Teledermatology Market Size, Share & COVID-19 Impact Analysis, By Type (Products and Services {Teleconsultation, Telemonitoring, Tele-education, and Others}), By Modality (Store-and-forward (Asynchronous), Real-time (Synchronous), and Others), By End-user (Healthcare Facilities and Homecare), and Regional Forecast, 2023-2030

The teledermatology market size was valued at USD 8.06 billion in 2022 and is projected to grow from USD 8.65 billion in 2023 to USD 24.88 billion by 2030, exhibiting a CAGR of 16.3% during 2023-2030. North America dominated the global market with a share of 46.02% in 2022. Moreover, the U.S. teledermatology market size is projected to grow significantly, reaching an estimated value of USD 8.17 billion by 2030, driven by significant rise in teleconsultations coupled with elevating incidence of skin conditions.

Teledermatology uses several communication technologies to expand the reach of a dermatologist to those in need of their specialized knowledge. It is primarily store-and-forward (asynchronous) and includes storage of images on digital devices such as smartphones and computers and then transferred electronically to a referring dermatologist. The market is poised to experience lucrative growth across the forecast period due to the increasing rates of skin conditions driven by the aging population and shortage of dermatologists. This leads to a long waiting time for patients to receive consultations. For instance, according to the American Academy of Dermatology Association report in 2021, the expected shortage of dermatologists ranges from 3,800 to 13,400 physicians.

Teleconsultations, in general, are driven by the growth in partnerships amongst n pharmacies, insurance companies, and retailers with telehealth companies due to greater awareness about the benefits, such as lower costs and better accessibility offered by virtual visits. For instance, in May 2020, DermTech announced its DermTech Pigmented Lesion Assay, a telemedicine solution to enable remote use of its non-invasive adhesive patch test for melanoma detection.

Key players, such as Curology and Apostrophe, have adopted unique business models. Patients receive online consultations through online platforms with dermatologists, personalized treatment plans, and skin care products for monthly fees as low as USD 20.

COVID-19 IMPACT

 Increased Adoption of Teledermatology During Pandemic Bolstered the Industry Progress

The impact of the COVID-19 pandemic on the market is expected to reflect sturdy growth across the analysis period. This is due to the significant acceleration in adopting telemedicine during the COVID-19 pandemic. The lockdown and social distancing rules were enforced to control the spread of the coronavirus, which, in turn, led to a significant reduction in the number of patient visits/consultations.

• According to an article published by Sage Journal in 2021, a cross-sectional analysis was done by comparing provider-to-provider teledermatology consults submitted to dermatologists from April to October 2019 pre-pandemic vs 2020. This study confirms that the usage of these services continues to increase accessibility during the COVID-19 pandemic. It also enhances the training and education of residents and will be incorporated into dermatology residency programs.

Further, the pandemic has positively impacted the sales of these products and services globally. Key global market players reported a significant rise in their revenues for FY 2020. For instance, MDLIVE (Cigna) witnessed an upsurge of 4.5% in its sales in 2020 compared to 2019. The company gained an overall sales growth of 8.5% in 2021 compared to 2020. Moreover, increasing adoption and patient satisfaction with online consultation will further support market growth during the forecast period.

LATEST TRENDS

Incorporation of Artificial Intelligence (AI) to Drive Market Growth

One of the key trends to the growth in the market is the incorporation of artificial intelligence. Healthcare organizations are swiftly scaling up telemedicine programs and embracing consultations at a long distance. Novel advances in deep learning, a form of artificial intelligence (AI), have been implemented while diagnosing cases of melanoma from lesion images through teleconsultation. The smartphone industry estimated that next-generation devices and their extensive adoption would put deep learning-capable hardware in the hands of consumers everywhere in the coming decade. For instance, in May 2022, the All India Institute of Medical Science (AIIMS) collaborated with Nurithm Labs to Create an AI-Driven app that will help diagnose skin diseases.

