The telemedicine market was valued at approximately USD 38,289 million in 2020, and it is expected to witness a revenue of USD 168,396 million in 2026, with a CAGR of 28% over the forecast period, 2021-2026.
New York, July 01, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Telemedicine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06101200/?utm_source=GNW
Telehealth has emerged as an essential component of healthcare during the COVID-19 pandemic. According to the research article published in JCO Global Oncology-An American Society of Clinical OncologyJournal, 2020, during the SARS-CoV-2 pandemic, physical distancing was put in place to minimize the spread of coronavirus disease. This resulted in the adoption of most of the outpatient oncology appointments to telemedicine. Though the telemedicine services were integrated into most of the healthcare systems even before the onset of the pandemic, the services were extensively used only during the COVID-19 crisis, which is majorly attributed to a lack of in-person visits and limitations and restrictions on travel, which encouraged clinicians to adapt to telemedicine-based consultations even more during the COVID-19. Thus, the COVID-19 crisis is expected to have a significant positive impact on the growth of the telemedicine market globally.
The major factors for the growth of the telemedicine market include the rising healthcare costs, technological innovations, increasing remote patient monitoring, and growing burden of chronic diseases.
Healthcare costs are rising across the world. The primary driver for rising healthcare costs is increased utilization of healthcare services, which results in the growth of consumer demand for innovative and new techniques, lifestyle factors, etc. Furthermore, it can also be attributed to the cost-shifting from government programs to private payers. Low reimbursement rates have increased the cost-shifting burden on hospitals and doctors, who, in turn, charge much higher rates for the same facilities to private payers, which ultimately affects the health insurance rates. As per National Health Expenditure Projections 2018-2027, national health spending is projected to grow at an average rate of 5.5% per year for 2018-2027 and reach nearly USD 6.0 trillion by 2027 in the United States.
Telehealth solutions have demonstrated the ability to enhance health outcomes and reduce costs. Telemedicine saves the patients’, providers’, and payers’ money when compared to the traditional approaches. Telemedicine has been decreasing the cost of healthcare, while increasing efficiency through improved management of chronic diseases, reduced travel times, shared health professional staffing, and fewer and shorter hospital stays. Thus, owing to all the aforementioned factors, the market is expected to witness high growth over the forecast period.
Key Market Trends
The Telehomes Segment is Expected to be the Fastest Growing Segment over the Forecast Period
The rise of chronic diseases is a global concern that puts a strain on healthcare resources. Tele-homecare is an innovative way to provide care, monitor a patient, and provide information using the latest technology in telecommunication. Monitoring allows early identification of diseases, preventing chronic conditions.
During the COVID-19 pandemic, tele-homecare has been one of the best options for seeking medical advice at the comfort of the patient’s home. According to the research article published in JMIR Pediatrics and Parenting, 2020, improvement in medication adherence among adolescent transplant recipients was observed who were actively participating in the home-based telehealth video conference during the COVID-19 pandemic. Hence, the COVID-19 pandemic is expected to boost the segment growth.
Tele-homecare programs are also initiated in countries, including the whole system demonstrator (WSD) project in the United Kingdom, veterans’ health segmentation (VHA) project in the United States, and the TELEKART program in Denmark. These tele-homecare programs manage, reduce, and avoid chronic diseases by remote monitoring of patients. The universities are collaborating well to promote tele-homecare, for instance, the University of Ottawa Heart Institute has been making good progress in telehome monitoring technology, which offers services for various regions under the regional home monitoring program for cardiac patients. Telehome services provide an opportunity for significant savings for patients and hospitals. Thus, the increasing adoption rate of tele-homecare services is directly affecting the growth of the telemedicine market.
North America Accounted for the Largest Share in the Telemedicine Market and is Expected to Dominate the Market over the Forecast Period
Telemedicine is a rapidly growing component of healthcare in the United States owing to the growing burden of chronic diseases and the high adoption of advanced healthcare technologies in the country. The adoption of telemedicine has improved care management, patients’ quality of life, and reduced healthcare spending.
The rising demand for mobile technologies, rising adoption of home care by patients, and reduction in hospital visits are expected to propel the growth of the market over the forecast period. Healthcare in the United States is experiencing positive trends, with the emergence of telemedicine applications that help Americans to be active in personal health management, especially during the current COVID-19 pandemic. Smartphones and the presence of mobile technology make it possible to use both clinical and lifestyle applications to help, educate, and change health behaviors.
Also, the initiatives by the government are expected to drive the market. For instance, the Centers for Medicare & Medicaid Services (CMS) has widened access to Medicare telehealth services due to which beneficiaries can get a wider range of services from healthcare professionals without having to travel to a healthcare settings. Additionally, Medicare will also pay for hospital, office, and other visits furnished via telehealth across the country which also includes in patient’s places of residence started from March 6, 2020. This is likely to have positive impact on the market studied.
Additionally, vendors are engaged in partnership, collaboration, acquisitions, mergers and product launches to sustain in the market. For instance, in November 2020, Morneau Shepell introduced its first unified telemedicine solution in the United States. Under this service, regional employees and their families will get access to digital health care support for all their crucial and immediate wellbeing needs. Also, in August 2020, AMD Global Telemedicine, Inc. collaborated with iTelemed which is an Ontario based company providing virtual healthcare solutions to cater to the unmet healthcare needs of the marginalized populations within Canada during the COVID-19 pandemic. Thus, given the aforementioned factors, the telemedicine market is expected to grow significantly in North America over the forecast period.
The market studied is moderately consolidated, owing to the presence of a few large market players. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by introducing new products with fewer prices. Companies like Allscripts Healthcare Solutions Inc., BioTelemetry, Medtronic, and Koninklijke Philips NV hold significant market shares in the telemedicine market. The major players are involved in various strategic alliances to expand their product portfolios. For instance, in January 2020, Teladoc Health entered an agreement to acquire InTouch Health to boost Teladoc’s telemedicine line and extend its presence across hospitals and health systems.
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