Global Telemedicine Market by Component (Products and Services), By Application (Teleradiology, Telepsychiatry, Telepathology, Teledermatology, Telecardiology, and Other Applications), By Modality (Store-and-Forward, Real Time, and Other Modalities), By Delivery (Web/Mobile and Call Centers), By Facility (Telehospitals and Telehomes), By End-User (Patients, Providers, Payers, and Other End-Users), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032 

Report Overview

The Global Telemedicine Market size is expected to be worth around US$  590.9 Bn by 2032 from US$  79.8 Bn in 2023, growing at a CAGR of 25.7% during the forecast period from 2023 to 2032.

In order to reduce the transmission of the coronavirus sickness during the SARS-CoV-2 pandemic, physical segregation was implemented, according to a research article that was disclosed in 2020 by the JCO Global Oncology-An American Society of Clinical Oncology Journal. As a result, Telemedicine is now used for the majority of outpatient oncology appointments.

Even though a large number of healthcare systems had telemedicine services in place before the start of the covid-19 pandemic, usage didn’t really pick up until the COVID-19 crisis. This is largely because there were fewer in-person encounters and travel restrictions during the COVID-19 crisis, which motivated doctors to adopt telemedicine-based consultations mostly during the pandemic.

Rising healthcare expenses, technical advancements, the burden of chronic diseases, and increasing remote patient monitoring are the main drivers of telemedicine market growth. Globally, healthcare expenses are rising. Increased use of healthcare services is the main cause of rising healthcare expenditures, which in turn increases consumer demand for novel and cutting-edge methods, lifestyle choices, etc.

Additionally, it might be ascribed to the cost-shifting of public initiatives to private actors. Low reimbursement rates have made it more difficult for hospitals and physicians to shift costs to private payers, who in turn demand significantly higher prices for the same services, which has an impact on health insurance rates.

The demand for such systems is anticipated to develop throughout the projected period as a result of raising patient safety and quality standards, which will also help the market expand. Additionally, Telemedicine is regarded as the most adaptable technology for providing remote health care, information, and education.

Advanced patient-centered treatment and improved access to remote regions are made feasible by technological advancements. Additionally, it aids in lowering hospital admissions and emergency room visits, which promotes market expansion.

Another important factor projected to spur market expansion in the near future is continued investment in new technologies to enhance the capabilities of telemedicine goods and services.

Key Takeaways

• Market Growth: The global telemedicine market is expected to reach approximately US$ 590.9 billion by 2032, showing a remarkable CAGR of 25.7% from US$ 79.8 billion in 2023.
• Component Analysis: The services sector is expected to grow at a CAGR of over 21% from 2023 to 2030, with products accounting for 45.7% of the market share in 2022. Hardware, including medical peripherals and videoconferencing equipment, held the largest share in 2021.
• Application Segments: The teleradiology segment reported its dominance in the market, accounting for the largest revenue share of 26.9% in 2022
• Modality: Real-time (synchronous) telemedicine was the largest segment in 2022, driven by mHealth, video visits, and on-demand consultations. Patient monitoring from remote locations is expected to grow significantly.
• Delivery Mode: Web/mobile access is the dominant delivery mode in 2023, contributing to over 74.05% of global revenue. Visual access to care and audio/text-based solutions are expected to see increased adoption.
• End-User Analysis: Patients made up the largest end-user segment in 2022, but providers are expected to witness the fastest growth due to improved access to patient records and enhanced workflow.
• Regional Analysis: North America led the market in 2022, with over 36% of total sales, driven by advanced healthcare facilities. Asia-Pacific is projected to be the fastest-growing region, especially in emerging markets like China and India.

Component Analysis

Based on components, the telemedicine market is segmented into products and services. The product accounted as a dominant segment in 2022, holding a share of 45.7%, but from 2023 to 2030, the services sector is anticipated to increase at a CAGR of over 21%. Additional categories under the product area include hardware, software, and others.

Due to the widespread use of medical peripherals, microphones, screens, videoconferencing equipment, and audio equipment for supporting virtual visits, the hardware category held the biggest market share in 2021. For instance, Teladoc Health, Inc. provides a selection of equipment, including the Express Cart, TV Pro+ and TV Pro, Xpress, View Point Cart, Lite with Boom Camera, and others, to enhance clinical cooperation and point-of-care visits.

Over the course of the forecast period, the telemonitoring segment of the services market is anticipated to develop at the quickest CAGR.

Application Analysis

Based on application, the telemedicine market is segmented into teleradiology, telepsychiatry, telepathology, teledermatology, telecardiology, and other applications. The teleradiology segment reported its dominance in the market, accounting for the largest revenue share of 26.9% in 2022, due to factors such as rationalization and regulation of segments and teleradiology practices.

