According to a new report published by Allied Market Research, titled, " Telemedicine market by Application, Component, End User, and Region: Global Opportunity Analysis and Industry Forecast, 2021–2030," the global telemedicine market was valued at $40.20 billion in 2020, and is estimated to reach $431.82 billion by 2030, growing at a CAGR of 25.90% from 2021 to 2030.
Telemedicine involves the use of electronic communications and software to provide clinical services to patients without an in-person visit. Telemedicine technology is frequently used for follow-up visits, management of chronic conditions, medication management, specialist consultation and a host of other clinical services that can be provided remotely via secure video and audio connections.
Telehealth has emerged as an essential component of healthcare during the COVID-19 pandemic. According to the research article published in JCO Global Oncology-An American Society of Clinical Oncology Journal, 2020, during the SARS-CoV-2 pandemic, physical distancing was put in place to minimize the spread of coronavirus disease. This resulted in the adoption of most of the outpatient oncology appointments to telemedicine. Thus, the telemedicine services were integrated into most of the healthcare systems even before the onset of the pandemic, the services were extensively used only during the COVID-19 crisis, which is majorly attributed to lack of in-person visits and limitations and restrictions on travel, which encouraged clinicians to adapt to telemedicine-based consultations even more during the COVID-19. Thus, the COVID-19 crisis is expected to have a significant positive impact on the growth of the telemedicine market across the globe.
The major factors for the growth of the telemedicine market include the rising healthcare costs, technological innovations, increasing remote patient monitoring, and growing burden of chronic diseases.
The demand for healthcare services and technologies reached an all-time high due to the pandemic. In addition, technologies such as telemedicine, and chatbots, robots, are being deployed to help gather information, reassure the population, treat patients, make diagnoses, and even prepare future vaccines. The potential of telehealth has been emphasized, given a global shortage in hospital beds and healthcare workers. For instance, in March 2020, the UAE’s Ministry of Health started working with telecom operators to build its first virtual hospitals. Thus, the increasing investment in virtual hospitals is set to augment the telemedicine market growth.
Increase in demand for radiological services owing to high prevalence of chronic diseases such as congestive heart failure, orthopedic injuries and others are the major factors that propel the growth of the telemedicine market. In addition, significant increase in government expenditure on healthcare information (HCIT) sector and rise in focus of key players toward bringing innovation to digital diagnostics further fuels the market growth. Moreover, continuous advancements in medical diagnostic technologies are expected to provide lucrative opportunities for the growth of the telemedicine market during the forecast years.
In addition, the rise in the developing prospects in the developed countries will further provide potential opportunities for the growth of the telemedicine market in the forecast years. The rapid advancements in healthcare and the high demand of virtual consultation by physicians and patients will further accelerate the expansion of the telemedicine market and are also offering significant growth opportunities for the market during the forecast period
On the basis of application, the global telemedicine market is divided into teleradiology, telepsychiatry, telepathology, teledermatology, telecardiology & other applications. The teledermatology segment was the major revenue contributor in 2020, and is anticipated to remain dominant during the forecast period. This is attributed to the rising incidence of skin diseases is also contributing to the teledermatology market growth.
By component, the global telemedicine market is categorized into software, hardware & services. The software segment dominated the market in 2020, and is anticipated to continue this trend during the forecast period. This is attributed to increasing adoption of telehealth, telemedicine and telemedicine-based consultations during the COVID-19.
Depending on end user, the global telemedicine market is segregated into healthcare providers, payers, healthcare consumers and other end users. The healthcare providers segment led the market in 2020, and is anticipated to maintain its lead during the forecast period. The rising demand for mobile technologies, rising adoption of home care by patients, and reduction in hospital visits are expected to propel the growth of this segment.
North America accounted for a major share in the telemedicine market in 2020, and is expected to maintain its dominance during the forecast period, due to rising healthcare awareness coupled with cloud-based technologies acceptance over the forecast years. Furthermore, a developed region such as North America has accounted for the maximum revenue share in the global industry due to constant R&D initiatives. Moreover, presence of major players operating in the region fuel the growth of the market. However, Asia-Pacific is expected to register highest CAGR from 2021 to 2030, owing to rapid demand for healthcare assistance, especially in the rural areas. Furthermore, innovation and development toward telecommunication are anticipated to further enhance the growth in this region in the near future.
Key Findings Of The Study
- By application, the teledermatology segment was the highest contributor to the market in 2020.
- By component, the software segment was the highest contributor to the market in 2020.
- By end user, the healthcare providers segment is projected to grow at a significant CAGR of 26.60% from 2021 to 2030.
- By region, North America garnered the largest revenue share in 2020, whereas Asia-Pacific is anticipated to grow at the highest CAGR during the review period.