Market Size of Telemedicine Industry
| Study Period | 2021 - 2029 |
| Market Size (2024) | USD 172.44 Billion |
| Market Size (2029) | USD 330.26 Billion |
| CAGR (2024 - 2029) | 13.88 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Telemedicine Market Analysis
The Telemedicine Market size is estimated at USD 172.44 billion in 2024, and is expected to reach USD 330.26 billion by 2029, growing at a CAGR of 13.88% during the forecast period (2024-2029).
Telehealth has emerged as an essential component of healthcare during the COVID-19 pandemic. Though telemedicine services were integrated into most healthcare systems even before the onset of the pandemic, services began to be extensively used only during the COVID-19 crisis. An article published in October 2021, by Foundation for Research and Technology Greece, explained that during the pandemic, COVID-19 served as a catalyst and accelerator for digital healthcare innovation. Regulators worked to eliminate data silos in artificial intelligence and digital health to better promote innovation. Furthermore, the United States has approved legislation to allow for more seamless data flow, while the European Union integrated the data across member states to permit the interchange of electronic health records (EHRs) across borders during the pandemic. Additionally, according to a study published in Health Affairs, in September 2022, during the COVID-19 pandemic, a small percentage of primary care doctors were responsible for the more than 4-fold rise in the usage of remote patient monitoring (RPM). Telemedicine solutions have demonstrated the ability to enhance health outcomes during a high-stress period like the COVID-19 pandemic and being integrated with conventional healthcare services which are expected to further increase the demand for telemedicine services.
The major factors for the growth of the telemedicine market include rising healthcare expenditure, technological innovations and rising demand for remote patient monitoring, and the growing burden of chronic diseases. For instance, according to the UK Health Accounts provisional estimates, the 2021 report, published in May 2022, the total current healthcare expenditure in 2021 was estimated at GBP 277 billion (USD 317 billion), which is an increase in nominal terms of 7.4% on spending in 2020. Furthermore, as per the 2022 update from the Canadian Institute for Health Information, hospitals (24.34%), physicians (13.60%), and drugs (13.58%) categories continued to account for the largest shares, which is over half of the total health spending in 2022. As the cost of in-person consultation is much more tedious and costly as compared to an online consultation and hence telemedicine gained traction. This is likely to boost the growth of the market studied over the forecast period.
Furthermore, according to CDC, in 2021, around 18.2 million adults aged 20 and older had coronary artery disease (CAD) in the United States. Heart disease is the leading cause of death in the United States. Also, as per the 2022 update from the International Diabetic Federation (IDF), approximately 537 million adults (20-79 years) are living with diabetes. The total number of people living with diabetes is projected to rise to 643 million by 2030 and 783 million by 2045. The high incidence of chronic diseases increases the demand for huge telemedicine, which, in turn, drives the market.
Thus, the abovementioned factors are impacting the market growth of the telemedicine market. However, legal and reimbursement issues and high initial capital requirements, and lack of physician support are expected to hinder market growth over the forecast period.
