The global telemedicine market size is expected to reach USD 396.76 billion by 2027, exhibiting a CAGR of 25.8% during the forecast period. The increasing adoption and accessibility of digital health technologies will accelerate the telemedicine market growth in the forthcoming years, states Fortune Business Insights, in a report, titled “Telemedicine Market Size, 2020-2027.” The market size stood at USD 41.63 billion in 2019.
Government Funding for Telemedicine Practice to Favor Industry During Pandemic
The abrupt arrival of the COVID-19 pandemic has resulted in a massive disruption of the world’s economy. The pressure on healthcare workers is growing as hospitals fill up with positive COVID-19 patients. In addition, the cancellation and postponement of elective procedures and appointments have reduced patient capacity in clinics and hospitals. This necessitates physicians’ adoption of telemedicine. The market for digital health services and tele consultations is at an all-time high, owing to the current normal of social disconnection. In the fight against the outbreak, telehealth has occurred as a potent tool. The majority of virtual visit providers are reporting a significant rise in customer and subscriber numbers. For instance, in just three months from January to March 2020, Teladoc Health Inc. announced a 60 percent rise in virtual consultations, reaching 2 million, compared to 2019.
Furthermore, strong government support is expected to create new growth opportunities for the telemedicine market. The Federal Communications Commission in the United States developed programs to assist healthcare organizations in deploying telemedicine technology in March 2020. Likewise, in India, the Ministry of Health and Family Welfare (MoHFW) released telemedicine practice guidelines in March 2020.
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The Teleradiology Segment to Hold the Largest Share
The market is divided into products and services based on type. The services sector is projected to account for the lion’s share in the telemedicine industry. Telemedicine significantly cuts the time it takes to get a consultation or a referral. One of the main reasons for the growing number of hospitals offering or deploying e-consultation services is that the services sector gains traction.
The market is divided into three types of modalities: real-time, store-and-forward (S&F), and others. Because of the dramatic increase in the number of e-visits, the real-time segment is projected to expand at a profitable pace. In 2018, 32.1 percent of physicians in the United States used an on-demand virtual care provider, according to the On-demand Virtual Care Benchmark Survey. This is likely to boost the growth of the segment.
Teleradiology, telepathology, telepsychiatry,telecardiology, teledermatology, and other applications make up the market. During the forecast period, the teleradiology segment is expected to dominate the industry. The market is divided into two types of end-users: healthcare facilities and homecare.
The report on telemedicine market reveals:
- Outstanding insights into the industry
- Important data with in-depth research
- Factors exhibiting market growth
- Comprehensive study about main regions
- COVID-19 impact on the market
- Prime developments in the industry
High Health-care Spending to Drive Telemedicine Market
Healthcare costs have risen dramatically as the incidence of chronic illnesses and out-of-pocket spending has increased. According to CMS, healthcare spending in the United States rose by 4.6 percent in 2018, hitting USD 3.6 trillion, or USD 11,172 per individual. Furthermore, healthcare expenses were a financial burden for 34% of the population in 2017, with 11% seeing those costs as a household budget constraint. Moreover, machine learning algorithms-based apps can aid in the diagnosis of diseases like cancer, COVID-19, rare diseases, and others. For instance, the UAE Ministry of Health began collaborating with telecom operators to create its first virtual hospitals in March 2020. As a result, increased investment in virtual hospitals is expected to boost the telemedicine industry.
Increasing Prevalence of Chronic Diseases to Stimulate Market in Europe
In 2019, the North American market stood at USD 17.90 billion. The presence of major players such as Teladoc, MDLive, and others will boost the market in the region. The strong government support and high need for teleconsultations are factors aiding growth in the region. In the United States, doctors’ willingness to use telehealth increased from 57 percent in 2015 to 69 percent in 2019. This is according to the Amwell Physician Survey. Europe is expected to be the second-largest market, owing to improved government standards for the utilization of digital healthcare and the increasing cases of chronic illnesses. According to the British Skin Foundation, 100,000 new cases of skin disease are diagnosed in the United Kingdom each year. This places a financial strain on the nation.
Teladoc Health Inc to Lead the Telemedicine Market
In terms of industry sales in 2019, Teladoc Health Inc. was the market leader. The company’s dominant role is due to a broad customer base and users, GPs network, acquisitions, and strategic collaborations. Ping A Good Doctor, American Well, and Global Med kept large share in the business. The growth of these companies is expected to be supported by the delivery of innovative services for the management of various chronic disorders and a strong emphasis on expanding their geographical reach. In the coming years, however, rising investment and exclusive industry models of emerging companies are expected to alter the competitive standpoint of the industry.
April 2019: In Touch Health launched 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 purchased Vivify Health, Inc., a remote patient monitoring company.
March 2020: VivaBem, signed an agreement with Sweden-based Dokter.se to raise USD 2.5 million and its services in Brazil.
The Report Lists the Key Companies in the Telemedicine Market:
- American Well (Boston, U.S.)
- MDLIVE Inc. (Sunrise, U.S)
- Teladoc Health Inc. (Purchase, U.S.)
- Doctor on Demand Inc. (San Francisco, U.S.)
- MeMD (Arizona, U.S.)
- Encounter Telehealth (Nebraska, U.S.)
- Global Med (Arizona, U.S.)
- SnapMD (California, U.S.)
- Other prominent players
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