Market Size of Telemedicine Industry
Study Period | 2021 - 2029 |
Market Size (2024) | USD 172.44 Billion |
Market Size (2029) | USD 330.26 Billion |
CAGR (2024 - 2029) | 13.88 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Telemedicine Market Analysis
The Telemedicine Market size is estimated at USD 172.44 billion in 2024, and is expected to reach USD 330.26 billion by 2029, growing at a CAGR of 13.88% during the forecast period (2024-2029).
The telemedicine industry has emerged in the healthcare sector during the COVID-19 pandemic. Though telemedicine services were integrated into most healthcare systems even before the onset of the pandemic, services began to be extensively used only during the COVID-19 crisis. An article published in October 2021, by Foundation for Research and Technology Greece, explained that during the pandemic, COVID-19 served as a catalyst and accelerator for telehealth market growth. Regulators worked to eliminate data silos in artificial intelligence and digital health to better promote innovation. Furthermore, the United States has approved legislation to allow for more seamless data flow, while the European Union integrated the data across member states to permit the interchange of electronic health records (EHRs) across borders during the pandemic. Additionally, according to a study published in Health Affairs, in September 2022, during the COVID-19 pandemic, a small percentage of primary care doctors were responsible for the more than 4-fold rise in the usage of remote patient monitoring (RPM). As per telehealth statistics, digital health solutions have demonstrated the ability to enhance health outcomes during a high-stress period like the COVID-19 pandemic and being integrated with conventional healthcare services which are expected to further increase the demand for telemedicine industry.
The major factors for the growth of the telehealth market include rising healthcare expenditure, technological innovations and rising demand for remote patient monitoring, and the growing burden of chronic diseases. For instance, according to the UK Health Accounts provisional estimates, the 2021 report, published in May 2022, the total current healthcare expenditure in 2021 was estimated at GBP 277 billion (USD 317 billion), which is an increase in nominal terms of 7.4% on spending in 2020. Furthermore, as per the 2022 update from the Canadian Institute for Health Information, hospitals (24.34%), physicians (13.60%), and drugs (13.58%) categories continued to account for the largest shares, which is over half of the total health spending in 2022. As the cost of in-person consultation is much higher than online consultation and is more tedious, telehealth services are more advantageous for customers. This is likely to boost the growth of the telehealth market over the forecast period.
Furthermore, according to CDC, in 2021, around 18.2 million adults aged 20 and older had coronary artery disease (CAD) in the United States. Heart disease is the leading cause of death in the United States. Also, as per the 2022 update from the International Diabetic Federation (IDF), approximately 537 million adults (20-79 years) are living with diabetes. The total number of people living with diabetes is projected to rise to 643 million by 2030 and 783 million by 2045. The high incidence of chronic diseases increases the demand for huge telemedicine, which, in turn, drives the telemedicine market size.
Thus, the abovementioned factors are impacting the telemedicine market growth. However, legal and reimbursement issues and high initial capital requirements, and lack of physician support are expected to hinder the telemedicine industry growth over the forecast period.
Telemedicine Industry Segmentation
As per the scope of this report, telehealth is the remote delivery of healthcare services, such as consultations over telecommunication or teleconference, and it allows healthcare professionals to evaluate, diagnose, and treat patients. The Telemedicine Market is segmented By Type (Tele hospitals, Tele homes, and mHealth), Component (Products and Services), Mode of Delivery (On-premises Delivery and Cloud-based Delivery), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The market report also covers the estimated telemedicine market sizes and trends for 17 different countries across major regions, globally. The report offers the value (in USD million) for the above segments.
By Type | |
Tele hospitals | |
Tele homes | |
mHealth (Mobile Health) |
By Component | ||||||||
| ||||||||
|
By Mode of Delivery | |
On-premise Delivery | |
Cloud-based Delivery |
Geography | ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
|
Telemedicine Market Size Summary
The telemedicine market is experiencing significant growth, driven by the increasing integration of digital health solutions into healthcare systems, particularly accelerated by the COVID-19 pandemic. The pandemic acted as a catalyst, enhancing the adoption of telehealth services as regulators worked to streamline data sharing and promote innovation in digital health. The market is characterized by rising healthcare expenditures, technological advancements, and a growing demand for remote patient monitoring, all of which are fueled by the increasing prevalence of chronic diseases. Telemedicine offers cost-effective alternatives to traditional in-person consultations, making it an attractive option for both patients and healthcare providers. Despite challenges such as legal and reimbursement issues, the market is poised for substantial expansion, with tele home services gaining traction due to their convenience and cost savings.
