TELEHEALTH INDUSTRY INSIGHTS
The U.S. telehealth market size was valued at USD 10 billion in 2020 and is expected to reach USD 43 billion by 2026, growing at a CAGR of 28% during the forecast period. The telehealth services market is likely to observe an incremental growth of approx. USD 24 billion by 2026.
The introduction of telehealth has led to the availability of cost-effective treatment, adoption of home healthcare services, and low expenditure on infrastructure development. Telehealth is revolutionizing the healthcare industry as it minimizes hospital visits, reduces patient wait time, and decreases the physical discomfort caused to patients. Further, in the US, the high expenditure on healthcare IT infrastructure by major stakeholders contributes to the market’s growth. The telehealth market is observing increased investment for the integration of telecommunications with healthcare systems. COVID-19 further enhanced the adoption of telemedicine among physicians in the US. Every state Medicaid has some form of coverage to virtual care services and private payers. Many hospitals started to provide services through platforms, which increase their adoption among healthcare providers. Hospitals started to adopt various new platforms to increase better access to end-users. Hence, the usage of information and communication technologies (ICT) has the capability to address critical challenges faced by the US in providing accessible, cost-effective, and high-quality healthcare services to patients.
- Real-time virtual services are likely to observe an incremental growth of over USD 22 billion by 2026 due to the high uptake of these services in emergency departments, urgent care, tele-stroke, telecardiology applications.
- The remote patient monitoring (RPM) segment expects to grow at a CAGR of approx. 24% during 2020–2026 to collect health data such as blood pressure, blood sugar, heart rate, blood oxygen levels among patients.
- The telehealth services market is likely to observe an incremental growth of approx. USD 24 billion by 2026.
- Web/app-based services are likely to grow at a CAGR of 30% during the forecast period due to increased demand from emerging economies for web-based health services.
- The US cloud-based telehealth market expects to reach approx. USD 5 billion by 2026 because they offer advanced efficacy and significant cost savings for healthcare organizations.
U.S. TELEHEALTH MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Delivery Mode
INSIGHTS BY MODALITY
The real-time virtual health segment accounted for a significant share of 49% in 2020. The real-time virtual health segment is anticipated to retain its dominance during the forecast period. The usage of real-time virtual care in remote ICUs has increased in the US during the COVID-19 Pandemic. Telehealth is one of the valuable tools for monitoring health conditions and treatment. The adoption of telemedicine is expected to rise with advances in technology and the high penetration of smart gadgets across the US. The remote patient monitoring segment expects to reach over USD 13 billion by 2026. The remote patient monitoring market is growing at a healthy rate and is expected to grow significantly during the forecast period. This growth can be attributed to the growing prevalence of chronic diseases such as cardiovascular, diabetes, and respiratory diseases in the elderly population that requires regular monitoring and quality care.
INSIGHTS BY COMPONENT
The US telehealth services market is growing at a fast CAGR of over 32% due to the shift in focus to patient-centric, value-based care from conventional hospital-centric and fee-per-service models. The growing geriatric population is driving the connected medical devices market. Further, the growing need for affordable treatments is estimated to boost the demand for telehealth services. However, limited coverage of insurance, especially by Medicare, and issues related to the ambiguous regulatory framework adopted by different states and the US Federal government are anticipated to curtail the market growth during the forecast period.
The US hardware services market is likely to reach over USD 11 billion by 2026. The growing demand for wearable and connected medical devices and remote patient monitoring systems and the increasing awareness of advanced connected medical devices are driving the market's growth. In 2020, the software segment accounted for over 9% share of the US telehealth market. Although the software market consists of a smaller share in the overall market, it is an essential segment of the US telehealth market. The market is growing at a relatively slower rate compared to service and hardware segments.
INSIGHTS BY DELIVERY MODE
In 2020, the web/app-based telehealth segment constituted over 77% of the U.S. telehealth market share. As the web-based delivery model requires minimal software and hardware components for delivering telehealth solutions, the demand is relatively high since they reduce upfront installation costs. Hence, the market is witnessing an increased adoption of web-based services. The segment is likely to grow at a healthy rate due to the growing demand from emerging economies embracing telehealth technology in most healthcare facilities in remote and rural areas.
