Press Release

Telemedicine Market to Grow with a CAGR of 15.78% through 2028

Increase in demand for healthcare services and technological advancement in telemedicine is expected to drive the Global Telemedicine Market growth in the forecast period, 2024-2028.

 

According to TechSci Research report, “Telemedicine Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Telemedicine Market stood at USD 87.31 billion in 2022 and is anticipated to grow with a CAGR of 15.78% in the forecast period, 2024-2028. The escalating healthcare expenses, technological advancements, widespread adoption of remote patient monitoring, and growing prevalence of chronic diseases have all played significant roles in the recent expansion of the Global Telemedicine Market.

Moreover, the unforeseen global outbreak of the coronavirus is expected to further drive the utilization of telemedicine in the future.

This market is driven by the growing need to reduce healthcare costs, industry consolidation, and strategic initiatives undertaken by major players. For instance, in May 2021, Walmart Inc. acquired MEMD, a telemedicine provider, enabling them to offer virtual care access across the United States for primary, behavioral, and emergency care. Healthcare expenses are increasing globally, primarily due to the rising utilization of healthcare services. This, in turn, fuels consumer demand for innovative and cutting-edge lifestyle choices and new approaches. The challenge for doctors and hospitals to shift costs to private payers due to low reimbursement rates makes it more difficult to significantly increase charges for the same services. Consequently, as patients' quality and safety standards improve, the market is expected to grow.

The prevalence of chronic diseases is increasing worldwide, and tele-homecare represents an advanced method of delivering care, monitoring patients, and disseminating information by leveraging the latest telecommunications technologies. Remote monitoring enables early disease detection and prevention of chronic illnesses. Various countries have launched tele-homecare programs, including the UK's whole system demonstrator (WSD), the US's veterans' health segmentation (VHA), and Denmark's TELEKART programming. Tele-homecare solutions effectively manage, mitigate, and prevent chronic diseases by remotely monitoring patients.

 

           

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Telemedicine industry growth is primarily driven by increasing healthcare expenditures, technological advancements, greater adoption of remote patient monitoring, and the rising prevalence of chronic illnesses worldwide. The unexpected global COVID-19 pandemic has further accelerated the use of telemedicine, as these technologies facilitate efficient communication between caregivers and patients, particularly during the pandemic. Virtual care delivery has become increasingly popular as a safe and effective means of communication due to social distancing policies implemented by many countries. According to the World Health Organization, telemedicine is a crucial service in responding to the COVID-19 crisis.

Furthermore, businesses are investing in expanding their capabilities to handle the high volume of virtual visits, contributing to the increasing market demand. Telemedicine service providers such as Teladoc and MDLive have enhanced their capacity to handle a larger number of calls, further stimulating market growth. Moreover, telemedicine has been shown to reduce overall healthcare costs while increasing productivity by improving the treatment of chronic diseases, reducing travel time, sharing healthcare professionals, and requiring fewer and shorter hospital stays. Considering these factors, significant market growth is anticipated throughout the forecast period.

Globally, healthcare expenses are on the rise due to increased utilization of healthcare services, driving consumer demand for innovative approaches and lifestyle choices. Additionally, the cost-shifting of public initiatives to private actors has impacted reimbursement rates and health insurance costs. The market is expected to expand as patient safety and quality standards continue to rise. Telemedicine is recognized as a versatile technology for remote healthcare delivery, information dissemination, and education. Technological advancements enable advanced patient-centered treatment and improved access to remote areas, resulting in reduced hospital admissions and emergency room visits, thus promoting market growth. Continued investment in new technologies to enhance telemedicine products and services is also expected to drive market expansion in the near future.

The Global Telemedicine Market is segmented into component, deployment mode, type, technology, delivery mode, application, end user, regional distribution, and company.

Based on technology, the telemedicine market is categorized into two main segments: store-and-forward (asynchronous) and real-time (synchronous), with the "Others" segment encompassing additional components. In 2022, the real-time segment accounted for the largest share of revenue. This can be attributed to the growing adoption of mHealth and virtual video visits, as well as the availability of on-demand medical consultations and services offered by key market players.

