GVR Report cover Telehealth Market Size, Share, & Trends Report

Telehealth Market Size, Share, & Trends Analysis Report By Delivery Mode (Cloud-based, Web-based), By Product Type (Software, Services), By End Use (Providers, Patients), By Region, And Segment Forecasts, 2022 - 2028

  • Report ID: GVR-4-68039-909-7
  • Number of Pages: 110
  • Format: Electronic (PDF)
  • Historical Range: 2016 - 2020
  • Industry: Healthcare

Report Overview

The global telehealth market size was valued at USD 62.4 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 36.5% from 2022 to 2028. The rising penetration of internet networks and innovation in the smartphone space to enhance global connectivity has enabled addressing gaps in care delivery and availing telehealth services more conveniently. The demand for telehealth services has witnessed a dramatic rise over the past year owing to the COVID-19 pandemic and related restrictions hindering the delivery of healthcare services and transitioning from traditional methods to virtual care strategies. The growing need to monitor health and wellness, to control the rising prevalence of chronic disorders through the help of smartphones and tablets is driving the market growth.

U.S. telehealth market size, by delivery mode, 2018 - 2028 (USD Billion)

Key players are designing and innovating various web-based and cloud-based platforms to deliver these virtual care applications to users. For instance, in August 2021, Teladoc and CVS Health partnered to launch CVS Health’s Aetna Virtual Primary Care. Under this partnership, CVS Health would utilize Teladoc’s physicians’ network and providers to deliver virtual care plans and services to patients. Telehealth services have enhanced communication channels between healthcare professionals and patients located remotely through telephonic and video consultations, thereby reducing the dependency on in-person visits and consultations.

Telehealth is a growing versatile technology delivering healthcare services digitally and virtually to patients in remote locations. Through these advanced digital technologies, delivery of patient-centric care to remotely located patients has been possible, reducing the need for emergency department visits and declining hospitalization rates significantly, thereby propelling the market growth. Concerns regarding data privacy and cybersecuritycoupled with the high cost of implementation are restraining the market growth. Telehealth applications focus on increasing accessibility to basic healthcare services with enhanced quality and safety.

Telehealth applications have been successful in delivering apt care to patients and reducing the chances of adverse events & symptoms going unnoticed. Innovation in the digital healthcare industry, such as the internet of things and advanced healthcare analytics, smart wearable devices, and strong internet & smartphone connectivity, is significantly shaping the telehealth industry and providing seamless patient monitoring and efficient chronic disorder management. Furthermore, the amalgamation of AI and machine learning algorithms has enhanced the personalization of healthcare services.

For example, Haldoc’s telehealth platform integrated with AI algorithms provides its physician network with constructive feedback received from patients on their consultation and provides training modules for performance improvement. The ongoing COVID-19 pandemic has unearthed shortcomings of the existing healthcare industry and burdened the healthcare delivery system. Rapidly rising incidence of COVID-19 infection, government-implied restrictions, reduced in-person consultations & hospital visits increased the adoption of virtual care services and telehealth applicationsto reduce the physical contact of patients and providers in healthcare facilities and minimize the risk of contracting the infection.

Several healthcare providers and insurance companies collaborated to devise strategies to promote the adoption of telehealth applications and services. Travel restrictions imposed due to the pandemic led to a significant surge in demand for digital health and virtual care services. For instance, in China, communication platforms, such as WeChat and TikTok, assisted healthcare providers and authorities in delivering safe mental health services through the virtual medium during the pandemic. Similarly, Haldoc announced a ten-fold increase in active users in 2020 in Southeast Asia.

Multiple initiatives and approaches are undertaken by several market players across the globe, whichhas driven the market growth during the pandemic. Market players have recorded exponential growth in revenue earning during the pandemic as compared to the previous financial year. For instance, Teladoc Health Inc. recorded a 63% year-on-year growth from the first two quarters of 2020 as compared to the first two quarters of 2019. The global shortage of healthcare professionals across various healthcare domains is positively impacting the demand for telehealth applications and services.

According to the World Health Organization, globally, there is a shortage of 4.3 million physicians, nurses, and healthcare staff, and the global shortage of healthcare providers is expected to reach eighteen million by 2030. In addition, to developing countries struggling with healthcare professional shortages, rural and remote healthcare settings are more commonly challenged with a physician shortage. Therefore, telehealth services are being implemented and adopted to enhance healthcare accessibility in remote locations and reduce healthcare expenses. Furthermore, the growing global geriatric populations and rising prevalence of chronic disorders are driving the demand for virtual care services.

