A recent market research study predicts that the global telehealth software market will surge at a compound annual growth rate (CAGR) of 17% between the forecast years of 2020 and 2030. Use of information and communication technologies in support of healthcare delivery is poised to become indispensable, says Dhaval Kate, research manager Electronics, Semiconductors, and ICT at Future Market Insights.
The adoption of telehealth software is transforming the healthcare delivery phenomenally. With remote monitoring, wireless communications, and electronic consults, telehealth software is helping healthcare providers to expand patient care while improving patient satisfaction and outcomes.
With the rising use of digital technologies to deliver medical care and public health, hospitals, and healthcare systems are at the forefront of adopting and expanding via telehealth. For instance, according to American Hospital Association, recent years have witnessed significant growth in adoption of telehealth software and solutions with more than 76% of hospitals in the U.S. fully or partially implemented computerised telehealth system till 2018.
Digital technologies are continuously becoming an important resource for the enhanced delivery of health services and with the growing adoption of mHealth solutions, the opportunities for the growth of telehealth software is set to rise sharply in coming years.
Research indicates that there has been high spending on digital healthcare infrastructure with increasing sales of wearable technologies. Moreover, the integration and development of digital health technologies such as Internet of Things (IoT), augmented and virtual reality (AR/VR), artificial intelligence (AI), and more are creating potential growth opportunities for the telehealth software market.
Key takeaways of telehealth software market study
- Cloud-based segment expected to capture around 45% of market share in 2020 and register a CAGR of 18% during the forecast period
- Healthcare providers are dominating the market with the market share of 85% in 2019, owing to the growing adoption of real-time communication solutions and increased adoption of remote patient monitoring
- South Asia & Pacific is estimated to grow at a CAGR of 20% in the telehealth software market owing to the continuous investments in digitalising healthcare infrastructure
COVID-19 impact analysis on telehealth software market
The outbreak of COVID-19 highlighted the need for businesses to adapt quickly to remote working options, pushing them to change their technological landscape to ensure business continuity during the pandemic. Thus, it brought the critical need for adoption of digital technologies and innovative solutions in the healthcare sector. With the evolving COVID-19 pandemic, healthcare providers are focusing on implementing and upgrading telehealth software and solutions to enhance their ability to care for massive increase in patients.
The adoption of telehealth software and solutions is helping healthcare providers and payers in avoiding unnecessary visits to healthcare facilities, thus, reducing the exposure to the coronavirus and also in keeping those on the frontlines safe. In addition to this, the demand for cloud-based telehealth software is expected to surge as the demand for real-time communication and remote monitoring is set to increase in coming years.
The telehealth software market grew around 13% year-on-year (YoY) in 2018 and 2019 and with the outbreak of COVID-19, the market is expected to witness a growth rate of around 18%-20% during 2021-2023. Moreover, the telehealth software market is projected to increase 1.4x between 2020 and 2022, owing to the outbreak of COVID-19.
“With the outbreak of COVID-19, the digital health sector is likely to witness a massive spike from supply and demand side. The need for transforming healthcare delivery and to scale up the healthcare infrastructure by unleashing the supremacy of digital technologies is expected to create potential opportunities for the telehealth software market in coming years,” says the report analyst.
Competition landscape – driving growth through innovation
Ongoing technological revolution, intense competition, and ever-changing customer expectations are creating a storm in the global telehealth software market, which is compelling solution providers to integrate smart technologies such as AI, IoT, Block chain, and AR/VR. Moreover, collaborations and partnerships with IT solution providers can also help telehealth software solution providers to enhance their market share and customer base.
For instance, in October 2019, American Well and Cleveland Clinic entered into the partnership to offer customers with broad access to healthcare services via telehealth. Together, both the organisation formed a joint venture company “The Clinic” which offers the virtual care through American Well’s digital health technology platform.
Some of the key players in the telehealth software market are Aerotel Medical Systems Ltd., Koninklijke Philips N.V., Teladoc Inc., American Well, Chiron Health, Medtronic, Honeywell International, Tunstall Healthcare, AMD Global Telemedicine, Inc., Cisco Systems, Inc., and Medvivo Group Ltd.
These insights are based on a report on Telehealth Software Market by Future Market Insights.
The author is Dhaval Kate, research manager Electronics, Semiconductors, and ICT at Future Market Insights.
About the author
Dhaval holds experience of more than 12 years in consulting, project management, market research and data analysis in managing and delivering consulting assignments, research studies and custom projects across Technology, Smart Infrastructure and Semiconductor domain. Dhaval heads Research & Innovation ICT, Semiconductor & Electronics vertical at Future Market Insights and has experience in working projects on Unified Communication (UCaaS), Smart Cities, Smart Infrastructure, Energy & Power, V2X Communication, and Physical Security Systems to name a few. Insights presented in the article are based on a new study of Future Market Insights (FMI) on Telehealth Software Market