The global telemedicine market size was valued at USD 114.98 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 17.96% from 2024 to 2030. The telemedicine market growth is being driven by factors such as consolidation across industry, strategic initiatives by key companies, and increasing healthcare consumerism. Furthermore, rising adoption of telemedicine by providers, increasing patient acceptance and consumer demand, and delivery of improved quality of care are expected to contribute to the growth of the telemedicine market over the forecast period. For instance, in May 2021, Walmart Inc. acquired a telehealth company, MeMD. This acquisition is expected to enable Walmart to expand its offerings and provide virtual access to primary, urgent, and behavioral healthcare services nationwide.
Gather more insights about the market drivers, restrains and growth of the Telemedicine Market
Detailed Segmentation:
Percentage of Office-Based Physicians Using Telemedicine
Telemedicine solutions have goal of enhancing accessibility to fundamental healthcare, elevating the quality of healthcare services, and bolstering patient safety. As indicated in a report published by the Agency for Healthcare Research and Quality (AHRQ), introduction of telemedicine solutions has been shown to improve the delivery of patient care by diminishing likelihood of unnoticed adverse effects or symptoms. For instance, in July 2023, Faye (Zenner, Inc.), a travel insurer company, announced the launch of telemedicine services in collaboration with Air Doctor.
Market Concentration & Characteristics
Market growth stage is high, and pace of the market growth is accelerating. The telemedicine market is characterized by a high degree of growth owing to improved internet connectivity and smartphone adoption, which contribute to telemedicine expansion by making healthcare services more accessible and convenient for patients. In addition, growth is driven by the increasing prevalence of target diseases and rising demand for teleradiology for second opinions and emergencies.
Component Insights
Product segment dominated the market and is further divided into software, hardware, and others. Product segment accounted for the largest market share of 51.97% in 2023. This can be attributed to the widespread adoption of various medical peripheral devices, audio equipment, microphones, display screens, and videoconferencing devices used to facilitate virtual visits.
Modality Insights
Modality segment is divided into real-time (synchronous), store and forward (asynchronous), and other technologies such as remote patient monitoring. Real-time segment dominated the market in terms of revenue share in 2023. This growth can be attributed to increasing demand for on-demand medical consultations, adoption of mHealth and virtual video visits, and availability of services from major market players.
Application Insights
By application, market is segmented intoteleradiology, telepsychiatry, telepathology, teledermatology, telecardiology, and others. Teleradiology segment held largest revenue share of in 2023. As healthcare providers adopt teleradiology workflows, service offerings within radiology sub-segments expand, introduction of new teleradiology services, and teleradiology practices are regulated, this segment is expected to grow. For instance, in November 2021, Agfa Healthcare introduced a true remote diagnostic imaging workflow.
Delivery Model Insights
By delivery mode, market is segmented into web/mobile and call centers. Web/mobile segment accounted for largest revenue share in 2023 and is predicted to grow at fastest rate during the forecast period, owing to increasing prevalence of smartphone usage, mHealth adoption, and healthcare consumerism. This segment is further subdivided into audio/text-based and visualized access to care. Tech companies that provide mobile and web-based solutions are the key players in this segment.
Facility Insights
By facility, market is divided into tele-hospitals and tele-home. Tele-hospitals segment accounted for largest revenue share in 2023. This growth can be attributed to government initiatives, rising patient awareness of health concerns, and widespread access to internet-based solutions. For instance, Koninklijke Philips N.V. has a Tele-ICU program allowing doctors to remotely monitor ICU beds. These beds have cameras and special tools to help predict what might happen to patients.
End Use Insights
By end use, market is divided into patients, payers, providers and others. In 2023, patients segment held largest market share. This can be attributed to patients using telemedicine services for various health issues, from mild to emergency situations. To cater to diverse needs of patients, market players such as VSee offer a range of solutions, including telemedicine software, remote patient monitoring dashboards, and API & SDKs across various clinical specialties.
Regional Insights
North America dominated the market with a revenue share of 33.53% in 2023. This can be attributed to region's advanced healthcare facilities, and a strong presence of key market players. Companies such as Teladoc Health, American Well Corporation, and Zoom Video Communications are based in the U.S., implementing strategic initiatives to increase their market share. Increasing home care adoption by patients, growing demand for mobile technologies, and increased healthcare expenditure are expected to drive the market's growth over the forecast period.
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Key Companies & Market Share Insights
Renowned market players across the globe are adopting numerous marketing strategies to expand their clientele. The telemedicine marketplace is fragmented and accommodates some renowned players such as MDlive, Inc. (Evernorth), American Well Corporation, and Teladoc Health, Inc. and numerous other small-scale & local players.
Key Telemedicine Companies:
• MDlive, Inc. (Evernorth)
• American Well Corporation
• 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
Recent Developments
• In June 2023, Twilio Inc. declared a partnership with Frame AI to leverage AI for the enhancement of customer engagement. The partnership resulted in the strengthening of AI-powered insights for sharing recommendations, and summarizing health cases.
• In April 2023, Teladoc Health Inc. launched a provider-based care service with the use of telemedicine as a technology for prediabetes and weight management programs.
• In March 2023, American Well Corporation expanded its digital clinical program service for the inclusion of a cardiometabolic program. The purpose is to enable clinicians and health plans to patients remotely through telemedicine.
• In January 2023, Sesame Inc. partnered with Lucira Health for providing telemedicine services to access affordable, convenient, and high quality COVID-19 test and treatment.
• In November 2022, MDLIVE announced its rapid expansion in providing primary virtual care program for enhancing support for patients suffering from chronic illness. The purpose is to provide patients with convenient and seamless access to medical care through telemedicine.
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