Similarly, in May 2021, Google announced a dermatology tool powered by artificial intelligence, which will assist users in understanding issues related to their skin, hair, and other areas. Such rising trends augment the growth of the market.

TELEDERMATOLOGY MARKET GROWTH FACTORS

Growing Adoption of Telehealth among Patients and Providers to Propel Market Growth 

One of the key drivers of the market growth is increasing receptivity among patients and providers. For example, in November 2020, One Touch Telehealth announced the launch of a new software release, Version 5.0; as the rise in video telehealth during a pandemic, virtual care is suitable for any user type in any healthcare setting. This will help in the expansion of the operational efficiencies within telehealth workflows. Hence, the aforementioned factor assisted in market growth across the forecast period.  

Increasing Incidence of Skin Conditions to Augment Market Expansion

There has been a significant rise in dermatological services due to growth in the rates of skin conditions such as skin cancer, eczema, and psoriasis. Teleconsultation provides faster and high-quality dermatological care and can be considered a solution to minimize the impact of growing consultations and shortage of dermatologists.

• For instance, as per the National Institutes of Health (NIH) article (2022), around 94 million people in Europe suffer from uncomfortable skin sensations such as itch, burning, or dryness. The most common conditions were acne (5.4%), fungal skin infections (8.9%) and atopic dermatitis or eczema (5.5%). Acne, alopecia, rosacea, and eczema are more common in women, whereas men are more likely to suffer from sexually transmitted infections and psoriasis. Hence, the growth rate of skin disorders will propel the global teledermatology market growth.

RESTRAINING FACTORS

Poor Reimbursement Facility for these Services is Limiting the Adoption

Despite many countries coming up with reimbursement policies for these services, improper and inadequate reimbursement, especially in developing countries, still poses a significant restriction for adopting these services. The cost of healthcare in developing countries has always been a crucial issue. According to an article published by the Journal of the American Medical Association (JAMA) in 2021, the American Academy of Dermatology (AAD) Teledermatology Task Force subgroup surveyed AAD members on the effects of COVID-19 on these services. The study reported that 357 of 419, 85.2% of respondents felt reimbursement for store-and-forward was too low. Hence, such factors create hurdles in adopting these services and limit market growth.

SEGMENTATION

By Type Analysis

Increasing Adoption of Virtual Visits Favors the Service Segment’s Dominance in 2022

The market, based on type, is divided into services and products. The services segment is further sub-segmented into teleconsultation, telemonitoring, tele-education, and others. The services segment held a dominant share in 2022. It considerably minimizes referrals, and patients do not have to wait long to get treated. Due to shortage of dermatologists in various countries, the average waiting time for consultation has increased. For instance, according to the National Health Service (NHS), the average waiting time for the first outpatient dermatology appointment is 15 weeks. This has resulted in the increasing adoption of virtual visits in several hospitals, further favoring the services segment.

The products segment is expected to grow owing to increasing sales of dermatoscopes that can capture more defined images for correct diagnosis.

By Modality Analysis

Robust Usage of Store-and-Forward (SAF) Modality Enabled its Market Dominance in 2022

The market, based on modality, is divided into store-and-forward (asynchronous), real-time (synchronous), and others.

The Store-and-Forward (SAF) segment is expected to witness a lucrative growth rate across the forecast period. Teleconsultation and other services largely depend on the SAF modality as the images of the skin become necessary for diagnosis. The increasing use of these services for second opinions and strong government support are the major factors for the segment's growth.

The real-time segment held a considerable portion in the global teledermatology market share. A large number of video consultations for acne, hair loss, and cosmetic purposes are anticipated to boost the segment. Similarly, rising initiatives by key players to launch new advancements favor market growth. For instance, in February 2022, MedX Health Corp. announced the launch of an inaugural study of its DermSecure Screening Platform, a real-time modality for teledermatology in Turkey. Such factors are propelling market expansion.

