The U.S. Telemedicine Market size was valued at USD 6.61 billion in 2019 and is anticipated to grow at a CAGR of 14.6%. Forced social distancing due to the sudden COVID-19 pandemic coupled with risks associated to infections in healthcare facilities, and rise in funding for Telemedicine sector are some of the factors benefitting the market growth. Rising prevalence of life-threatening diseases in the country is also expected to favor market growth.
Telemedicine medicines essentially combine usage of telecommunication techniques to deliver health education and support to concerned patients. It is essentially a collection of methods and comprises of various ways of delivery. In the remote patient monitoring method, electronic devices are used to transmit health information of patients to the concerned healthcare professionals. In video conferencing, is a method which facilitates visual as well as audio transfer of information in real time.
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Telemedicine systems are gaining prominence due to the recent corona virus outbreak. Due to the restrictions imposed due to the widespread of COVID-19 virus in the country, there is a rising inclinations among patients to prefer Telemedicine medicine. These systems offset the problems caused due to the sudden pandemic such as shortage of physicians, threat of corona virus infection especially to elderly on going out of their homes, among others. It is anticipated that the social restrictions and social distancing norms would be implemented for a long period of time in the country. All these factors are expected to benefit the U.S. Telemedicine market over the next few years.
Government support and efforts to boost the market is a key industry scenario. The US Department of Agriculture (USDA) in order to connect rural parts of the U.S., announced the establishment of seven Distance Learning and Telemedicine (DLT) grant program. These programs have been designed keeping in mind goals such as enhanced patient monitoring, reduction in unnecessary hospitalizations as well as ER visits, improved telemedicine network as well as care management among others. These efforts taken in the recent past have benefitted the market penetration in the country.
The market is primarily segmented on the basis of Component, Application, Mode of Delivery, and by End-User.
By Mode of Delivery
By End User
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By Component the market is further bifurcated into hardware and software & services. Software & services emerged as the largest application segment in the market. The segment is also expected to witness the highest growth rate over the forecast period. Convenience coupled with the high utility value of software such as remote monitoring software, ability to be in sync with other aspects of telecommunication, and ease of usage are some of the factors benefitting the market segment growth.
The hardware segment of the Telemedicine market is further bifurcated into telemedicine carts, kiosks, digital cameras, telemedicine kits, mobile medical devices, and other devices. Convenience of these devices coupled with ease of usage, and inclination towards preventive healthcare through self-monitoring are some of the factors benefitting the segment growth. Technological advancements, high disposable income and presence of a wide product portfolio are some of the factors benefitting the market growth.
Teleradiology is a promising Telemedicine market segment that is bound to witness promising growth over the forecast period. The impact of AI is particularly visible in this segment and its effective implementation particularly in the U.S. is a huge market driver for the segment. Advantages such as the need to be at a particular location for imaging purposes is particularly driving the demand in these times of corona virus crisis. In addition, clients can pay per test basis rather than per day basis which enables significant cost savings.
Telestroke has facilitated doctors to examine and arrive at a prompt diagnosis of a stroke patient situated miles away. This facilitates the beginning of important and vital treatment to a patient almost immediately after he is diagnosed thus saving precious time. The doctor and the patient communicate through internet telecommunications, digital cameras, tablets, smartphones, robotic telepresence among others. The segment is expected to witness robust growth over the forecast period.
Among the mode of delivery segments, virtual mode of delivery segment is expected to witness the highest growth rate over the forecast period. The segment also witnessed highest penetration in 2019. Some of the advantages associated with virtual systems which are driving the segment growth are bandwidth, accessibility, disaster recovery, cost savings among others. All these advantages offer cumulative operational, economic advantages thus leading to cost savings.
Scalability and flexibility are other important factors that are benefitting the virtual segment. Control of access as well as logging, better data encryption, has resulted in the widespread adaption particularly in the U.S. market. Technology providers and system integrators are partnering with healthcare providers and are designing customized solutions by carefully analyzing factors such as consumer behavior, new technologies, etc.
The combination of Telemedicine and virtual and kiosk mode of delivery offers healthcare service providers to offer their services in a more sustainable and effective manner, particularly in these times of corona pandemic. Some of the restraints faced by the segment include crisis of assurance, security, privacy, adaptability, storage issues, and interoperability issues among others. However, collaboration between various elements across the value chains have resulted in the offsetting of these challenges up to a certain degree. Ongoing R&D activities are also helping in reducing the effects of these restraints.
The market in the U.S. is bound to benefit from various strategic partnerships between some of the major Telemedicine market players. In January 2018, American Well and Royal Philips, announced that they will collaborate their resources and entered into a strategic partnership for jointly delivering virtual care solutions in the U.S. and across the globe.
Allianz also invested a sum of USD 59 million in American Well and formed a strategic partnership aimed at addressing the health challenges across the globe. Such trends are benefitting the market growth in the country. Some of the leading players in the U.S. Telemedicine market include Koninklijke Philips, Medtronic, GE Healthcare, Cerner Corporation, Siemens Healthineers Ag, Cisco Systems, Asahi Kasei Corporation, Iron Bow Technologies, American Well, Teladoc Health, Medvivo Group, AMC Health, Chiron Health, Zipnosis, VSEE, IMEDIPLUS, MEDWEB, U.S.MED. among others