The U.S. telehealth market was valued at $572 million in 2014 and is expected to reach $2.8 billion by 2022, according to a new report from San Francisco, Calif.-based Grand View Research Inc.
According to the report, key drivers of the market include a rising demand for centralization of healthcare administration, and enhanced quality and safety by the applications. Furthermore, a rising demand of mobile technologies and internet by people, along with rising adoption for home care by patients or reduction in hospital visits, are expected to propel the growth over the forecast period, the researchers concluded.
One case study involved a facility in North Carolina that was able to double the number of patients it could see in a week, thanks to telemedicine. In another case, another hospital found it to be so successful that they have started a new virtual facility entirely built on telemedicine services.
In terms of product insights, key product segments of the U.S. telehealth market are software, hardware, and services. Software held 18.9 percent of the share in 2014 and it is expected to witness the fastest growth over the forecast period to own 20.2 percent of the share by 2022. Hardware segment is further classified into monitors and medical peripheral devices. Monitors, due to exponential advancement in the IT industry, are anticipated to witness growth at a CAGR of 19.3 percent over the forecast period, according to the research.
The hardware segment also includes products such as laptops, desktop computers, webcams, speakers, microphones, display screen and videoconferencing. The hardware is graded and selected based on attributes such video memory, general memory, internet connection and emailing features, processor speed and display quality.
What’s more, key segments of the delivery mode market are web-based, cloud-based, and on-premise delivery modes. Web-based held 78.0 percent of the share in 2014 and it is expected to witness growth at a CAGR of 17.3 percent over the forecast period.
Cloud-based delivery mode is anticipated to be the fastest growing segment over the forecast period with a CAGR of 19.5 percent owing to the advantages such as easier usability, limited memory requirement, and possibility of using the system on any device. Rising investment by IT firms in cloud computing is expected to raise their demand over the forecast period, the report found.
Additionally, the end-use is segmented into payers, providers, and others. Providers held 52 percent of the market share in 2014 and it is expected to witness growth at a CAGR of 18 percent over the forecast period. Rising adoption by the providers is anticipated due to the pending approval of telehealth legislations in U.S. states.
Providers comprise healthcare professionals such as physicians and clinicians, hospitals, and clinics. Provider-based solutions portray higher ability of deployment of telehealth strategies, and thereby assist growth. The segment is expected to be the largest and the fastest growing, due to increasing incorporation of services in healthcare facilities and rising Internet use by the physicians for medical consultations, the report found.