Telehealth Services Market Size, Share & Trends Analysis Report By Service Type (Real Time Interactions, Remote Patient Monitoring), By Delivery Mode, By End-use, By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global telehealth services market size was valued at USD 26.4 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 30.4% from 2022 to 2030. Rapidly growing healthcare digitalization era, increasing smartphone penetration, growing mobile internet users, rising demand for value-based care and simplified disease management, growing shortage of healthcare personnel, and multiple advancements in the healthcare IT infrastructure are driving the market. One of the key driving forces responsible for the widespread adoption of telehealth services is the ongoing COVID-19 pandemic. Related restrictions such as minimal physical contact and social distancing norms supported the adoption of online consultations and virtual health solutions.

Furthermore, rising shortage of healthcare facilities and increased risk of infection drove medical centers and healthcare workers to incorporate virtual care technologies and maintain a continuum of care for patients. Aging societies with increasing prevalence of non-communicable and chronic diseases and rising shortage of healthcare workers are hampering the availability and accessibility of healthcare services. According to the WHO estimates, there is a shortage of 4.3 million healthcare personnel across the globe and is anticipated to reach a deficit of 18 million by 2030. Moreover, emerging economies and developing nations are facing severe challenges in delivering care to remote and rural healthcare settings due to the shortage of care providers. This is driving the healthcare fraternity to implement various digital health technologies, thereby improving care delivery efficiency and patient-provider engagement. Telehealth services are being incorporated into care facilities’ infrastructure allowing patients to select care providers based on their accessibility. Virtual care solutions would support patients’ usage of preventive care services and follow-up consultations. 

Remote patient monitoring is one of the most commonly used telehealth services and involves real-time data collection of patient health information through smart wearables. This data is consolidated and analyzed by care providers, is used in their decision-making processes, and allows accurate diagnosis. In addition, remote patient monitoring bridges the care gap and enhances patient-provider engagement. Another telehealth service, physician-to-physician contact allows care providers to virtually collaborate with specialists in the healthcare fraternity to enhance the patient care experience. However, this rapidly emerging technology faces a few challenges in its path of adoption such as lack of adequate digital infrastructure, insufficient expertise and resources, and lack of reliable networking infrastructure limiting connectivity and service delivery. Healthcare facilities are widely incorporating these virtual care solutions, but there is a significant learning curve present between traditional healthcare operations versus telehealth services. Some of the challenges faced by users could be online scheduling of virtual visits, billing policies, and usage of different tools. Public and private stakeholders in the industry are encouraging the inclusion of telehealth services in health insurance and providing healthcare professionals with more motives and incentives to implement virtual care solutions. Furthermore, market players are focusing on developing easier-to-use and more intuitive telehealth technologies, which would significantly lower the learning and adoption barriers for patients and care providers. 

Telehealth services offer personalization, real-time video and audio communications, and artificial intelligence and machine learning integrations allowing care providers to innovate and improve the patient care experience. Remote accessibility and enhanced quality care, availability of urgent and timely care, reduced overall healthcare costs, and enhanced provider productivity through self-service pre-screenings, automated sharing of health data, and data-driven decision making are some of the benefits associated with telehealth services. Virtual care solutions offer accessibility and convenience to both the patients and providers. 

According to a study conducted by Cisco, 74% of the respondents were in favor of adopting virtual visits and teleconsultations over physical interactions. Virtual visits enable seamless communication, real-time data capture, increased follow-up and subsequent visits, and improved engagement. Furthermore, as per an investigational study conducted by The Harvard Medical School, a patient consumes an average of 121 minutes on an in-person medical visit. Telehealth services allow patients to consume fundamentally lesser time. 

The COVID-19 pandemic revealed the overburdened global healthcare systems and exposed shortcomings and deficits in the existing healthcare industry. The restrictions imposed due to the rapidly spreading COVID-19 infection and growing shortage of healthcare facilities and care personnel drove the healthcare industry to widely implement virtual care and telehealth technologies. Key participants witness exponential growth in revenues and membership numbers during the onset of the pandemic as compared to the pre-pandemic era. For example, Teladoc Health, Inc. witnessed a dramatic surge of 63% in revenue earnings in 2020 as compared to 2019. Currently, telehealth utilization rates have plateaued at levels ranging between 13-17% after an initial spike of 32% higher than in the pre-pandemic years. Provider and patients’ attitudes and mindsets towards adopting virtual care solutions have significantly improved compared to pre-COVID. 

