Increasing Health Awareness to Make Asia Pacific Most Attractive Market
The global telemedicine market was valued at US$18.4 bn in 2015 and is anticipated to reach US$36.3 bn in 2020, expanding at a CAGR of 14.3% from 2014 to 2020. In terms of specialty, the dermatology segment led the market in 2015 and is expected to retain the leadership by the end of 2020, accounting for a share of 14.6% in the global telemedicine market. However, the neurology segment will exhibit the highest growth rate owing to the growing prevalence of neurological disorders.
By service type, tele-consultation was the leading segment in 2015 and is estimated to maintain the position by the end of 2020. On the flip side, tele-monitoring will be the fastest growing segment.
Based on geography, North America was the leader in the regional market in 2015 and is expected to maintain its position by 2020. The Asia Pacific region will exhibit the highest CAGR between 2014 and 2020.
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Growing Adoption of Telemedicine Services Owing to Time and Cost Efficiency Offered
The telemedicine industry will boom in the wake of growing concerns about hospital acquired infections and the maintenance of privacy. Also, people prefer telemedicine to hospitals as the former provides better personal healthcare solutions and location convenience. These factors are therefore likely to give a significant push to the global telemedicine market.
“Telemedicine ensures the provision of better healthcare to remote areas, where there is a shortage of experienced manpower,” says a TMR analyst. There is a growing popularity of telemedicine services amongst patients living rural as well as urban areas due to the cost and time efficiency offered by these services. This growing favorability is anticipated to augur well for the growth of the global telemedicine market.
The growth of the global telemedicine market is also backed by the increasing number of favorable reimbursement policies and government policies that promote patients to use telemedicine services. Apart from this, the rising population of literate and tech-savvy patients is anticipated to result in the growing preference for telemedicine in the forthcoming years.
Delayed Response Time to Reduce Adoption of Telemedicine Services
A large section of the patient population has negative opinions about telemedicine owing to delayed response time. Delayed response time can create serious problems at the time of an emergency. Not addressing this problem may adversely affect the growth of the global telemedicine market. Moreover, existing technologies are mostly incapable of providing adequate or complete assessment, even if they are on time. These factors are anticipated to reduce the interest of patients in opting for telemedicine, thereby hampering the growth of the global market.
Another factor restraining the global telemedicine market is the shortage of staff. Telemedicine services require all-time presence of a medical practitioner, which is not possible for many service providers and medical institutions. This, therefore, disrupts the services offered and leads to reduced adoption of telemedicine services.
However, advancements in telemedicine technology and continuous upgradation of mobile telecommunication technology is likely to bring notable growth opportunities to the global telemedicine market.
The global telemedicine market is characterized by high competitive rivalry, with the established companies competing over pricing and promotion strategies. The presence of the vendors is limited to certain segments of the overall market and companies with the most market presence globally are considered key vendors, finds Transparency Market Research (TMR) in a new study. The two key companies in the global telemedicine market are AMD Global Telemedicine Inc. and Cisco Systems Inc.
“To establish their presence in the market, new entrants require large capital, research-backed strategies, and rapid growth in market share, which is unlikely. These factors reduce the threat of new entrants significantly,” states the author of the report. Also, maintaining loyalty in the telemedicine market among end users is difficult in the long term, thereby increasing the competition and entry barriers in the global telemedicine market.