The cloud-based segment expects to reach approx. USD 5 billion by 2026, growing at a CAGR of over 24% during the forecast period. With telehealth services witnessing rapid expansion, many service providers are enhancing their virtual care offerings to end-users. Cloud-based services can achieve seamless scalability in line with the growing demand for telehealth services worldwide. Cloud-based platforms for telehealth eliminate the burden of maintaining a locally installed native system while delivering all the benefits and security of cloud computing. As a result, healthcare providers are increasingly adopting cloud-based systems and solutions.
INSIGHTS BY APPLICATION
In 2020, chronic care management accounted for approx. 36% of the U.S. telehealth market share. Chronic diseases are one of the major concerns for healthcare providers. Managing diseases such as diabetes, hypertension, and cancer has become a significant challenge for physicians. Around 40% of the US population suffers from chronic diseases. With the outbreak of the COVID-19 pandemic, tele stroke usage to monitor COVID-19 infected patients has increased, which has driven the demand for tele stroke.
The radiology segment expects to grow at a CAGR of 26% during the forecast period. Most healthcare institutions, mobile imaging companies, urgent care facilities, community hospitals, rural hospitals in the US engage full-service teleradiology providers to reduce hospital expenditure during the COVID-19 pandemic. Many radiology practices and imaging institutions use teleradiology services to implement remote reading into their regular workflow and decrease their radiologist’s exposure to COVID-19 infections. Ultrasound technology plays a crucial role in the management of patients with COVID-19. It offers several advantages over CT and X-ray and is widely accessible, easy to disinfect, and less prone to contamination.
INSIGHTS BY END-USER
The healthcare providers segment expects to witness an incremental growth of over USD 13 billion by 2026. The segment accounted for a significant share of approx. 42% in 2020. The inclusion of telehealth services in disease management and post-acute-care management programs is increasing efficiency and effectiveness. Several prestigious hospitals are implementing these services to improve profitability, attract and retain many patients, and reduce re-admissions. As telehealth services and remote patient monitoring devices are increasing, hospitals are focusing on enhancing telehealth infrastructure to meet the growing demand, thereby increasing market growth. Further, the increasing collaboration between hospitals and market vendors expects to boost the adoption of tele-ICUs.
The U.S. telehealth market by patient is likely to grow at a massive CAGR of over 32% during the period 2020–2026. Patients are prioritizing self-care and homecare treatment options as they are convenient and save significant time and money. The increasing shortage of healthcare opinion and increased consultation wait times are driving the demand for direct-to-consumer (DTC) telehealth services. These services have been extremely helpful and beneficial during hurricanes in the US. DTC played a significant role in bridging medical services gaps when hurricanes Irma and Harvey struck the country.
INSIGHTS BY VENDORS
AMD Global Telehealth, American Well, GlobalMedia Group, Koninklijke Philips, Resideo Life Care Solutions, and Medtronic are the major players offering healthcare software/applications for remote healthcare. The U.S. telehealth market is characterized by rapid technological change, changing end user's requirements, shorter product lifecycles, and increasing industry standards. Vendors focus on enhancing their solution with next-generation technologies and developing or acquiring new services to access a new set of consumers in the market. In the pre COVID-19 pandemic, the U.S. telehealth market was in the early development stage, and it was competitive. However, it has become highly competitive during the COVID-19 pandemic. Vendors are coming up with integrated technology platforms, high-quality provider networks, sophisticated consumer engagement strategies, and entrenched distribution channels. They are trying to create a strong brand image, establishing a solid relationship with clients to become a leading telehealth platform in the US.
The U.S. telehealth market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- Real-time Virtual Health
- Remote Patient Monitoring
- Store and Forward
- Chronic Care
- Mental Health
- Urgent Care
- Healthcare Providers
- Patients & Individuals
- Employers & Government Organizations