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Telemedicine Market to Generate Revenue Worth $48.8 Billion by 2023

Published Date:   June 2018

The global telemedicine market was valued at $21.5 billion in 2017 and is projected to reach $48.8 billion by 2023, progressing at a CAGR of 14.8% during the forecast period (2018–2023). The tele hospitals and clinics category held larger market share in 2017. However, the tele home category is likely to witness faster growth during the forecast period, due to patient benefits, including remote monitoring of health conditions, shorter hospital stays, and improved access to healthcare professionals.

Innovative Technological Advancements Is a Key Trend in the Telemedicine Market

A key trend observed in the telemedicine market is the growing adoption of technologically advanced products, which, in turn, increases operational efficiency and expands access to health services. In addition, these products help the healthcare professionals to attend several patients remotely and simultaneously with unified communication solutions. Market players are increasingly focusing on developing products and platform with an objective to maintain and enhance the communication between patient and their physicians. For instance, SnapMD’s Connected Care platform allows healthcare organizations to easily and cost effectively extend their care models to include the virtual visit, while maintaining continuity of care.

Rising Geriatric Population Drives the Market Growth

Increasing elderly population is a major factor driving the growth of the telemedicine market, globally. This is attributed to the fact that aged people are more susceptible to illnesses, have low immunity levels, and require more time to recover from illnesses. According to the World Population Ageing report published by the United Nations Department of Economics and Social Affairs (UN-DESA), the total number of people aged 60 years and above increased to 962 million in 2017 from 382 million in 1980. Furthermore, this number is expected to increase up to 2.1 billion by 2050. With the use of telemedicine, the quality of life of geriatric population can be improved with the use of telemedicine, which assists patients and they are not required to visit hospitals and other healthcare facilities to seek treatment. They can easily be treated in home care settings.

Segmentation Analysis of Telemedicine Market

Telemedicine Market

  • The tele home category is expected to witness faster growth in the telemedicine market. This can be attributed to the facility of monitoring the health of patient remotely.
  • The tele consulting service category held the largest share in 2017. The market growth in this category is primarily attributed to the rising need of continuous patient monitoring and widespread burden of chronic and lifestyle associated diseases.
  • The neurology category in terms of specialty is projected to grow fastest during the forecast period. This is because enhanced telemedicine services provide potential management of seizures and stroke.

Geographical Analysis of Telemedicine Market

Together, North America and Europe are expected to account for over 65.0% share in the global telemedicine market in 2023, where North America would be the leading region. Some of the factors driving the market growth in the regions include presence of advanced healthcare infrastructure, increasing healthcare expenditure, and rising prevalence of chronic diseases. However, APAC is expected to witness fastest growth among all regions, primarily due to surging geriatric population and improving healthcare infrastructure. In 2017, in APAC, Japan held over 30% share in the APAC telemedicine market, followed by China.

Competitive Landscape of Telemedicine Market

The telemedicine market is fragmented in nature, with the presence of small and big players, such as Polycom Inc., Allscripts Healthcare Solutions Inc., McKesson Corporation, Cisco Systems Inc., Medtronic plc, Cerner Corporation, Honeywell International Inc., Koninklijke Philips N.V., InTouch Technologies Inc., Aerotel Medical Systems Ltd., and AMD Global Telemedicine Inc.

The key players in the telemedicine market are engaged in strategic developments such as product launches, merger & acquisitions, and partnerships as a key strategy to maintain their positions among competitors. For instance, in April 2018, AMD Global Telemedicine Inc. launched OnDemand Visit, a direct-to-consumer telehealth platform. It allows healthcare organizations to expand their service offerings, engage patients in a convenient way, and provide a real-time medical visit, through mobile and computer.

Browse report overview with detailed TOC on "Telemedicine Market by Type (Tele-hospital & Clinic, Tele-home), by Service (Tele-consulting, Tele-monitoring, Tele-education, Tele-training), by Specialty (Dermatology, Gynecology, Cardiology, Neurology, Orthopedics), by Geography (U.S., Canada, Germany, U.K., France, Italy, Spain, Japan, China, India) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023" at:https://www.psmarketresearch.com/market-analysis/telemedicine-market

Similarly, in July 2017, Koninklijke Philips N.V. acquired Health & Parenting Ltd., a developer of healthcare and family-related mobile application for expectants and new parents. The acquisition enhanced Philip’s uGrow digital parenting platform and strengthened its offering in pregnancy and parenting. This platform collects data from connected devices namely Philips Avent smart baby monitor and Philips Avent smart ear thermometer and provides personalized feedback and advice to the patients.