Market Research Report
Telemedicine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Published by||Mordor Intelligence Pvt Ltd||Product code||390622|
|Published||Content info||120 Pages
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|Telemedicine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
|Published: March 1, 2021||Content info: 120 Pages||
The telemedicine market is valued at approximately USD 38289 million in 2020 and is expected to witness a revenue of USD 168396 million in 2026, with a CAGR of 28% over the forecast period.
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 percent per year for 2018-27 and to 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.
The rise of chronic diseases is a global concern that puts a strain on healthcare resources. Telehomecare is an innovative way to provide care, monitor a patient, and provide information, by using the latest technology in telecommunication. Monitoring allows early identification of disease, and thus, preventing chronic conditions.
During the COVID-19 pandemic, Telehomecare is 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, COVID-19 is expected to boost the segment growth over the pandemic situation.
Telehomecare 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 telehomecare programs manage, reduce, and avoid chronic diseases by remote monitoring of patients. The universities are collaborating well to promote the tele-homecare, such as 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 telehomecare services is directly affecting the growth of the telemedicine market.
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, patient quality of life, and reduced healthcare spending.
The rising demand for mobile technologies, coupled with the rising adoption of home care by patients and reduction in hospital visits, is 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 Governments is expected to drive the market. For instance, Under the 1135 waiver authority and Coronavirus Preparedness and Response Supplemental Appropriations Act, the Centers for Medicare & Medicaid Services (CMS) has broadened access to Medicare telehealth services so that beneficiaries can receive a wider range of services from their doctors without having to travel to a healthcare facility. Under this new waiver, Medicare can pay for office, hospital, and other visits furnished via telehealth across the country, including in patient's places of residence starting March 6, 2020.
Additionally, the high concentration of major players in the United States and increasing product launches and other strategic alliances are expected to boost the studied market. 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 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 portfolio. For instance, in Jan 2020, Teladoc Health entered into an agreement to acquire InTouch Health to boost Teladoc's telemedicine line and extend its presence across hospitals and health systems.