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, 2022 - 2030

Report Overview

The U.S. virtual visits market is valued at USD 8.3 billion in 2021 in terms of revenue and 270 million in 2021 in terms of volume. The market is expected to expand at a compound annual growth rate (CAGR) of 30.9% in terms of value and 36.9% in terms of volume, during the forecast period. The increase in penetration of smartphones has positively affected the growth of the virtual visits market in the U.S. The pandemic brought about a change in the way patients took consultations, the new norm was teleconsultations to communicate with the healthcare practitioners, which was responsible for a substantial growth spurt in the virtual visits market. The ever-increasing and changing technology and fast adoption rates by the population is also a key factor driving the growth of the virtual visits market.

The landscape of telehealth has been continuously changing with apps and devices bringing patients and caregivers closer virtually, in the wake of the current situation and the pandemic, the preference for both patients and doctors was teleconsultations. This not only created a huge market opportunity for the technology to develop around different apps and devices to monitor various health conditions but also for people to connect to doctors even in remote locations where there were no functional hospitals or care centers. The virtual visit market has become a way to provide remote and rural as well as urban areas with safe and convenient access to healthcare for conditions like migraine, birth control, diabetes, hypertension, and other health conditions.

The demand for personalized care has risen in the recent years, in remote areas where hospitals and healthcare centers are already sparse, the needs for specialty care and personalized care are unmet, with the advent of teleconsultations, this problem has been solved, and the adoption by certified healthcare professionals has also risen, mostly due to the pandemic, but has now become the go-to way for remote care consultations. Patients in remote areas can connect to specialists and experts from the comfort of their home to anywhere in the country, this has resulted in faster and widespread adoption of telehealth and teleconsultations, resulting in the growth of the market. An increase in smartphone penetration and adoption of 4G & 5G technologies and devices have enabled both patients and caregivers to connect easily.

The increasing number of government initiatives has also positively affected the growth of the virtual visits market in the U.S. The Federal Communications Commission (FCC) established a USD 200 million COVID-19 Telehealth program, which connected and enabled caregivers to provide appropriate consultations to patients in rural settings and remote areas, the latest funding for this purpose was announced on January 26, 2022. FCC also launched a connected care pilot program, on June 17, 2021, wherein FCC approved guidance for this program to begin a 3-year project. Many more initiatives have been undertaken to improve the telehealth landscape in the country in turn boosting the growth of the virtual visits market.

The rising adoption of virtual visits and teleconsultations by healthcare practitioners is also propelling the growth of the market. In a survey conducted in 2019, by the Consumer Technology Association before the pandemic hit the world, 52% of the consumers were open to using a connected health device if recommended by a physician. Telehealth adoption rates have increased drastically over the last decade and are expected to increase given its benefits, further helping the virtual visits market to grow.

As the adoption of telehealth is increasing so are the risks associated with the data that is being generated, the plethora of apps and connected devices all create a mammoth amount of patient data which is at a constant risk of being hacked or patient information being leaked. There are several initiatives being implemented by the government to increase the security of patient data and create a safe space for virtual consultations and visits.

COVID-19 has had a positive impact on the overall virtual visits market. As per a report by McKinsey, the use of telehealth has increased more than 38 times when compared to pre-COVID times. There was a massive jump reported from February 2020 to April 2020, utilization of telehealth was up by 78 times in 2 months. The number of initiatives by the government has fueled the virtual visits market and it is expected to stay even post COVID-19.

Service Insights

The cold and flu management segment in the service type dominated the market and held a share of 29.8% in 2021. This can be attributed to the fact that the patients are increasingly preferring virtual visits to consult physicians regarding cold and flu symptoms. The majority of the patients in this category resorted to teleconsultations to avoid the spread of infection and contracting additional symptoms through physical visits to hospitals. An increase in the prevalence of influenza during the pandemic has also resulted in the growth of the segment. In 2020, there was a huge spike in the number of influenza cases that lead to the growth of this segment.

Behavioral health is the fastest-growing segment and is expected to grow at a significant rate during the forecast period. The onset of the pandemic made teleconsultations and virtual visits a norm, even in the behavioral health segment. The increasing demand for virtual visits for several conditions like depression, anxiety, LGBTQ counseling, and a wide array of mental health issues has resulted in the growth of this segment. The pandemic saw a massive increase in the number of patients suffering from depression and anxiety, also contributing to the growth of the behavioral health segment.

