Booming Healthcare Costs Encouraging Telemedicine Adoption Worldwide
The Centers for Medicare and Medicaid Services (CMS) predicts that the healthcare expenditure in the U.S. will surge from $3.8 trillion in 2019 to $6.2 trillion by 2028. According to the CMS, prices of medical goods and services will rise at 2.4% per year between 2019 and 2028. Furthermore, the Australian Institute of Health and Welfare (AIHW) estimates that healthcare expenditure in Australia increased from $91 billion during 2000–2001 to $185 billion during 2017–2018. Most of this expenditure was made on hospitals and referred medical services.
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Thus, the surging cost of medical services is expected to steer the telemedicine market at a healthy CAGR of 15.8% during 2020–2030. The market was valued at $27.8 billion in 2019 and it is projected to generate $144.2 billion revenue by 2030. Currently, healthcare facilities are increasingly adopting telemedicine to offer quality services at low costs, while maintaining and improving the quality of care being provided by them, owing to the augmenting healthcare burden.
At present, telemedicine platforms are available for cardiology, dermatology, gynecology, neurology, and orthopedics departments. In contemporary times, telemedicine services are mostly used for dermatological consultation due to the aesthetic roots of the dermatological specialty. The aforementioned domains of medicine use tele consulting, tele education, tele monitoring, and tele training services to provide low-cost care to patients. In the coming years, tele consulting services will be preferred over other services as they allow patients to connect with specialists at any time without any waiting period. These services are available on tele homes and tele hospitals and clinics.
According to P&S Intelligence, North America dominated the telemedicine market in the preceding years, and it will retain its dominance in the forthcoming years as well. This is credited to the increasing geriatric population, mounting government funding and grants for telemedicine, and rising cases of lifestyle-associated and chronic diseases in the region. For instance, the U.S. Census Bureau estimates that the population of people aged 65 years and above in the U.S. grew by 3.2% from 2018 to 2019.
Thus, the increasing prevalence of chronic ailments and mounting healthcare costs will facilitate the usage of telemedicine platforms in the foreseeable future.