Virtual Hospitals Market Size, Share, and Industry Analysis, By Component (Software & Services and Hardware), By Mode (Video Consultation, Messaging/Chat, and Telephonic/Audio Consultation), By Indication (Obstetrics and Gynecology, Cardiology, Psychiatry, Dermatology, and Others), and Regional Forecast, 2024-2032

Virtual hospitals are healthcare facilities that operate entirely online, with no centralized physical location. They provide a range of medical services to patients remotely through the use of digital technologies such as telehealth, telemedicine, and various health information technologies. The key features of virtual hospitals include virtual communication, remote care coordination, data analytics, secure PHI management, and billing and insurance.  

The advantages of virtual hospitals include improved access to care, reduced costs, better work-life balance for the providers, and the ability to serve patients in remote or underserved areas. The market growth of virtual hospitals is attributed to the increasing adoption of technologies such as artificial intelligence (AI), machine learning, cloud computing, and the Internet of Things (IoT) in the healthcare sectors. These advanced technologies are transforming the delivery of healthcare services in virtual hospitals.

Moreover, the increasing prevalence of chronic diseases has significantly contributed to the growth of virtual hospitals. These digital healthcare platforms provide advanced care remotely, reducing the burden on traditional systems. In addition, by offering high-quality care for chronic conditions, virtual hospitals enhance patient outcomes, reduce costs, and expand healthcare capacity. Their innovative approach addresses the challenges posed by rising chronic disease burdens, making healthcare more accessible and efficient. This is expected to shift the number of patients toward virtual hospitals, which will propel market growth.

• For instance, as of December 2022, the World Medical Association stated that the prevalence and cost of addressing the chronic disease burden are projected to rise in the upcoming years. This is expected to shift patients' focus toward more affordable medical care, such as virtual hospitals for chronic disease management. This is expected to surge the market growth during the forecast period.

The COVID-19 pandemic positively impacted the virtual hospital market growth in 2020. The rapid growth in the number of COVID-19 cases and those in need of inpatient care led to a surge in demand for healthcare services, which virtual hospitals aimed to address by providing remote care services. Moreover, virtual hospitals leveraged telehealth and virtual reality technologies to deliver acute and sub-acute care services directly to patients' homes. This increased the demand for virtual hospitals, driving the market growth during the pandemic.

• For instance, as of October 2020, according to the Centers for Disease Control and Prevention, there was a 154.0% increase in telehealth visits during the last week of March 2020 compared to March 2019.

Segmentation

Key Insights

The report covers the following key insights:

• Technological Advancements in Virtual Healthcare


• New Launches by Key Players


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Overview of Virtual Healthcare


• Impact of COVID-19 on the Market

Analysis by Component

Based on component, the market is segmented into software & services and hardware. The software & services segment is projected to account for a significant share of the global virtual hospitals market during the forecast period. This growth is attributed to the increasing demand for advanced solutions, the quick adoption of virtual hospital technologies, and the integration of cutting-edge technologies that enhance the personalization and capabilities of virtual healthcare services. This boosts the adoption rate of virtual hospital software & services, further inspiring the key players involved in collaborations to offer an extended range of services.

• For instance, as of November 2022, Veta Health, a U.S. company, partnered with Parkview Health, an Indiana-based network of 10 hospitals and 100 clinics, to offer the patients virtual care programs, supporting the recovery and self-management at home. This extended range of services as an impact of key players’ strategic initiatives is expected to boost the segment growth in the coming years.

The hardware segment is expected to grow at a significant CAGR in the forthcoming years. This is primarily attributed to the increasing adoption of FDA-compliant remote monitoring devices. These devices enable real-time patient monitoring, which improves access and quality of care while reducing costs. Furthermore, these benefits associated with remote monitoring devices are anticipated to boost the segment growth.

Regional Analysis

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The global market is geographically segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America is projected to hold a significant share of the virtual hospitals market during the forecast period. This growth is mainly attributed to the strong government support and investments in digital health, boosting the adoption of healthcare IT in the region. Moreover, the presence of significant key players with a high focus on technological advancements and augmentation of their range of services is expected to fuel the demand for virtual hospitals in the region.

• For instance, as of February 2021, the U.S. Department of Agriculture (USDA) announced an investment of USD 42.3 million in telemedicine infrastructure and remote learning in rural areas. This is improving the telemedicine accessibility in the region, which is anticipated to boost the market growth.

Asia Pacific is anticipated to expand at a significant CAGR during the projection period. This growth is primarily attributed to the Chinese government's substantial regulatory and policy support to enable the development of the virtual healthcare sector. Furthermore, the increasing digitization of healthcare in India is driven by technological innovations, government initiatives, and the need to enhance clinical outcomes, which are propelling the demand for virtual hospitals in the region. These factors are anticipated to boost the regional market growth.

Key Players Covered

The market consists of significant players, such as Getinge, ScienceSoft USA Corporation, Seha Virtual Hospital, Itransition, CareClix, Inc., GE HealthCare, iCliniq, Koninklijke Philips N.V., and AgaMatrix.

Key Industry Developments

• In February 2024, GE HealthCare and Biofourmis collaborated to extend patient monitoring outside the hospital with virtual care-at-home solutions. The partnership integrated GE HealthCare's patient care and monitoring solutions with Biofourmis' care-at-home solutions.


• In July 2022, Thumbay Group announced its plans to launch the world's first virtual hospital in the metaverse, enabling patients to consult with doctors using augmented reality (AR) and virtual reality (VR) technologies.


• In July 2021, FUJIFILM Holdings America Corporation launched Fujifilm Virtual Hospital to showcase the company's comprehensive portfolio of diagnostic, treatment, and research technologies for healthcare professionals and patients.