The global telemedicine market size was valued at USD 60.8 billion in 2022 and it is expected to reach USD 225 billion by 2030, growing with a compound annual growth rate (CAGR) of 17.16% during the forecast period 2022 to 2030.
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Telemedicine is not a new practice and debuted during the late 1940s. The U.S. space agency, NASA, also significantly contributed to the evolution of telemedicine. The agency significantly investigated the application of telemedicine in monitoring the physiological parameters of the astronauts. In 1989, telemedicine first received global attention when NASA introduced its first International Telemedicine Project by launching a spacebridge to Armenia, to offer the U.S. medical support after an earthquake struck the Soviet Republic of Armenia.
However, the year 2015 was a significant year for the growth of the telemedicine market. As per Pew Research Center, two-third of the U.S. population owned a smartphone and many were using smartphones to research medical information. Also, more than 750,000 telemedicine consultations were provided in the U.S. in 2015.
Statistics and data:
The rising adoption of the telemedicine among the doctors and the patients is boosting the growth of the telemedicine market across the globe. The ease of use and convenient access to the healthcare services is the major benefit of adopting telemedicine. The telemedicine provides easy access to the healthcare coupled with improved quality and safety of the services, which drives the demand for the telemedicine. The various products of the telemedicine such as tele-ICU and tele-care efficient and quality services to the consumers. The rising burden of diseases and growing geriatric population across the globe are the major factors that may propel the growth of the telemedicine market. Moreover, telemedicine keeps a record of the patient’s past health records and can provide useful insights to the doctors or physicians while treating the patient. It improves the overall patient care.
The rising government investments to develop IT and telecommunications infrastructure, the growing dependence of the consumers on the digital services, increasing number of internet users, and increasing adoption of the smartphones are the major drivers of the telemedicine market. According to ITU, around 4 billion people were using internet by the end of 2019. Most of the internet users operates through their smartphones.
A Surge in Telehealth Adoption: Patient and Provider Perspective
The number of patients using telemedicine services significantly increased particularly in the last decade. According to a study published in the JAMA network (2018) examining the trends of telemedicine in a large commercially insured population between 2005 to 2017, the number of patients using telemedicine services had only increased steadily from 206 in 2005 to 202,374 in 2017 with an average growth rate of 52% annually. According to Becker’s Hospital Review, the number of telehealth users increased from 350,000 in 2013 to 7 million in 2018.
In addition, as per Amwell, a leading telemedicine service provider, the physician telehealth adoption rates increased by 340% from 2015 to 2018 (only 5% adoption in 2015, which surged to 22% adoption in 2018). The data shows how telemedicine adoption has significantly outpaced the early years of adoption of electronic health records.
Telemedicine Changing Medical Practices
The technology has significantly changed both consumer as well as provider practice. As per American hospital association, about 70% of patients reported that they would be happy to communicate through text, email, or video with their healthcare providers. In 2013, the number of people using this tech in the U.S. was only 350,000 and the number increased significantly to an estimated 10 million in 2018.
From a provider’s perspective, a total of 80% of healthcare organizations interviewed revealed that they are either developing or have implemented telemedicine in the organization. Also, as per the American Medical Association and Wellness Council of America, an estimated 70% of doctors revealed that urgent care and ER visits could easily, safely, and conveniently be handled via phone or video.
Also, as per an article published in the American Council on Science and Health, hospitals are also witnessing financial savings. For example, in 2016, the University of Pittsburgh Medical Center (UPMC) reported that it saved $86.64 every time a patient used online services instead of visiting the ER or urgent care.
Market Driver: Improved patient convenience
Telemedicine offers more flexible scheduling options, enabling patients to choose appointment times that suit their availability. It is especially helpful for individuals who find it complicated to take time off from work or other responsibilities for a traditional in-person medical appointment. By opting for telemedicine, patients can save money or transportation costs and other expenses required for traveling to any healthcare facility. Telemedicine allows patients to maintain continuous care without interruptions, even when they are away from their regular healthcare provider.
Moreover, telemedicine helps bridge the gap in accessing specialized care, particularly for patients living in regions with limited access to specific medical specialists. Telemedicine has improved the patient's convenience along with patient engagement. Thus, the element acts as a driver for the market’s growth.
Market Restraint: High cost for adoption of the technology
Implementing telemedicine services requires a robust technological infrastructure, including high-speed internet connectivity, secure data storage and telecommunication networks. These initial setup costs can be substantial and act as a barrier, especially for smaller healthcare providers or those in resource-constrained areas. Healthcare facilities need to invest in telemedicine-specific equipment and devices such as telemedicine carts, remote monitoring tools and video conferencing systems. These can be expensive, adding to the overall cost of adopting telemedicine solutions. Healthcare professionals need proper training to effectively use the technology. All these factors can be time-consuming and costly, that hampers the growth of the market.
Market Opportunity: Corporate emphasizing on healthcare solutions for employees
With the prevalence of multiple chronic diseases across the globe along with sedentary lifestyles, corporate companies, especially in developed countries have started offering multiple healthcare solutions, services and policies for their employees. This element brings an opportunity for the telemedicine market to grow. Corporate telemedicine solutions introduce telehealth services to a large and captive audience, such as employees of the company. Large corporations with a widespread workforce in different countries or regions often choose such healthcare solutions for employees. As companies seek such services, the collaboration, strategic deals or partnerships between corporates and telemedicine providers are expected to grow. This opens a set of opportunities for the telemedicine market to grow.
