According to a study conducted recently by the strategic consulting and market research firm, BlueWeave Consulting, the global telemedicine market was worth USD 51.0 Billion in 2020 and is further projected to reach USD 152.3 Billion by 2027, at a CAGR of 16.1%during 2021–2027 (forecast period). Growing consumer demand, a dearth of healthcare professionals, increasing patient acceptance, escalating healthcare expenses, government assistance, developments in telecommunications, and rising demand for improved health outcomes have all contributed to the growth of the global telemedicine market. Furthermore, the ongoing pandemic has fueled the increased use of telehealth, indicating that there is still plenty of room for growth in the coming years.
Government InitiativesAccelerating the Growth of the Global Telemedicine Market
Government initiatives and policies have been playing an essential role in driving the growth of the global telemedicine market. The governments of several countries across the world are implementing new policies and reimbursement standards to support telehealth. At the same time, various governments have also issued guidelines for the use of telemedicine to aid in the continual delivery of healthcare services to the masses and to ensure perpetual healthcare services in times of crisis.
Many federal agencies are also working to reform existing telehealth policies in order to improve access to high-quality care while decreasing healthcare costs in the United States. For example, the CARES (The Coronavirus Aid, Relief, and Economic Security) Act passed by the 116th U.S. Congress has significantly boosted telehealth services by introducing a number of provisions aimed at increasing telehealth access in rural and deprived areas.
Technological Advancements Encouraging the Global Telemedicine Market
Telehealth technology is getting a lot of attention for coronavirus treatment. Technological innovations in telemedicine has enabled healthcare providers to diagnose, treat and monitor a patient’s progress remotely with greater efficiency, thereby propelling the growth of the global telemedicine market.
Telemedicine is no longer restricted to wireless devices or other telecommunications methods. Robotics, Machine Learning (ML), Blockchain Technology, IoMT (Internet of Medical Things), and AI (Artificial Intelligence)-enabled chatbots are increasingly being used by telemedicine businesses around the world for gathering patient information, reviewing patient records, treating patients, making diagnoses, and even creating vaccines. For example, IoMT involves the connected smart ambulance, in which real-time streaming of patient data and emergency consultation mostly through video facilitates remote support of on-site paramedics. Similarly, remote surgery (tele-surgery) via self-powered surgical robots is also being carried out. In addition to real-time video and patient data streaming, this support, along with emergency signal support, involves extremely low latency.
Impact of COVID-19 On the Global Telemedicine Market
COVID-19 has had a significant impact on almost all sectors, except the global telemedicine market. COVID-19, like everything else, is digitizing the healthcare sector too, thus accelerating the growth of the global telemedicine sector.
Global telemedicine market: Regional insights
Geographically, the telemedicine market is categorized into North America, Europe, the Asia-Pacific, the Middle East & Africa, and Latin America. North America leads the global telemedicine industry and is projected to lead the overall industry during the forecast period. The rising incidence of chronic and lifestyle-related diseases, the region’s aging population, as well as increased government funding and grants for telemedicine, are driving this trend. Moreover, the geriatric population of North America has a high prevalence of cancer and other chronic ailments, which drives the need for advanced healthcare systems even higher.
Europe follows North America in terms of market share, owing to stronger government policies on the use of digital health and the rising prevalence of chronic diseases. Furthermore, the Asia-Pacific region is expected to experience positive growth in the industry as a result of the rising demand for healthcare assistance, particularly in rural areas
Some of the key players in the global telemedicine market are SteadyMD Inc., GE Healthcare (US), Cisco Systems, MDlive Inc., Siemen’s Healthineers, Zipnosos, Maven, Inc., MDlive, CVSHealth, iCliniq, Practo, Doctor On Demand, SnapMD, Encounter Telehealth, Global Med, MeMD, Teladoc Health Inc., AMD Global Telemedicine, Vsee, and other prominent players. The global telemedicine market is now welcoming new competitors with innovative business models. For example, Amazon recently announced plans to join the telehealth services market, which any organization can utilize to offer benefits to their employees.
At the same time, many startups are receiving significant funding from private equity firms in order to expand their operations. As a result, market players are continually involved in acquisitions, alliances, and mergers in order to stay ahead of the competition. For example, in March 2021, San-Francisco-based telehealth services provider Grand Rounds announced its merger with video telemedicine company Doctor on Demand (also based in San Francisco) to form a business that will combine Grand Rounds’ care navigation services with the Doctor on Demand’s telehealth platform.