Telemedicine Market | Trends, Revenue Estimation by 2030 (2024)

Telemedicine Market Overview

In 2019, the global telemedicine market size was $27.8 billion, which is expected to grow at a CAGR of 15.8% during the forecast period (2020–2030). The rising geriatric population, increasing prevalence of chronic and lifestyle-associated diseases, increasing healthcare cost, increasing government funding and grants for telemedicine, growing need for remote patient monitoring services in developing countries, increasing medical tourism activities, and surging patient pool in remote locations are some of the major factors driving the growth of the telemedicine industry.

COVID-19 has had a positive impact on the global telemedicine market. Telemedicine is a valuable tool, especially during this time of social distancing, as through it, patients have several options when it comes to connecting with a physician. Due to this pandemic, the outlook for the industry has changed significantly, with the demand for telemedicine solutions predicted to increase across the globe.

Tele Home Category To Witness Higher Growth Rate in Telemedicine Industry

The tele home category is expected to observe the higher growth rate during the forecast period, on the basis of type, owing to the various advantages of tele home, such as shorter hospital stays, easy access to healthcare professionals, and more-frequent and quicker check-ups.

Tele Consulting To Retain Its Market Dominance in Coming Years

The tele consulting category held the dominating share in the telemedicine market in 2019, on the basis of service. Tele consulting allows patients to have access to specialists at any time, without any waiting period. These services also allow people to get advice on choosing a specialist, depending on their condition. Moreover, patients get information on the seriousness of their illness or condition and receive regular medical follow-ups. Therefore, the category is also expected to dominate the market throughout the forecast period.

Dermatology Is Highest-Revenue-Generating Category in Telemedicine Industry

The dermatology category generated the highest revenue among all specialties in 2019, and it is expected to maintain the same trend in the forecast period. Due to the aesthetic roots of the dermatological specialty, tele consulting and monitoring are becoming a major tool in dermatological consultation.

North America Is Projected To Be Largest Market

North America held the largest share in the telemedicine market in 2019, and the situation is predicted to remain unchanged during the forecast period. This is mainly due to the surging prevalence of chronic and lifestyle-associated diseases, rising geriatric population in the region, and increasing government funding and grants for telemedicine.

The prevalence of cancer and other chronic diseases is significantly high in the North American geriatric population, which further propels the need for advanced healthcare systems. The region is witnessing a rapid increase in its geriatric population, which has created a significant positive impact on the growth of the North American telemedicine market. According to the UN publication World Population Ageing 2019, approximately 59.9 million people were aged 65 years or above in the region in 2019, which is expected to reach 96.3 million by 2050.

Emphasis on Technological Advancements Is Key Trend in Telemedicine Industry

Telemedicine market is growing, with the advent of integrated home-healthcare, connected, and various telemedicine platforms, which increases the demand for it across the globe. For instance, SnapMD’s Connected Care platform allows healthcare systems to easily and cost-effectively extend its care models to include virtual visits, while maintaining the continuity of care. In April 2018, AMD Global Telemedicine Inc. launched OnDemand Visit, a direct-to-consumer telehealth platform. It allows healthcare organizations to expand their service offerings and engage patients in a convenient way and provides a real-time virtual medical visit, through mobile or PC. Thus, technological advancements are a major trend being observed in the global telemedicine market.

Increasing Prevalence of Chronic and Lifestyle-Associated Diseases Has High Impact on Market

According to the World Health Organization (WHO), chronic diseases are the leading cause of mortality, globally, leading to 60% of all deaths. Among all chronic diseases, cardiovascular diseases (CVD) are the leading cause of deaths, globally. The prevalence of chronic diseases, such as CVDs, cancer, stroke, respiratory diseases, and diabetes, is increasing due to the alterations in lifestyle and lack of access to preventive care. The causes of chronic diseases may vary from genetic disposition to environmental factors and oxidative stress. Hence, the rising cases of chronic diseases are favorably impacting the growth of the telemedicine market globally.

Increasing Healthcare Cost Is Supporting Growth of Industry

Globally, the healthcare cost is increasing across various hospitals and nursing homes, which is becoming a major cause for concern among patients and healthcare providers. Some of the factors that contribute to this escalating healthcare cost are the expensive new technologies and drugs, high cost of healthcare goods and services, high administrative cost, and mounting physician fees. According to a Centers for Medicare & Medicaid Services (CMS) report, the healthcare cost in the U.S. is projected to grow from an average of 17.7% in 2018 to an average of 19.7% by 2028. Healthcare providers are facing enormous pressure due to the increasing healthcare cost. Telemedicine offers quality services at low costs, while improving and maintaining the quality of the care provided. Thus, telemedicine is an efficient way to curb the rising healthcare cost across the globe, which further helps in the growth of the telemedicine industry.

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Partnerships Becoming Major Strategy for Telemedicine Market Players to Expand Consumer Base

The telemedicine market is fragmented in nature, with the presence of players such as Koninklijke Philips N.V. (Philips), Honeywell International Inc., Medtronic plc, Cerner Corporation, Cisco Systems Inc., McKesson Corporation, Teladoc Health Inc., Aerotel Medical Systems Ltd., OBS Medical Ltd., Care innovations LLC, Allscripts Healthcare Solutions Inc., AMD Global Telemedicine Inc., BioTelemetry Inc., Plantronics Inc., and GlobalMedia Group LLC.

In recent years, the players in the telemedicine industry have engaged in strategic partnerships, in order to stay ahead of their competitors. For instance:

• In October 2019, Cerner Corporation and ResMed Inc. entered into an agreement to help healthcare providers make more-informed treatment decisions, control costs, and deliver seamless care across health systems to the home. Cerner Corporation has designated ResMed Inc.’s Brightree Home Health and Hospice platform as its preferred solution for integration with its Cerner Millennium EHR. The resulting flow of data provides caregivers better tools to make more-informed decisions and more easily transition patients from acute settings to out-of-hospital care settings.
• In September 2019, Teladoc Health Inc. announced its partnership with Johnston Group, to give over 30,000 small-to-mid-sized businesses in Canada access to Teladoc Telemedicine Services. Businesses which are members of the Chambers of Commerce Group Insurance Plan, an employee benefit plan for small-to-mid-sized companies in the country managed by Johnston Group, are offering their Canadian employees Teladoc Telemedicine Services, which include 24x7 access to medical care, regardless of their location across Canada or the U.S.
• In February 2019, The MAVEN Project, a nonprofit healthcare organization, and VSee Lab Inc., a telehealth company, partnered to create a scalable model of live support and physician mentorship, for primary care providers (PCPs) in Federally Qualified Health Centers (FQHCs), free clinics, and underserved communities across the U.S. By leveraging The MAVEN Project’s national network of volunteer physicians and VSee Lab Inc.’s secure telehealth technology, the partnership provides better health outcomes to patients, reduces provider burnout, and brings recently retired or tech-naive physicians back into the health system.

Some of the Key Market Players in the Telemedicine Market include:

Telemedicine Market Size Breakdown by Segment

The telemedicine market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on Type

• Tele Hospitals and Clinics
• Tele Home

Based on Service

• Tele Consulting
• Tele Monitoring
• Tele Education
• Tele Training

Based on Specialty

• Dermatology
• Gynecology
• Neurology
• Cardiology
• Orthopedics

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • U.K
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East & Africa (MEA)
  • Saudi Arabia
  • South Africa