Furthermore, the "Others" segment, which includes remote patient monitoring such as vital signs monitoring and health tracking in hospitals and homes, is expected to exhibit significant growth with a notable Compound Annual Growth Rate (CAGR) throughout the forecast period. In 2018, Fitbit Health Solutions announced a collaboration with Cedars-Sinai Hospital in Los Angeles, wherein Fitbit wearables were provided to patients undergoing knee replacements, hip replacements, and other surgeries. This initiative enabled doctors to monitor patient activity and encourage them to engage in short-distance walks to support their rehabilitation progress. In October 2020, Fitbit (now part of Google) unveiled plans to expand its range of premium health and fitness subscription services by venturing into virtual care in the coming years.

Based on region, North America segment is expected to grow during the forecast period. North America is projected to dominate the telemedicine market during the forecast period. Telemedicine is experiencing rapid growth in the United States, driven by the increasing burden of chronic diseases and the widespread adoption of advanced healthcare technologies. The implementation of telemedicine has led to improved care management, enhanced patient quality of life, and reduced healthcare expenditure. Moreover, the growing demand for mobile technologies, rising home care adoption, increased healthcare spending, and reduced hospital visits are expected to drive market growth in the coming years. For instance, according to the 2021 report from the Canadian Institute of Health Information, Canadian health expenditure increased to USD 308.1 billion in 2021, compared to USD 301.5 billion in 2020. Similarly, as per the 2022 report of the Centers for Medicare and Medicaid Services (CMS), the health expenditure of the United States reached approximately USD 4.3 trillion, reflecting an increase of about USD 173 billion from the previous year. Consequently, the escalating healthcare spending is anticipated to create favorable opportunities for telemedicine, thereby propelling market growth.

 

Furthermore, companies are actively engaging in partnerships, collaborations, acquisitions, mergers, and product launches to drive innovation in the telemedicine market, fostering growth in the forecast period. For instance, in April 2021, Inova Health System in the Northern Virginia and Washington DC area, United States, introduced an FDA-approved telemedicine option for remote neuromodulation of deep brain stimulation (DBS) patients being treated for Parkinson’s disease and essential tremor. Similarly, in August 2022, Hicuity Health launched tele-ICU services at MUSC Health Columbia Medical Center Downtown in Columbia, South Carolina. Such developments are expected to drive the market forward. Therefore, considering these factors, the telemedicine market is poised to experience significant growth in North America over the forecast period.

 

Major companies operating in Global Telemedicine Market are:

  • IBM Corporation
  • Allscripts Healthcare Solutions Inc.
  • AMD Global Telemedicine Inc.
  • Resideo Technologies Inc.
  • Koninklijke Philips NV
  • Medtronic PLC
  • Teladoc Health Inc. (InTouch Technologies Inc.)
  • Cerner Corporation
  • CISCO Systems Inc.
  • SnapMD, Inc.

 

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“The market is predominantly driven by the rapid digitization in the medical sector worldwide. This can be attributed to the ongoing technological advancements aimed at making healthcare more affordable and accessible to the masses. Furthermore, the integration of advanced technologies like machine learning (ML), artificial intelligence (AI), and the Internet of Things (IoT) is resulting in a higher adoption of healthcare products on a global scale. The proliferation of e-visits, coupled with the rapid expansion of radiology, cardiology, and mental health segments, is driving the emergence of new business and healthcare models, thereby propelling the market. Additionally, the increasing prevalence of chronic diseases such as diabetes and cancer, along with inadequate healthcare services in underdeveloped regions, is fueling the demand for telemedicine across the globe. Other factors contributing to the market include the continuous postponement and cancellation of elective surgeries and appointments due to social distancing norms during COVID-19, intense market competition among key players, the launch of numerous innovative products such as smart medicine cabinets, and extensive research and development (R&D) activities.,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

 

Telemedicine Market Segmented By Component (Software & Services, Hardware), By Deployment Mode (Cloud v/s On- Premise), By Type (Tele-Hospitals, mHealth, Tele-Homes), By Technology (Store & Forward, Real Time, Others), By Delivery Mode (Audio-Visual, Only Audio, Written), By Application (Telepsychiatry, General Consultations, Teleradiology Telepathology, Others), By End Users (Patients, Providers, Payers), By Region and Competition, Forecast & Opportunities, 2018-2028F”, has evaluated the future growth potential of Global Telemedicine Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Telemedicine Market.

 

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