The global video telemedicine market is evaluated at US$7.044 billion for the year 2019 and is projected to grow at a CAGR of 35.23% to reach a market size of US$58.251 billion by the year 2026.
The technology of video telemedicine is used to provide healthcare services even in remote areas. It is the systematic blend of information technologies and telecommunication in consideration to provide healthcare services even at a distant place. Video telemedicine market is anticipated to lucrative growth opportunities over the forecast period owing to the factor such as growing demand for healthcare services amongst patients living in remote areas and isolated communities. The development of mobile technologies permitting the exchange of medical information to multiple locations by expert medical professionals, constantly increasing the number of outpatients, and attempts to reduce healthcare costs are also likely to fuel the global video telemedicine market size. The surge in the occurrence of white coat syndrome, hospital-acquired/nosocomial infections and the demand for rapid and effective treatments coupled with government initiatives will further boost industry growth. These regulations center on promoting the use of the latest medical technology offering reduced costs and enhanced time efficiency. The development of efficient and versatile communication technologies and enhanced video capturing devices such as webcams, cameras, etc. are other growth drivers. They are widely used in the applications such as neurology, cardiology, pathology, dentistry, oncology, etc. Usually, video conferencing is done so that healthcare providers can provide better treatment to the patients. The rising usage of smart devices like mobile tablets and among others in the healthcare industry is fueling the growth of this market. Additionally, technological advancements such as the development in mobile collaboration technologies that can allow healthcare professionals to share information in multiple locations, increasing pool of outpatient visits, and growing demand to reduce the overall cost of healthcare are some factors that are expected to boost the market growth.
The rapidly increasing disabled and geriatric population is forecast to present attractive growth opportunities to industry participants. According to the UN, the global geriatric population is set to exceed 1.13 billion by 2023. Lack of proper network infrastructure in the remote areas along with difficulty in adapting to new technologies and the dearth of properly skilled staff in these areas are the biggest restraining factors affecting the video telemedicine market. Another restraint is the resistance by the villagers to using the technology, which can be attributed to a lack of awareness.
GLOBAL Video telemedicine market, US$ billion, 2020 to 2026
Source: Knowledge Sourcing Intelligence Analysis
A joint survey conducted in 2016, by American Telemedicine Association (ATA) and WEGO Health, to understand patient’s perspectives on the use of video telemedicine, revealed that consumers are more interested in using telehealth as a replacement or complement technique for in-person patient care. Video conferencing in healthcare reduces re-hospitalization by extending care at home, delivers video-audio consultation, provides an easy-to-use interface, and reduces travel time and associated costs. In addition, video telemedicine improves efficiency by clear content sharing and facilitating more participants to engage in discussion.
The advent of COVID-19 had a positive impact on the global video telemedicine market. According to the research article published in JCO Global Oncology-An American Society of Clinical Oncology Journal, 2020, during the SARS-CoV-2 pandemic, physical distancing was put in place to minimize the spread of coronavirus disease. This resulted in the adoption of most of the outpatient oncology appointments to telemedicine. Though the telemedicine services were integrated into most of the healthcare systems even before the onset of the pandemic, the services were extensively used only during the COVID-19 crisis, which is majorly attributed to a lack of in-person visits and limitations and restrictions on travel, which encouraged clinicians to adapt to telemedicine-based consultations even more during the COVID-19. The immense upturn in the global healthcare industry has been a significant reason for the rise in the demand for video telemedicine technology at a global level. The market witnessed an exponential rise in the demand for the technology during the year 2020 as the patients preferred being treated through video conferencing and other such technologies which allowed the patients to consult the doctor from distant areas. The widespread of the disease resulted in several countries going under lockdowns which restricted the movement of the citizens. Moreover, the exponential rise in the number of cases from the disease increased the scare from the disease. This in turn encouraged the shift towards video telemedicine technology to ensure the safety measures were followed. Furthermore, the disease was not just restricted to some countries, it spread to even the remote areas wherein it got difficult for the patients to access healthcare services during the period which triggered the use of video telemedicine technologies during the period. The market is expected to witness steady growth owing to the gradual recovery from the pandemic during the forecast period.
The segmentation of the global video telemedicine market has been done into deployment model, component, application, end-user, and geography. By deployment model, the classification of the market has been done into on-premise video conferencing, and cloud-based video conferencing. By component, the classification of the market has been done into Hardware, Software. By application, the classification of the market has been done into Oncology, Cardiology, Dermatology, Gynaecology, Dentistry, and Neurology. By communication technology, the classification of the market has been done into 3G, 4G, ADSL, Broadband ISDN, and Satellite Communication. By end-user, the classification of the market has been done into Hospitals, Clinics, Home Care Services. Furthermore, based on geography, the global market has been distributed as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
A significant rise in healthcare costs and expenditure at a global level will drive the market during the forecast period
The growth of the video telemedicine market is fuelled by the increasing healthcare costs in several countries in recent years. The primary driver for rising healthcare costs is increased utilization of healthcare services, which results in the growth of consumer demand for innovative and new techniques, lifestyle factors, etc. Furthermore, it can also be attributed to the cost-shifting from government programs to private payers. Low reimbursement rates have increased the cost-shifting burden on hospitals and doctors, who, in turn, charge much higher rates for the same facilities to private payers, which ultimately affects the health insurance rates. As per National Health Expenditure Projections 2018-2027, national health spending is projected to grow at an average rate of 5.5% per year for 2018-2027 and reach nearly USD 6.0 trillion by 2027 in the United States.
Global Video telemedicine market share, by geography
Source: Knowledge Sourcing Intelligence Analysis
The players in the global video telemedicine market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the market.
Frequently Asked Questions (FAQs)
Q1. What will be the video telemedicine market size by 2026?
A1. The video telemedicine market is projected to reach a total market size of US$58.251 billion by 2026.
Q2. What are the growth prospects for video telemedicine market?
A2. The global video telemedicine market is projected to grow at a CAGR of 35.23% during the forecast period.
Q3. What is the size of global video telemedicine market?
A3. Video Telemedicine Market was valued at US$7.044 billion for the year 2019.
Q4. How is the global video telemedicine market segmented?
A4. The global video telemedicine market has been segmented by deployment model, component, application, end-user, and geography.
Q5. What factors are anticipated to drive the video telemedicine market growth?
A5. Video telemedicine market is anticipated to lucrative growth opportunities owing to the factor such as growing demand for healthcare services amongst patients living in remote areas and isolated communities.