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.
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.
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.