Teledermatology Market Expected to Reach $38.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Teledermatology market," The teledermatology market size was valued at $9.5 billion in 2022, and is estimated to reach $38.9 billion by 2032, growing at a CAGR of 15.2% from 2023 to 2032. Teledermatology is one of the most common telemedicine applications, which involves practice of dermatology care delivered via store-and-forward communications or live video conferencing. Teledermatology (commonly referred to as Telederm by practitioners) is also defined as a subspecialty of dermatology. Since most skin diseases are visible, dermatologists are able to expand their reach to patients in a cost-effective manner by using advanced telehealth technologies. It uses specialized software or digital tools to evaluate the condition of a patient’s skin by capturing video or images and communicating with their dermatologist. 

In teledermatology, store-and-forward communication refers to the exchange of digital images and information between a patient and a provider. With live video, patients and providers interact via a live videoconferencing solution. Teledermatology is particularly important for the diagnosis, assessment, and management of patients’ cases at a distance and in a convenient and cost-efficient way.   

The growth of the teledermatology market share is majorly driven by an increase in the prevalence of skin disorders such as eczema, psoriasis, and skin cancer. For instance, according to Global Atopic Dermatitis Atlas 2022, about 223 million people were suffering from atopic dermatitis in 2022 (GBD 2022), of which around 43 million are aged 1–4. This illustrates the strikingly high prevalence in young children. In addition to the disease burden for the child and their caregivers, atopic dermatitis can negatively affect the development of the child, education, and work. 

Moreover, advancement in technology and increase in public awareness of telehealth among patients and providers care propel the growth of the teledermatology market share. For instance, according to report published by Analytics Drift in May 2022, All India Institute of Medical Sciences (AIIMS) Delhi along with a start-up Nurithm lab launched an artificial intelligence-driven smartphone app named DermaAid to address the access and accuracy problems in clinical diagnosis of dermatological diseases, including skin and oral cancers. This diagnostic solution uses a machine-learning AI-driven algorithm. Moreover, DermaAId can identify more than 50 skin diseases, which are the most common cases encountered by doctors. The app can easily identify acne, psoriasis, vitiligo, tinea, eczema, male alopecia, basal cell carcinoma, squamous cell carcinoma, and melanoma, which are different types of skin cancers, with about 80% accuracy. 

In addition, integration of artificial intelligence (AI) and machine learning (ML) technologies can enhance teledermatology by assisting dermatologists in diagnosis, triage, and treatment decisions. This factor drives the growth of the market in the developing countries such as India and China.  

Moreover, governments and regulatory bodies are increasingly recognizing the benefits of telehealth services and have implemented policies to support tele-health services adoption. This includes expanding reimbursement options for teledermatology services and removing regulatory barriers, which notably contribute toward the growth of the market. 

On the basis of type, the teledermatology market analysis is segmented into products and services. The services segment generated maximum revenue in 2022, owing to increased awareness & acceptance of tele-consultation and telemonitoring services among the public, and cost savings benefit of teledermatology services. However, the products segment is expected to witness the significant CAGR during the forecast period, owing to increase in sales of dermatoscopes for correct diagnosis, technological advancement in medical devices used for teledermatology, and surge in demand of digital imaging tools that can capture clear images of the skin.  

On the basis of modality, the store-and-forward (asynchronous) segment dominated the market in 2022, owing to rise in the prevalence of skin disorders such as eczema, psoriasis, and skin cancer and surge in awareness of store-and-forward method of sharing skin images properly for appropriate diagnosis of skin disease. However, the real-time (synchronous) segment is expected to witness the highest CAGR during the forecast period, owing to advancements in technology, such as high-quality video conferencing, secure electronic health records (EHR) systems, and digital imaging tools and the availability of a large number of video consultations for acne, hair loss, and cosmetic purposes. 

On the basis of end user, the homecare segment dominated the market in 2022, owing to cost savings in the health expenditure and rapid adoption of homecare services for teledermatology. However, the healthcare units' segment is expected to witness a significant CAGR during the forecast period, owing to the fact that some skin conditions may require physical examination, and certain procedures, such as biopsies, cannot be performed remotely. In such cases, in-person visits may still be necessary. 

On the basis of region, North America generated maximum teledermatology market size in 2022 owing to rise in awareness about tele-healthcare services and increase in prevalence of skin disorders. In addition, the presence of key market players such as DermatologistOnCall and MDLive in this region and significant increase in the use of telehealth services in the U.S. drive the market growth. For instance, according to Mckinsey in May 2020, the consumer acceptance of telehealth services   increased by 46% in 2020 compared to 11% in the previous year to prevent contact with COVID-19.  

However, Asia-Pacific is expected to witness growth at the highest rate during the teledermatology market forecast owing to increase in awareness among families and healthcare providers about the benefits and availability of teledermatology services, surge in healthcare expenditure, and rise in cases of skin conditions, including acne, psoriasis, eczema, and skin cancer, which further increase the demand of teledermatology that boosts the growth of the market.  

The major players that operates in the teledermatology industry are Teladoc Health, Inc., 3Derm Systems Inc., Ksyos Telemedical Centre, Medweb, Advanced TeleMed Services, Eagle Tele Medicine, Vesta Teleradiology, DermUtopia, Mandel Dermatology, and Miiskin. 

Key Findings of The Study 

• On the basis of type, the services segment held the largest share in the teledermatology market in 2022. 

• On the basis of modality, the store-and-forward (asynchronous) segment was the highest contributor to the teledermatology industry in 2022.

• On the basis of end user, the homecare segment dominated the market in 2022. 

• On the basis of region, North America garnered the largest teledermatology market trends. However, Asia-Pacific is expected to witness the highest CAGR during the forecast period.