The global telemedicine market size is projected to surpass US$ 30.4 billion by 2027 growing at a CAGR of 18.9% during 2020 to 2027.
Telemedicine technology is a game changer for the healthcare industry, as it brings healthcare directly into patient's doorstep. Telemedicine makes use of electronic technologies, such as email, smartphones, and video conferencing, for exchanging the medical information of the patient.
Increasing prevalence of chronic diseases, growing Medicare reimbursement for telehealth services and technological innovation in communication technology are some of the major factors fuelling market growth. However, Lack of Interoperability Between eHealth Solutions are hampering the market.
Amongst Service, tele-monitoring is expected to grow at the significant market share during the forecast period. This can be attributed to the increasing geriatric and disabled populations who are commonly diagnosed with diabetes and cardiovascular complications.
Telemedicine solutions hold great opportunities as they help in improving clinical management, reduce variations in diagnosis, and make effective care delivery by enhancing quality and access to healthcare services.
Increased pressure to improve the quality of care and reduce the burden on medical professionals is expected to boost the adoption of telemedicine over the forecast period. Telemedicine is considered as the most versatile technology available to deliver health education, health information, and health care at a distance. Through various technologies, advanced patient-centered care and increased access to remote locations has become possible.
Telemedicine also helps in reducing emergency room visits and hospitalization rates, which is a significant factor in driving market growth. However, certain challenges such as resistance in technology acceptance by practitioners and patients, high cost of implementation, and data privacy and safety issues are anticipated to hamper the market growth to a certain extent.
The industry is driven by three concepts that include real-time (synchronous), store and forward (asynchronous), and others like home health virtual medicine. Real-time telemedicine refers to the contact between patient and healthcare practitioner via the use of electronic mediums, majorly video conferencing. This concept, also referred to as synchronous telemedicine, entails vast amount of application, which vary from a simple telephonic conversation to complex robotic surgery.
On the other hand, the store and forward system does not occur in real-time and involves the storage and transmission of medical information to the practitioner at a convenient time. Home health-based telemedicine involves patient monitoring (e.g. patient statistics and vital sign monitoring) from a distant location (usually home) in an effort to control unnecessary hospital expenses. Increasing demand for improved quality and safety by the application and demand for mobile technologies clubbed with adoption rate of home care are anticipated to fuel the demand for telemedicine over the forecast period.
The software telemedicine segment is expected to witness significant growth over the forecast period. The hardware segment dominated the market in 2019 and includes medical peripheral devices, webcams, speakers, microphones, display screen, videoconferencing devices, laptops, and monitors.
Services are further classified into monitoring, consulting, and academic applications of telemedicine. The telemonitoring segment held the largest revenue share in 2019 and is expected to witness a steady growth in the near future. The growing base of geriatric population requiring home assistance for care delivery is expected to be a key factor driving the telemonitoring services. Tele-consulting segment is anticipated to be the lucrative segment over the forecast period owing to rising initiatives by the government for telehealth implementation projects and high demand for video conferencing solutions.
The teleradiology segment accounted for the largest share of the global telemedicine market, in 2019. The dominant share of this segment can be attributed to factors such as an increase in imaging practices, workflow adoption by healthcare providers, and the streamlining and regulation of teleradiology practices.
Integration of Artificial Intelligence (AI) into teleradiology, implementation of Picture Archiving and Communication System (PACS), and growing R&D activities pertaining to eHealth are the key factors driving the market growth over the forecast period.
Delivery Model Insights
Web/mobile based delivery model is expected to witness significant growth in the coming years as it offers direct access to care delivery solutions. This segment is further categorized into telephonic and visualized access to the care. Telephonic care delivery dominated the market owing to its benefits such as cost-effectiveness and ease of operation. In addition, rising smartphone penetration and disposable income are augmenting the segment growth.
On the other hand, increasing awareness among users regarding telemedicine, the introduction of technologically advanced solutions, and penetration of cloud-based solutions are anticipated to boost the adoption of visualized care delivery solution in the coming years. Rising need for immediate medical assistance to patients located in remote locations is fueling the adoption of video conferencing telemedicine solutions.
Key market players are also focusing on continual product innovation, such as cloud-based and mobile video conferencing. For instance, The American Hospital Association (AHA) survey report published in 2016 stated that around 67% of U.S. hospitals connect with consulting practitioners and patients at a distance using video and other communication technology.
The providers segment accounted for the largest revenue share in 2019 owing to increased adoption of remote monitoring devices in old age and chronically ill patients, advancements in telemonitoring devices, and the variety of tele-specialty services offered.