However, perceptions around technology security needed to be addressed at the earliest to sustain and grow the consumer base. Globally government bodies are introducing and implementing favorable regulatory changes supporting the use of telehealth services. For instance, the Centers for Medicare & Medicaid Services has laid down reimbursable telehealth codes for the 2021 physician fee schedule. Investments in digital health solutions have skyrocketed, attracting capital investments from public and private investors. 

In 2020, venture capitalist investment in digital health solutions witnessed three-fold growth as compared to 2017 investments. Market participants are focusing on their product development strategies to incorporate hybrid virtual/in-person care and value-based care models to enhance user experience, affordability, accessibility, convenience, and outcomes. Market players are also revising their merger & acquisition and technological partnership strategies to expand their business footprint. For instance, Teladoc Health, Inc. acquired InTouch Health in July 2020 to expand its product portfolio for homecare, outpatient, and inpatient settings using combined telehealth expertise and capabilities.

Service Type Insights

In 2021, the real-time interactions segment dominated the market and accounted for a revenue share of over 25.0% owing to the widespread adoption in managing chronic diseases, increasing demand for real-time monitoring, advancements in digital health infrastructure, increasing number of mobile internet users, and growing demand to minimize increasing healthcare expenses. Furthermore, integration of AI/ML algorithms into telehealth solutions supports care providers in making real-time data-backed decisions enhancing patient care journey and improving clinical outcomes. Growth in synchronous (real-time provider-patient audio/video consultations) virtual visits coupled with live patient health data collection is driving the segment. Telehealth platforms using configuration tools can seamlessly integrate patient health information arising from live interactions on virtual platforms across multiple care settings. 

Remote patient monitoring is anticipated to register the fastest growth over the forecast period owing to the constantly developing digital health space and development of numerous platforms and tools to monitor and manage diseases and track patient health and fitness. Increasing healthcare expenses and rising demand for accurate real-time monitoring of patient health are supporting the adoption of remote patient monitoring services. Emerging economies are focusing on their digital health investments to improve infrastructure and address gaps in healthcare delivery in remote and rural locations. Developed nations are adopting value-based care models and the public and private stakeholders are undertaking several initiatives to promote the adoption of telehealth services. 

Delivery Mode Insights

In 2021, the web-based delivery segment accounted for the largest revenue share of over 45.0%. This is attributed to the availability of multiple virtual care applications and telehealth platforms on the web. Web-based platforms offer users direct access to care solutions. Evolving smartphone industry coupled with improving internet connectivity in remote locations is contributing to the growth of the segment. Web-based telehealth solutions are built with an intuitive user interface and are cost-effective compared to other virtual care solutions. Growth in public and private initiatives to promote virtual care solutions and increased funding in the industry are driving the segment.

The cloud-deployed telehealth services segment is anticipated to register the fastest growth rate over the forthcoming years owing to the emergence of technologically advanced platforms, enhanced accessibility, increased bandwidth, growth in the awareness levels among patients and care personnel, improved data security and privacy, and data storage and recovery. Web-based applications and platforms are more prone to data thefts and breaches as compared to cloud-deployed solutions, which is fueling the growth of the segment. Teleconsultations and patient monitoring using cloud-deployed platforms have enhanced medical care accessibility in rural locations. 

End-use Insights

In 2021, the patients segment dominated the market and accounted for a revenue share of over 40.0% owing to growing adoption rates of virtual care platforms and telehealth applications, increased convenience, affordability, and accessibility of care solutions. The patients segment is anticipated to register the fastest growth rate over the forthcoming years. This is attributed to increasing awareness and health consciousness, smartphone penetration and internet connectivity, growing technology-friendly users, and increasing number of active subscribers. These technological solutions have successfully overcome the care and communication gaps existing between patients and providers. 

Growing digitalization of healthcare and widespread adoption of mobile health (or mHealth) technologies have enabled the seamless exchange of healthcare information. Emergence of virtual care centers and numerous pilot programs to adopt telemedicine and teleconsultation platforms is improving the accessibility and affordability of care services for patients. For example, Mercy Hospitals and Inova Health Systems in the U.S. are implementing telemedicine facilities and virtual care centers addressing care domains. Innovation and development of new virtual care solutions in the field of neurology, psychiatry, radiology, mental health, stroke care, and dermatology are expected to accelerate segment growth. 

