Global telemedicine market pegged to more than double by 2016
The global telehome and telehospital market was valued at $11.6 billion in 2011 and is expected to increase to $27.3 billion in 2016, a five-year compound annual growth rate (CAGR) of 18.6 percent, according to BCC Research.
In its new study, "Global Markets for Telemedcine Technologies," BCC reports that the telehospitals and clinics segment accounted for $8 billion in 2011 and is expected to increase at a CAGR of 16.8 percent to reach nearly $17.6 billion in 2016.
The telehome segment accounted for $3.5 billion in 2011 and is expected to increase at a CAGR of 22.5 percent to reach $9.7 billion in 2016.
The telemedicine market can also be segmented into technology (hardware, software, telecom, network) and service segments. The telemedicine technology market is expected to grow from $3.8 billion in 2010 to $4.6 billion in 2011 and $11.3 billion in 2016, with a CAGR of 19.8 percent over the next five years. The telemedicine service market is expected to grow from $5.9 billion in 2010 to $7 billion in 2011 and nearly $16 billion in 2016, mainly driven by growth in the telehospital service market.
[See also: Mobile health app market in growth mode]
There has been a global focus on the use of telemedicine as a tool to cut down healthcare costs and bring about big savings. Implementation of the new U.S. healthcare law will, if anything, intensify this focus, by increasing the number of people with health insurance and seeking medical services. In the near to mid-term, telemedicine technology offers one of the few ways of enabling healthcare personnel to meet the increased demand without unacceptable delays or other forms of de facto rationing.
Officials say this report is intended for telemedicine hardware manufacturers, software providers, telecom and networking companies, the healthcare industry, and healthcare insurance companies. Key takeaways include the identification and quantification of markets for technology and services in the telemedicine market. Opportunities are defined in terms of market forecasts, avenues, trends, market drivers and competitive gaps.