Telemedicine Industry Analysis

telemedicine-industry-analysis

Telemedicine is the practice of medicine for the delivery of clinical treatment using electronic communication and information technology. Telemedicine is a powerful tool that makes healthcare affordable, cost-effective, and greatly increases patient participation.

By using Internet technology, video conferencing, or other telecommunications systems, physicians can consult, diagnose, and treat patients in distant places. It is possible to divide telemedicine into 3 major categories: store and forward (SAF), remote patient monitoring, and interactive services. A Consumer Technology Association (CTA) survey found that 68 percent of doctors in the U.S. are highly committed to using remote patient monitoring, and this number is expected to grow in the future.

Industry Overview

  • The market for telemedicine has increased dramatically due to the technology’s potential for cost savings. It also eliminates the need for an emergency department to be used by patients and the costs associated with it. The average cost of a telemedicine visit is $79, as per a report reported in healthaffairs.org (2017), while the average doctor visit is $149 and the average trip to the emergency room is $1,734.
  • In addition, the growing number of e-visits, the growth of telemedicine in the fields of radiology, cardiology, mental health, and others will in the coming years generate new sales opportunities for the telemedicine industry, Fortune Business Insights’ lead analysts claim.
  • 617 million people are aged 65 years and over, which is nearly 8.5 percent of the global population, according to the National Institute of Health. The global geriatric population is, however, predicted to rise at an unprecedented pace, and by 2050, 17 percent of the global population is estimated to be aged 65 years and above.
  • The global telemedicine market size in 2019 was $27.8 billion, which is projected to rise during the forecast period (2020-2030) at a CAGR of 15.8 percent. The growing geriatric population, the increasing prevalence of chronic and lifestyle-related diseases, the rise in healthcare costs, the increase in government funding and telemedicine grants, the increasing need for remote patient monitoring services in developing countries, the increase in medical tourism activities, and the increase in patient pools in remote locations are some of the key factors driving the growth of patient monitoring services in developing countries.
  • In the global telemedicine industry, COVID-19 has had a positive impact. Telemedicine is a valuable tool, particularly during this period of social distancing, as patients have many choices when it comes to communicating with a doctor. As a result of this pandemic, the outlook for the industry has changed dramatically, with demand for telemedicine solutions projected to increase worldwide.
  • Increased demand for mobile devices, coupled with increased patient acceptance of home care and reduced hospital visits, is expected to boost the growth of the market size of Telehealth.
  • Temedicine facilities have become a vital asset for the healthcare system with the continuing COVID-19 pandemic. Telemedicine facilities may provide effective treatment, particularly for communities and patients impacted by COVID-19 infection, particularly in active quarantine situations. Telemedicine is a valuable tool, especially during this period of social distance, as patients have many choices when it comes to communicating with a doctor via it.
  • Telemedicine also helps minimize visits to emergency rooms and hospitalization rates, which is a major factor in driving the growth of the sector. However, some obstacles, such as resistance to the adoption of technology by practitioners and patients, high implementation costs, and data privacy and protection concerns, are expected to hamper the market growth to some degree.
  • The healthcare sector is incredibly broad and it is anticipated that its centralization will help harmonize the entire process as well as provide economic assistance. Because of the lockdown introduced by many countries as a protective measure to curb the pandemic, the unprecedented outbreak of COVID-19 worldwide has resulted in an increased demand for telemedicine solutions.
  • The growth of the global telemedicine market was necessitated by a rise in rural health problems and hospitalizations, a shortage of resources to address the increased cases, etc.
  • Telemedicine is an interactive two-way, real-time contact between a patient and a healthcare provider in another place.
  • This, along with integrated medical devices, is assisted by audio and video equipment and thus helps physicians to remotely assess, diagnose, and treat patients.
  • Studies indicate that more than 62 million individuals lack access to sufficient healthcare services. There will also be a shortage of 45,000 primary care providers by 2020, the study predicts.

Industry Trends

  • In rural areas, where there is a lack of accessibility to both primary health care and specialty care because of the scarcity of healthcare providers, treatment by this approach is especially beneficial.
  • Faster access to treatment, which is a key factor in increased patient involvement and improved performance.
  • Progress towards value-based care and usage of telehealth technology in the healthcare sector results in positive results, including less hospital re-admissions, more faithful follow-up of recommended treatment courses, and quicker recovery than that of patients who do not undergo foreign intervention.
  • Telemedicine enables hospitals to create a network to support one another. Through sharing their knowledge freely outside their institutions, doctors can give their medical colleagues and the patients of those colleagues tremendous value. All these benefits and ease of access are driving the worldwide demand for telemedicine.

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