VIRTUAL HEALTH SERVICE MARKET ANALYSIS

Global virtual health service market size is projected to reach US$ 78.84 Bn by 2030 from an estimated US$ 11.11 Bn in 2023, exhibiting a CAGR of 32.3%. Global virtual health service market growth is driven by a number of factors including increasing need to expand healthcare access, growing number of patient population worldwide, shortage of physicians, advancements in telecommunications, and increasing adoption of digital healthcare services.

Increasing demand for remote healthcare services: Increasing adoption of telehealth and other virtual care services due to rising cost of healthcare, the growing number of patients with chronic conditions, and the increasing demand for convenience is also expected to drive the market growth

Analyst View

The global virtual health service market is poised to grow significantly over the coming years. Growing preference for remote healthcare delivery among patients due to its convenience is a major driver for market growth. The ongoing COVID-19 pandemic has further accelerated demand for virtual health services as patients seek to avoid physical visits to healthcare facilities. Rising incidence of chronic diseases is also prompting more patients to opt for virtual care to better manage their health from home. However, lack of reimbursement policies for telehealth and virtual care services act as a restraint on the market's growth potential.

North America currently dominates the market owing to supportive regulations and higher technology adoption. However, Asia Pacific is expected to witness the fastest growth due to rising medical infrastructure and increasing investments by market players in the region. Virtual behavioral health and telepsychiatry are emerging as lucrative segments in the market. Telestroke and teleICU services also present lucrative opportunities for market players to capitalize on. Consolidation of service providers and bundled payment models can potentially help in overcoming reimbursement issues in the long run. Nevertheless, ensuring seamless interoperability of solutions across healthcare organizations remains a challenge.

Overall, initiatives to establish standardized platforms, protocols and policies globally are expected to boost virtual health services market growth tremendously over the coming decade.

Global Virtual Health Service Market- Regional Insights

• North America is the largest market for virtual health service, with a share of 41.8% in 2022 due to the presence of major players in the region such as Teladoc, MDLive, and others, as well as strong government support and increasing teleconsultations.
• Asia-Pacific is the second-largest market for virtual health service, with a share of 28.1% in 2022. The growth of this market is driven by increasing adoption of smartphones and other digital devices, as well as the rising awareness about benefits of virtual health services.
• Europe is the third-largest market for virtual health services, with a share of 19.9% in 2022. The growth of this market is being driven by the aging population, and increasing prevalence of chronic diseases.

Figure 1. Global Virtual Health Service Market Share (%), By Region, 2023

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Global Virtual Health Service Market- Drivers

• Technological Advancements: Advancements in digital technologies such as telemedicine platforms, video conferencing, remote monitoring devices, and mobile health application, have made virtual health services more accessible and convenient for both patients and healthcare providers. For instance, on January 05, 2023, Teladoc Health, one of the leaders in whole-person virtual care, announced the launch of a fully integrated health care experience via a new comprehensive digital application that provides patients with personalized whole-person care. Customers will now be able to access Teladoc Health's whole suite of services, including primary care, mental health, and chronic disease management, from a single location and with a single portable account. Furthermore, Teladoc Health's whole array of services will be offered in both English and Spanish under the Teladoc Health brand.
• Increased Adoption of Telemedicine: Telemedicine has gained popularity due to its ability to offer remote medical consultations, diagnosis, and treatment, especially in rural or underserved areas. The convenience and cost-effectiveness of telemedicine services boosts adoption among patients and healthcare organizations. For instance, according to Rock Health's (a full-service seed fund that supports startups working in digital health) 2022 Digital Health Consumer Adoption Survey, while live video telemedicine use remained stable in 2022 (1 percentage point (pp) increase relative to 2021), the survey reported an increase in all other telemedicine modalities: live phone (57%; 12pp increase), health app/website (48%; 11pp increase), email (43%; 9pp increase), and text message (36%; 8pp increase). A variety of issues, including the ongoing lag in national broadband penetration, contribute to non-video telemedicine utilization. Another possible driver is the expanding supply of non-video appointment offerings, which is being bolstered by provider organizations.
• Growing Demand for Remote Monitoring: Remote patient monitoring devices, wearable health trackers, and IoT-enabled medical devices are becoming more prevalent. These technologies allows healthcare professionals to monitor patients' vital signs and health conditions remotely, and thus, leading to better management of chronic diseases and improved patient outcomes.
• Cost-Effectiveness and Efficiency: Virtual health services are often proved to be more cost-effective than traditional in-person care, and thus, reduces hospital readmissions, minimizes travel costs, and improves overall healthcare efficiency.

Global Virtual Health Service Market- Opportunities

• Expansion of Telemedicine: Telemedicine presented numerous growth opportunities across various medical specialties and healthcare As the technology such as telehealth or telemedicine continued to improve and gain acceptance, there were opportunities for telemedicine to expand into new areas of healthcare, such as mental health counseling, dermatology, and remote surgical consultations.
• Remote Patient Monitoring: The adoption of remote patient monitoring devices and wearables offers opportunities to healthcare providers to gather valuable real-time health data. These technologies created possibilities for more personalized and proactive patient care, especially for managing chronic conditions and promoting preventive health measures.
• Artificial Intelligence and Machine Learning: Integrating AI and machine learning algorithms into virtual health platforms presents exciting opportunities to improve diagnostic accuracy, personalize treatment plans, and automate routine administrative tasks, thereby, enhancing overall efficiency and patient outcomes
• Virtual Health for Employee Wellness: Companies and organizations realized that adding virtual health services to their employee wellness initiatives could be beneficial. Virtual health offerings could include telemedicine consultations, mental health support, and fitness and nutrition coaching, contributing to a healthier and more productive workforce.