Age Group Insights

Consumer groups aged between 18 – 34 years held the largest revenue share of 31.8% in 2021, in the regional market. An increase in penetration of smartphones in this age group, increasingly high internet usage, and a steady incline in the number of mental health issues have resulted in a large market share. The increase in the number of people reporting mental health issues and the increased rate of anxiety and depression among people is forecasted to propel growth in this segment.

Consumers of the age group 35 to 49 years are the fastest-growing age group of consumers, with the highest CAGR over the forecast period due to the increasing prevalence of chronic illnesses like diabetes, hypertension, various cardiovascular diseases, etc. in the age group. As per CDC’s statistical data, nearly 18.2 million adults aged 20 and above suffer from coronary artery disease; nearly half the adult population in the U.S. has hypertension, 47% population or 116 million people have hypertension in the U.S. The numerous advantages associated with virtual visits like lesser waiting time due to pre-scheduling decreased chances of contracting additional infections from hospitals, and ease of comfort of the process are all expected to propel the virtual visits market in the forecast period.

Commercial Plan Type Insights

Self-funded/ASO group plans in the commercial plans type had the largest revenue share of 34.3% as of 2021, in the regional market. This can be attributed to an increase in the prevalence of chronic diseases, skyrocketing healthcare costs, and an increase in demand for affordable healthcare solutions.

The fastest-growing segment was the small group commercial plan type, it is expected to expand at a significant CAGR over the forecast period. Demand for virtual care has been steadily increasing and more so due to the COVID-19 pandemic, several initiatives undertaken by both public and private entities for decreasing the burden of healthcare costs on small businesses and their employees have resulted in the growth of small group commercial plan type. Medicare and Medicaid do not cover all costs associated with telehealth and virtual consultations, to reduce that burden and to aid patients and caregivers, adoption of this type of plan has resulted in more access to healthcare, and more patient adherence resulting in the growth of this segment.

Gender Insights

The regional virtual visits market was dominated by the women segment in the gender type, with a revenue share of 65% in 2021. The pandemic brought to light the need to access healthcare facilities in a safe environment for pregnant women to avoid the risk of contracting the virus through hospital visits, which was the primary factor for the large revenue share for this segment. Virtual visits were the need of the hour and were increasingly adopted by women all over the country.

The men’s segment is the fastest-growing gender type, with the indication of a fast-paced growth during the forecast period. This can be attributed to the ease of use of teleconsultations for various conditions like increasing mental health issues, sexual health concerns like erectile dysfunction, STDs, etc. without visiting the doctor in person, stress management, and various other health conditions. Virtual visits have come a long way and are not just restricted to video calling, connected apps, and devices that made patient monitoring easier, the consumers are increasingly leaning towards this form of consultation to avoid wastage of time and resources by going to hospitals unless necessary, reduction of healthcare costs in an overall scenario, etc., all these factors are poised to propel the growth of the virtual visits market in the U.S.

Key Companies & Market Share Insights

The rise in the adoption of telehealth services has created a huge demand for virtual visits. The U.S. virtual visits market has a majority of small as well as big players making it the largest market for virtual visits. The high demand has created fierce competition in the regional market. The steady increase in demand for virtual visits has made space for new companies to venture into this field through connected apps and disruptive technology, opening up space for innovation in this field.

The companies are strategically expanding their offering through new and improved apps or connected devices, collaborating with third parties and other companies to make virtual care accessible to all. The competition is a key propellant for growth in the virtual visits market in the U.S. As per an article published by McKinsey, the investment in digital health and virtual care has recorded monumental growth, making way for more innovative technologies to foster growth, digital health investment as of 2020 was three times more than that in 2017. Some of the prominent players in the U.S. virtual visits market include:

• American Well Corporation

• MDLive, Inc

• Doctor On Demand, Inc

• eVisit Telemedicine Solution

• Teladoc Health, Inc

• MeMD

• HealthTap, Inc

• Vidyo, Inc

• PlushCare, Inc

• Zipnosis

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 2030. For this study, Grand View Research, Inc. has segmented the U.S. virtual visits market report based on service type, commercial plan type, age group, and gender:

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

  • Cold & Flu management

  • Allergies

  • Urgent Care

  • Preventive Care

  • Chronic Care Management

  • Behavioral Health

• Age Group Outlook (Revenue & Volume, USD Million & Million Units, 2016 - 2030)

  • Age 18-34

  • Age 35-49

  • Age 50-64

  • Age 65 and above

• Commercial Plan Type (Revenue & Volume, USD Million & Million Units, 2016 - 2030)

  • Small Group

  • Self-funded/ ASO Group Plans

  • Medicaid

  • Medicare

• Gender (Revenue & Volume, USD Million & Million Units, 2016 - 2030)

  • Male

  • Female