcare costs are rising across the world. The primary driver for rising healthcare costs is increased utilization of healthcare services, which results in the growth of consumer demand for innovative and new techniques, lifestyle factors, etc. Furthermore, it can also be attributed to the cost-shifting from government programs to private payers. Low reimbursement rates have increased the cost-shifting burden on hospitals and doctors, who, in turn, charge much higher rates for the same facilities to private payers, which ultimately affects the health insurance rates. As per National Health Expenditure Projections 2018-2027, national health spending is projected to grow at an average rate of 5.5% per year for 2018-2027 and reach nearly USD 6.0 trillion by 2027 in the United States.
Telehealth solutions have demonstrated the ability to enhance health outcomes and reduce costs. Telemedicine saves the patients’, providers’, and payers’ money when compared to the traditional approaches. Telemedicine has been decreasing the cost of healthcare, while increasing efficiency through improved management of chronic diseases, reduced travel times, shared health professional staffing, and fewer and shorter hospital stays. Thus, owing to all the aforementioned factors, the market is expected to witness high growth over the forecast period.
Scope of the Report
As per the scope of this report, telemedicine services and systems have made the most progress in the remote management of post-acute care patients with chronic conditions. Telemedicine is the remote delivery of healthcare services, such as consultations over telecommunication or teleconference, and it allows healthcare professionals to evaluate, diagnose, and treat patients. The telemedicine market is segmented by type, component, application, mode of delivery, end user, and geography. By type, the market is segmented into telehospitals, telehomes, and mHealth (mobile health)). By component, the market is segmented into products (hardware, software, and other components) and services (tele-consulting, tele-monitoring, and tele-education). By application, the market is segmented into telepathology, telecardiology, teleradiology, teledermatology, telepsychiatry, and other services. By mode of delivery, the market is segmented into on-premise delivery and cloud-based delivery. By end user, the market is segmented into providers, payers, patients, and other end users. By geography, the market is segmented into North America, Europe, Asia-Pacific, Middle-East and Africa, and South America. The report offers values (in USD million) for the above segments.
|mHealth (Mobile Health)|
|By Mode of Delivery|
|By End User|
|Other End Users|
Key Market Trends
The Telehomes Segment is Expected to be the Fastest Growing Segment over the Forecast Period
The rise of chronic diseases is a global concern that puts a strain on healthcare resources. Tele-homecare is an innovative way to provide care, monitor a patient, and provide information using the latest technology in telecommunication. Monitoring allows early identification of diseases, preventing chronic conditions.
During the COVID-19 pandemic, tele-homecare has been one of the best options for seeking medical advice at the comfort of the patient's home. According to the research article published in JMIR Pediatrics and Parenting, 2020, improvement in medication adherence among adolescent transplant recipients was observed who were actively participating in the home-based telehealth video conference during the COVID-19 pandemic. Hence, the COVID-19 pandemic is expected to boost the segment growth.
Tele-homecare programs are also initiated in countries, including the whole system demonstrator (WSD) project in the United Kingdom, veterans’ health segmentation (VHA) project in the United States, and the TELEKART program in Denmark. These tele-homecare programs manage, reduce, and avoid chronic diseases by remote monitoring of patients. The universities are collaborating well to promote tele-homecare, for instance, the University of Ottawa Heart Institute has been making good progress in telehome monitoring technology, which offers services for various regions under the regional home monitoring program for cardiac patients. Telehome services provide an opportunity for significant savings for patients and hospitals. Thus, the increasing adoption rate of tele-homecare services is directly affecting the growth of the telemedicine market.
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North America Accounted for the Largest Share in the Telemedicine Market and is Expected to Dominate the Market over the Forecast Period
Telemedicine is a rapidly growing component of healthcare in the United States owing to the growing burden of chronic diseases and the high adoption of advanced healthcare technologies in the country. The adoption of telemedicine has improved care management, patients’ quality of life, and reduced healthcare spending.
The rising demand for mobile technologies, rising adoption of home care by patients, and reduction in hospital visits are expected to propel the growth of the market over the forecast period. Healthcare in the United States is experiencing positive trends, with the emergence of telemedicine applications that help Americans to be active in personal health management, especially during the current COVID-19 pandemic. Smartphones and the presence of mobile technology make it possible to use both clinical and lifestyle applications to help, educate, and change health behaviors.
Also, the initiatives by the government are expected to drive the market. For instance, under the 1135 waiver authority and Coronavirus Preparedness and Response Supplemental Appropriations Act, the Centers for Medicare & Medicaid Services (CMS) has broadened access to Medicare telehealth services so that beneficiaries can receive a wider range of services from their doctors without having to travel to a healthcare facility. Under this new waiver, Medicare can pay for office, hospital, and other visits furnished via telehealth across the country, including in patient’s places of residence starting March 6, 2020.
