U.S. Telehealth Market Size, Share & Trends Analysis Report By Product Type (Hardware, Software, Services), By Delivery Mode (Web-based, Cloud-based, On-premises), By End Use- Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The U.S. Telehealth market size was exhibited at USD 34.56 billion in 2022 and is projected to hit around USD 1,381.18 billion by 2032, growing at a CAGR of 44.6% during the forecast period 2023 to 2032.

Key Pointers:

• The services segment dominated the market with a revenue share of over 46.9% in 2022.
• The web-based delivery segment accounted for the largest revenue share of over 46.7% in 2022. 
• The providers segment held the largest revenue share of over 51.9% in 2022.

Report Scope of the U.S. Telehealth Market

The shortage of healthcare specialists and primary care physicians in the U.S. is one of the major factors expected to accelerate the market growth in the U.S. For instance, according to the Association of American Medical Colleges (AAMC) estimation, there is a shortage of both primary and specialty care physicians between 37,800 and 124,000 physicians by 2034.

The increasing adoption of digital health services, favorable consumer base, and substantial investment are the major factors contributing to the market growth in the U.S. Besides, growing demand for remote patient monitoring, coupled with the advancement of digital communication technology to support and improve healthcare services, is anticipated to accelerate the market growth over the forecast years. The shortage of physicians and clinicians in the U.S. is also expected to propel the telehealth industry growth. For instance, according to the Association of American Medical Colleges report published in June 2022, the estimated shortage of physicians in the U.S. could be between 37,800 and 124,000 by 2034, in both specialty and primary care.

Increasing remote patient visits using digital healthcare platforms due to social distancing practice during the COVID-19 pandemic in the U.S. are expected to boost the market growth over the forecast years. For instance, according to the Centers for Disease Control and Prevention (CDC), there is a 154% increase in telehealth visits in the U.S. during March 2021 as compared to the previous year i.e. March 2020. Remote digital healthcare services offered multiple benefits during the pandemic by reducing disease exposure for patients and staff. Growing access to the Internet by the U.S. population and increasing use of devices such as computers, tablets, and smartphones are also anticipated to provide potential industry growth opportunities.

The services segment held the largest revenue share in 2022. The growing demand for remote patient monitoring services that offer real-time interactions of the patients with the physicians is anticipated to drive the services segment in the U.S. Remote patient monitoring services have become smarter and affordable with improved clinical outcomes. These types of services attract the service providers to invest more in the telehealth market. Healthcare organizations in the U.S. are constantly changing their infrastructure to catch up to this revolution in healthcare. To integrate remote healthcare services, the healthcare organizations in the U.S. are rapidly upgrading themselves with the six most essential components such as IT infrastructures, hardware, software, Internet of things (IoT), scalable design, data, and patient security. For instance, in June 2022, Persistent Systems collaborated and invested in IBM to improve its digital transformation, core IT modernization facilities, and hybrid cloud platform for the customers.

Product Type Insights

Rising demand for remote healthcare services, coupled with rapid advancement in digital healthcare infrastructure, is a key factor expected to drive the segment over the coming years. Besides, the rapid increase of coronavirus disease, social distancing practice, and the fear of infection are anticipated to accelerate the segment growth. Remote patient monitoring services offer real-time interaction between patients and physicians, which resulted in affordable clinical outcomes.

Before the COVID-19 pandemic, the remote provision of clinical care has not been well characterized. High access to the devices such as computers, tablets, and smartphones and high access to the internet in developing countries like the U.S. are also expected to favor the growth of telehealth services. For instance, due to the increasing demand and high adoption, there is a 154% increase in telehealth visits in March 2020 than March 2019 as per the report published by the Center for Disease Control and Prevention (CDC) in October 2020.

The software segment is expected to witness the fastest growth over the forecast period. Software is the core component of telehealth services. There are several types of software platforms available for telehealth services, which are used to store, analyze, and share healthcare information. Using telehealth software, patients can access affordable healthcare services in less time. With the growing demand for telehealth services, several software developers are now continuously focusing on the development of advanced software with more features to hold their strong position in the market. For instance, in May 2021, MediTelecare launched MediTely™, a world-class mobile telehealth application for the older population living outside long-term care facilities.

Delivery Mode Insights

The web-based delivery segment accounted for the largest revenue share of over 46.7% in 2022. The growing adoption of web-based delivery mode in mobile health communication and remote patient monitoring to improve the quality of rural healthcare is expected to fuel the segment growth. The growing telehealth industry and the cost-effectiveness of virtual care are also expected to support the web-based delivery segment growth over the coming years. Besides, several large international organizations are now using web-based information and communication technologies (ICTs) platforms to address the growing healthcare challenges in both developed and developing countries.

For instance, the WHO (World Health Organization) has established the U.S. Observatory for eHealth (GOe) to review the status of eHealth solutions, including telemedicine, at the U.S., national, and regional levels. Further, the cloud-based delivery model is anticipated to be the fastest segment over the forecast period. The growing adoption of cloud storage platforms by patients and clinicians owing to their cost-effectiveness, speed, and virtual data storage capabilities is expected to fuel the segment growth over the forecast years.

End-use Insights

The providers segment held the largest revenue share of over 50.0% in 2022 owing to the growing number of telehealth service providers in the U.S. and the increasing awareness among the individuals to adopt telehealth. Healthcare centers have expanded their telehealth infrastructure during the COVID-19 pandemic by investing more in digital health and virtual care business models. Real-time healthcare services, improved data management, and cost-saving healthcare service offered by telehealth providers are expected to boost the segment growth.

The patients segment is expected to register the fastest growth rate during the forecast period owing to the increasing awareness among the patient population and high internet penetration in the U.S. Low cost and better clinical outcome of telehealth services are also the key factors responsible for the growth of this segment over the forecast period. In addition, increasing smartphone users, technology-friendly users, and growing internet connectivity in the U.S. are expected to favor the growth of the patients segment.

Some of the prominent players in the U.S. Telehealth Market include:

• Koninklijke Philips N.V.
• Siemens Healthineers
• Cerner Corporation
• GE Healthcare
• Medtronic PLC
• Teladoc Health Inc.
• American Well
• Doctor on Demand
• U.SMed
• MDLive

Segments Covered in the Report

This report forecasts the volume and revenue growth at the country level 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 has segmented the U.S. Telehealth market.

By Product Type 

• Hardware
  • Monitors
  • Medical Peripheral Devices
    • Blood Pressure Meters
    • Blood Glucose Meters
    • Weighing Scales
    • Pulse Oximeters
    • Peak Flow Meters
    • ECG Monitors
    • Others
• Software
  • Standalone Software
  • Integrated Software
• Services
  • Remote Patient Monitoring
  • Real-time Interactions
  • Store and Forward
  • Others

By Delivery Mode 

• Web-based
• Cloud-based
• On-premises

By End-use 

• Providers
• Payers
• Patients