The global telemedicine market is anticipated to grow significantly at a CAGR of 20.2% during the forecast period. Telemedicine is often regarded as the most adaptable technology for delivering health education, information, and care over long distances. Advanced patient-centered treatment and increased access to remote locations are now possible due to technological advancements. It also contributes to the reduction of emergency room visits and hospitalization rates, boosting the market growth. The factors that are primarily driving the growth of the market include increasing patient demands for telemedicine, technological innovation, and the growing burden of chronic diseases.

The rising healthcare costs are the primary factor driving the market growth. Healthcare expenses are rising across the globe as people use more healthcare services, resulting in greater consumer demand for innovative and novel procedures, as well as lifestyle factors. Additionally, it can be attributed to cost-shifting from government programs to private payers, with low reimbursement rates that have increased the cost-shifting burden on hospitals and doctors, who, in turn, charge much higher rates for the same facilities to private payers. Due to a lack of access to care and increased provider adoption of telemedicine, increased consumer demand and patient acceptability, and improved quality of treatment, the market is expected to increase significantly opportunity during the forecast period. However, lack of a skilled workforce and high costs of implementation, resistance in technology acceptance by practitioners and patients, data privacy and safety issues, and complexity of infrastructure are some of the major factors that are restraining the growth of the market.

Impact of COVID-19 Pandemic on Global Telemedicine Market

Due to the COVID-19 pandemic, almost every industry has been severely impacted. The manufacturing industries have been halted their operations impacting the overall supply chain. The automotive and transportation industries are among the most vulnerable sectors to the ongoing COVID-19 pandemic, and they are currently experiencing unprecedented uncertainty. On the contrary, it has bolstered the growth of the global telemedicine market due to its extensive use during the COVID-19 pandemic as it contributes to decreasing contact with healthcare facilities, healthcare staff, and patients, to minimalize the risk of COVID-19 across the globe. 

Many companies are assisting society during this pandemic, one of them is SOC Telemed, a marketplace that assists in finding suitable telemedicine service providers. It has also extended its services in helping the community to fight against Covid-19 by partnering with various other companies in providing telemedicine services and technology. For instance, in March 2020, SOC Telemed has experienced a surge in the demand for on-demand acute care via telemedicine. Companies in the telemedicine market have experienced exponential growth during the COVID-19 pandemic as compared to the previous year. The market witnessed positive growth and is expected to grow in near future owing to technological advancements by the major players for telemedicine. 

Segmental Outlook 

The global telemedicine market can be segmented based on components, application, and mode of delivery. Based on the components, the market is classified into hardware, software & services. The hardware segment icludes monitors and telemedicine kits. The software segment includes standalone software, and integrated software. Apart from it, the services segment comprises tele-consulting, tele-education, and tele-monitoring. Based on the application, the market is segmented into teleradiology, telepsychiatry, telepathology, teledermatology, and telecardiology. Based on the mode of delivery, the market is classified into the on-premise and cloud-based.

Global Telemedicine Market Share by Components, 2020 (%)

Hardware Segment holds a significant share in the Global Telemedicine Market 

Among the components for the global telemedicine market, the hardware segment held the highest share in 2020 and is also anticipated to grow during the forecast period. The hardware segment is inclusive of medical peripheral devices, webcams, speakers, microphones, display screens, videoconferencing devices, laptops, and monitors. This is growing due to the rising demand for monitors, as to communicate with any professional, the need for having hardware is very important. Apart from it, the presence of major key players in the manufacturing of the telemedicine device and kits, and the availability of telemedicine at low cost are propelling the growth of the segment during the forecast period. 

Regional Outlooks

The global telemedicine market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, and Others), and the Rest of the World (the Middle East and Africa, and Latin America).  North America has been predicted to dominate the global telemedicine market, followed by Europe. The growth is mainly attributed to the rapidly aging population that leads to the popularity of homecare patient settings and technological advancements in healthcare infrastructures. Apart from it, the rising healthcare investments and government initiatives in the region, are the other factors driving the growth of the market.

Global Telemedicine Market Growth, by Region 2021-2027

Asia-Pacific is projected to have considerable growth in the Global Telemedicine Market

Asia-Pacific is anticipated to exhibit the significant growth in the global telemedicine market. In the region,  countries such as China and India are the most promising economies in terms of growth. This is due to the increasing population, increasing government spending, rising patient awareness, and rising disposable incomes. For instance, it is estimated by the World Economic Forum that by 2030, the region will roughly contribute 60% to global growth. Apart from it, according to the United Nations Population Fund, the region is home to 60% of the global population, which is around 4.3 billion people and includes the most populous countries China and India. 

Market Players Outlook

The key players of the global telemedicine market include AMD Global Telemedicine Inc., American Well Corp., CareClix Inc., Doctor on Demand Inc., MDlive Inc., Koninklijke Philips N.V, SnapMD, Inc.,  TeleVital Solutions, USARAD Holdings Inc., and Vitaphone GmbH, among others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in April 2021, MDLIVE, a privately held, premier 24/7 virtual care delivery platform, has been acquired by Evernorth, Cigna Corp's health services portfolio. Evernorth's capacity to lower the cost of care while boosting access to health care providers has been expanded as a result of the acquisition, which was first announced on February 26. Virtual visits can be accessed from the comfort of one's own home or from anywhere.

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global telemedicine market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.