The US Telehealth market size is valued at USD 9.5 billion in 2020, a tremendous growth of 80% over 2019, and expected to exhibit a CAGR of 29% during 2020-2025. Since the outbreak of the COVID-19 pandemic in the US, the telehealth platform has emerged as a major tool to fight and contain the virus. Telemedicine services have helped to ease the burden on traditional healthcare systems by encouraging patients with other disorders and mild or moderate ailments to treat via web-based or cloud-based applications. Due to the rise in the COVID-19 pandemic, the U.S. telemedicine market is expected to witness over 80% YOY growth in 2020. To deal with the pandemic, health service providers in the US are utilizing telemedicine services that connect doctors and patients remotely. As federal governments have recently implemented the social distancing and nationwide lockdown as a preventive measure to contain the pandemic from spreading, these services have become an effective tool for healthcare management. Hence, the rise in contagious and viral infection is expected to support the telehealth market growth in the US.
With the rapid advancement in technology, telemedicine is considered as the future of medicine. Rural areas, war-torn regions, and areas affected by natural calamities require and can benefit from remote healthcare services. The development of the telecommunication system has increased the scope of remote healthcare services immensely. With the introduction of e-health services, the growth of traditional medical diagnoses is growing at a moderate rate.
- About 70% of hospitals and 52% of physician clinics/groups are offering telehealth services to patients in the U.S., thereby indicating the pervasiveness of the facility.
- The real-time virtual health segment is likely to observe an incremental growth of $1.4 billion by 2025, as these services improve patient care, outcomes, convenience, and patient engagement while reducing costs for healthcare settings.
- The video communication segment is expected to grow at a CAGR of over 39% during the forecast period due to the expansion of health insurance coverage and the excessive adoption of real-time video consultation over the internet, such as tele-ICUs.
- The telemedicine services market size will see an incremental growth of over $1.4 billion by 2025 on account of the shift to patient-centric value-based care from the conventional hospital-centric and fee-per-service model.
U.S. TELEHEALTH MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Delivery Mode
INSIGHTS BY MODALITY
The growing incidence of chronic diseases such as heart ailments and stroke has impacted the growth of the real-time virtual health segment. The segment is expected to grow with increased adoption of telemedicine, coupled with advances in technology and high penetration of smart gadgets in the US. Some health systems are integrating real-time virtual healthcare with real-time audio/video telemedicine consultation, chat consultation into primary care practices as a complement to existing modes of care. Several healthcare providers in the U.S. have altered the mode of their services to improve information continuity and provide easy access to appropriate care for patients. Initiatives such as electronic messaging or chat with the care team, and a comprehensive patient portal to conduct audio/video calls, helps them to cater to the patients. While the video segment is growing at a faster rate, the audio communication segment is expected to grow at a slow rate as the preference for video visits is growing.
The remote patient monitoring (RPM) segment is growing at a healthy rate and is expected to continue 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 require regular monitoring and high-quality healthcare. The rise in cardiovascular and diabetes cases in the U.S. is driving the demand for several monitoring devices such as heart rate monitors, ECG monitors, fetal heart rate monitors, blood pressure monitors, and blood glucose monitors.
INSIGHTS BY COMPONENT
The telehealth services segment is growing at the fastest CAGR as the demand for these services is increasing across the U.S. These services require to conduct and process virtual visits, online consultations of patients, interact with other healthcare professionals, and monitor patients on a real-time basis. This segment provides end-to-end telehealth solutions offered by telehealth companies to healthcare providers such as hospitals, clinics, and home care settings.
The increasing prevalence of chronic diseases, the growing demand for wearable and connected medical devices and remote patient monitoring systems, the rising elderly population, the increasing number of product approvals and technological advances, and the increasing awareness of technologically advanced connected medical devices are driving the growth of the hardware segment. The software segment mainly includes medical applications for smartphones and tablets and software/mobile solutions for data management in telehealth centers. The segment plays a critical role in delivering valuable data to physicians and aid in accurate clinical decision making for diagnosis, monitoring, and treatment. The market is growing at a relatively slower rate than the other two segments.
INSIGHTS BY DELIVERY MODE
The web/app-based telemedicine market accounts for the largest share in the U.S. telehealth market. As the web-based delivery model requires minimal software and hardware components for delivering advanced telehealth solutions, the demand is relatively high since it reduces upfront installation costs. Hence, the market is witnessing the increased adoption of web-based services by healthcare providers. This segment is expected to grow at a healthy rate, especially from emerging economies that are embracing telehealth technology in most healthcare facilities to provide access to services in remote and rural areas.
With the burden of the aging population and chronic diseases growing across the globe, having a telemedicine strategy in place has become more vital than before for healthcare providers and payers. The implementation of next-generation technology such as cloud-based telehealth is taking precedence as healthcare providers seek to manage the influx of patients, health information, and expectations for the more consumer-friendly experience. The segment is poised for growth with the increased deployment of telemedicine, remote monitoring tools, and mHealth applications.
The on-premise telemedicine segment is growing at a slower pace than web/app-based and cloud-based segments because a wide majority of end-users prefer either web-based or cloud-based services over on-premise. However, healthcare innovations and virtualization of care delivery continue to drive the expansion and strengthen service line offerings of healthcare systems. With consumers and healthcare providers are getting accustomed to ongoing technological advancements in the healthcare industry, this is expected to translate into on-demand access for healthcare services.
INSIGHTS BY END-USER
Several hospitals offer telehealth services for diagnosis, intervention, and treatment of a broad range of diseases. Large hospitals help in diagnosing and monitoring medical conditions by offering specialized services through highly qualified and large workforce. As the demand for telemedicine services and remote patient monitoring devices is increasing, hospitals are focusing on enhancing the infrastructure to meet the growing demand for such services. The availability of remote monitoring, mHealth, and virtual health tools is key for providing value-based healthcare. About 40% of U.S. hospitals have emphasized the importance of health IT and mHealth devices and applications to improve the quality of patient care. Hospitals are highlighting the importance of telehealth and showcasing their achievement of providing high-quality care after they implemented virtual platforms. Further, increased collaborations between hospitals and vendors are expected to serve as beneficial in increasing the adoption of tele-ICUs in the remote healthcare market.
Patients & individuals are the second-largest contributors to the U.S. telehealth market. The general public perception of treatment methods has changed drastically over the last few years. Patients are prioritizing self-care and homecare treatment options as they are convenient and save a significant amount of time and costs. Service providers have options to communicate with patients, recommend a treatment plan, and send the prescription to the patient’s registered pharmacy with telehealth platforms. Vendors are partnering with healthcare IT companies to bring advanced IT solutions for DTC telehealth end-users. Such strategies and collaborations will have a positive impact on the market growth of the United States telemedicine market. Vendors are also offering advanced mobile applications and software development kits (SDKs), thereby encouraging patients to opt for DTC services.
INSIGHTS BY VENDORS
The US telehealth market share is highly dynamic and fragmented, with the presence of several medical device manufacturers, software/application providers, and telehealth service providers. Medical device manufacturers are collaborating with software/application developers and service providers to enhance the quality of care to patients. The rapidly changing technological environment has a significant impact on the overall market as patients and clinicians are looking for remote healthcare platforms with innovative and advanced features.
The U.S. Telemedicine market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue from 2019 to 2025 for the following segments:
Segmentation by Modality
- Real-time Virtual Health
- Remote Patient Monitoring
- Store and Forward
By Delivery Mode
- Healthcare Providers
- Patients & Individuals
- Employees & Government Organizations