Telemedicine is Estimated to Witness High Growth Owing to Opportunity of Improving Access to Quality and Affordable Healthcare
Telemedicine is a new and upcoming method of delivering healthcare services remotely through digital information and communication technologies. It offers various advantages like enabling healthcare access in remote locations, reducing healthcare costs by eliminating need for travel and infrastructure, providing convenience of virtual doctor visits instead of physical visits. The telemedicine technology leverages video chat, digital imaging tools, smartphones and other mobile devices to connect physicians with patients. It allows monitoring chronic conditions from home and facilitating timely interventions without delays.
The global telemedicine Market is estimated to be valued at US$ 94.44 billion in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
One of the key market opportunities for telemedicine is improving access to quality and affordable healthcare. Telemedicine eliminates geographical barriers and allows patients to connect with clinicians from remote areas without traveling long distances. This significantly improves healthcare access for people living in rural areas with limited medical infrastructure and resources. It also helps address the increasing shortage of physicians globally. Telemedicine ensures timely medical advice and care can be provided to patients irrespective of their location. This improves health outcomes and quality of life for remote population. With rising chronic diseases and healthcare costs, telemedicine presents a viable option to mainstream healthcare delivery by making it more affordable and convenient. The ability of telemedicine to effectively expand healthcare access to underserved communities through digital technologies is expected to drive its high adoption and growth over the coming years.
Porter’s Analysis
Threat of new entrants: The growing adoption of telemedicine technology across healthcare organizations present a moderate threat for new players to enter the market. However, large initial investments and stringent regulatory approvals may limit the threat.
Bargaining power of buyers: The bargaining power of buyers is moderate. Customers have less influence due to lack of brand loyalty and options are readily available. However, certain customers like government organizations have higher bargaining power due to large volume procurement.
Bargaining power of suppliers: Telecommunications solution providers, medical device manufacturers and technology vendors form the key suppliers for telemedicine market. Their bargaining power is moderate as there exist many suppliers and their offerings are substitutable. However, proprietary technologies may increase supplier power.
Threat of new substitutes: Telehealth and mHealth applications are potential substitutes for telemedicine market. However, substitutes presently do not offer full parity with telemedicine services.
Competitive rivalry: The market is moderately competitive with presence of tier I and emerging players. Large players focus on mergers, acquisitions and strategic partnerships to gain market share.
SWOT Analysis
Strengths: Remote care delivery enhances accessibility andLow infrastructure requirements; Cost-effectiveness of telemedicine services.
Weaknesses: Issues pertaining to reimbursement, licensure and privacy; Lack of physical examination; Requirement of high-speed Internet.
Opportunities: Growing geriatric population and shortage of physicians will drive demand; Increased investments from commercial players.
Threats: Data breaches and cyber-attacks; Lack of guidance and variations in legal regulations.
Key Takeaways
The global telemedicine market is expected to witness high growth during the forecast period of 2023-2030. The global Telemedicine Market is estimated to be valued at US$ 94.44 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030.
Asia Pacific region is projected to grow at the fastest rate owing to rising internet penetration, increasing healthcare expenditure and shortage of healthcare professionals in the region. North America currently dominates the market and is expected to retain its top position throughout the analysis period. In these countries, increasing access to smart devices, rising healthcare costs and shortage of physicians will drive higher adoption of telehealth services. Growing penetration of internet and investment in telecom infrastructure will further support market expansion.
Key players related content: Key players operating in the telemedicine market incorporate American Well (U.S.),MDLIVE Inc. (U.S),Teladoc Health Inc. (U.S.),Doctor on Demand Inc. (U.S.),MeMD (U.S.),Encounter Telehealth (U.S.),Global Med (U.S.),SnapMD (U.S.).