In North America, the telemedicine market is rapidly expanding, supported by the high adoption of advanced healthcare technologies and increased healthcare spending. The market's growth is further bolstered by strategic partnerships, collaborations, and product innovations among leading telehealth companies. The fragmented nature of the market sees both global and regional players, including prominent companies like Allscripts Healthcare Solutions Inc., BioTelemetry, and Medtronic, competing for market share. The launch of new services, such as tele-ICU offerings, and the establishment of telemedicine centers in various regions underscore the dynamic nature of the industry. As telemedicine continues to evolve, it is expected to play a crucial role in enhancing care management and reducing healthcare costs, thereby driving market growth over the forecast period.
Telemedicine Market Size - Table of Contents
-
1. MARKET DYNAMICS
-
1.1 Market Overview
-
1.2 Market Drivers
-
1.2.1 Rising Healthcare Expenditure
-
1.2.2 Technological Innovations and Rising Demand for Remote Patient Monitoring
-
1.2.3 Growing Burden of Chronic Diseases
-
-
1.3 Market Restraints
-
1.3.1 Legal and Reimbursement Issues
-
1.3.2 High Initial Capital Requirements and Lack of Physician Support
-
-
1.4 Porter's Five Forces Analysis
-
1.4.1 Threat of New Entrants
-
1.4.2 Bargaining Power of Buyers/Consumers
-
1.4.3 Bargaining Power of Suppliers
-
1.4.4 Threat of Substitute Products
-
1.4.5 Intensity of Competitive Rivalry
-
-
-
2. MARKET SEGMENTATION (Market Size by Value)
-
2.1 By Type
-
2.1.1 Tele hospitals
-
2.1.2 Tele homes
-
2.1.3 mHealth (Mobile Health)
-
-
2.2 By Component
-
2.2.1 Products
-
2.2.1.1 Hardware
-
2.2.1.2 Software
-
2.2.1.3 Other Products
-
-
2.2.2 Services
-
2.2.2.1 Telepathology
-
2.2.2.2 Telecardiology
-
2.2.2.3 Teleradiology
-
2.2.2.4 Teledermatology
-
2.2.2.5 Telepsychiatry
-
2.2.2.6 Other Services
-
-
-
2.3 By Mode of Delivery
-
2.3.1 On-premise Delivery
-
2.3.2 Cloud-based Delivery
-
-
2.4 Geography
-
2.4.1 North America
-
2.4.1.1 US
-
2.4.1.2 Canada
-
2.4.1.3 Mexico
-
-
2.4.2 Europe
-
2.4.2.1 Germany
-
2.4.2.2 UK
-
2.4.2.3 France
-
2.4.2.4 Italy
-
2.4.2.5 Spain
-
2.4.2.6 Rest of Europe
-
-
2.4.3 Asia-Pacific
-
2.4.3.1 China
-
2.4.3.2 Japan
-
2.4.3.3 India
-
2.4.3.4 Australia
-
2.4.3.5 South Korea
-
2.4.3.6 Rest of Asia-Pacific
-
-
2.4.4 Middle East and Africa
-
2.4.4.1 GCC
-
2.4.4.2 South Africa
-
2.4.4.3 Rest of Middle East and Africa
-
-
2.4.5 South America
-
2.4.5.1 Brazil
-
2.4.5.2 Argentina
-
2.4.5.3 Rest of South America
-
-
-
Telemedicine Market Size FAQs
How big is the Telemedicine Market?
The Telemedicine Market size is expected to reach USD 172.44 billion in 2024 and grow at a CAGR of 13.88% to reach USD 330.26 billion by 2029.
What is the current Telemedicine Market size?
In 2024, the Telemedicine Market size is expected to reach USD 172.44 billion.