Telemedicine Market Size, Share & Trends Analysis Report By Component (Products, Services), By End User (Patients, Providers), By Application, By Modality, By Delivery Mode, By Facility, And By Segment Forecasts, 2022 - 2030

Report Overview

The telemedicine market size was valued at USD 70.4 billion in 2021 and is estimated to grow at a compound annual growth rate (CAGR) of 19.5% from 2022 to 2030. The growing need to reduce the cost of care, consolidation across the industry, and other strategic initiatives by key companies are some of the main drivers of this market. The market holds many growth opportunities owing to the rising adoption of telemedicine, rising consumer demand & patient acceptance, and enhanced quality of care. In May 2021, Walmart Inc. acquired MeMD-a telehealth provider. This would enable Walmart to offer virtual care access for urgent, behavioral, and primary care across the U.S.

Telemedicine was extensively used during the COVID-19 pandemic as it aids in decreasing the contact with healthcare facilities, healthcare staff, and patients, to minimize 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 mental health services safely and 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 demand for on-demand acute care via telemedicine.

Companies in the market 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. American Well Corp., another key player in the market, reported that its clients comprising health system and health plan providers deployed tens of thousands of their own care providers onto their platforms during 2020. Around 68,000 active providers had used the Amwell Platform to provide primary care, chronic care management, and specialist visits by December 2020.

COVID19 telemedicine market impact: exponential growth of 35% from 2019 to 2020

American Well Corporation attributed around 76.5 million increase in revenue during 2020 due to the pandemic-induced growth in online visit volume. The pandemic has thus positively affected the overall market. 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, the demand for such systems is expected to increase over the forecast period and boost the market growth. Moreover, telemedicine is considered 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. Continued investment in new technologies to expand the capabilities of telemedicine products and services is another key factor anticipated to propel market growth in the near future.

The industry is also witnessing an increased flow of investments, mergers & acquisitions, and entry of new and large-scale companies. This is expected to intensify the competition in the coming years. For instance, in March 2021, Amazon.com, Inc. expanded the access to its virtual visits and telehealth platform- Amazon Care, to serve other Washington-based companies. Until then, Amazon Care was available only to the company’s employees and their families in Washington state. The company further plans to expand its virtual care product and services to its employees and other companies in all 50 states across the U.S. Technological advancements in robotic surgery, Virtual Reality (VR), and Artificial Intelligence (AI)are anticipated to boost the application scope of telemedicine in areas, such as telesurgery.

Component Insights

By component, the product segment dominated the market in 2021 while the services segment is expected to grow at the fastest CAGR of over 20% from 2022 to 2030. The product segment is further divided into software, hardware, and others. The hardware segment held the largest market share in 2021 owing to the high adoption of medical peripheral devices, microphones, display screens, videoconferencing devices, and audio equipment to facilitate virtual visits. Teladoc Health, Inc. for instance, offers a range of devices that support clinical collaboration and point-of-care visits, such as the Viewpoint Cart, TV Pro & TV Pro+, Xpress & Xpress Cart, Lite with Boom Camera, and others.

In terms of services, the telemonitoring segment is expected to grow at the fastest CAGR over the forecast period owing to the expanding field of remote patient monitoring. The tele-consulting segment contributed to the largest revenue share as it forms the core of telemedicine solutions. The widespread use of tele-consulting between patients and clinicians, between physicians, and between surgeons and students is estimated to propel the segment growth. In December 2021, the Common Services Centre of the Ministry of Electronics and Information Technology in India launched the CSC Health Services Helpdesk-a chatbot-based helpline on WhatsApp.

Modality Insights

The industry is driven by three concepts, which include real-time (synchronous), store and forward (asynchronous), and others comprising remote patient monitoring, etc. The real-time segment accounted for the largest revenue share of more than 38.00% in 2021. This is owing to the rising uptake of on-demand medical consultations, usage of mHealth and virtual video visits, and service offerings by key market players. The others segment consisting of patient monitoring (e.g. health tracking and vital signs monitoring) from a distant location (such as home or hospital) is also expected to grow at a significant CAGR over the forecast years.

In 2018, Fitbit Health Solutions reported that Cedars-Sinai Hospital in Los Angeles started giving out Fitbit wearables to patients after hip replacements, knee replacements, and other surgeries. This enabled the clinicians to track patient activity and to encourage patients to start walking short distances to support their rehabilitation journey. In October 2020, Fitbit (now a part of Google), announced its plans to grow the premium health and fitness subscription service line by entering into virtual care in the coming years.

Application Insights

The teleradiology segment dominated the market and accounted for the largest revenue share of more than 24.05% in 2021. This is because of factors, such as an increase in imaging practices, teleradiology workflow adoption by healthcare providers, expansion of service offerings within radiology sub-segments, and the streamlining & regulation of teleradiology practices. The 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.

Heidelberg Medical Consultancy & Health Tourism Pvt. Ltd., for instance, is a telemedicine service provider specializing in customized, high-quality, and affordable radiology reporting solutions for dental specialists and practices. Telepsychiatry, on the other hand, is projected to grow at the fastest CAGR from 2022 to 2030. This is owing to the growing prevalence of mental health disorders, behavioral disorders, rising awareness, and adoption of telepsychiatry services. MD Live, for instance, offers sessions with counselors and psychiatrists for a range of conditions including anxiety, depression, trauma & PTSD, panic disorders, and more.

Delivery Mode Insights

On the basis of delivery modes, the global market has been further bifurcated into web/mobile and call centers. The web/mobile segment dominated the market in 2021 and accounted for the largest share of more than 78.05% of the global revenue. The segment is estimated to expand further at the fastest CAGR retaining its dominant position throughout the forecast period. This segment is further categorized into audio/text-based and visualized access to the care. Rising smartphone penetration, a surge in mHealth usage, and growing healthcare consumerism are contributing to the segment growth.

