U.S. Virtual Care Market Size, Share & Trends Analysis Report By Application (Family Medicine, Internal Medicine, Cardiology), By Consultation Mode, And Segment Forecasts, 2022 - 2030

Report Overview

The U.S. virtual care market size was valued at USD 4.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 30.75% from 2022 to 2030. Continuous development of advanced technologies, rising patient demand, and regulatory reforms are primary factors driving the market growth. According to the Association of American Medical Colleges, there will be a shortage of about 124,000 and 37,800 specialty and primary care physicians by 2034. The anticipated physician shortage in the U.S. is poised to surge the market growth in the coming years.

The U.S. government is making massive investments in digital health and boosting healthcare IT adoption, which is expected to stimulate market expansion. For instance, in February of 2021, the United States Department of Agriculture (USDA) spent USD 42 million on telemedicine infrastructure and remote learning to improve health outcomes and education. Through the Distance Learning and Telemedicine (DLT) program, the USDA financed 86 projects in rural regions to help individuals by offering healthcare education and grants to purchase telemedicine interactive telecommunications distance learning technology.

In recent years, digital healthcare has played a significant role in advancing health equity by providing timely treatment and clinical assessment, particularly to the most vulnerable population. To strengthen telehealth services and rural health in the U.S., the Biden-Harris Administration invested over USD 19 million through the Health Resources and Services Administration (HRSA) of the U.S. Department of Health and Human Services (HHS) in August of 2021.

COVID-19 U.S. Virtual Care Market Impact: ~100 % increase from 2019 to 2020

The COVID-19 pandemic has highlighted the significance of virtual healthcare services. Before the pandemic, the country made minimal use of telemedicine services. The industry has witnessed tremendous growth in response to the pandemic. Throughout the pandemic, telehealth has been viewed as an emergency tool. Hence, the government took proactive measures to support telemedicine utilization. The Centers for Medicare & Medicaid Services (CMS) provided a temporary extension of Medicare coverage and treatment done through telehealth during COVID-19. This allowed physicians to swiftly transition to offering health services virtually to their patients.

In February 2022, the HHS, through the HRSA, awarded nearly USD 55 million to 29 HRSA-funded health centers to improve the quality and accessibility of health care for underserved populations through remote patient monitoring, telehealth, and health information technology platforms, and digital patient tools. This investment is in addition to the roughly USD 7.3 billion that the American Rescue Plan spent on community health clinics in the previous year to help mitigate the impacts of the pandemic.

With the advent of technological advancements, the significance and utilization of virtual care in the healthcare industry continue to increase. Virtual care services such as video consultations, chats, and messaging are becoming more accessible for both patients and healthcare organizations. In addition, the rising incidence of illness and rapidly growing geriatric population are propelling the market growth.

The rising geriatric population is creating a burden on the current healthcare workforce. This coupled with a shortage of medical professionals is resulting in increased waiting time. As per a 2017 Survey of Physician Appointment Wait Times, a new patient has to wait an average of 24 days for a physician’s appointment in the U.S., up from 18.5 days in 2014. Online video or audio consultations helps in reducing the burden on the current workforce as well as provide easy access to the patients. Virtual care technologies offer the potential to improve patient-physician collaboration, patient access and health outcomes, patient satisfaction, and medical expenses. This is anticipated to boost the market growth.

Consultation Mode Insights

The audio segment accounted for the largest market share of 45.9% in 2021. Easy access and a higher preference for phone calls are factors driving the growth of the market. Moreover, many people reside on the side of the digital divide where access to technology and high-speed internet service is limited. More than 21 million Americans live in "digital deserts" according to the 2020 Broadband Deployment Report. Both rural and urban residents are affected by this issue.

The Pew Research Center discovered that less than 65% of rural individuals have a broadband internet connection in their homes, while more than 40% of low-income Americans do not have broadband connectivity in their homes. For these individuals, audio-only visits have proven to be a successful means of overcoming barriers to care such as mobility issues, lack of transportation, and lack of nearby providers. Moreover, audio-only consultations have expanded access to crucially needed behavioral health services.

The video segment is likely to witness remarkable growth over the forecast period. This growth is related to COVID-19. In April 2020, 43.5% of all Medicare primary care visits were conducted via telehealth; before the pandemic, this percentage was only 0.1%. While virtual care also encompasses phone and message consultations, the frequency of appointments conducted by video has risen dramatically. Video appointments via the Department of Veterans Affairs Video Connect System, for instance, increased to 120,000 per week in May of 2020 from 10,000 per week in February 2020.

Application Insights

In 2021, the family medicine segment dominated the U.S. virtual care market with a share of 29.4%. A high number of online consultations for acute and primary care is the main factor for the dominant share of the segment. The American Academy of Family Physicians (AAFP) recommends expanding the use of telemedicine as an efficient and appropriate means of enhancing health when handled by adequate standards of care.

During the pandemic, more than 80% of family physicians began delivering online appointments, according to a recent AAFP poll. In addition, almost 70% of respondents would prefer to deliver health services virtually in the future. Thus, increasing adoption of virtual care by family physicians is expected to fuel the growth of the segment.

Moreover, the internal medicine segment held a significant portion of the market in 2021. According to a survey conducted by the American College of Physicians (ACP), internal medicine physicians and subspecialists would like to use virtual care technologies more than they do currently. The survey revealed that more than half of the respondents are interested in learning more about connected care technologies.

Also, one-third of telemedicine users use e-consults to collaborate with specialists at least once a week. The technology is used by around one-quarter of telehealth users to communicate with patients and manage care outside the clinic. Nearly 18% of telehealth/telemedicine users conduct video visits with patients, and 19% use the platform at least once a week. The aforementioned factors are expected to drive the segment growth.

Key Companies & Market Share Insights

The market is highly fragmented with the presence of large and small players. Investment in the latest technologies, acquisitions, collaborations, and expanding services to multiple specialties are some of the strategies adopted by the market players to expand in the market. Teladoc Health Inc., American Well Corporation, and MDLIVE account for the leading players in the market.

In January 2020, for instance, Teladoc Health Inc. entered into a deal to purchase InTouch Health to expand its telemedicine offerings and expand its reach across hospitals and healthcare facilities. In addition, American Well Corporation raised USD 194 million in May 2020 to address the soaring demand for remote healthcare services. Some prominent players in the U.S. virtual care market include:

• Teladoc Health, Inc.

• American Well Corporation

• MDLIVE

• Doctor on Demand, Inc.

• Virtuwell

• CVS health

• MeMD

• HealthTap, Inc.

• iCliniq

• Sesame, Inc.

U.S. Virtual Care Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the U.S. virtual care market report based on application and consultation mode:

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

  • Family Medicine

  • Internal Medicine

  • Cardiology

  • Pediatrics

  • Endocrinology

  • Rheumatology

  • Pulmonology

  • Others

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

  • Video

  • Audio

  • Messaging