Telemedicine Market Size, Share & Trends Analysis Report By Component, By Technology, By Application (Teleradiology, Telepsychiatry), By Delivery Mode, By Type, By End-use, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global telemedicine market size was estimated at USD 55.9 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 22.4% from 2021 to 2028. The market holds many opportunities to grow during the forecast period owing to the lack of access to care and rising provider adoption of telemedicine, rising consumer demand and patient acceptance, and enhanced quality of care.

Telemedicine has been extensively used during the COVID-19 pandemic as it aids in decreasing contact with healthcare facilities, healthcare staff, and patients, in order to minimalize the risk of COVID-19. In China, online mental health surveys along with communication programs, such as Weibo, TikTok, and WeChat, among others, assisted health authorities and mental health professionals to render safe mental health services online during the pandemic. Such factors have assisted in market growth during the COVID-19 pandemic.

SOC Telemed, a U.S.-based company dealing in telemedicine technology and services, stated in March 2020, that it experienced a surge in the demand for on-demand acute care via telemedicine. Companies in the market for telemedicine have experienced exponential growth during the COVID-19 pandemic as compared to the previous year. For instance, Teladoc Health, Inc. experienced a 109% year-on-year growth from Quarter 3 of 2019 to Quarter 3 of 2020. This has positively affected the market during the COVID-19 pandemic.

Increasing access to basic healthcare along with improved healthcare quality and patient safety is the major aim of telemedicine solutions. According to a report published by the Agency for Healthcare Research and Quality (AHRQ), the implementation of telehealth or telemedicine solutions improves care delivery to patients. Applications such as e-ICU and eCare help in providing apt care and reduce adverse effects or symptoms from going unnoticed. By providing higher safety and quality standards to patients, demand for such systems is expected to increase over the forecast period and boost the market growth.

Telemedicine is considered as the most versatile technology available to deliver health education, health information and health care at a distance. Through the technologies, advanced patient-centered care and increased access to remote locations are possible. It also helps in reducing emergency room visits and hospitalization rates, thereby augmenting the market growth. However, certain challenges faced by this industry are resistance in technology acceptance by practitioners and patients, high cost of implementation, and data privacy and safety issues. These factors may hamper the accelerating growth to a certain extent.

Technology Insights

The store and forward segment dominated the market for telemedicine and is expected to hold the largest revenue share of around 40.0% in 2020. 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. The industry is driven by three concepts which include real-time (synchronous), store and forward (asynchronous), and others like home health virtual medicine.

On the other hand, real-time telemedicine comprises a contact between patient and healthcare practitioner via the use of electronic mediums, majorly video conferencing. This concept, also referred to as synchronous telemedicine, entails a vast amount of application which vary from a simple telephonic conversation to complex robotic surgery. Furthermore, 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.

Component Insights

The product segment dominated the market for telemedicine and accounted for the largest revenue share of 44.0% in 2020. The product segment is further divided into software, hardware, and others. The hardware segment is expected to hold the largest market share of 41.8% and is inclusive of medical peripheral devices, webcams, speakers, microphones, display screens, videoconferencing devices, laptops, and monitors.

The services segment is further classified into tele-monitoring, tele-consulting, and tele-education. The tele-monitoring segment is expected to grow over the forecast period owing to the increasing base of geriatric population requiring home assistance for care delivery. Tele-consulting segment is anticipated to be the lucrative segment over the forecast period owing to the rising initiatives by the government for telehealth implementation projects and high demand for video conferencing solutions.

Application Insights

The teleradiology segment dominated the market for telemedicine and accounted for the largest revenue share of over 26.0% in 2020 owing to factors such as an increase in imaging practices, teleradiology 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 key growth propellers over the forecast period.

Delivery Model Insights

The web/mobile based delivery model dominated the market for telemedicine and accounted for the largest revenue share of 78.6% in 2020. The segment 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 care. Telephonic care delivery dominated the market owing to its benefits such as cost-effective and easy to operate. In addition, rising smartphone penetration and disposable income are augmenting the segment growth.

