Increasing global focus on the use of telemedicine to reduce healthcare costs and improve patient outcomes is spurring big growth in the telemedicine technologies market. BCC Research reveals in its new report that the
new U.S. healthcare law will, if anything, intensify this focus by increasing the number of people with health insurance and seeking medical services.
Telemedicine is the use of telecommunications technology to deliver medical information or services to patients or other users at a distance from the provider. The telemedicine market is segmented into telehospital/clinic and telehome markets.
The global telemedicine market should reach $23.8 billion and $55.1 billion in 2016 and 2021, respectively, reflecting a five-year compound annual growth rate (CAGR) of 18.3%. As a segment, telehospital/clinic totaled nearly $11.1 billion in 2015 while the telehome market segment reached about $9 billion that year. The latter segment should grow at a projected CAGR of 24%, increasing its total market share from 45% in 2015 to 60% in 2021.
Telemedicine is receiving a significant boost in the healthcare industry due to the increased need for improved clinical outcomes. More patients are likely to opt for telemedicine for better quality treatment. Patients monitored under telemedicine have shown better clinical outcomes due to increased awareness of their readings.
The major trend is moving toward integrated telemedicine to achieve the highest reliability. Companies are working to capture all clinical signals. The speed of data transfer has significantly improved with the help of transmission control protocol (TCP) and IP-based acceleration. More companies are adopting Web-based interfaces that provide global reach and high levels of interoperability.
The telehome technology market, which was valued at over $5.3 billion in 2015, should dominate the telemedicine technology market during the forecast period. Telehome technology is expected to grow from 63.5% of the telemedicine technology market in 2015 to 68.7% by 2021. Telehospital/clinic technology is expected to approach $7.5 billion by 2021, accounting for 31.3% of the market, with a CAGR of 17.3%.
Telemedicine is a pivotal technology to support e-healthcare and significantly reduce costs. This is an opportune time for Tier I players to enter the telemedicine market, as well as for Tier II and Tier III players to consolidate their market presence with strategic partnerships with the big companies or focus on niche telemedicine markets.
“The telemedicine market has historically been dominated by Tier II and Tier III players, but Tier I players have also been playing growing roles. Telemedicine is key to e-healthcare,” says BCC Research analyst Andrew McWilliams. “A successful telemedicine network will be the most significant market differentiator for better clinical outcomes, reduced cost and patient satisfaction.”
