Telemedical Market Size and Competitor Research

Part
01
of two
Part
01

Telemedicine Market Size (TAM)

The total addressable market (TAM) for telemedicine in the US is estimated to be $84 billion. In 2018, the telemedicine market in the US was sized at $11.5 billion, and by 2025, it is projected to reach $35 billion.

METHODOLOGY

As we carried out our research, we came across statistics for both telemedicine and telehealth and we discovered different statistics for both. Some defined each separately, and some acknowledged that they could be used interchangeably. However, other sources refer to telemedicine as a part of telehealth. These could be reasons for the different statistical values. One instance is a telehealth market report which gives the projected market size for telehealth at $19.5 billion by 2025, while the Statista source gives a greater value of $22 billion by 2022 and $35 billion by 2025.

We, therefore, focused our research on industry reports that address telemedicine from sources such as HC Innovation Group and Marketwatch, media houses such as Reuters and Forbes, and statistical sources such as Statista. We also performed searches across industry-specific sources such as e-Visit and UBS to develop the content we presented.

As we searched for more detailed statistics, it was discovered that portions of relevant data are blocked behind paywalls, for example, "Global Telemedicine Market Analysis and Forecast 2022 by Size, Share and Growth Rate," a report prepared by Orbis Research.

TAM OF TELEMEDICINE

It is estimated that the telemedicine total addressable market in the US is $84 billion.

THE POTENTIAL GROWTH OF THE MARKET

Telemedicine is the one segment in the healthcare industry that is growing the fastest. Over the years, several mergers of small and large operators have increased the stability of the telemedicine market, increasing international collaborations. There is also a significant increase in the number of telemedicine apps which have been inspired by the need for better patient-physician relationship. Investments in the telehealth industry have increased over the years. In fact, venture capital investment in healthtech (telemedicine is a part of it) companies has increased from $1 billion in 2010 to $7 billion in 2016.

The global telemedicine market has been experiencing growth, which is also evident in the US. In fact, the United States holds the largest market share, as they are the hub of well-funded institutions and companies in the health industry that can facilitate the tools needed to grow the telemedicine market.

According to Statista, the total telemedicine market size in the US has been on the rise and is expected to continue in the same trend. As of 2018, the telemedicine market size in the US was at $11.5 billion, and by 2025, it is projected to reach $35 billion. As of 2018, more than 50% of US hospitals have a telemedicine program, furthermore, over 80% of doctors already make use of their smartphones in their routines. The telemedicine industry is critical as it increases efficiency in ensuring the ease of access to data at any time. Medical professionals, as well as patients, can access their information from anywhere, at any time.

GROWTH INDICATORS

In 2013, less than 350,000 people were treated via telemedicine; they expect the number to exceed seven million by 2018. By 2015, the use of telemedicine had started being a norm such that 29 states required health insurers contribute toward the cost of telemedicine services. As of 2018, 32 states have passed internal laws for better parity in telemedicine. An example is Michigan, which saw a 77.5% increase in telemedicine encounters after supporting parity. A survey revealed that:
  • 84% believe that it is important to have a telemedicine program; 52% believe it is very important.
  • 90% either have an active program or are developing one.
  • As of 2015, approximately 22% of employers who have over 1,000 employees had an active telemedicine program.

Part
02
of two
Part
02

Startup Telemedicine Competitors

Our research identified nine competitors to BraveCare and Meru Health, located west of Chicago, Illinois, who have received Series B or earlier funding. The requested information has been entered into the attached spreadsheet. The companies found are; Lyra Health, Ginger, Regroup Therapy, Vida Health, Kip, 7 Cups, Level Therapy, Encounter Telehealth, and Joyable.

methodology

For each company we tried to find a valuation, however we were unable to find this information for any of the companies. Our first strategy was to look for press releases for each of the companies, to see if they had released any information on valuations publicly. Next, we reviewed each company's website to see if they provided any information about their current valuation in blog posts or in investor information. Finally, we searched Craft.co and Pitchbook, databases that provide valuation information for companies where available. Pitchbook may have this information but it is currently behind a paywall. Based on our search we were unable to find any publicly available information for any of the competitor's valuation.

lyra health

Lyra is transforming mental health care, creating a system that matches patients to therapists. Appointments can be made for therapy and coaching programs, in-person and live video sessions, or even self-guided digital care.

Ginger

Ginger provides on-demand coaching, teletherapy, telepsychiatry and guided self-care from clients cell phones. Appointments can be made within 48 hours. Ginger has a team of coaches holding either M.A. in Psychology or a Coaching Certification.

Regroup Therapy

Regroup Therapy provides telepsychiatry services across the United States. The company only uses high-quality clinicians & psychiatrists and uses a HIPAA compliant virtual care platform.

Vida Health

Vida offers 24/7 on demand health programs and coaching in the United States. Services are provided via messaging, phone consults, and video consults through Vida's mobile app.

kip

Kip combines in-person therapy with a platform that allows healthcare providers and patients to come up with a personalized plan of care. The platform allows patients to continue care online and share their successes and struggles with their health care provider.

7 Cups

7 Cups is an online therapy provider. With 180 professional therapists, patients can chat with therapists or a community of online listeners. They provide peer-to-peer listening free, 24/7.

Level Therapy

Level Therapy provides video access to licensed psychotherapists and treatment tools for patients suffering from mental health problems. They provide services for clinician matching and use a HIPAA-compliant video platform.

Encounter Telehealth

Encounter Telehealth was developed to help patients in rural settings access mental health support. Providers are assigned cases so that care is consistent. Services include telepsych and medication management.

Joyable

Joyable is geared towards employers and giving them access to a digital mental health tool for their employees. Patients access a quiz and then are assigned a coach. The coach is available by phone, text or email.
Sources
Sources

From Part 01
Quotes
  • "US telemedicine total addressable market could exceed USD 80bn"
  • "The HealthTech theme identifies a number of related technologies and markets linked by the aim of making healthcare more efficient. At its core are developments in data analysis and connectivity. • An aging population is putting more and more pressure on healthcare budgets around the world, spurring healthcare providers to explore adopting new technologies that could improve outcomes while saving costs."
  • "• We estimate current markets linked to the theme to be worth over USD 100bn. The potential addressable market for newer technology applications is large but uncertain. • We recommend a diversified portfolio approach to investing in HealthTech. Long-term investors could consider direct investments through private equity to capture an illiquidity premium."
Quotes
  • "The Americas possess the most significant market share due to the existence of a well-funded and established healthcare sector. Moreover, the region is often swift in its adoption of current healthcare IT technology. There is a strong presence of major market players who contribute significantly toward the market position of this region. The research and development of this technology in the Americas, specifically the U.S and Canada is expected to motivate market growth. "
  • "Government support and pressing healthcare needs have boosted Europe to the second largest regional market segment. Developed economies in this region have an established healthcare sector and a growth pattern similar to that of the Americas."
Quotes
  • "In the U.S., the telehealth market is predicted to grow 14.8 percent during this time period to reach $2.8 billion. North America and Europe are projected to dominate the global telehealth market during this time period, driven by government initiatives to increase adoption of telehealth solutions, technological advancements, and efforts of key players to expand their market presence in North America, the report notes."