The Virtual Health Service Market is estimated to be valued at US$ 11.11 Bn in 2023 and is expected to exhibit a CAGR of 32.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Virtual health service allows patients to access healthcare services and consult with physicians through mobile apps or online video. It offers conveniences of remote care without visiting a hospital. This has reduced costs for patients and provided access to specialists in remote areas. With features like video calling, e-prescriptions and remote monitoring, virtual health services are addressing both clinical and non-clinical needs of the healthcare system.
Market key trends:
One of the key trends spurring growth in Global Virtual Health Service Market is rising adoption of telehealth and telemedicine during COVID-19 pandemic. Government initiatives and relaxations in policies globally encouraged use of digital health to ensure continuity of care while maintaining social distancing. This has familiarized consumers and providers with virtual care models. As comfort with virtual platforms increased significantly during the pandemic, demand for virtual health services is expected to stay robust even in post pandemic days. Companies are now focusing on enhancing virtual care offerings and infrastructure tocapitalize on this trend. Growing preference for convenience, increasing investments by players and favorable regulations will further support the high growth of this market over the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established market make the threat of new entrants low in this market. However, regulations around telehealth services vary by country/state which poses challenges.
Bargaining power of buyers: Individual buyers have high bargaining power due to availability of different telehealth service providers. However, larger healthcare organizations can negotiate better deals due to high volume.
Bargaining power of suppliers: There are many tech and healthcare tech companies providing necessary infrastructure and services. This limits the bargaining power of individual suppliers.
Threat of new substitutes: New healthcare delivery models like home health have potential to substitute telehealth services. However, technology integration gives telehealth an advantage currently.
Competitive rivalry: Intense competition exists among existing players. Market consolidation through mergers and acquisitions is high to achieve scale and geographical reach.
SWOT Analysis
Strengths: Cost-effectiveness, accessibility, and convenience. Growing preference for virtual care post-pandemic.
Weaknesses: Technology constraints in rural areas, interstate licensure challenges, reimbursement issues.
Opportunities: Expanding into chronic/specialty care. Growth in employer-sponsored plans and Medicare Advantage offerings.
Threats: Data privacy and security concerns. Resistance from traditional providers and varying regulations.
Key Takeaways
The global virtual health service market is expected to witness high growth at a CAGR of 32% over the forecast period due to increasing preference for convenient healthcare and rising chronic diseases. North America dominates currently due to early technology adoption and supportive policies but Asia Pacific is emerging rapidly.
Regional analysis: North America accounts for the largest share currently due to favorable regulations and insurance coverage. However, Asia Pacific is expected to grow fastest at a CAGR of 40% during the forecast period due to rising internet penetration, growing medical tourism, and government focus on digital healthcare in countries like India and China.
Key players: Key players operating in the virtual health service market are Teladoc Health, Amwell, Doctor on Demand, MDLive, 98point6, Babylon Health, eVisit, HealthTap, American Well (now known as Amwell), and Livongo (acquired by Teladoc Health). These players are focusing on partnerships, mergers and new service offerings to leverage opportunities in this high growth market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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