Market Challenge: Slower adoption of the technology by underdeveloped areas
Underdeveloped areas often lack the necessary infrastructure, such as reliable internet connectivity and even electricity, which is crucially required to operate telemedicine systems. Without a stable connection of internet, it becomes challenging to conduct video consultation or transfer medical data efficiently, hampering the seamless delivery of telemedicine services. In underdeveloped areas, the penetration of smartphones, tablets or other devices might be low, this also slows down the adoption of telemedicine services. Thus, causes a challenge for the market’s expansion.
Based on type, the tele-hospital segment accounted for over 51% of the market share in 2022. The increased adoption of the telemedicine in the case of emergency has fueled the growth of this segment. The rapid growth of the telemedicine is directly linked to the COVID-19 pandemic. During the pandemic in 2020, the adoption of the telemedicine increased rapidly due to the traveling restrictions and increased adoption of digital technologies.
The tele-home segment is predicted to reach notable growth during the forecast period. The rising preferences of the people to get treatment at their homes, especially the geriatric people and the increased awareness regarding the hospital acquired infections among the population are the major factors that are expected to drive the growth of this segment.
Based on component, the product segment accounted 45% revenue share in 2022. The product includes hardware and software. The hardware consists of wide variety of devices and are extensively used in the hospitals, clinics, and homecare telehealth devices. Various hardware used consists of mobile frame, communication lines, computer systems, therapeutic devices, video feed, and various others. The extensive usage along with the high prices of the hardware has resulted in a huge revenue generated by this segment. Moreover, the rapid development and updates in the software system to enhance the efficiency and effectiveness of the telehealth devices is exponentially boosting the segment growth.
The services segment is projected to reach highest CAGR over the forecast period. The rising adoption of the telemedicine among the consumers and the doctors or physicians is propelling the sales of various services such as e-monitoring, e-consulting, and e-education, which is expected to drive the market growth.
Telemedicine Market Share, by Components, 2030 (%)
Based on application, the teleradiology segment accounted 27% revenue share in 2022 and is expected to witness remarkable CAGR over the forecast period. The demand for the teleradiology increased rapidly in the past few years owing to various benefits it offers such as faster diagnostics, clear imaging, lower costs, and elimination of the excess work of the radiologists. This segment accounted for over 25% of the market share in 2020.
The telecardiology segment is expected to be fastest-growing segment during the forecast period. This is attributed to the rising prevalence of cardiovascular diseases among the global population coupled with rising adoption of the telemedicine platforms. Telemedicine provides patient monitoring feature who has a cardiac device implanted. It improves the patient care and hence the demand for this segment is expected to grow.
Based on technology, the store & forward segment accounted 41% revenue share in 2022 and is projected to witness remarkable CAGR during the forecast period. The telemedicine app can store the past health records of the users and this information can be communicated to the doctors or the physicians at the time of treatment, which can enhance the patient care and benefit the patients.
The real-time segment is expected to hit largest CAGR over the forecast period. The real-time is very much useful especially at the tele intensive care because it transfers the patient’s data quickly to the intensivist at a distant location and helps the ICU members at the hospital in the treatment of the patient.
Based on region, North America accounted 35% revenue share in 2022. The rising burden of chronic diseases and growing geriatric population in US are the major factors behind the growth. Moreover, the region is characterized by increased disposable income, increased demand for the advanced technologies, and developed healthcare and IT infrastructure. According to NCBI, over 40,000 health apps were available for download on Apple iTunes store in 2013 in US. Thus, rapid growth of the telemedicine is boosting the market growth in this region.
The Asia Pacific is expected to witness remarkable CAGR during the forecast period. Asia Pacific is estimated to grow due to various factors such as largest population, rapid urbanization, rising investments on healthcare infrastructure, and increased investments on the IT infrastructure. Further, the use of advanced technologies can significantly reduce the healthcare costs, which drives the adoption of telemedicine in the Asia Pacific region.
Telemedicine Market Share, By Region, 2030 (%)
|Rest of the World||15.48%|
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.
In May 2021, MediTelecare launched a direct-to-consumer mobile technology, named MediTely. It was especially designed for the old age population.
The various developmental strategies like new product launches with latest and innovative features fosters market growth and offers lucrative growth opportunities to the market players.
Market Share Analysis for Software Provides in the Telemedicine Market
|Companies||Market Share (%)|
Some of the prominent players:
Report Scope of the Telemedicine Market
|Market Size||USD 123 Billion by 2030|
|Growth Rate||CAGR of 17.16% From 2022 to 2030|
|Largest Market||North America|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2022 to 2030|
|Segments Covered||Type, Component, Application, Technology, Delivery Mode, End User, Region|
|Companies Mentioned||Koninklijke Philips N.V., Medtronic, GE Healthcare, Cerner Corporation, Siemens Healthineers, Cisco Systems, Inc., Teladoc Health Inc., American Well, AMC Health, MDLive|
Segments Covered in the Report
By Delivery Mode
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