- A new BCC Research report finds that the telemedicine market will hit $43.4 billion by 2019. The overall telemedicine market is growing at a 17.7% compound rate, largely fueled by telehome visits increasing at a compound annual growth rate (CAGR) of 24%.
- Telehome services accounted for only about $6.5 billion of the market in 2013, but the BCC estimates it will account for $24 billion by 2019, making up 55% of the overall telehealth market within five years. Analysts said telehealth will soon be impacting various sectors including insurance, home health, telecommunications, disease management, and IT.
- Hospitals will need to be prepared to take part in this service, as that market is expected to be highly lucrative. Telehospital services—telehealth comprised of anything provided in or between hospitals or clinics—is forecast to grow at 12% CAGR, hitting $19.5 billion by the end of the decade.
The importance of the telehealth industry is not lost on the IT market. For instance, Google announced this week that it will be pursuing a telehealth pilot through its search engine. Google’s product will be one of approximately 200 telemedicine networks in the United States, according to the American Telemedicine Association.
An article in iHealthBeat highlighted the reason for the industry’s growth—low cost and major convenience. A 15-minute telemedicine visit typically costs the consumer about $40, and while it can take days to weeks to get into a physician’s office in some areas, telehealth services are often available within minutes nearly any time of the day. A recent Deloitte study predicted that there will be approximately 100 million e-visits by the end of 2014, which could net $5 billion in savings for the industry.