U.S. Virtual Visits Market Size, Share & Trends Analysis Report By Service Type, By Commercial Plan Type (Small Group, Self-funded/ASO Group Plans, Medicaid, Medicare), By Age Group, By Gender, And Segment Forecasts, 2020 - 2027

Report Overview

The U.S. virtual visits market size was valued at USD 4.5 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 27.5% from 2020 to 2027. An increase in the number of telehealth/virtual visits during the COVID pandemic and the introduction of advanced audio-video technologies are some of the key factors driving the market. In addition, increasing usage of smartphones and rising adoption of 4G/5G technology is further rising its adoption among the patient population. In 2019, around 102.8 million people went for virtual healthcare assistance. Furthermore, technological advancement in the telehealth space is one of the key factors driving the market for virtual visits. These technological breakthroughs are creating numerous opportunities for men and women living in rural and urban areas to receive safe, secure, and convenient access to care for various health conditions, such as birth control, erectile dysfunction, chronic illness, prostatitis, fatigue, migraines, yeast infections, metabolic syndromes, and irritable bowel syndrome.

In addition, growing demand for specialty and personalized care, especially in remote areas, is another key factor increasing the adoption of virtual visits and video consultations, as these services help patients connect with certified medical professionals & specialty experts. Moreover, increased internet penetration, recent advancements in video conferencing systems, and significant developments in 4G or 5G networks are anticipated to boost the growth of the market for virtual visits.

Furthermore, growth in the number of government initiatives for the development of telehealth programs is expected to propel market growth. For instance, in 2018, the U.S. Department of Veterans Affairs expanded its telehealth offerings by allowing their doctors, nurses, and other providers to administer care through telehealth regardless of their location in the U.S. Similarly, in March 2020, Medicare expanded telehealth services in response to the COVID-19 outbreak in the country. Hence, such rising government reforms are anticipated to fuel the demand in the coming years.

Another factor that is positively impacting the demand for virtual visits is the increase in awareness about its benefits and rising adoption by physicians in the country. For instance, according to the data published by the American Medical Association in February 2020, the adoption of virtual visits/tele-visits doubled from 14.0% in 2016 to 28.0% in 2019 by physicians. Thus, rising awareness about virtual visits and increasing adoption by physicians is expected to propel the growth of the market for virtual visits during the forecast period.

Moreover, using the telehealth application in hospitals and clinics generates a pool of patient information inclusive of diagnostic data, recordings of patient interaction with physicians, and remote patient monitoring providing daily survey information. Rising hacking incidents and cybercrimes pose a major threat to the telehealth virtual visits market in terms of providing more secure and confidential healthcare delivery platforms to patients.

Service Type Insights

Based on service type, the cold and flu management segment dominated the market for virtual visits with a share of 30.3% in 2019. The largest market share is attributable to increasing patient demand for immediate care while avoiding the spread of infections in waiting rooms at hospitals and other healthcare facilities. Furthermore, behavioral health is expected to be the fastest-growing segment over the forecast period. This growth can be attributed to the increasing demand for end-to-end virtual care solutions for various behavioral health conditions, such as depression, grief and loss, anxiety, bipolar, LGBTQ support, relationship issues, panic disorders, stress management, trauma, posttraumatic stress disorder, and addiction.

In addition, the increasing prevalence of influenza testing across the United States owing to the COVID-19 pandemic is anticipated to bolster the growth of the market for virtual visits. For instance, in March 2020 Teladoc Health registered a 50.0% spike in patient visits, with peak flu volumes accelerated to 15,000 video visits requests per day. Therefore, increasing the prevalence of influenza testing in the country is anticipated to contribute to the overall growth.

Commercial Plan Type Insights

Based on the commercial plan type, the self-funded/ASO group plans segment accounted for the highest revenue share of 33.3% in 2019 in the U.S. virtual visits market. This is owing to factors such as the increasing prevalence of chronic diseases, rising healthcare costs, and surging demand for affordable healthcare solutions.