Lastly, rising government funding and initiatives are driving the adoption of telehealth services. For instance, in August 2021, the Biden-Harris Administration announced an approximate USD 19 million investment in improving healthcare delivery and addressing gaps in care faced in rural areas with poor access to critical services. Key players are focusing on strategizing their collaborations and mergers & acquisitions to gain a competitive edge and expand their product portfolio and business footprint.

 

COVID19 telehealth market impact: 44.9 % growth in revenue from 2019 to 2020

Pandemic Impact

Post COVID Outlook

The market increased by 44.9% from 2019 to 2020

The market is estimated to witness a y-o-y growth of 44% to 45% in the next 5 years

The pandemic exponentially drove the demand for telehealth services and applications owing to the rapid spread of the infection and government-imposed travel restrictions to curb infection rates and reduce in-person interaction in healthcare facilities

Growing government support and funding to promote the adoption of telehealth services and the emergence of market players with innovative services and applications integrated with advanced technologies is driving the adoption

Market giants began providing telehealth services on their platforms during the peak of the pandemic. For instance, the Japanese Ministry of Economy, Trade, and Industry (METI) provided teleconsultation services free of charge in collaboration with Line

Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act appropriated by Congress, funding of USD 200 million has been provided to improve telehealth and virtual care services to patients in remote locations as a response to the COVID-19 pandemic. Similarly, the U.S. Department of Health and Human Services (HHS) announced USD 6 million funding for rural telehealth services and connected care

 

For instance, in December 2020, PointClickCare Technologies, a provider of senior care technology services acquired Collective Medical, a web-based telehealth platform for real-time continuum care coordination. Through this acquisition, PointClickCare Technologies will expand its care services and offerings. In July 2020, Teladoc Health, Inc. acquired InTouch Health and its telehealth capabilities to expand its services portfolio for inpatient, outpatient, and home care settings.

Product Type Insights

In 2021, the services product type segment dominated the market and accounted for the largest revenue share of 47.3%. The need for telehealth application in chronic disease management & real-time monitoring, rapid advancements in digital infrastructure, growing internet & smartphone penetration, and development in hardware & software components are driving the segment growth. The constantly evolving digital space is expected to support the growing need for these services. The development of a range of platforms & applications to monitor, diagnose, prevent disease, track fitness & wellness is boosting the adoption rates of these services.

Growing investments in digital infrastructure by emerging economies to address gaps in healthcare delivery and communication persistent in rural & remote locations will contribute to market growth. The software segment is anticipated to register the fastest CAGR over the forecasted period owing to the high demand for affordable & accessible healthcare, improved quality of care, and efficient workflow management. Rising healthcare costs and the growing need to monitor population health in real-time & accurately is supporting the adoption of these software solutions and applications. Shift to value-based care models in developed economies and several initiatives by public & private players to further develop telehealth applications will drive the segment.

Delivery Mode Insights

In 2021, the web-based delivery segment accounted for the largest market share of 45.8% owing to the emergence of multiple web-based telehealth & virtual care applications and the growing adoption rates of these web-based platforms as it offers direct access to healthcare delivery solutions. Innovation in the smartphone industry and penetration of the internet in rural & remote locations are boosting the growth of the web-based delivery segment. The seamless user interface and cost-effectiveness of web-based virtual care platforms are supporting the rapidly growing adoption rate. Increasing promotion of telehealth applications in the form of public & private funding and initiatives is driving the segment growth.

On the other hand, the cloud-based delivery mode segment is expected to record the fastest growth during the forecasted period. The introduction of technologically advanced solutions, increasing awareness among patients & healthcare providers, easy accessibility, high bandwidth, seamless data storage & recovery, and enhanced data privacy & security are bolstering the growth of the cloud-based delivery segment. Frequent data breaches in web-based and on-premises telehealth platforms have led to a growth in demand for cloud-based deployed solutions. Cloud-based deployed solutions have further enabled teleconsultation and patient monitoring for individuals requiring immediate medical assistance in remote & rural locations.

End-use Insights

In 2021, the providers segment accounted for the largest market share of 53.2% owing to the growing adoption rates of telehealth, telemedicine, and teleconsultation platforms by healthcare professionals to reduce the burden of the healthcare facilities. Increased convenience offered by telehealth solutions to healthcare providers in the form of quick & seamless access of patient health records, improved data management, real-time quality reporting, eHealth solutions, and improved decision-making will support segment growth. Healthcare facilities have witnessed significant improvements in their workflow management through the adoption of digital health technologies, which, in turn, is boosting the adoption of these solutions by healthcare providers.

Global telehealth market share, by end-use, 2021 (%)

Lastly, digital health solutions are being readily adopted by healthcare providers and are used in diseases surveillance, population health management, and operational intelligence. On the other hand, the patient segment is anticipated to record the fastest growth during the forecast period owing to the high internet connectivity, increasing smartphone users, and growing active subscribers on telehealth platforms. Through these advanced digital health solutions, the care provision and communication gaps between healthcare providers and patients have been overcome. Furthermore, these virtual care solutions have improved the accessibility and affordability of healthcare for patients.

