Telemedicine Market Analysis North America, Europe, Asia, Rest of World (ROW) - US, Canada, Germany, UK, Japan - Size and Forecast 2024-2028

Telemedicine Market Forecast 2024-2028

The telemedicine market size is estimated to grow by USD 132.61 billion, at a CAGR of 17.11% between 2023 to 2028. The market is witnessing continuous expansion and innovation driven by factors such as increasing demand for convenient healthcare access, surging chronic disease rates, aging populations, and the enduring effects of the COVID-19 pandemic. This demand creates opportunities for new entrants and existing companies to broaden their services. Technological strides, including high-speed internet, mobile devices, artificial intelligence, and telecommunication infrastructure, facilitate the development and deployment of cost-effective telemedicine platforms.

Recent launches include Amazon's One Medical for Prime members, GNC's virtual care service, and Walgreens' Virtual Healthcare for on-demand consultations and medication prescriptions. These introductions signify the market's positive trajectory, reflecting a dynamic landscape that aligns with the evolving healthcare needs of a global audience. Thus, the frequent launch of telehealth platforms by retailers is driving market growth during the forecast period. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.

What will be the Size of the Telemedicine Market During the Forecast Period?

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Segmentation by Application, Product, and Geography Analysis

 

The telemedicine market is experiencing exponential growth, driven by advancements in healthcare technology and the increasing demand for virtual and remote medical services. With the rise of teleconsultation and telemonitoring, patients can now access healthcare professionals online from the comfort of their homes. This shift towards telehealth and digital medical services has transformed the way healthcare is delivered, offering greater convenience and accessibility for both patients and doctors. Telemedicine encompasses a wide range of specialties, including telepharmacy, telepsychiatry, and telecardiology, catering to diverse medical needs across various sectors. As the market continues to expand, industry players are leveraging telecommunication technologies to provide innovative solutions, driving the adoption of telemedicine worldwide.

Application Analysis 

The market share growth by the telehospital and teleclinic segment will be significant during the forecast period. his segment involves the use of telecommunication and digital technologies to provide remote healthcare services, diagnosis, treatment, and consultations, bridging the gap between healthcare providers and patients. Telehospital addresses the shortage of specialized healthcare professionals in certain geographic areas by enabling remote consultations and collaborations among experts. 

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The telehospital and teleclinic segment was the largest and was valued at USD 37.69 billion in 2018. Further, patients can receive medical consultations, prescriptions, and follow-up care from the comfort of their homes or workplaces, eliminating the need for travel and waiting rooms. Teleclinics provide a convenient way for patients with chronic conditions to receive regular check-ins, monitoring, and care without frequent in-person visits. Moreover, teleclinics offer an accessible platform for individuals seeking tele-mental health services, therapy, and counseling, which is especially important during times of increased stress and mental health concerns. The demand for services is growing among the aging population. Teleclinics can help manage the needs of elderly individuals, allowing them to age in place with proper medical support, which in turn will drive the growth of the segment during the forecast period. 

Product Analysis

The services segment of the market encompasses a wide range of offerings that facilitate remote healthcare consultations, diagnostics, monitoring, and treatment. Growing patient demand for convenient, accessible, and on-demand healthcare services has led to a surge in telemedicine adoption. Patients seek virtual consultations, remote monitoring, and other telehealth services to receive timely care without the need for in-person visits.  Advances in technology, including high-speed internet access, mobile devices, and telecommunication infrastructure, have made telehealth more feasible and reliable. Additionally, innovations such as wearable health monitoring devices and remote diagnostic tools complement telehealth services, enhancing their effectiveness. Such factors are expected to drive the demand for services, which, in turn, will drive the growth of the services segment and will boost the growth of the market during the forecast period.

The solutions segment includes various technologies, platforms, and tools that enable healthcare providers to connect with patients, deliver care, and manage medical information remotely. Telehealth solutions offer convenient access to services without the need for patients to travel to a physical healthcare facility. This is particularly beneficial for individuals with mobility limitations, those living in rural or underserved areas, and patients with busy schedules. As the global population continues to age, there is an increasing demand for healthcare services, particularly among elderly individuals who may have complex medical needs and mobility issues. Telehealth solutions enable older adults to access medical care from the comfort of their homes, improving overall quality of life.  Such factors are expected to drive the demand for telemedicine services, which, in turn, is expected to drive the growth of the solutions segment and propel the growth of the market during the forecast period.

