The telehealth market size was estimated at USD 120.01 billion in 2022 and is expected to surpass around USD 1,186.59 billion by 2032 and poised to grow at a compound annual growth rate (CAGR) of 25.7% during the forecast period 2023 to 2032.
Telehealth Market Report Scope
|Market Size in 2023||USD 150.37 Billion|
|Market Size by 2032||USD 1,186.59 Billion|
|Growth Rate From 2023 to 2032||CAGR of 25.7%|
|Forecast Period||2023 to 2032|
|Segments Covered||Product type, Delivery mode, End-use, Disease Area, Region|
|Market Analysis (Terms Used)||Value (US$ Million/Billion) or (Volume/Units)|
|Report Coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Key Companies Profiled||Koninklijke Philips N.V.; Siemens Healthineers; Cerner Corp.; GE Healthcare; Medtronic PLC; Teladoc Health Inc; American Well; Doctor on Demand; GlobalMed; MDLive|
The rising penetration of the internet and innovation in smartphones is enabling to address the gaps in the delivery and availing of telehealth services conveniently. Moreover, the demand for telehealth services witnessed tremendous growth over the past year due to the COVID-19 pandemic and the restrictions imposed to curb the infection. COVID-19 hindered the delivery of healthcare services, which enabled most healthcare facilities to shift from traditional to virtual care methods. Furthermore, the growing need to monitor health and wellness to manage chronic diseases virtually is driving the industry's growth.
With the increasing adoption of smartphones and easy availability of technologically advanced devices, innovators have started investing to make the most of the current situation of the industry, by focusing on delivering quality healthcare & comfort through various mobile platforms, which would help patients track their fitness regimes and obtain answers to medical inquiries over the phone, WhatsApp, or through several mobile applications. For instance, several apps, such as Teladoc Health, Doctor Anywhere, Doctor On Call, and ClicknCare, have been introduced to help patients book appointments, track their consultations & medical prescriptions, and store their healthcare information over course of the treatment. Such instances are further boosting the market growth.
The introduction of the web- and cloud-based platforms, which deliver virtual care to users are expected to boost the industry growth. For instance, in August 2021, CVS and Teladoc partnered to launch CVS Health’s Aetna Virtual Primary Care. Through this partnership, CVS Health will utilize Teladoc’s physician network and providers to deliver virtual care services to patients remotely through video and telephonic consultations, which will reduce the dependency of the patients on in-person consultations and visits.The increasing prevalence of cancer globally is expected to be a key contributor to the growth of the market. This increasing prevalence is anticipated to strain the healthcare systems, most of which are witnessing a shortage of healthcare professionals, such as doctors and nurses; which is anticipated to drive the adoption of the services globally.
According to the WHO, healthcare facilities are projected to witness a shortage of 15 million healthcare professionals by 2030; this is expected to drive the adoption of AI for the treatment and diagnosis of patients and improve the accessibility of healthcare services in remote locations & reduce healthcare expenses.Telehealth helps deliver healthcare services digitally and virtually to patients at remote locations. The technology helps deliver patient-centric care remotely to the patients, thereby reducing the need for emergency department visits and reducing the rate of hospitalizations. Despite the advantages, concerns regarding cybersecurity, data privacy, and the high cost of implementation of the services are expected to restrain the industry's growth.
Moreover, telehealth focuses on increasing the accessibility of basic healthcare services to patients with enhanced safety and quality.Telehealth applications have been successful in delivering appropriate care to patients while reducing adverse events and preventing the symptoms to go unnoticed. Innovations in digital healthcare, such as smart wearables, the internet of things, advanced healthcare analytics, better internet connectivity, and the rising penetration of smartphones globally are significantly shaping the growth of the industry. Furthermore, the integration of AI and ML algorithms is enhancing the personalization of healthcare services.
