Virtual Health Service Market Is Estimated To Witness High Growth Owing To Increased Telemedicine Adoption

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The Virtual Health Service Market is estimated to be valued at US$ 78.84 Bn in 2024 and is expected to exhibit a CAGR of 32.3% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights.

Key Market Dynamics: The virtual healthcare market has been driven by the increasing adoption of telemedicine. Due to the spread of COVID-19 and the growth of mobile health apps and mHealth, the pandemic has accelerated the shift to telehealth. As more patients and providers recognize the convenience and safety of virtual services, according to the American Telemedicine Association, telehealth visits in the United States increased 50% from mid-March to mid-April 2020.

However, advances in mobile technology have resulted in the proliferation of mHealth apps for remote monitoring of health crises. Consulting and chronic disease management. This has increased the adoption of virtual healthcare services around the world.

Key Market Trends:Real-time remote patient monitoring is a market trend

Real-time remote patient monitoring allows continuous monitoring of vital signs and physiological data. Beyond the traditional clinical setting this greatly reduces healthcare costs. This trend is being driven by the increasing global burden of chronic disease. According to the WHO, by 2020, chronic diseases will account for nearly three-quarters of all deaths worldwide. Remote monitoring helps detect health problems early and prevent hospital admissions. Integrating wearable medical devices with virtual care platforms also enables long-term personal care management. An increasing focus on preventive health care and the need for affordable health care delivery models. It will help drive the trend of real-time remote disease monitoring during the forecast period.

Rise of Teletherapy and Telepsychiatry: Mental illness accounts for a significant burden of disease worldwide. However, lack of access and stigma around in-person consultations have hampered treatment. Teletherapy and telepsychiatry bridges this gap by delivering therapy, counseling and psychiatric consultations virtually. This trend has gained immense traction amid pandemic. For instance, according to American Telemedicine Association, 49% increase was witnessed in telepsychiatry visits in March-April 2020 compared to pre-COVID period. Advancements in virtual platform connectivity and provision of affordable mental health services from the comfort of home will upsurge the teletherapy and telepsychiatry trend during the forecast period.

Virtual Telehealth Services: The virtual telehealth services market is poised to witness significant growth in the coming years owing to the growing prevalence of chronic diseases and increasing healthcare costs. Technological advancements enabling virtual care and support for social distancing in the wake of the COVID-19 pandemic has further accelerated demand.

By Service Type Insights

Within the service type segment, Telehealth Services led the market in 2019 with a revenue share of over 45%. Growing acceptance of remote monitoring services for chronic conditions like diabetes, hypertension and cardiac disorders is a key driver. Advantages like cost-effective treatment, timely interventions and convenience supports the segment growth.

By Mode of Delivery Insights: Video consults emerged as the dominant sub-segment in 2019 with over 30% share. High patient acceptability for video and audio based virtual consultations compared to traditional modes supported early adoption. The COVID-19 pandemic has further boosted their uptake as social distancing norms emphasized virtual care delivery over in-person visits.

Key Market Takeaways: The virtual health services market is anticipated to witness a CAGR of 32.3% during the forecast period 2024-2031, owing to the increasing geriatric population and chronic disease burden globally. On the basis of service type, telehealth services segment is expected to hold a dominant position, owing to the widespread application in remote patient monitoring and management of chronic conditions.

On the basis of mode of delivery, video consults are expected to hold a dominant position over the forecast period, due to the high preference of patients and caregivers for virtual face-to-face interactions compared to other modes.

By region, North America is expected to hold a dominant position over the forecast period, due to the higher technology penetration, advanced healthcare infrastructure and supportive regulations for telehealth services in the US and Canada.

Competitor Insights: Visit, HealthTap, Babylon Health

Recent Developments in Virtual Health Service Market

Telehealth Continues its Growth Trajectory

The Covid-19 pandemic accelerated the adoption of telehealth and virtual care solutions as patients opted to access non-emergency care virtually. This trend has continued well after the peak of the pandemic with telehealth consultations growing steadily month-over-month. Recent reports indicate telehealth utilization grew by over 30% in June 2023 compared to the previous year. Leading health systems and insurers see this growth sustaining throughout 2023 and 2024 as both providers and patients recognize the value and convenience of virtual care options.

Major Health Systems Expand their Virtual Care Offerings

To capitalize on rising consumer demand and preference for virtual care access, large health systems are making significant investments in broadening their telehealth networks and service lines. In June 2023, Johns Hopkins Medicine announced plans to quadruple their roster of board-certified providers available via telehealth by 2024. Their goal is to offer 50+ clinical specialties virtually within the next year. In the same month, Mayo Clinic published details of their new virtual-first strategy aiming to deliver up to 30% of all outpatient visits remotely by 2025. Providence health system also unveiled partnerships with several telehealth companies to expand access to primary care, behavioral health, chronic disease management and specialty consultations via their app and website. These strategic moves by dominant healthcare providers aim to establish nationwide virtual networks and delivery models.