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Telemedicine involves the use of digital information and communication technologies, such as computers and mobile devices to access healthcare services remotely and manage patients outside of traditional on-site settings. With the rise of the Covid-19 pandemic, there has been increased need for social distancing and virtual healthcare to curb the spread of the virus. This has accelerated the adoption of telemedicine across both developed and developing countries. Telemedicine allows patients to connect with doctors through video conferencing or smartphone apps to discuss symptoms, receive diagnoses and treatment plans without visiting in-person. It provides virtual care options for non-emergency illnesses and helps manage chronic diseases.
The global Telemedicine Market is estimated to be valued at US$ 94.44 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the telemedicine market is increasing investments from public and private players. Various healthcare organizations, hospitals and government bodies are funding telemedicine projects and startup companies to expand access to virtual care services globally. For instance, the U.S. government has allocated funding through programs such as the Center for Connected Health Policy to facilitate interstate licensure and reimbursement for telehealth services. On the other hand, venture capitalists invested over US$ 1.5 Bn in various telehealth startups in 2021. Such funding activities are helping develop advanced telemedicine platforms and networks to better integrate digital health into traditional care delivery models. This rising investment pool indicates strong potential for market growth over the coming years.
Porter’s Analysis
Threat of new entrants: Low. The telemedicine market requires considerable investment in technology and infrastructure to deliver remote medical services. Established brands have strong brand recognition.
Bargaining power of buyers: Moderate. Some large organizations have bargaining power due to contract volumes. However, for independent users switching costs are low to change telemedicine providers.
Bargaining power of suppliers: Low. Major technology and software solutions providers face low switching costs. Commoditization of technologies limits individual supplier influence.
Threat of new substitutes: Moderate. While telemedicine provides convenient access to care, some care needs require in-person visits which act as substitutes. Hybrid models combining telemedicine and in-person care are emerging.
Competitive rivalry: High. The market is growing rapidly with many providers vying for market share. Providers differentiate based on service quality, specialization and customer experience to gain competitive edge.
Key Takeaways
The global telemedicine market is expected to witness high growth driven by rising internet penetration, growing need for remote healthcare services amid COVID-19 pandemic, increasing smartphone usage and supportive regulatory environment to increase access to healthcare facilities. The global Telemedicine Market is estimated to be valued at US$ 94.44 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030.
The North America region currently dominates the market due to advanced healthcare infrastructure, favorable reimbursement policies, and increasing penetration of telehealth services for chronic disease management and maternity care in the region. The Asia Pacific region is expected to grow at the fastest pace during the forecast period led by increasing internet penetration, growing smartphone usage and improving telecom infrastructure in emerging countries such as India and China. Governments are also promoting telehealth programs to enhance healthcare access in rural areas.
Key players operating in the telemedicine market are American Well (U.S.),MDLIVE Inc. (U.S.),Teladoc Health Inc. (U.S.),Doctor on Demand Inc. (U.S.),MeMD (U.S.),Encounter Telehealth (U.S.),Global Med (U.S.),SnapMD (U.S.). Teladoc Health Inc. and American Well are the leading players in the telemedicine market. Teladoc focuses on providing specialized telehealth services to several specialties and chronic conditions. While American Well focuses more on telehealth products and service platform for health systems, providers, insurers and employers.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
