Global Industry Analysis (2017 – 2020) – Growth Trends and Market Forecast (2021 – 2025)
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The rapid upsurge in COVID-19 cases across the world coupled with favourable reimbursement policies for telehealth services in developed countries have spurred the adoption rate of telemedicine significantly. Additionally, changing patient preferences towards virtual consultation from conventional physician visits present incremental opportunities for telemedicine adoption.
In the U.S., telehealth consultations have soared to more than 40% by the fourth week of April 2020 on account of COVID-19 breakout from merely less than 1% of total physician visits. This kind of exponential momentum may not be sustainable in longer term, however, the agility of providers and receptivity of patients during this rapid acceleration indicates a future care delivery model, which broadly embraces telemedicine. These trends are expected to remain similar across the world during second half of 2020 and first half of 2021.
Rapid Technological Advancements Shape Future of Telemedicine Market
Analysts at Fairfield Market Research predict that remote patient monitoring will be the most potent advancements in the telemedicine market. There are several examples like automatic insulin pumps, digital blood pressure cuffs and digital heart rate monitors that make the case of this aspect of telemedicine.
Patient’s willingness to adapt to the new technology is at the base of advancement in RPM. This reflects clearly in a survey released by VivaLNK, where nearly 66% of patients aged 40 and over were willing to wear an RPM device if it would allow the patient to make fewer trips to the doctor.
The next logical step for technological advancement would be integration of telemedicine into current health system and connectivity into electronic health records (EHRs). However, to mitigate data privacy concerns, developers should look to guidance through regulatory agencies and security protections into such integrated platforms.
Another piece of advancement in telemedicine is the augmentation of user health apps with artificial intelligence. The continued integration of artificial intelligence into telemedicine technology should increase the development of easy apps, access to care, and assistance in follow-up treatment plans.
Teleradiology to Remain Dominant Application until 2025
Teleradiology was the leading specialty segment with highest market share in 2019. Also, it is set to hold the dominant position until the end of forecast period. This dominance is attributable to higher adoption rate of picture archiving and communication systems (PACS) and high R&D activities in this space.
In end user segment, hospitals accounted for the largest market share in 2019. The segment is anticipated to expand at a moderate to high growth rate throughout the forecast period. As of now, most preferred department for telemedicine services in hospitals is emergency care. However, by extending e-Health services role in healthcare, hospitals can expand service offerings widely to OPDs and post hospitalization facilities. These widening applications are projected to make a significant contribution to the growth of this segment.
U.S. Leads with Technological Advancements and Favourable Reimbursement Policies
North America was the leading region in the global telemedicine market in 2019 due to favourable consumer preference, presence of key players and favourable reimbursement policies. According to the American Telemedicine Association (ATA), there are about 200 networked telemedicine programs in the U.S., granting telemedicine access to more than 3000 rural site. Additionally, in about 46 states Medicaid programs cover live video and 26 state Medicaid programs cover a facility or transmission fee, or both.
Asia Pacific is expected to register a notable growth during the forecast period on account of technological advancements in digital imaging and favourable government initiatives. The recent launch of National Digital Health Mission by Government of India is another step in the direction. Furthermore, a huge population base in countries such as China and India, improving access of internet and rapid rise in aging issues will contribute to the regional growth.
There are notable challenges, which may hinder the progress restricting adoption in emerging as well as under developed markets. Poor infrastructure and government healthcare spending priorities are key concerns for these countries.
Leading Players on Buying Spree to Consolidate Stronghold Positions
Hefty investments have been made by big tech giants in last few years to penetrate in the high potential untapped areas organically and inorganically. Multiple start-ups with disruptive technologies are backed up by these giants. Such recent collaborations are, Teladoc’s agreement to takeover InTouch and American Well acquiring Aligned Telehealth. Both these acquisitions help market leaders, Teladoc and American Well, to strengthen their position with added customer base and expanded service offerings.
The Telemedicine market comprises of key market players with significant global and regional foot prints viz. 2nd.MD, Allscripts Healthcare Solutions Inc, AMD Global Telemedicine, American Well, BioTelemetry, Blue Sky Telehealth, Cerner Corporation, Cisco Systems, Doctolib, Eagle Telemedicine, Honeywell International Inc, iCLiniq, InSight, InTouch Technologies, Koninklijke Philips N.V., McKesson Corporation, MDLive, MeMD, OBS Medical, Polycom Inc., SOC Telemed, Specialist Telemed, Teladoc Health and VirTrial, LLC. In the longer term, thoughtful integration of telemedicine services into patient care models—intended to cater distinct patient populations and supported with sound business cases —will drive further market access.