U.S. Telehealth Market - Industry Outlook and Forecast 2018-2023

U.S. TELEHEALTH MARKET SIZE IS EXPECTED TO GROW BY $9.5 BILLION, AT A CAGR OF 26% DURING 2018-2023

This market research report on the U.S. Telehealth market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis.

The market study also includes insights on segmentation by modality (mHealth, remote patient monitoring, and virtual health) by component (services, hardware, and software) and by end-users (healthcare providers, patients and individuals, employers, and government organizations, and payers).

Key highlights of the U.S. telehealth market:

• In the current healthcare industry, telemedicine services are the most disruptive innovation, and it is rapidly influencing the healthcare delivery model.
• Telehealth is a proven way of better communication and providing care to patients efficiently and cost-effectively. It helps to achieve better healthcare outcomes at low costs.
• The growth of telemedicine technology, such as mHealth is gaining popularity with the usage of smartphones and internet connectivity. These mobile applications allow providers to effectively rationalize communication between providers, patients, and their caregivers.
• The demand for robotic platforms is increasing, and vendors are investing a significant amount on R&D activities to launch more sophisticated robotic platforms for healthcare services.

U.S. Telehealth Market – Overview

The introduction of remote healthcare services to offer accessible and affordable medical assistance to all patients across the world is one of the primary factors attributing to the growth of the market. Telehealth and telemedicine are interchangeably used in the healthcare industry, and these services help in offering communication, diagnosis, treatment, and patient monitoring in the U.S. market. The use of these medical services will allow healthcare specialists and care providers to use innovative technologies, such as mobile phone applications, website monitoring applications, wearable devices, and video conferencing to connect to patients in the U.S. telehealth market remotely. The focus on integrating telecommunication services will help to reduce the cost of healthcare services and improve patient care systems across the U.S. market.

The launch of telemedicine services helps minimize unnecessary hospital visits, long patient wait time, and physical discomfort caused to patients, thereby augmenting the demand in the US market. The growing demand for mHealth and virtual visits that offer continuous monitoring of health conditions with predictive analysis that aids in the detection of adverse health effects will transform the healthcare industry in the U.S. market.

The U.S. telehealth market size is expected to reach revenues of over $ 13 billion by 2023, growing at a CAGR of approximately 27% during 2017-2023.

Market at a Glance

Market Dynamics

The increasing availability of mobile health apps compatible with wearable medical devices will contribute to the growth of the U.S. telehealth market. The extensive use of smartphones and internet connectivity is boosting awareness about wearable devices and medical sensors in the US market. These devices are designed to enhance remote patient monitoring and telemedicine services in the market.

Service providers are offering a varied range of mobile applications that support continuous monitoring of a patient’s condition along with the ability to personalize care for each patient to attract new consumers in the US telehealth market. With the use of wearable wireless sensors, people can monitor their vitals like blood oxygen, glucose levels, BP, and heart rhythm seamlessly. Additionally, these devices and apps can store large volumes of health-related data that is transmitted to physicians for evaluation and monitoring of patients regularly.

Market Segmentation

This market research report includes a detailed segmentation of the market by modality, component, and geography.

Market Segmentation

US Telehealth Market – By Modality

Penetration of smart gadgets to boost demand for telemedicine technologies such as mHealth services

The U.S. telemedicine market by modality is segmented into mHealth, remote patient monitoring, and virtual health. mHealth occupied more than half of the market share, growing at a CAGR of around 33% during the forecast period. The growing preference of home care and self-care medical devices is one of the primary factors attributing to the growth of the mHealth segment in the U.S. market.

The increasing penetration of smart gadgets and next-generation connected devices such as smart glucose monitors, ECG trackers, and heart rate trackers will boost the demand for telemedicine in the US. The increasing focus on disease management, fitness, continuous health monitoring, and wellness is promoting the use of sophisticated mHealth applications in the U.S.

Leading medical companies are combining personal devices with advanced technology for personalized care management to offer superior patient care and gain a larger market share in the U.S.  telehealth market.

Market by Component

Technological innovations to transform the US telehealth market during the forecast period

The services segment dominated the largest market share in 2017, growing at a CAGR of over 31% during the forecast period. The service providers conduct and process virtual visits, online consultations of patients, and monitor patients in real-time. The recent shift towards patient-centric value-based care systems is one of the major factors attributing to the adoption of telemedicine services in the US market.

The use of these services will help patients to cut down costs and reduce the burden of hospital visits in the US market. The service providers in the U.S. are investing in the advancement of healthcare technology and the availability of effective treatment options to gain a larger telehealth market share and offer a better patient.

Hospitals and clinics are offering these services for remote patient monitoring as an early symptom management tool and managing high-risk chronically ill patients. The changes in regulating reimbursement policies and clarity on data protection laws will boost the adoption of these services in the U.S.

Market by End-Users

Adoption of tele-ICUs by various healthcare providers will revolutionize the US telehealth market during the forecast period

The healthcare providers occupied the majority of the market share in 2017, growing at a CAGR of approximately 25% during the forecast period. The use of a healthcare delivery system that enables healthcare providers to connect with consulting practitioners and patients across vast distances remotely is propelling growth.

The ability to perform high-tech monitoring without requiring patients to leave their homes, virtual consultations with distant specialists, cost-effective, and more convenient care options for patients are some of the benefits offered by these services, thereby encouraging healthcare providers to adopt these services in the U.S. telehealth market.

Various hospitals are offering telemedicine services for diagnosis, intervention, and treatment of a broad range of diseases in the US market. The increasing adoption of tele-ICUs, telestroke, cybersurgery, telepharmacy, virtual visits, and other such platforms will revolutionize the US telehealth market over the next few years.

Key Vendor Analysis

The US telehealth market is highly dynamic and fragmented with the presence of several medical device manufacturers, software or app providers, and healthcare service providers. The rapid technological advancement is encouraging vendors to introduce platforms with innovative and advanced features to meet the growing customer demands in the U.S.

The leading healthcare companies are investing in R&D to integrate hardware and software to improvise remote healthcare services to end-users and gain a larger telehealth market share.

The major vendors in the US market are:

• AMD Global Telemedicine
• American Well
• BioTelemetry
• GlobalMedia Group
• Honeywell Life Care Solutions
• Medtronic
• Philips Healthcare
• Teladoc

The U.S. Telemedicine market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue from 2018 to 2023 for the following segments:

Market Segmentation by Modality

• mHealth
• Remote Patient Monitoring
• Virtual Health

Market Segmentation by Component

• Services
• Hardware
• Software

Market Segmentation by End-users

• Healthcare Providers
• Patient & Individuals
• Employer & Government Organizations
• Payers

KEY QUESTIONS ANSWERED

• What is the U.S. telehealth market size in 2018?
• What is the telehealth industry outlook until 2024?
• What are the different segments of telemedicine and their projected growth rate?
• How is telemedicine competitive landscape, and telehealth company market share?
• What are the key drives, trends, and opportunities in the U.S. telemedicine market?