Global Virtual Health Service Market- Trends

• Telemedicine Adoption: Telemedicineis rapidly gaining popularity as a convenient and accessible way for patients to receive medical consultations and care remotely. The pandemic accelerated its adoption, and it has become an essential tool for healthcare providers to offer services while maintaining physical distancing. For instance, According to the American Medical Association's (AMA) 2021 Telehealth Survey report, nearly 85% of physician respondents said they are currently using telehealth to care for patients, and nearly 70% said their organization is motivated to continue using telehealth in their practice. Many doctors see using telehealth to handle chronic diseases and continuous medical management, care coordination, mental/behavioral health, and specialist care. According to the same poll, 95% of physicians report that their patients are primarily located at home during the virtual appointment. Allowing patients to remain in their own homes is an important part of making telehealth more accessible.
• Remote Patient Monitoring: The use of remote patient monitoring devices and wearables is increasing. These technologies allows healthcare professionals to monitor patients' vital signs and health conditions remotely, and thus, enabling better management of chronic diseases and early detection of potential health issues
• Virtual Mental Health Services: Increasing focus on virtual mental health services due to  growing recognition of the importance of mental health and the need for accessible and stigma-free care is a major trend in the market.Virtual platforms provides an opportunity for patients to access counseling and therapy from the comfort of their homes.
• Artificial Intelligence (AI) and Machine Learning Integration: AI and machine learning are being integrated into virtual health platforms to improve diagnostics, personalize treatment plans, and enhance patient outcomes. AI-driven chatbots and virtual assistants are utilized for patient engagement and support.

Global Virtual Health Service Market- Restraints

• Digital Divide and Access Barriers: Limited internet connectivity and lack of access to digital devices in certain regions created a digital divide preventing some individuals, especially in rural and underserved areas, from accessing virtual health services.
• Regulatory and Legal Challenges: The rapidly evolving virtual health landscape presents regulatory challenges including licensing requirements, reimbursement policies, and data privacy laws. Navigating complex and varying regulations across different jurisdictions pose challenges for virtual health service providers.
• Reliability and Technology Issues: Technical glitches, network instability, and issues with video conferencing or remote monitoring platforms could lead to disruptions in virtual health services, affecting the quality and reliability of care
• Limited Reimbursement and Payment Models: The lack of uniform reimbursement policies and limited acceptance of virtual consultations by insurance providers could be a barrier to widespread adoption among healthcare providers

Recent Developments

New product launches

• Emmaus Medical, Inc. : In April 2022, Emmaus Medical, Inc., a biopharmaceutical company, announced the launch of an innovative full-service telehealth solution with its strategic partners including Asembia LLC, a pharmaceutical company, US Bioservices Corporation, a specialty pharmaceutical distribution and services company, and UpScriptHealth, an online platform offering teleconsultation and medication delivery services, to fund on the expansion of telemedicine in the U.S. to provide patients and providers on-line access to Endari, the company's prescription-grade L-glutamine oral powder, for the treatment of sickle cell disease.
• CVS Health Virtual Primary Care: In May 2022, CVS Health, a pharmacy company, announced the launch of CVS Health Virtual Primary Care, a new virtual care solution available through a single digital platform. The offering connects CVS Health’s services, clinical expertise, and data for a more coordinated and consumer-centric health care experience. Demonstrating CVS Health’s bold strategy to improve primary care, the new solution enables consumers to choose care when and where they want – in a retail or community-based setting, through at-home health services, or virtually.
• Abbott NeuroSphere Virtual Clinic: In March 2021, Abbott, a company that develops, manufactures, and sells a diversified range of healthcare products, announced the U.S. launch of NeuroSphere Virtual Clinic, a first-of-its-kind technology that allows patients to communicate with physicians in real time, ensure proper settings and functionality, and receive new treatment settings remotely as needed.
• Amazon Clinic: In 2021, Amazon, E-commerce company, launched a new virtual doctor marketplace that connects consumers with virtual doctors who can diagnose, treat, and prescribe medication for a range of common health conditions.

 Acquisition and partnerships

• On February 22, 2023, Amazon.com, Inc., a multinational technology company, announced the acquisition of One Medical, a primary care company. Through this acquisition, around 200 physical sites and exclusive telehealth technology were added to Amazon.com, Inc.'s healthcare division. One Medical's services and technology include in-office and 24/7 virtual care services, on-site labs, and programs for preventive care, one medical application that enables 24/7 video chats and in-app messaging, same and next-day availability for in-person or virtual physician visits.  
• In January 2022, Coviu, a U.S.-based telehealth startup, announced that it had entered into a partnership with Propell Health, a company that offers technology solutions, to launch an integrated telehealth and Remote Patient Monitoring (RPM) solution for the management of COVID-19 patients
• Evernorth's acquisition of MDLIVE: In 2021, Evernorth, the health services portfolio of Cigna, acquired MDLIVE, a leading virtual care platform. This acquisition provided Evernorth a major foothold in the virtual care market, and expanded its capabilities to deliver more convenient and affordable care to patients.

Figure 2. Global Virtual Health Service Market Share (%), By Service Type, 2023

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Top companies in Global Virtual Health Service Market

• Teladoc Health
• Amwell
• Doctor on Demand
• MDLive
• 98point6
• Babylon Health
• eVisit
• HealthTap
• American Well (now known as Amwell)
• Livongo (acquired by Teladoc Health)

Definition: Global virtual health service market refers to the sector that encompasses the use of telemedicine, digital health platforms, and remote health services to deliver medical consultations, diagnosis, treatment, and monitoring through virtual means such as video calls, mobile apps, and online platforms. It aims to provide accessible and convenient healthcare services to patients regardless of their geographical location, promoting remote healthcare delivery and improving overall healthcare outcomes.