Telemedicine Market Size, Share & Industry Analysis, By Type (Products and Services), By Modality (Store-and-forward (Asynchronous), Real-time (Synchronous), and Others), By Application (Teleradiology, Telepathology, Teledermatology, Telecardiology, Telepsychiatry, and Others), By End-User (Healthcare Facilities, Homecare, and Others), and Regional Forecast, 2024-2032

The global telemedicine market size was valued at USD 97.15 billion in 2023 and is projected to be worth USD 107.52 billion in 2024 and reach USD 432.31 billion by 2032, recording a CAGR of 19.0% during the forecast period. North America dominated the global telemedicine market with a market share of 47.98% in 2023.

Telemedicine has grown tremendously in recent years. It helps patients connect with physicians remotely and reduces the cost burden of healthcare. Owing to these advantages, physicians and hospitals are looking forward to adopting digital health technologies in their practices. This has also encouraged governments to develop regulations and reimbursement policies revolving around telehealth.

Developments in this industry have made healthcare affordable and accessible to all. The increasing remote delivery of healthcare services, including acute care, and expansion in radiology, cardiology, behavioral health, and others have resulted in the development of new business and healthcare models surrounding telehealth. The market is gradually becoming highly competitive with the launch of various platforms and the entry of new players with huge funding. For example, in March 2023, OpenLoop, a start-up company, raised USD 15 million in series A funding to advance virtual care delivery. The company introduced a new nationwide insurance payer network to offer reimbursement services to its clients.

The sudden onset of the COVID-19 pandemic resulted in a significant increase in the usage of digital health solutions. The postponement and cancellation of elective surgeries and appointments resulted in a higher adoption of telehealth to connect with patients. This trend is expected to continue in the coming years as well owing to the various advantages offered by e-medicine solutions.

Telemedicine Market Trends

Introduction of AI-based Clinics

Artificial Intelligence (AI)-powered booths have emerged in local malls in the past few years. The system includes a smart medicine cabinet that can dispense more than 100 medications. In November 2018, Ping An Good Doctor announced the launch of a tiny unstaffed clinic that incorporated Artificial Intelligence (AI). Patients who required immediate consultations could sit in the three-square meter booth and consult with a doctor, which functioned through AI.

The AI machine collects the patient’s medical history and provides a diagnosis strategy, which will then be transferred to a clinical expert. These miniature clinics are called “One-Minute Clinics.” These clinics can then connect patients with a clinician on Ping An Good Doctor’s in-house medical team. Such AI-based clinics can be set up anywhere, from schools to shopping malls and pharmacies to highway service stations. Additionally, in February 2023, Vitalchat launched AI-enabled E-Sitter to transform inpatient telehealth for hospitals. This solution is powered by voice and movement, offering hands-free technology. Hence, such innovations in digital health will offer tremendous opportunities for the market to exhibit a positive growth trajectory during the forecast period.

Additionally, AI offers an innovative approach to enhance medical diagnosis by offering a faster diagnosis rate compared to medical professionals. For instance, a team at Harvard Medical School has developed Buoy Health, an AI-based symptom and cure checker. It uses algorithms for the diagnosis and treatment of various illnesses.

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Telemedicine Market Growth Factors

Significant Reduction in Healthcare Cost Burden to Boost Market Growth

The increasing prevalence of chronic diseases and growing out-of-pocket expenditures have led to a significant rise in healthcare costs. According to the Centers for Medicare and Medicaid Services (CMS), the national healthcare spending in the U.S. in 2022 was USD 4.5 trillion, which increased by 4.1% as compared to that of 2021. The per person spending was USD 13,493 in the same year. The share of healthcare spending in GDP was 17.3% in 2022, which was lower than that in 2021.

The adoption of digital technologies and teleconsultations can be a useful tool for addressing this issue. Telemedicine enables the delivery of appropriate levels of care and patient management at home settings, which in turn, reduces the high costs of inpatient services. Teleconsultations offer cheaper services and also reduce the work burden on healthcare professionals. According to an article published in UC Regents in January 2023, telehealth saved an estimated USD 33.5 million in travel-related costs during the COVID-19 pandemic period. This is the primary reason behind government organizations emphasizing on deploying digital health technologies, thereby favoring the telemedicine market growth.

Adoption of Advanced Technologies to Foster Market Growth

With the advent of advanced technologies, such as Machine Learning (ML), Artificial Intelligence (AI), Internet of Things (IoT), virtual hospitals, and telehealth apps, the adoption of these technologies is increasing rapidly. Apps developed based on machine learning algorithms can help in the diagnosis of chronic conditions, such as cancer, COVID-19, rare diseases, and others. The use of machine learning and artificial intelligence in the implementation of telehealth services, analysis of patient data, and integration of wearables and other connected devices into telehealth systems are also supplementing the market’s growth.

