Telemedicine Market Overview
The global telemedicine market generated $21.5 billion revenue in 2017 and is predicted to progress at a CAGR of 14.8% during 2018–2023. Increasing prevalence of chronic and lifestyle associated diseases, rising healthcare cost, increasing government funding and grants for telemedicine, increasing number of smart phone users, consistent need for improved healthcare quality services, and surging demand for selfcare in remote location are the factors driving the market growth.
GLOBAL TELEMEDICINE MARKET, BY SERVICE, $M (2013-2023)
Based on type, the telemedicine market has been categorized into tele-hospital and clinic, and tele-home. The tele-hospital and clinic category accounted for the largest share in the market, with 64.2% contribution in 2017. This is attributed to increasing telemedicine services adopted in hospitals, and clinics. It includes telemedicine service from hospitals to hospitals, hospitals to experts, hospitals to clinics, clinics to experts, and experts to experts.
On the basis of service, the telemedicine market has been categorized into tele-consulting, tele-monitoring, tele-education, tele-training, and others. The demand for tele-monitoring services is expected to witness a CAGR of 17.0% during the forecast period. This growth is attributed to the rising use of home monitoring devices and its increasing benefits in the care of patients with heart failure.
Based on specialty, the telemedicine market has been categorized into dermatology, gynecology, cardiology, neurology, orthopedics, and others. Of these, dermatology held the largest share in the market, with 32.7% contribution in 2017, due to the increasing number of patients receiving medical information related to skin conditions such as tumor of the skin, rashes, mole, psoriasis, and acne.
Geographically, the telemedicine market in Asia-Pacific is expected to register the fastest growth during the forecast period, at a CAGR of 21.0%, owing to increasing chronic diseases, rising healthcare investments and exponential growth of Information Technology in the healthcare industry.
Telemedicine Market Dynamics
Increasing prevalence of chronic and lifestyle associated diseases, rising healthcare cost, increasing government funding and grants for telemedicine, increasing number of smart phone user, consistent need for improved healthcare quality services, and surging demand for selfcare in remote location are the major factors driving the telemedicine market growth. The prevalence of chronic diseases such as heart disease, cancer, stroke, respiratory disease, and diabetes is increasing due to the alteration in lifestyle and lack of access to preventive care. According to the International Diabetes Federation (IDF), around 279 million urban people were diagnosed with diabetes in 2017, and the number is projected to increase to 473 million urban population by 2045.
Mobile users are rapidly switching over to smart phones due to more affordable 3G and 4G spectrum and increased adoption of other connected devices. Smart phone facilitates the self-health monitoring of the users through various mobile health applications. The improved mobile high definition imaging technologies are able to deliver higher quality of behavioral care, primary care, and tele-dermatology service. According to the World Bank, the number of individuals using the internet globally rose from 29% in 2010 to 46% in 2016.
The increasing support from government organizations is playing a pivotal role in the growth of the telemedicine market. Several government organizations are providing support in form of funding and initiatives for the implementation of these facilities. For instance, in May 2017, American Telemedicine Association(ATA) and ClearHealth Quality Institute (CHQI), announced a joint venture to develop the next generation of telemedicine accreditations standards. Under the terms of the partnership, the telemedicine accreditation program was managed by CHQI. The new program would continue to promote patient safety, transparency of operation, and online patient health services.
The increasing acceptance of 4G and 5G spectrum and growing acceptance of telemedicine in emerging economies are posing as opportunities for the players in the telemedicine market. The acceptance of telemedicine in emerging economies, such as China and India, in the forthcoming years is expected to provide enormous growth potential to the market. The growth would be driven by the increasing emphasis of healthcare information technology (HIT) players, growing geriatric population, increasing prevalence of chronic diseases, and continual investments from both public and private sectors.
Telemedicine Market - Competitive Landscape
Key players in the telemedicine industries are effectively partnering with other healthcare organizations to provide tele health service. For instance, in February 2018, Koninklijke Philips N.V. (Philips) announced its partnership with Advanced ICU Care, a provider of tele-ICU care in the U.S. The partnership aims to deliver better telemedicine services in the category of advanced ICU care in the U.S., through Philips product offerings.
In January 2018, Philips announced partnership with American Well, a telehealth solution provider. Through the partnership, Philips joined the American Well exchange clinical services market place, which allows better delivery of its telehealth services.
Some of the other key players in the telemedicine industry are Aerotel Medical Systems Ltd., InTouch Technologies Inc., AMD Global Telemedicine Inc., OBS Medical Ltd., Cisco Systems Inc., Cerner Corporation, Allscripts Healthcare Solutions Inc., McKesson Corporation, Honeywell International Inc., BioTelemetry Inc., Medtronic PLC., Polycom Inc., General Electric Company, and GlobalMed.