Regional Analysis

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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that will shape the market during the forecast period.  The telemedicine market in North America witnessed remarkable growth in 2023, fueled by technological advancements, changing patient preferences, and the need for accessible services. There has been a significant increase in the acceptance and demand for telemedicine services among both patients and healthcare providers in North America. This trend has been driven by factors such as convenience, accessibility, and the ability to provide timely care through telehealth services. North America boasts robust technological infrastructure and widespread high-speed internet connectivity.

In addition, the aging population in North America, along with the rise in the incidence of chronic diseases, has led to an increased demand for healthcare services. Telemedicine provides a means to efficiently manage chronic conditions, monitor health parameters, and offer timely interventions. Such factors are expected to drive the growth of the regional market during the forecast period.

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Key Market Players 

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

Access TeleCare LLC -  The company offers telemedicine solutions for behavioral health, infectious disease, neurology, hospitalist, cardiology, and nephrology

• Aerotel Medical Systems Ltd.
• AMD Global Telemedicine Inc.
• American Well Corp.
• AMN Healthcare Services Inc.
• CareCloud Inc.
• Cisco Systems Inc.
• Doctor On Demand Inc.
• Evernorth Health Inc.
• GlobalMedia Group LLC
• Koninklijke Philips N.V.
• Medtronic Plc
• MeMD
• Resideo Technologies Inc.
• Sesame Inc.
• SHL Telemedicine Ltd.
• TALKSPACE INC
• Teladoc Health Inc.
• Twilio Inc.
• Veradigm LLC

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Key Dynamics

The healthcare industry has witnessed a rapid transformation fueled by advancements in technology. Virtual and remote consultation services have emerged as key components of modern healthcare delivery, offering patients and doctors the convenience of online interactions. Telehealth, telemedicine, and teleconsultation have become integral parts of the healthcare market, facilitating remote diagnosis, monitoring, and care delivery. The telecommunication infrastructure has played a crucial role in enabling telehealth services, allowing for seamless communication between patients and healthcare providers. Telemonitoring and telecare solutions further enhance patient outcomes by enabling continuous remote monitoring of vital signs and health parameters. Telemedicine allows patients to consult with healthcare professionals through video calls, phone calls, or online messaging, eliminating the need for in-person visits. As the demand for digital medical services continues to grow, telepharmacy, telepsychiatry, and telecardiology services are expected to expand, driving further innovation and growth in the industry.There are multiple factors influencing market growth and forecasting. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. 

Key Market Drivers

The escalating costs within the healthcare sector are propelling market expansion, prompting a shift towards innovative solutions like telemedicine. Chronic diseases such as diabetes, COPD, and heart conditions are imposing a significant burden on global healthcare systems. With operational workflows, hospital admissions, and physician expenses constituting major cost components, per-person spending is on the rise, straining payers and governments. Telemedicine emerges as a cost-effective remedy, bridging patients with the healthcare system while enhancing accessibility and affordability through virtual consultations and remote care. Telecommunication advancements further streamline patient care, reducing associated expenses and hospital admissions. The growing imperative to mitigate healthcare costs is poised to fuel market growth, driven by the adoption of digital medical services and telehealth solutions.

Significant  Market Trends

Enhanced Internet connectivity with the use of smartphone devices and healthcare apps is an emerging trend shaping market growth. Growing Internet connectivity, coupled with the increasing adoption of smartphone devices, plays an important role in increasing patient access to services and widening the reach of services to people. The adoption of broadband services and mobile platforms helps in tracking and assessing the data to undertake an in-depth treatment analysis, which is used for providing better care to patients. The use of smartphone devices for telemedicine acts as a bridge between the patient and healthcare professionals. A secure Internet connection, a video platform, and technology support are the major requirements for using telemedicine across the world. Smartphone apps, in turn, help in providing feedback to patients, thereby improving services. 

Moreover, companies operating in the market are focusing on developing various apps, including a common platform for communication between patients and healthcare professionals. For instance, companies such as MDLIVE Inc., LiveHealth, HealthTap, and Lemonaid provide healthcare apps to enable patients to consult doctors. Such factors are expected to drive the demand for services, which, in turn, is expected to drive the growth of the market trends during the forecast period.