Regional Insights

In 2021, North America dominated the global market and accounted for the maximum revenue share of 51.2% owing to the presence of a number of smartphone users, excellent internet connectivity, high healthcare IT expenditure, advancements in digital infrastructure, increased burden on physical healthcare facilities & resources, prevalence of chronic disorders, and high awareness levels about digital health & virtual care platforms among patients and healthcare providers. The development of cloud-based applications & platforms and the emergence of start-ups developing & delivering these advanced solutions are projected to drive the regional market in the years to come.

Asia Pacific is anticipated to register a significant CAGR during the forecasted period owing to advancements in the field of telehealth and constant research initiatives undertaken by several market players. Improving internet connectivity and rising smartphone penetration are supporting the adoption rate of these digital health solutions. The growing demand for medical and healthcare assistance in rural & remote locations of Asia Pacific is driving key players to develop innovative solutions to cater to the growing demand.Furthermore, telehealth applications witnessed widespread adoption among the population during the COVID-19 pandemic. Favorable government policies and funding to strengthen internet connectivity in rural localities are supporting the growing market.

Moreover, private players are receiving recognition and funding, which is boosting market growth. For instance, Singapore-based Doctor Anywhere received funding of USD 65.3 million in a Series C round led by Novo Holdings, Asia Partners, OSK-SBI Venture Partners, and Philips. The company would utilize this funding to scale up its offerings and enhance its digital health platform to be more affordable and accessible. Innovation and development in the telecommunication space are expected to drive the growth of emerging economies like India and China over the coming years. The shortage of healthcare professionals and rising healthcare costs coupled with the increasing prevalence of chronic disorders are also expected to boost the market growth in APAC.

Key Companies & Market Share Insights

The key market players are devising product and business footprint expansions to serve unmet care gaps in the healthcare network. Some of the strategies deployed by these players are technological collaborations, partnerships, product innovations, and mergers & acquisitions.For instance, in July 2020, Teladoc Health Inc. completed the acquisition of InTouch Health and its product portfolio and healthcare network established across home care, in-patient, and outpatient settings. In August 2020, AMD collaborated with iTelemed to enhance its virtual healthcare solutions and serve gaps in care delivery to the Canadian marginalized population during the pandemic. Some of the key players operating in the global telehealth market are:

  • Koninklijke Philips N.V.

  • Siemens Healthineers

  • Cerner Corp.

  • GE Healthcare

  • Medtronic PLC

  • Teladoc Health

  • American Well

  • Doctor on Demand

  • GlobalMed

  • MDLive

Telehealth Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 89.3 billion

Revenue forecast in 2028

USD 787.4 billion

Growth rate

CAGR of 36.5% from 2022 to 2028

Base year for estimation

2021

Historical data

2016 - 2020

Forecast period

2022 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2028

Report coverage

Revenue, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product type, delivery mode, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; France; Spain; Italy; Russia; China; Japan; India; South Korea; Australia; Brazil; Mexico; Argentina; South Africa; UAE; Saudi Arabia

Key companies profiled

Koninklijke Philips N.V; Siemens Healthineers; Cerner Corp.; GE Healthcare; Medtronic PLC; Teladoc Health Inc; American Well; Doctor on Demand; GlobalMed; MDLive

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the subsegments from 2016 to 2028. For the purpose of this study, Grand View Researchhas segmented the global telehealth market report on the basis of product type, delivery mode, end-use, and region:

  • Product Type Outlook (Revenue, USD Million, 2016 - 2028)

    • Hardware

      • Monitors

      • Medical Peripheral Devices

        • Blood Pressure Meters

        • Blood Glucose Meters

        • Weighing Scales

        • Pulse Oximeters

        • Peak Flow Meters

        • ECG Monitors

        • Others

    • Software

      • Standalone Software

      • Integrated Software

    • Services

      • Remote Patient Monitoring

      • Real-Time Interactions

      • Store and Forward

      • Others

  • Delivery Mode Outlook (Revenue, USD Million, 2016 - 2028)

    • Web-based

    • Cloud-based

    • On-premises

  • End-use Outlook (Revenue, USD Million, 2016 - 2028)

    • Providers

    • Payers

    • Patients

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

      • France

      • Spain

      • Italy

      • Russia

    • Asia Pacific

      • Japan

      • China

      • India

      • South Korea

      • Australia

    • Latin America

      • Brazil

      • Mexico

      • Argentina

    • Middle East & Africa

      • South Africa

      • UAE

      • Saudi Arabia

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