The small group commercial plan type segment is expected to witness the highest CAGR owing to the increasing demand for virtual care and rising number of initiatives undertaken by various public & private organizations to support employees of small businesses that are burdened with increased healthcare costs, higher per-employee rates, and limited coverage. Furthermore, various health plans offered to noninsured patients on a monthly and annual basis, with an aim to encourage treatment adherence, gain patient loyalty, and generate additional revenue for the practice, which in turn is resulting in an increase in the adoption of small group health plans in the U.S. and is anticipated to boost the market growth.

Age Group Insights

Based on the age group, the consumers aged between 18– 34 years segment accounted for the highest revenue share of 33.0% in 2019 in the market. Factors such as increased penetration of smartphones among this age group, high internet usage by these consumers, and a rise in the number of various mental health conditions among this age group are driving the segment growth. Furthermore, the increase in demand for online consultations associated with stress management, especially during the COVID-19 pandemic is expected to further propel the growth of the segment.

In addition, consumers aged between 35 and 49 years segment is expected to witness the highest CAGR over the forecast period. This is owing to the increasing prevalence of chronic diseases among this age group, especially diabetes, cardiovascular disorders, and obesity. For instance, according to the National Diabetes Statistics report 2020, nearly 34.2 million people of all age groups, accounting for 10.5% of the overall U.S. population, reported having diabetes in 2018. Furthermore, growing consumer awareness about the benefits offered by virtual care services such as reduced waiting time, fast and convenient service, and efficient accessibility is anticipated to propel market growth.

Gender Insights

The women segment dominated the market with a revenue share of 66.0% in 2019. Increasing demand for a safe, secure, and convenient way to communicate with the concerned healthcare professional are some of the key factors fueling the market growth. Furthermore, increasing adoption of virtual visits among pregnant women during the COVID-19 pandemic to maintain social distancing and avoid exposure to the virus is further driving the market growth.

In addition, the men segment is expected to exhibit lucrative growth over the forecast period owing to the increasing prevalence of various health concerns among men such as erectile dysfunction, joint pain, sexually transmitted diseases, prostatitis, stress management, and irritable bowel syndrome. Furthermore, other benefits offered by virtual visits, such as improved access to quality care, timely employee care, avoiding emergency room visit costs, reduced healthcare costs, an increase in employee productivity, and improved employee satisfaction is likely to propel segment growth during the forecast period.

Key Companies & Market Share Insights

Competition is intense among existing players owing to the rise in demand for virtual visits coupled with technological advancements in the country. The growing demand for these solutions is anticipated to favor the entry of new players in the future, fueled by rising awareness and adoption of virtual visits in the country. Furthermore, strategic expansions by companies in the form of mergers and acquisitions are further expected to boost the competition and propel the growth of the market. For instance, Teladoc Health, Inc. announced the acquisition of InTouch Health in July 2020. The acquisition aimed to support providers in building comprehensive telemedicine strategies. Some of the prominent players in the U.S. virtual visits market include:

• Teladoc, Inc.

• American Well Corporation

• MDLive

• Doctor on Demand, Inc.

• Zipnosis.

• MeMD

• HealthTap

• Vidyo, Inc.

• eVisit Telemedicine Solution

• PlushCare, Inc.

U.S. Virtual Visits 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 in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research, Inc. has segmented the U.S. virtual visits market report on the basis of service type, commercial plan type, age group, and gender.

• Service Type Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

  • Cold and Flu management

  • Allergies

  • Urgent Care

  • Preventive Care

  • Chronic Care management

  • Behavioral Health

• Commercial Plan Type Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

  • Small Groups

  • Self-funded/ASO group plans

  • Medicaid and Medicare

• Age Group Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

  • Age 18-34

  • Age 35-49

  • Age 50-64

  • Age 65 and above

• Gender Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

  • Male

  • Female