For instance, Haldoc’s telehealth platform integrated with AI provides its physicians with feedback from the patients on their consultations and provides training programs that help in performance improvement.Several insurance companies and healthcare providers have collaborated to develop strategies to increase the adoption of telehealth services and applications. Furthermore, travel restrictions imposed due to the pandemic bolstered the demand for the services. For instance, in China, communication platforms, such as TikTok and WeChat, assisted the authorities and healthcare providers to deliver mental health services virtually during the pandemic. Likewise, Haldoc announced its active users in South Asia had increased ten-fold in 2020.
Several initiatives were undertaken by the key players globally, which have significantly contributed to the market growth during COVID-19. Several players reported exponential growth in revenue during the pandemic as compared to the previous year. For instance, Teladoc Health Inc. reported 63% year-on-year growth in the first two quarters of 2020 as compared to the first two quarters of 2019.A shortage of healthcare professionals is expected to positively contribute to the growth of the market.Rising funding and initiatives undertaken by governments globally are also driving the adoption of telehealth services.
For instance, in August 2021, Biden-Harris Administration announced an investment of approximately 19 million to improve healthcare delivery and address gaps in care faced in rural areas that have poor access to critical services. Moreover, the key players have been strategizing and focusing on collaborations and mergers & acquisitions to gain a competitive edge and expand their product portfolio and business footprint. For instance, in December 2020, PointClickCare Technologies, a senior care technology services provider, acquired Collective Medical, a web-based telehealth platform that provides real-time continuum care coordination. Through this acquisition, PointClickCare Technologies will expand its care services and offerings.
With the increasing adoption of the internet, smart devices, and telemedicine in the field of healthcare, there has been an increase in cybersecurity issues. There have been incidents of hacking and siphoning of confidential information through connected and smart devices. According to IBM’s “Cost of a Data Breach Report 2021”, the healthcare sector had the highest average cost of a breach compared to other industries. The average cost of a healthcare breach was a startling USD 9.23 million in 2021. The average total cost of the largest data breaches is USD 13 million, and the most common cost is in the USD1–5 million range. In the U.S. healthcare sector, malicious hacking activity accounted for nearly 80% of all breaches in 2020. Such instances are projected to hinder market growth over the forecast period.
Product Type Insights
The services segment held the largest share of 47.12% in 2022. The need for telehealth applications in real-time monitoring and chronic disease management contributed to the growth of the segment. Moreover, rapid advancements in digital infrastructure, hardware and software components, and increasing penetration of smartphones, and the internet globally further contributed to the segment growth. Moreover, the development of a range of platforms & applications to diagnose, monitor, track fitness & wellness, and prevent disease is boosting the segment growth. The continuously evolving digital space is also expected to positively support the growth of these services.
The software segment is anticipated to witness a lucrative CAGR during the forecast period due to the rising demand for affordable and accessible healthcare services, efficient workflow management, and improved quality care. Rising healthcare costs combined with the growing need to monitor population health accurately and in real-time is increasing the adoption of the software. Moreover, several healthcare institutions in developed nations have shifted to value-based care models to improve patient outcomes. Furthermore, several initiatives have been undertaken by the key players globally, which is driving the segment growth.
Delivery Mode Insights
The web-based delivery mode segment held the largest share of 45.11% of the overall revenue in 2022. The emergence of various virtual care and web-based telehealth applications and the growing adoption of web-based delivery to offer patients direct access to healthcare services are some of the factors that contributed to the segment's growth. Growing internet penetration and innovations in the smartphone industry are further boosting the adoption of the web-based delivery segment. Moreover, the cost-effectiveness and seamless user interface offered by web-based applications are further increasing the adoption rate.
The cloud-based delivery segment is anticipated to witness the fastest growth rate during the forecast period owing to the increasing adoption of cloud-based applications by healthcare providers and patients and the introduction of technologically advanced solutions. Moreover, seamless data storage and recovery, easy accessibility, high bandwidth, and enhanced security provided by cloud-based applications are contributing to the growth of the segment. Increasing instances of data breaches on the web-based and on-premise telehealth platforms have augmented the demand for the cloud-based delivery segment. Cloud-based solutions enable patient monitoring and teleconsultation for individuals, which require immediate medical assistance in rural and remote locations.