Telehealth solutions improve healthcare quality and offer convenience for healthcare providers in terms of quick access to patient records, improved decision support, providing clinical alerts, and real-time quality reporting. eHealth solution offers great convenience to healthcare professionals in terms of patient workflow and data management, which are expected to boost the usage of telemedicine by providers over the forecast period.
The payers segment consists of insurance companies that pay the telemedicine service providers on behalf of patients.Presently, not all the telemedicine services are covered by insurance. Although Medicare covers limited telehealth services in specific rural areas, patients have to visit clinics for the completion of a session. This segment is expected to witness steady growth in the coming years.
Adoption of telemedicine by patients was observed to be low, as the majority of the patient population opts for services that are covered (private, Medicare, or Medicaid). However, with COVID-19 pandemic, adoption pattern has dramatically changed. Some government organizations purchase telehealth services for research and development, disease/disorder progress monitoring programs, or clinical trials.
The tele-hospitals segment held the largest share in 2019 and is expected to expand at a steady growth rate throughout the forecast period. Telemedicine services are generally preferred in emergency care. As eHealth services role expands in healthcare, hospitals can use telemedicine for urgent care, primary diagnosis, and second opinions. It can help rural hospitals to provide 24/7 virtual assistance, small hospitals to share the night coverage cost and offer better post-discharge facilities. These expanding tele-hospital applications are contributing to the growth of this segment.
Tele homecare solutions are projected to register significant growth in the coming years as the adoption of remote patient monitoring devices is increasing. Favorable government initiatives, increasing awareness among patients toward their health, and high penetration of internet-based solutions are some of the factors attributing to the segment growth.
For instance, TELUS Health in Ontario, Canada started a Telehomecare program named TELUS Home Health Monitoring (HHM) in collaboration with the Ontario Telemedicine Network (OTN) and Ontario Ministry of Health to reduce the burden on the healthcare system, hospital admissions, and emergency visits.
North America dominated the global market owing to the high demand for telemedicine in the recent past followed by Europe. These regional markets are expected to show a similar trend over the forecast period due to rising healthcare awareness coupled with cloud-based technologies acceptance. North America accounted for the maximum revenue share in the global market due to constant research and development initiatives.
Developing regions such as Asia Pacific and Middle East and Africa are expected to experience positive growth owing to rapid demand for telemedicine and healthcare assistance, especially in rural areas. Emerging economies including India and China are estimated to witness growth over the forecast period. Innovation and development in telecommunication are anticipated to enhance the growth in this region in the near future.
The report analyzes and forecasts the telemedicine market at global and regional levels. The market has been forecast based on volume (Tons) and value (US$ Mn) from 2020 to 2027. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report comprises a detailed value chain analysis, which provides a comprehensive view of the global telemedicine market. The Porter’s Five Forces model has also been included to help understand the competitive landscape of the market. The study encompasses market attractiveness analysis, wherein various applications have been benchmarked based on their market size, growth rate, and general attractiveness.
The study provides a decisive view of the telemedicine market by segmenting it in terms of form and application. The segment has been analyzed based on the present and future trends. Regional segmentation includes the current and projected demand in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
The report provides size (in terms of volume and value) of telemedicine market for the base year 2018 and the forecast between 2019 and 2026. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
The global market for telemedicine is developing at a rapid rate with a participation of a large number of local as well as international players operating in it. The development of new products and the rising focus on the research and development activities are projected to support the growth of the global telemedicine market in the next few years. In addition to this, the market players are emphasizing on advertising and marketing and creating an awareness among people concerning the benefits of telemedicine, which is estimated to accelerate the growth of the market in the next few years. The key players operating in the telemedicine market across the globe are Siemens Healthcare, Allscripts Healthcare Solutions, Inc., Agfa HealthCare NV, AMD Global Telemedicine, Inc., CISCO Systems, Inc., CARDIOCOM, LLC, F. Hoffmann-La Roche Ltd., InTouch Technologies, Inc., Honeywell HomMed LLC, LifeWatch AG, Medtronic, Inc., and McKesson Corp.
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
Primary research represents a bulk of research efforts, supplemented by extensive secondary research. Annual reports, press releases, and relevant documents of key players operating in various application areas have been reviewed for competition analysis and market understanding.
Secondary research also includes recent trends, technical writing, Internet sources, and statistical data from government websites, trade associations, and agencies. These have proved to be reliable, effective, and successful approaches for obtaining precise market data, capturing market participants’ insights, and recognizing business opportunities.
The study objectives of this report are:
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