Additionally, the high concentration of major players in the United States and increasing product launches and other strategic alliances are expected to boost the studied market. Thus, given the aforementioned factors, the telemedicine market is expected to grow significantly in North America over the forecast period.
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The market studied is moderately consolidated, owing to the presence of a few large market players. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by introducing new products with fewer prices. Companies like Allscripts Healthcare Solutions Inc., BioTelemetry, Medtronic, and Koninklijke Philips NV hold significant market shares in the telemedicine market. The major players are involved in various strategic alliances to expand their product portfolios. For instance, in January 2020, Teladoc Health entered an agreement to acquire InTouch Health to boost Teladoc’s telemedicine line and extend its presence across hospitals and health systems.
In December 2020, BioTelemetry Inc. entered a definitive merger agreement with Royal Philips.
In November 2020, Morneau Shepell launched its first unified telemedicine solution in the United States.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Technological Innovations Resulting in Enhanced Quality of Care
4.2.2 Increasing Remote Patient Monitoring and Rise in Patient Acceptance
4.2.3 Growing Burden of Chronic Diseases
4.3 Market Restraints
4.3.1 Legal and Reimbursement Issues
4.3.2 High Initial Capital Requirements and Lack of Physician Support
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value)
5.1 By Type
5.1.3 mHealth (Mobile Health)
5.2 By Component
18.104.22.168 Other Components
5.3 By Application
5.3.6 Other Services
5.4 By Mode of Delivery
5.4.1 On-premise Delivery
5.4.2 Cloud-based Delivery
5.5 By End User
5.5.4 Other End Users
5.6.1 North America
22.214.171.124 United States (By Type, Component, Application, Mode of Delivery, and End User)
126.96.36.199 Canada (By Type, Component, Application, Mode of Delivery, and End User)
188.8.131.52 Mexico (By Type, Component, Application, Mode of Delivery, and End User)
184.108.40.206 Germany (By Type, Component, Application, Mode of Delivery, and End User)
220.127.116.11 United Kingdom (By Type, Component, Application, Mode of Delivery, and End User)
18.104.22.168 France (By Type, Component, Application, Mode of Delivery, and End User)
22.214.171.124 Italy (By Type, Component, Application, Mode of Delivery, and End User)
126.96.36.199 Spain (By Type, Component, Application, Mode of Delivery, and End User)
188.8.131.52 Rest of Europe (By Type, Component, Application, Mode of Delivery, and End User)
184.108.40.206 China (By Type, Component, Application, Mode of Delivery, and End User)
220.127.116.11 Japan (By Type, Component, Application, Mode of Delivery, and End User)
18.104.22.168 India (By Type, Component, Application, Mode of Delivery, and End User)
22.214.171.124 Australia (By Type, Component, Application, Mode of Delivery, and End User)
126.96.36.199 South Korea (By Type, Component, Application, Mode of Delivery, and End User)
188.8.131.52 Rest of Asia-Pacific (By Type, Component, Application, Mode of Delivery, and End User)
5.6.4 Middle-East and Africa
184.108.40.206 GCC (By Type, Component, Application, Mode of Delivery, and End User)
220.127.116.11 South Africa (By Type, Component, Application, Mode of Delivery, and End User)
18.104.22.168 Rest of Middle-East and Africa (By Type, Component, Application, Mode of Delivery, and End User)
5.6.5 South America
22.214.171.124 Brazil (By Type, Component, Application, Mode of Delivery, and End User)
126.96.36.199 Argentina (By Type, Component, Application, Mode of Delivery, and End User)
188.8.131.52 Rest of South America (By Type, Component, Application, Mode of Delivery, and End User)
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 Aerotel Medical Systems (1998) Ltd
6.1.2 Allscripts Healthcare Solutions Inc.
6.1.3 AMD Global Telemedicine Inc.
6.1.5 Resideo Technologies Inc. (Honeywell Life Care Solutions)
6.1.6 Koninklijke Philips NV
6.1.7 Medtronic PLC
6.1.8 SHL Telemedicine
6.1.10 Blue Sky Telehealth
6.1.11 Cerner Corporation
6.1.12 Cisco Systems Inc.
6.1.13 Eagle Telemedicine
6.1.14 Teladoc Health Inc.
6.1.15 MEdVIVO Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Global Telemedicine Market market is studied from 2018 - 2026.
What is the growth rate of Global Telemedicine Market?
The Global Telemedicine Market is growing at a CAGR of 28% over the next 5 years.
Which region has highest growth rate in Global Telemedicine Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Telemedicine Market?
North America holds highest share in 2020.
Who are the key players in Global Telemedicine Market?
- AMD Global Telemedicine Inc.
- Resideo Technologies Inc. (Honeywell Life Care Solutions)
- Allscripts Healthcare Solutions Inc.
- Koninklijke Philips NV
- Aerotel Medical Systems
Are the major companies operating in Global Telemedicine Market.