Disease Area Insights
In 2022, the radiology segment accounted for the largest share of 12.9% of the overall revenue. The rising prevalence of target diseases, such as cancer, cardiovascular diseases, Chronic Obstructive Pulmonary Disease (COPD), etc., the rising shortage of radiologists, and the increasing demand for remote medical imaging are boosting the adoption of telehealth services for radiology. COVID-19 has also emphasized the importance of teleradiology. A shortage of healthcare professionals, especially in the sub-specialist segment, such as pediatric, neurology, and musculoskeletal radiology, is leading to the adoption of telehealth in radiology.
Furthermore, the integration of AI with teleradiology, implementation of Picture Archiving and Communication System (PACS), and growing R&D activities pertaining to eHealth are other key factors expected to boost the demand for teleradiology services during the forecast period. For instance, 5C Network, an Indian teleradiology provider, launched an AI-powered platform called Prodigi that uses advanced technology to ensure that no radiology image is left unreported for more than 2–3 hours.
The psychiatry segment is anticipated to grow at the fastest CAGR over the forecast period owing to an increase in patients suffering from anxiety, stress, and mental illnesses. Also, a number of people are adopting services to treat mental health. The eased regulations for telehealth have expanded access to virtual visits for therapy and other mental health services; this, in turn, has supported the segment's growth. In addition, the shortage of psychiatry beds further increases the need for virtual consultation services, thereby boosting segment growth.
The provider segment accounted for the largest revenue share of 53.8% in 2022 due to the increasing adoption of telehealth, teleconsultation, and telemedicine among healthcare professionals to reduce the burden on healthcare facilities. Moreover, the increased convenience offered by these solutions to the healthcare providers to have quick and seamless access to patient health records, real-time quality reporting, improved data management, improved decision-making, and eHealth solutions is expected to further increase the adoption of these services among the providers.
Many healthcare facilities have witnessed considerable improvement in workflow management through the adoption of these services.The patient segment is anticipated to witness the fastest growthrate during the forecast period owing to high internet connectivity, and a growing number of smartphone users & active subscribers on telehealth platforms. Moreover, the services are cost-effective and help overcome communication gaps and care provision among patients and healthcare professionals.
North America dominated the industry in 2022 with a share of 47.16% of the total revenue. High healthcare IT expenditure and higher penetration of the internet & smartphone users in the region are some of the factors that contributed to the growth of the market.The increased burden of chronic conditions and high awareness about digital health & virtual care platforms among healthcare providers & patients are expected to drive the region’s growth in the future. The presence of key players in the region combined with the emergence of start-ups willalso contribute to the adoption of telehealth platforms in the region.
Asia Pacific is projected to witness the fastest growth rate during the forecast period. The rising geriatric population in countries, such as India and Japan, combined with the advancements in the field of digital health and research initiatives undertaken by the key players are anticipated to contribute to the region’s growth. Favorable government initiatives to strengthen internet connectivity and growing demand for healthcare and medical assistance in rural areasare also expected to positively impact the market growth. Furthermore, the shortage of healthcare professionals and the need to curb the rising healthcare costs are expected to boost market growth in the region.
Key Companies & Market Share Insights
Key players are involved in mergers and acquisitions to increase their share in the industry and provide innovative solutions to the users, which is anticipated to boost the industry's growth during the forecast period. For instance, in August 2021, Philips announced the launch of Philips Acute Care Telehealth, which will provide a flexible and configurable solution to help healthcare systems provide virtual care. In June 2020, Oracle completed the acquisition of Cerner Corp. and acquired a 69.2% stake in the company. Both companies, post the acquisition, will focus on codeveloping advanced healthcare analytics solutions and expanding their product portfolio & business footprint. Some of the key players operating in the global telehealth market are:
Segments Covered in the Report
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the Telehealth market.
By Product Type
By Delivery Mode
By Disease Area