Application Insights

In 2021, tele-radiology segment dominated the market and accounted for a revenue share of over 20.0% owing to the rapid adoption of tele-radiology workflow by healthcare facilities, growing diagnostic imaging centers, and the introduction of favorable tele-radiology practices. Medical imaging solution is one of the pioneering fields in medicine to readily adopt virtual care and telehealth solutions. In addition, the shortage of skilled radiologists and other radiology staff is driving the demand for tele-radiology services. Implementation of Picture Archiving and Communication System (PACS) and integration of advanced AI/ML algorithms into tele-radiology solutions are anticipated to drive the demand for the same and positively impact the growth of the segment. Furthermore, advancements in digital image processing techniques coupled with improving internet connectivity and high transmission speed are supporting the growth of the tele-radiology segment. The emergence and implementation of mHealth technologies in visualizing and analyzing images are further boosting the growth of the segment across developed countries.

The tele-psychiatry segment is anticipated to register the fastest growth rate in the forecast period owing to the increasing global prevalence of mental health ailments and behavioral disorders. Increasing awareness among patients and care providers regarding tele-psychiatry solutions is boosting segment growth. For example, MDLive offers virtual consultations with a broad team of psychiatrists and counselors addressing a wide array of mental disorders. Increasing awareness regarding the importance of mental health and well-being and the presence of favorable government initiatives promoting mental health are accelerating the growth of tele-psychiatry. 

Regional Insights

In 2021, North America dominated the market and accounted for a revenue share of over 50.0%. This is attributed to the presence of renowned market players, emergence of entrepreneurial ventures, increase in healthcare IT expenditures, advancements in digital health infrastructure, high-quality internet connectivity, growing technology-friendly smartphone users, overburdened physical healthcare centers and resources, and rising incidence of chronic diseases. The availability of cloud-deployed virtual care solutions and applications coupled with growing awareness regarding digital health is driving the North American market.

The Middle East and Africa is anticipated to register the fastest growth rate over the forecast period. Increasing healthcare IT expenditure and rising digital readiness among MEA countries are driving the regional market. For instance, the Saudi Arabian government launched the Kingdom Vision 2030 initiative to promote and boost healthcare digitalization and significantly transform patient care experience while improving overall efficiency. Growing deficits of healthcare personnel are driving the demand for telehealth services in the MEA. For instance, as per the Institute for Health Metrics and Evaluation estimates in May 2022, the Middle East, South Asia, and North African regions observed the largest shortfall of care personnel. Lastly, growing smartphone penetration and improving internet connectivity are paving a path for the smooth adoption of virtual care services in the MEA. As per the GSMA Mobile Economy estimates, there are over 300 million mobile users in the MEA countries, and the smartphone penetration as of 2022 in this region is 50% of the total population. 

Key Companies & Market Share Insights

Companies are focusing on expanding their business offerings to new consumer bases across multiple geographies. Market players are adopting numerous strategies such as technological collaborations and partnerships to gain a competitive edge in the industry. For instance, in March 2021, Philips entered a strategic partnership with Orbita, Inc., a developer of AI-powered algorithms, to develop conversational virtual assistants complementing its patient support solutions and consumer health portfolios. Similarly, Cerner partnered with Amazon in August 2020 to co-develop Amazon Halo, a telehealth service allowing patients to interact with medical professionals for virtual health data sharing. Some prominent players in the global telehealth services market include: 

• Koninklijke Philips N.V.

• Siemens Healthineers

• Cerner Corporation

• GE Healthcare

• Medtronic PLC

• Zoom

• Doxy.me

• Cisco Systems

• Teladoc Health Inc.

• American Well

• Doctor on Demand

• GlobalMed

• MDLive

• HealthTap, Inc.

• Practo

• PlushCare 

Telehealth Services Market Report Scope

Global Telehealth Services Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2030. For the purpose of this study, Grand View Research, Inc. has segmented the global telehealth services market report on the basis of service type, delivery mode, end-use, application, and region:

• Service Type Outlook (Revenue, USD Million, 2016 - 2030)

  • Remote Patient Monitoring

  • Real Time Interactions

  • Store & Forward

  • Video/ Audio Consultations

  • Physician-to-physician Contact

  • Appointment Scheduling

  • Patient Medical Data Collections

  • Other Telehealth Services

• Delivery Mode Outlook (Revenue, USD Million, 2016 - 2030)

  • Web-based

  • Cloud-based

  • Others

• End-use Outlook (Revenue, USD Million, 2016 - 2030)

  • Providers

  • Payers

  • Patients

• Application Outlook (Revenue, USD Million, 2016 - 2030)

  • Tele-radiology

  • Tele-psychiatry

  • Tele-cardiology

  • Tele-dermatology

  • Tele-pathology

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

    • Russia

    • Netherlands

    • Sweden

    • Switzerland

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Australia

    • Singapore

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • UAE

    • Saudi Arabia

    • Israel