Furthermore, rising preference for remote patient monitoring using technologically advanced products will also support the market growth. For instance, in October 2022, AMC Health and GE Healthcare signed a collaborative agreement to offer virtual care at homecare settings. In March 2020, the UAE’s Ministry of Health started working with telecom operators to build its first virtual hospitals. Thus, increasing investment in virtual hospitals is set to augment the global market size.

RESTRAINING FACTORS

Poor Infrastructure and Technological Barriers to Hinder Market Expansion

Technological and infrastructural barriers in middle and low-income countries might hinder the adoption of this service. The deployment of digital health technologies requires the latest telecommunication devices, high-speed internet with high bandwidth, and large storage capacity for the integration and transmission of medical data. These pre-requisites are still a challenge in many developing countries. Also, the high capital requirement for the implementation of telehealth systems is one of the factors contributing to the low adoption of these devices and software among the lower and middle-income countries. For instance, according to the Journal of Telemedicine and Telecare, the per-patient cost of equipment purchase, servicing, and monitoring ranges from USD 275 to USD 7,963 annually.

Moreover, the high cost of installation and lack of skilled healthcare professionals are some of the other major factors restricting the global market growth.

Telemedicine Market Segmentation Analysis

By Type Analysis

Increasing Deployment of Teleconsultation by Hospitals Favored Services Segment

Based on type, the market is segmented into products and services. The services segment accounted for the maximum revenue share of the market in 2023. Teleconsultation services substantially reduce the patients’ waiting time for consultations and referrals. This is why an increasing number of hospitals are providing or deploying e-consultation services, which, in turn, is favoring the segment growth.

According to an article published in the Times of India in February 2023, the number of free telemedicine consultations in India crossed 100 million during the month. Such a high number is indicative of the increasing adoption of telemedicine services, thereby propelling the growth of this segment.

The introduction of technologically advanced medical devices that can be connected wirelessly and integrated with mobile phones will aid the product segment's growth. Besides, the rapid adoption of wearable patient monitoring devices is expected to drive the segment’s expansion.

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By Modality Analysis

Rising Number of E-Visits to Boost Demand for Real-time Telehealth Solutions

On the basis of modality, the market is segmented into real-time, Store-and-Forward (S&F), and others.

The real-time segment is expected to witness lucrative growth owing to a drastic rise in the number of e-visits. According to a study published in November 2023, real-time video/audio/text consultation was used in 44% of the total patient population considered in the study.

The increasing application of telehealth in the diagnosis of diseases, especially in dermatology and radiology, is expected to favor the expansion of the store-and-forward segment. Moreover, the rising internet penetration, even in rural areas, coupled with a significant increase in the number of smartphone users, is projected to augment the growth of the others segment.

By Application Analysis

High Demand for Diagnostic and Image Interpretation Services to Spur Adoption of Teleradiology Services

Based on application, the market is fragmented into teleradiology, telepathology, teledermatology, telecardiology, telepsychiatry, and others.

The teleradiology segment dominated the market in 2023 and is expected to maintain its dominance throughout the forecast period. Factors attributable to the expansion of this segment are advancements in Store-and-Forward (S&F) technologies and dearth of radiologists in rural areas. According to the Canada Association of Radiologists (CAR), there will be a need for 1,700 new radiologists during the period of 2019-2040. This factor is expected to drive the teleradiology segment. Additionally, increasing regulatory approvals for teleradiology products will support the segment’s growth. For instance, in October 2023, the U.S. FDA provided 510(k) clearance (K231385) for Rology – Teleradiology platform from the Middle East & Africa, which is based on artificial intelligence.

The increasing demand by patients experiencing mental illness for digital health products and services for behavioral health, especially during the COVID-19 pandemic, is a key factor in expanding the telepsychiatry segment. As per the Excellus BlueCross BlueShield survey, 22% of the e-visits made by the Excellus BlueCross BlueShield members in 2018 in the U.S. were for behavioral health, which included conditions, such as bipolar disorders, attention disorders, depression, and anxiety. Furthermore, in October 2022, the Union Ministry of Health & Family Welfare of India rolled out tele-mental health services across the nation. The network consists of 23 telemental health centers of excellence, which will work with the International Institute of Information Technology, Bangalore and the National Institute of Mental Health and Neurosciences (NIMHANS).

The rapid adoption of remote cardiac monitoring devices and m-health apps for tracking the heart and pulse rate is a prominent factor augmenting the growth of the telecardiology segment. The increasing number of dermatology visits and rising demand for dermatoscopes are likely to propel the teledermatology segment growth. The surging telemedicine applications in urology, neurology, chronic diseases, and others are also expected to propel the growth of the segment.

By End-User Analysis

Increasing Number of Government Initiatives to Boost Adoption of Telemedicine among Healthcare Facilities

In terms of end-users, the market is segmented into healthcare facilities, homecare, and others.