By End-user Analysis

Homecare Segment to Dominate due to its Cost-effectiveness

The market, based on end-user, is divided into healthcare facilities and homecare. The homecare segment is expected to grow substantially and dominate across the study period. Key factors for this segment's growth are significant cost-saving in health expenditure and rapid adoption of homecare services. Furthermore, telemonitoring and educating elderly patients, thus eliminating the need to make hospital visits, are projected to augment the segment growth.

The healthcare facilities segment held the largest share due to the increasing number of government-funded pilot programs for teledermatology and telecommunications tools to train doctors in medical colleges.

REGIONAL INSIGHTS

Based on region, the global market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.

The North America market size stood at USD 3.71 billion in 2022. The presence of several large-scale players, such as DermatologistsOnCall, and MDLive. Strong government backing and increasing teleconsultations are expected to drive the market in North America. For instance, in June 2021, Hims & Hers announced the acquisition of dermatology startup Apostrophe. The acquisition will help the company augment its scale in dermatology and provide consumers with advanced and personalized dermatology treatments faster.

The Europe market is anticipated to be the second-largest region in 2022. Rising strategic initiatives by key players to introduce AI-based teleconsultation services propel the market growth.

The Asia Pacific market is projected to develop considerably during 2022-2030. The region's growth is attributed to the rising geriatric population in China, Singapore, and Australia and the established regulatory and reimbursement ecosystem. Even in India, which has been severely lagging in telehealth reform, the Ministry of Health and Family Welfare with NITI Aayog released the official guidelines for telemedicine practices in March 2020.

Similarly, in Latin America and Middle East & Africa, the COVID-19 pandemic has made significant acceleration reforms and adoption of telehealth by governments, physicians, health systems, and insurance companies, which is expected to continue to drive the market over the forecast period.

KEY INDUSTRY PLAYERS

Ksyos and MetaOptima to Lead the Market with Strong Service Offerings 

In terms of competitive analysis, the market depicts a fragmented structure due to the increasing number of startups and the great distribution network of major companies in developed and emerging countries. The major key players in the market are MetaOptima and Ksyos, owing to the robust number of practitioners, services, and strong foothold.

Some other players include Nihon 3Gen, 3Derm, FirstDerm, and Maple. Growing focus on strategic and research initiatives strengthens their global market share.

LIST OF KEY COMPANIES PROFILED IN TELEDERMATOLOGY MARKET:

• 3Gen (U.S.)


• Ksyos (Netherlands)


• MetaOptima (Canada)


• 3Derm (U.S.)


• VigNet Inc.(U.S.)


• Maple (Canada)


• MDLIVE Inc. (U.S.)


• CureSkin (India)


• Ping an Good Doctor (China)


• FirstDerm (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2022: Y Combinator launched Northwind, a teledermatology for psoriasis and eczema.


• March 2022: Cheshire and Merseyside ICS launched a suite of new teledermatology technology. It is part of an initiative to streamline the triaging and referral of dermatology patients.


• February 2022: Ro announced the launch of Ro Derm. It is a teledermatology service that connects consumers with a U.S.-licensed healthcare professional to provide a consultation and prescription treatment customized to fit patient needs.


• February 2022:  Doxy.me entered into a strategic partnership with MedRegis to make outpatient healthcare services more accessible and affordable to the communities of Barbados and, ultimately, the rest of the world.


• January 2022: Doctolib acquired Tanker, which provides state-of-the-art technology to secure sensitive data (end-to-end encryption). The acquisition will help Doctolib work on a new standard for online medical secrecy.

REPORT COVERAGE

The research report provides a detailed analysis of the global teledermatology market forecast and size. It focuses on key aspects such as the proportion of healthcare professionals using telemedicine, technological advancements, reimbursement scenario, product launches, product types, and leading applications of the product. In addition, it provides an overview of factors including services, policies, and various startups in the market. Besides this, the report provides insights into the market trends, prominent players, and highlights key industry developments.

Report Scope & Segmentation