Major  Market Challenges

Issues related to telemedicine are significant challenges hindering market growth. The adoption of advanced technology has enhanced the applications of telemedicine. Telemedicine is an ideal solution for patients suffering from various chronic diseases who need regular monitoring and consultation. Miscommunication between professionals and patients may lead to misdiagnosis. Such issues can increase follow-up visits and create an economic burden on patients. Inadequate telemedicine parity is one of the major factors hindering the growth of the market.

However, limited reimbursements for getting treatment through telemedicine may discourage patients from using telemedicine services. In addition, the lack of EHR integration and compensation for physicians associated with telemedicine services in developing and underdeveloped countries are also expected to hinder the adoption of telemedicine. This, in turn, is expected to hamper the growth of the market to some extent during the forecast period.

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Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

 Customer Landscape

Segment Overview

The market report forecasts market growth analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Application Outlook
  • Telehospital and teleclinic
  • Telehome

• Product Outlook 
  • Services
  • Solutions

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia
    • China
    • India
  • Rest of World (ROW)
    • Brazil
    • Argentina 
    • Australia 

Market Analyst Overview 

The market is experiencing significant transformations with new business models, innovative healthcare approaches, and the entry of new players, including start-up companies securing series A funding. The expansion includes the development of nationwide insurance payer networks, reimbursement services, and the integration of Artificial Intelligence-powered booths in local malls and smart medicine cabinets. Providers like Ping An Good Doctor introduce AI-based clinics and unstaffed tiny clinics, leveraging AI, clinical expertise, and clinician support. Telehealth growth extends to schools, shopping malls, and highway service stations and features AI-enabled E-Sitters like Vitalchat. The positive trajectory involves addressing out-of-pocket expenditures, national healthcare spending, and leveraging Advanced Technologies such as Machine Learning (ML), Artificial Intelligence (AI), and IoT in telehealth apps and rare disease diagnostics with diagnosis strategies.

The market is experiencing remarkable growth, driven by the increasing adoption of teleradiology, telepharmacy, telepsychiatry, and telecardiology services. As healthcare facilities seek to enhance patient access and convenience, telemedicine enables clinicians to remotely diagnose and treat patients, transcending geographical barriers. Through efficient transmission of medical data and real-time consultations, telemedicine revolutionizes healthcare delivery, offering timely interventions and reducing healthcare disparities

However, challenges like telecommunication device limitations, bandwidth, storage, installation costs, technological barriers, telemedicine applications, and a shortage of skilled healthcare professionals persist, impacting revenue shares and waiting times, especially in rural areas. The market spans various product segments, from technologically advanced medical devices and wireless connectivity via smartphones and wearable patient monitoring devices, real-time solutions, and Store-and-Forward technologies, as evident in the On-demand Virtual Care Benchmark Survey, highlighting the widespread use in dermatology, radiology, teledermatology, urology, neurology, and homecare, driven by government initiatives and increased healthcare services expenditure. The market is witnessing significant growth driven by advancements in digital health technologies and changes in regulations and reimbursement policies. From acute care to innovative healthcare models like virtual hospitals, the landscape is evolving rapidly. Start-ups like OpenLoop are revolutionizing virtual care delivery, making teleconsultations and e-consultation services more accessible. 

Market Scope
Report Coverage	Details
Page number	161
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 17.11%
Market growth 2024-2028	USD 132.61 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	16.34
Regional analysis	North America, Europe, Asia, and Rest of World (ROW)
Performing market contribution	North America at 39%
Key countries	US, Canada, Germany, UK, and Japan
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Access TeleCare LLC, Aerotel Medical Systems Ltd., AMD Global Telemedicine Inc., American Well Corp., AMN Healthcare Services Inc., CareCloud Inc., Cisco Systems Inc., Doctor On Demand Inc., Evernorth Health Inc., GlobalMedia Group LLC, Koninklijke Philips N.V., Medtronic Plc, MeMD, Resideo Technologies Inc., Sesame Inc., SHL Telemedicine Ltd., TALKSPACE INC, Teladoc Health Inc., Twilio Inc., and Veradigm LLC
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the between 2024 and 2028
• Precise estimation of the size and its contribution of the market in focus to the parent market
• Detailed analysis of customer landscape covering Diver of price sensitivity, Adoption of the lifecycle, and key purchase criteria 
• Companies landscape comparing criticality of inputs and factors of differentiation
• Exclusive Matrix on companies position and classification
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, Asia, and Rest of World (ROW)
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of companies

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