The market is also dominated by tech companies offering web and mobile-first solutions to enable telemedicine, thus contributing to the high share of the segment. Furthermore, increasing awareness among users, the introduction of technologically advanced solutions, and the penetration of cloud-based solutions are anticipated to boost the adoption of visualized care delivery solutions. The call centers segment is also expected to grow at a considerable CAGR over the estimated period. In April 2021, the Cyberabad Police in Telangana, India, launched a COVID-19 telemedicine consultation call center to address the basic and immediate needs of COVID-19-related queries for citizens.

Facility Insights

On the basis of facilities, the global market has been further bifurcated into tele-hospitals and tele-home. The tele-hospitals facility segment dominated the global market in 2021. The segment accounted for the maximum share of more than 50.5% of the global revenue in the same year. The segment is expected to expand further at a steady growth rate during the forecast period. The tele-home care facility segment is projected to register the fastest growth rate during the forecast period. This growth can be attributed to the increasing adoption of remote patient monitoring devices.

The supportive government initiatives, increasing awareness among patients towards their health concerns, and high penetration of internet-based solutions are some of the factors driving the segment. The Tele-ICU program launched by Koninklijke Philips N.V., for instance, played a key role in facilitating clinicians to monitor a scalable number of ICU beds remotely in 2020. The beds were connected to a central monitoring facility and came equipped with camera-enabled bedside support and predictive analytics. The growing adoption of mHealth and wearable devices is also expected to fuel the market growth.

End-user Insights

The patients segment dominated the market with a share of more than 37.5% in 2021. This is because patients seek telemedicine services for various purposes starting from mild or moderate health issues to emergencies. Market players are thus expanding their service offerings to fit patient needs. VSee, for instance, provides Telemedicine Software, Carts & Kits, Remote Patient Monitoring Dashboard, and API& SDKs. The company offers these solutions to a variety of clinical specialties, such as Concierge Medicine, Dermatology, Family Medicine, Internal Medicine, Mental Health, Pediatrics, Physical Therapy, Primary Care, Psychiatry (ER), Radiology, Skilled Nursing Facilities, Speech Therapy, and Urgent Care.

On the basis of end users, the global market has been divided into patients, payers, providers, and others. The providers segment is estimated to register the fastest growth rate over the forecast period. Telemedicine solutions help enhance the quality of healthcare services. These also offer convenience for healthcare providers, in terms of quick access to patient records, improved decision support, improved workflows, and analytics. eHealth solution offers great convenience to healthcare professionals, in terms of patient scheduling and data management. These benefits are expected to boost the usage of telemedicine by providers over the forecast period.

Regional Insights

North America dominated the global market in 2021 and accounted for the largest share of more than 33.8% of the overall revenue. This is owing to the rising digitalization across healthcare, advanced healthcare facilities, and the adoption of telemedicine solutions. The presence of key players further contributes to the notable share of the region. For instance, companies including MDlive, Inc., Teladoc Health, Inc., American Well Corp., Doctor On Demand, Inc., SteadyMD, Inc., and Zoom Video Communications, Inc. are headquartered in the U.S. These companies implement strategic initiatives to increase their market share.

Asia Pacific, on the other hand, is anticipated to be the fastest-growing regional market during the forecast period. This rapid growth can be attributed to the presence of a large patient population pool, increasing internet usage, and rapid demand for healthcare assistance, especially in the rural areas. Emerging economies including India and China are estimated to lead the regional market in the years to come. In March 2021, India Brand Equity Foundation (IBEF) reported that the Indian government launched a telemedicine service-eSanjeevani and completed around 3 million consultations across the nation.

Key Companies & Market Share Insights

The market is highly fragmented and competitive. Market players are involved in implementing strategic initiatives, such as product upgrades, regional expansions, portfolio diversification, and mergers & acquisition. The market is expected to have intense competition as many startups are seeking opportunities in this sector as well as large-scale, established companies are entering the market to increase their portfolio.

For instance, in August 2020, AMD partnered with iTelemed, an Ontario-based company providing virtual healthcare solutions. This partnership was formed to cater to the unmet healthcare needs of the marginalized population 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 key players in the global telemedicine market include:

• MDlive, Inc. (Evernorth)

• American Well Corp.

• Twilio, Inc.

• Teladoc Health, Inc.

• Doctor On Demand, Inc. (Included Health)

• Zoom Video Communications, Inc.

• SOC Telemed, Inc.

• NXGN Management, LLC

• Plantronics, Inc.

• Practo

• VSee

• Sesame, Inc.

• Doxy.me Inc.

• PlushCare

• HealthTap, Inc.

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 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global telemedicine market report on the basis of component, modality, application, delivery mode, facility, end user, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Product

    • Hardware

    • Software

    • Others

  • Services

    • Tele-consulting

    • Tele-monitoring

    • Tele-education

• Modality Outlook (Revenue, USD Million, 2017 - 2030)

  • Store and forward

  • Real time

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Teleradiology

  • Telepsychiatry

  • Telepathology

  • Teledermatology

  • Telecardiology

  • Others

• Delivery Mode Outlook (Revenue, USD Million, 2017 - 2030)

  • Web/Mobile

    • Audio/Text-based

    • Visualized

  • Call Centers

• Facility Outlook (Revenue, USD Million, 2017 - 2030)

  • Tele-hospital

  • Tele-home

• End-user Outlook (Revenue, USD Million, 2017 - 2030)

  • Providers

  • Payers

  • Patients

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

    • The Netherlands

    • Sweden

    • Switzerland

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

    • Singapore

    • Malaysia

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • Israel

    • UAE