The global telehealth market is forecasted to reach $19.5 billion by 2025, according to a report from market intelligence company Transparency Market Research.
The global telehealth market was valued at $6 billion in 2016 and is projected to expand at a compound annual growth rate (CAGR) of 13 percent from 2017 to 2025, according to the report. An increase in the geriatric population, a rise in the prevalence of chronic diseases such as diabetes, cardiovascular diseases, and others, and a surge in demand for self-care devices and solutions is predicted to drive the market through 2025, the report states. What’s more, technological advancement in medical imaging and mobile solutions for healthcare will also drive the market.
However, the report also notes that cyber threats and the rise in data security breaches will likely limit the market’s growth.
In the U.S., the telehealth market is predicted to grow 14.8 percent during this time period to reach $2.8 billion. North America and Europe are projected to dominate the global telehealth market during this time period, driven by government initiatives to increase adoption of telehealth solutions, technological advancements, and efforts of key players to expand their market presence in North America, the report notes.
The market in Asia Pacific is anticipated to grow by 15 percent through 2025. And, the report states that an aging population, a large patient pool suffering from chronic diseases, a surge in demand to cut down healthcare costs, and improving health care infrastructure in countries such as India, China, and Australia are estimated to propel the telehealth market through 2025.
The report also examines the global telehealth market by application and projects that radiology will account for a high share of the market, projected to expand at a CAGR of 13 percent from 2017 to 2025. “Telehealth technology and services enable knowledge and resource sharing between rural and urban areas in minimum time duration. Moreover, consistent evolution in information and communication technologies, effective image transfer, consultation and reporting, and scarcity of radiologists across the globe are the factors expected to drive the segment through 2015,” the report states.
Cardiology is another key application of telehealth and is anticipated to account for 19 percent market share by 2025. Increase in prevalence of cardiovascular diseases such as heart diseases and stroke are the factors likely to drive the segment during this time, the report states.
In terms of end-users, the report segments the global telehealth market into payers, providers, patients, and others. The providers segment accounted for major share, about half, in terms of revenue in 2016, due to an increase in adoption of telehealth products in healthcare settings and a rise in partnerships between companies and hospitals for telehealth systems. The payers segment is anticipated to grow at a higher CAGR through 2025, due to an increase in adoption of telehealth and connected medical devices by insurance companies for insurance claim management.
On a global level, the telehealth market is fragmented in terms of number of players providing hardware, software, and services, the report states. Key players contributing to the growth of the global telehealth market include Teladoc, Inc., American Well, BioTelemetry, Inc., Medtronic, Aerotel Medical Systems Ltd., InTouch Technologies, Inc., Koninklijke Philips N.V., Honeywell International, Inc., GE Healthcare, and AMD Global Telemedicine, Inc. According to the report, these key players have focused on inorganic growth strategies through various partnerships, collaboration, and expansions as a key strategy.
For instance, in March 2017, GE Healthcare acquired Monica Healthcare, a monitoring technology company dedicated toward improving the birthing experience and enhancing obstetric care through wearable wireless fetal monitoring devices, the report notes. Moreover, in January 2018, Royal Philips and American Well entered into strategic partnership. Through this partnership, the two companies will work together to embed American Well's mobile telehealth services into an array of Philips solutions for both healthy consumers and patients with a medical need, spanning personal health and wellness, population health management, and clinical programs.