The incorporation of artificial intelligence (AI) into teleradiology, the implementation of image archiving and communication systems (PACS), and the expansion of research and development activities related to eHealth are the major growth drivers during the forecast period. Heidelberg Medical Consultancy & Health Tourism Pvt. On the other hand, telepsychiatry is predicted to expand at the fastest CAGR during the forecast period of 2023 to 2032.

This is due to increased behavioral disorders, mental health disorders increased adoption and awareness of telepsychiatric services. For example, MD Live offers sessions with psychiatrists and counselors for various conditions, including depression, anxiety, trauma, PTSD, panic disorder, and more.

Modality Analysis

Based on modality, the telemedicine market is divided into store-and-forward (asynchronous), and real-time (synchronous). In 2022, The real-time segment held the largest revenue share among these two concepts. This is due to the increased utilization of mHealth and virtual video visits, on-demand medical consultations, and service offerings by major market players.

The ‘Others’ segment, which consists of patient monitoring (such as vital signs monitoring and health tracking) from remote locations (such as hospitals and homes), is also projected to grow at a significant Compound Annual Growth Rate (CAGR) over the forecast years. In 2018, Fitbit Health Solutions revealed that Cedars-Sinai Hospital in Los Angeles began distributing its Fitbit wearables to patients undergoing knee replacements, Hip replacements, and other surgeries.

This allowed doctors to monitor patient activity and motivate patients to walk short distances to aid their rehabilitation journey. In October 2020, Fitbit (now part of Google) announced plans to expand its line of premium health and fitness subscription services by entering virtual care over the next few years.

Delivery Mode Analysis

Based on delivery mode, the global market is further segmented into web/mobile and call centers. The web/mobile segment will dominate the market in 2023, accounting for the largest share of global revenue at over 74.05%.

The segment with the fastest CAGR is estimated to continue expanding and maintain its dominant position throughout the forecast period. This segment is further divided into audio/text-based and visual access to care. Increasing smartphone penetration, increasing mHealth usage, and rising healthcare consumption all contribute to the growth of this segment.

The market is also dominated by technology companies providing web and mobile-first solutions that enable Telemedicine, thus contributing to the high share of this segment. Moreover, increasing user awareness, adoption of technologically advanced solutions, and prevalence of cloud-based solutions are expected to drive the adoption of visualized care solutions. The call center segment is also expected to grow at a significant CAGR during the estimated period.

Facility Analysis

Based on Facility, the global market is further segmented into telehospitals and telehomes. The remote hospital facilities segment dominated the global market in 2021. This segment accounted for its largest share of global sales in the same year, more than 50.5%.

This segment is expected to continue expanding at a steady growth rate during the forecast period. The home care facility segment is expected to register the fastest growth rate during the forecast period. This growth is due to the increased adoption of devices for remote patient monitoring.

Supportive government initiatives increased patient awareness of health issues, and high adoption of internet-based solutions are some of the factors driving this segment. Koninklijke Philips N.V., for example, launched the Tele-ICU program, which has played a key role in enabling doctors to easily monitor a scalable number of ICU beds in 2020 remotely.

Beds were connected to a central monitoring facility and equipped with camera-enabled bed supports and predictive analytics. Increasing adoption of mHealth and wearable devices is also expected to boost market growth.

End-User Analysis

Based on end-user, the telemedicine market is divided into patients, providers, payers, and other end-users. The patient segment dominated the market with a share of over 42% in 2022. This is due to patients using telemedicine services for a variety of purposes, from moderate or mild health problems to emergencies.

Therefore, market participants are expanding their range of services according to their needs. For example, VSee offers telemedicine software, carts, kits, dashboards for remote patient monitoring, APIs, and SDKs. The company provides these solutions for a variety of clinical specialties, including emergency medical care.

The provider segment is projected to witness the fastest growth rate during the forecast period. Telemedicine solutions aid in improving the quality of care. They also provide convenience to healthcare providers regarding quick access to patient records, enhanced decision support, enhanced workflow, and analytics.

eHealth solutions offer great convenience to healthcare professionals when it comes to data management and patient planning. These benefits are anticipated to drive the adoption of Telemedicine during the forecast period.

Key Market Segments

Based on Component

• Products
• Services

Based on Application

• Teleradiology
• Telepsychiatry
• Telepathology
• Teledermatology
• Telecardiology
• Other Applications

By Modality

• Store-and-Forward
• Real-Time
• Other Modalities

By Delivery Mode

• Web/Mobile
• Call Centers

By Facility

• Telehospitals
• Telehomes

Based on End-User

• Patients
• Providers
• Payers
• Other End-Users

Drivers

Rising adoption of Telemedicine, Higher safety, and quality standards, and Rising patients demand.

