A recent report is projecting that the global telemedicine market will expand from its current $38.3 billion valuation to $130.5 billion by 2025.
According to the study by Global Market Insights, this 19.2 percent compound annual growth rate (CAGR) will be largely fueled by worldwide telecommunication network developments, market opportunities in rural areas or those without easy access to healthcare services, and the continuing integration of healthcare and IT market sectors.
However, inconsistent reimbursement for telemedicine services and little awareness of telemedicine among developing economies will hamper some growth opportunities.
The report offers a breakdown of individual telehealth use cases and global markets. For instance, it anticipates a 18.9 percent CAGR for the teleconsultation services market, while predicting that the telehospital market will reach a total value of $85.3 billion by the end of the forecast’s timeframe. Meanwhile telemedicine as a whole is set to reach a $64.1 billion 2025 valuation within the US alone, according to the report, although China and India are also expected to grow at 23 percent CAGR and 22.4 percent CAGR, respectively.
WHY IT MATTERS
The report’s current and future valuations of the telemedicine market suggest an industry growing much faster than some analysts might have anticipated nearly a decade ago. Some studies have also suggested that telemedicine use can bring several clinical and population health benefits, including reduced care costs, increased access to care and greater patient choice (although some of these merits are still up for debate).
WHAT'S THE TREND
The telehealth industry has lately seen acquisitions, service launches and deals aplenty. Last week Teledoc Health acquired MédecinDirect to bolster its international expansion plans, while French appointment booking and telemedicine service company Doctolib raised about $170 million in new funding. In addition, Doctor On Demand launched an integrated virtual primary care platform last month, while the University of Virginia announced plans to expand its internal telehealth program.