The healthcare facilities segment is expected to dominate the market. The increasing number of government-funded pilot programs for telemedicine, the use of telecommunication tools to train doctors in medical colleges, and the rising number of service providers for virtual consultations are the primary factors poised to surge the segment during 2024-2032.

The homecare segment is projected to witness the fastest CAGR over the forecast period. Primary factors responsible for this segment's growth are significant cost-savings in healthcare services expenditures and the rising geriatric population. Furthermore, the adoption of telemonitoring solutions to eliminate the need to visit hospitals is projected to fuel the segment’s growth in the future.

REGIONAL INSIGHTS

The market is segmented by region into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

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The market in North America was valued at USD 46.61 billion in 2023. The presence of major players, such as Teladoc, MDLive, and others, strong government support, and increasing teleconsultations are driving the market growth in this region. According to the American Medical Association’s survey, 93% of physicians reported a definite advantage of using digital health tools in 2022. This number was 85% in 2016. Furthermore, the percentage of telehealth visits grew from 14% in 2016 to 28% in 2019, and then increased to 80% in 2022. This is likely to boost the market growth in North America.

Europe is anticipated to be the second-leading region in the global market in terms of share due to the implementation of supportive government guidelines for using digital health and rising prevalence of chronic diseases. According to the British Skin Foundation, at least 100,000 new skin cancer cases are diagnosed every year in the U.K. This increases the cost burden on the country. Thus, the U.K. government deployed Telederm, a tele-dermatology service, which provides diagnosis of over 50,000 skin cancer patients annually without the need for a hospital appointment, resulting in effective cost savings. This is anticipated to surge the market expansion in the region.

As smartphones and cameras have opened new opportunities for the market, a plethora of start-up companies, such as InstaDoc, FirstCheck, and others are building their base in Asia Pacific, which is anticipated to foster the market growth in the region. Furthermore, the Latin America and Middle East & Africa regions are anticipated to display significant growth due to the rising number of pilot projects and increasing use of telemedicine to overcome the shortage of physicians.

KEY INDUSTRY PLAYERS

Teladoc Health Inc. Held Leading Position in Market by Collaborating With Other Market Leaders

Teladoc Health Inc. dominated the telemedicine market share. A large customer base, an established network of GPs & specialists, and strategic collaborations are the major factors that have helped the company dominate this industry. American Well, Ping An Good Doctor, and GlobalMed also held significant shares of the market. Delivery of novel services for the treatment of various chronic diseases and strong focus on expanding their geographical presence are expected to favor the growth of these companies.

• For instance, in January 2023, American Well launched the Comprehensive Behavioral Health Program to address the increasing mental health crisis. Through this program, healthcare providers offer integrated solutions that incorporate virtual therapy, psychiatry, coaching, and digital mental health programs.

However, increasing investments and unique business models of start-up companies are anticipated to change the competitive landscape of the market in the coming years. These firms are receiving high funding from equity firms for expanding their businesses. For instance, in April 2022, Avi Medical, a German healthtech startup, received a series B funding of USD 54.5 million (€50 million) to expand its telemedicine platform. The company’s patient-facing app helps monitor their health. Similarly, in June 2019, Zava received funding of USD 32 million. The company said that it was planning to use this capital to expand its services in this market and across Europe.    

List of Top Telemedicine Companies:

• American Well (U.S.)


• MDLIVE Inc. (U.S)


• Teladoc Health Inc. (U.S.)


• Doctor on Demand Inc. (U.S.)


• MeMD (U.S.)


• Encounter Telehealth (U.S.)


• Global Med (U.S.)


• SnapMD (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• September 2023 – India’s Ministry of Health and Family Welfare announced that it had approved the Department of Telemedicine at PGI as a center of excellence in telepathology for India.


• July 2023 – Heartnet India, an Indian start-up, launched an IoT-based solution - Asaan to improve cardiac healthcare in India.


• March 2023 – Temple University Health System (Temple Health) and Masimo expanded their collaboration to include various new devices and technologies in telehealth and Remote Patient Monitoring (RPM) offerings.


• September 2022 – Medyseva, an Indian healthtech start-up, raised USD 0.18 million (INR 15 million) in pre-series funding to expand access to telemedicine in rural India.


• March 2020 – VivaBem, a Brazil-based telehealth start-up, collaborated with Sweden-based Dokter.se and raised USD 2.5 million to expand its services in Brazil.


• April 2019 – InTouch Health announced the launch of Solo, an end-to-end fully integrated virtual care platform, which is suitable for any user type in any healthcare setting.


• January 2019 – UnitedHealth Group announced the acquisition of Vivify Health, Inc., a remote patient monitoring company.

REPORT COVERAGE

The report offers an elaborative analysis of numerous factors affecting the global market. Information on trends, drivers, opportunities, threats, and restraints can further help stakeholders gain valuable insights into the industry. The report also offers a detailed competitive landscape by presenting information on key players, along with their strategies. The analysis also offers comprehensive data on the market’s forecast.

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Report Scope & Segmentation