The growing need to reduce the cost of care, industry-wide consolidation, and other strategic initiatives by major players are some of the major drivers of this market.

The market offers numerous growth opportunities due to increasing telemedicine adoption, increasing consumer demand and patient acceptance, and improving the quality of care. In May 2021, Walmart Inc. acquired telemedicine provider MEMD. This will allow Walmart to offer virtual care access for emergencies, behavioral and primary care across the United States.

By offering higher safety and quality standards to patients, the demand for such systems is expected to increase during the forecast period, boosting the market growth. Additionally, Telemedicine is recognized as the most versatile technology available for providing telemedicine education, health information, and healthcare.

This technology enables advanced patient-centered care and improved access to remote locations. It also helps reduce emergency room visits and hospitalizations, thereby boosting the market growth. Continued investment in new technologies to expand the capabilities of telemedicine products and services is another key factor expected to drive market growth in the near future.

Restraints

Limitations of Virtual Examination Compared to Physical Examination

Contribute to the efficacy of Telemedicine, there is limited evidence, lack of regulation makes it confusing for the telemedicine practice, Virtual Examination does not always provide correct diagnostic findings compared to Physical Examination, and there are some limitations regarding the prescribing drugs via Telemedicine in order to avoid the consequences.

Opportunity

Remotely access to opt for better Healthcare Professional

Telemedicine is continuously growing with new innovations and is going to change the healthcare sector in the upcoming period creating a large number of opportunities for market players. Patients don’t need to travel far away to consult a clinician.

They can book an appointment via telecommunication remotely with a well-experienced and qualified clinician. Along with the consultation, it also offers reminders of consultation and health monitoring in the comfort of their home, and This ultimately stimulates the growth of Healthcare along with IT services.

Furthermore, it offers a majority of advantages such as Flexible working hours, Exposure to contagious patients is reduced, better access to healthcare options, Improved time and efficiency, Precise Analysis due to stored data, and disaster management.

Regional Analysis

In 2022, North America dominated the global Telemedicine market, accounting for the maximum share with over 36% of total sales. This is due to increasingly advanced healthcare facilities, digitization in healthcare, and the adoption of telemedicine solutions.

The presence of key players further contributes to the region’s prominent share. For example, companies Teladoc Health, Inc., MDlive, Inc., American Well Corp., SteadyMD, Inc., Doctor on Demand, Inc., and Zoom Video Communications, Inc.. are located in the United States. These companies are implementing strategic initiatives to expand their market share.

Followed by North America, Asia-Pacific is projected to be the rapidly growing regional market during the forecast period. This fastest growth can be accredited to the presence of a large number of patients, increased use of the internet, and rapid demand for medical support, especially in rural areas. Emerging markets such as China and India are estimated to dominate the regional market in the next few years.

Key Regions

• North America
  • The US
  • Canada
  • Mexico

• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe

• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe

• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC

• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America

• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The market of Telemedicine is highly fragmented and highly competitive. Market participants are involved in implementing strategic initiatives such as regional expansion, product upgrades, mergers and acquisitions, and portfolio diversification.

Fierce competition is expected in the market as many start-ups seek opportunities in the healthcare sector and introduce large and established companies in the market to expand their portfolios.

Listed below are some of the most prominent telemedicine industry players.

Market Key Players

• MDlive, Inc. (Evernorth)
• American Well Corp.
• 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
• Sesame, Inc.
• Doxy. me Inc.
• PlushCare
• HealthTap, Inc.
• Koninklijke Philips N.V.
• AMC Health
• Other Key Players

Recent Developments

• MDLIVE Inc. (March 2021): Cigna’s health services subsidiary, Evernorth, acquired MDLIVE, a leading telehealth provider, to enhance its virtual care capabilities and expand access to healthcare services for its members.
• American Well Corp.(August 2021): Amwell acquired two digital health companies, SilverCloud Health and Conversa Health, for a combined total of $320 million, aiming to broaden its behavioral health and automated care offerings.
• Twilio Inc.(October 2020): Twilio announced the acquisition of Segment, a customer data platform, for $3.2 billion, intending to enhance its customer engagement capabilities, which can be leveraged in telemedicine applications.
• Teladoc Health Inc.(April 2024): Teladoc Health’s CEO, Jason Gorevic, departed amid financial challenges, including a $220 million loss in the previous year, prompting a strategic reassessment of the company’s direction.

Report Scope