Increasing awareness amongst the users, the introduction of technologically advanced solutions, penetration of cloud-based solutions is anticipated to boost the adoption of visualized care delivery solutions. The segment is expected to register a growth rate of 23.1% during the forecast period. The rising need for immediate medical assistance to patients located in remote locations is fueling the adoption of video conferencing solutions.

End-use Insights

The patients’ segment dominated the telemedicine market and accounted for the largest revenue share of 43.6% in 2020. This is because patients seek telemedicine services for various purposes starting from mild or moderate health issues to emergency situations. The payers segment consists of insurance companies that pay the telemedicine service providers on behalf of patients. Presently, not all telemedicine services are covered by insurance. Although Medicare covers limited telehealth services in specific rural areas, patients need to visit clinics for completion of a session. This segment is expected to witness steady growth in the coming years.

Telehealth solutions improve healthcare quality and offer convenience for healthcare providers in terms of quick access to patient records, improved decision support, provides clinical alerts, and real-time quality reporting. eHealth solution offers great convenience to healthcare professionals in terms of patient workflow and data management, these benefits are expected to boost the usage of telemedicine by providers over the forecast period.

Type Insights

The tele-hospitals segment dominated the market for telemedicine and held the largest revenue share of more than 50.0% in 2020. The segment is expected to witness a steady growth rate throughout the forecast period. Telemedicine services are generally preferred in emergency care.

The tele-home care solutions are projected to register significant growth in the coming years as the adoption of remote patient monitoring devices is increasing. The supportive government initiatives, increasing awareness amongst patients towards their health concerns, and high penetration of internet-based solutions are some of the factors attributing towards the segment growth.

Regional Insights

North America dominated the market for telemedicine and accounted for the largest revenue share of 34.4% in 2020 owing to high demand 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 over the forecast period. A developed region such as North America has accounted for the maximum revenue share in the global industry due to the constant research and development initiatives.

Developing regions such as Asia Pacific and the Middle East and Africa are expected to experience positive growth in the industry owing to rapid demand for healthcare assistance, especially in the rural areas. Emerging economies including India and China are estimated to witness growth over the next eight-year period. Innovation and development towards telecommunication are anticipated to enhance further the growth in this region in near future.

Key Companies & Market Share Insights

Vendors are investing in product launches, partnerships, collaborations, acquisitions, and mergers, to sustain in the market. The market for telemedicine is expected to become highly competitive as many startups are seeking opportunities in this sector. For instance, in August 2020, AMD partnered with iTelemed, an Ontario based company providing virtual healthcare solutions. This partnership aimed to cater to the unmet healthcare needs of the marginalized populations within Canada during the COVID-19 pandemic. Furthermore, in July 2020, Teladoc Health, Inc. acquired InTouch Health, a U.S.-based company. With this, the company integrated InTouch Health’s portfolio with its existing products and enhanced health care across in-patient, outpatient, and home care settings. Some of the prominent players in the telemedicine market include:

• MDlive Inc.

• SteadyMD Inc.

• Maven, Inc.

• iCliniq

• HealthTap, Inc.

• BioTelemetry, Inc.

• American Well

• CVS Health

• Synapse Medicine

• Practo

• Teladoc Health, Inc.

• Doctor On Demand, Inc.

• AMD Global Telemedicine

• Aerotel Medical Systems (1998) Ltd.

• Plantronics, Inc. (Polycom)

Telemedicine Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global telemedicine market report on the basis of technology, component, application, delivery mode, type, end-use, and region:

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

  • Product

    • Hardware

    • Software

    • Others

  • Services

    • Tele-consulting

    • Tele-monitoring

    • Tele-education

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

  • Store and forward

  • Real time

  • Others

• Application Outlook (Revenue, USD Million; 2016 - 2028)

  • Teleradiology

  • Telepsychiatry

  • Telepathology

  • Teledermatology

  • Telecardiology

  • Others

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

  • Web/Mobile

    • Telephonic

    • Visualized

  • Call Centers

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

  • Tele-hospital

  • Tele-home

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

  • Providers

  • Payers

  • Patients

  • Other

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

    • Netherlands

    • Switzerland

    • Sweden

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Singapore

    • Malaysia

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE