The U.S. virtual visits market size was valued at USD 4.5 billion in 2020 and is expected to reach USD 24.7 billion grow at a compound annual growth rate (CAGR) of 27.5% from 2020 to 2027. Increase in the number of telehealth/virtual visits during the COVID pandemic and the introduction of advanced audio-video technologies are some of the key factors driving the market.
In addition, increasing usage of smartphones and rising adoption of 4G/5G technology is further rising its adoption among the patient population. In 2020, around 102.8 million people went for virtual healthcare assistance. Reach to rural areas, saving costs, automatic record-keeping, and virtual waiting room to avoid spread of infection are factors driving the growth of the market. In addition, rising crisis to access care is likely to create opportunity for virtual visits in the country. However, virtual visits provide a limited physical examination, involve high investment in equipment, is susceptible to technical glitches, lack provider acceptance, and have security and privacy concerns. These factors are likely to limit the growth of the market.
Furthermore, growth in the number of government initiatives for the development of telehealth programs is expected to propel market growth. For instance, in 2018, the U.S. Department of Veterans Affairs expanded its telehealth offerings by allowing their doctors, nurses, and other providers to administer care through telehealth regardless of their location in the U.S. Similarly, in March 2020, Medicare expanded telehealth services in response to the COVID-19 outbreak in the country. Hence, such rising government reforms are anticipated to fuel the demand in the coming years.
Based on service type, the cold and flu management segment dominated the market for virtual visits with a share of 30.3% in 2020. The largest market share is attributable to increasing patient demand for immediate care while avoiding spread of infections in waiting rooms at hospitals and other healthcare facilities. Furthermore, the behavioral health is expected to be the fastest-growing segment over the forecast period. This growth can be attributed to the increasing demand for end-to-end virtual care solutions for various behavioral health conditions, such as depression, grief and loss, anxiety, bipolar, LGBTQ support, relationship issues, panic disorders, stress management, trauma, posttraumatic stress disorder, and addiction.
Based on commercial plan type, the self-funded/ASO group plans segment accounted for the highest revenue share of 33.3% in 2020 in the U.S. virtual visits market. This is owing to factors such as, the increasing prevalence of chronic diseases, rising healthcare costs, and surging demand for affordable healthcare solutions.
In terms of revenue, North America Virtual visits market stood at US$986.41 Mn in 2017 which is highest among all the regions considered in the report and is expected to expand at a CAGR OF 25.8% FROM 2017-2027. The rising crisis of healthcare access, lack of space and available time are some of the factors driving the market. Since North America acts as catalyst for major technological advancements with substantial opportunities in California and New York, the application and consumption of newer technologies is higher in the region. The availability of trained work force and other necessary resources is also driving the growth. Canada is also flourishing as a technological centre with growing opportunities and development in cloud, IT security and software.
Some of the prominent players in the U.S. virtual visits market include: Teladoc, Inc., American Well Corporation, MDLive, Doctor on Demand, Inc., Zipnosis, MeMD, HealthTap, Vidyo, Inc., eVisit Telemedicine Solution, PlushCare, Inc.
In addition, increasing usage of smartphones and rising adoption of 4G/5G technology is further rising its adoption among the patient population. In 2020, around 102.8 million people went for virtual healthcare assistance. Reach to rural areas, saving costs, automatic record-keeping, and virtual waiting room to avoid spread of infection are factors driving the growth of the market. In addition, rising crisis to access care is likely to create opportunity for virtual visits in the country. However, virtual visits provide a limited physical examination, involve high investment in equipment, is susceptible to technical glitches, lack provider acceptance, and have security and privacy concerns. These factors are likely to limit the growth of the market.
Furthermore, growth in the number of government initiatives for the development of telehealth programs is expected to propel market growth. For instance, in 2018, the U.S. Department of Veterans Affairs expanded its telehealth offerings by allowing their doctors, nurses, and other providers to administer care through telehealth regardless of their location in the U.S. Similarly, in March 2020, Medicare expanded telehealth services in response to the COVID-19 outbreak in the country. Hence, such rising government reforms are anticipated to fuel the demand in the coming years.
Based on service type, the cold and flu management segment dominated the market for virtual visits with a share of 30.3% in 2020. The largest market share is attributable to increasing patient demand for immediate care while avoiding spread of infections in waiting rooms at hospitals and other healthcare facilities. Furthermore, the behavioral health is expected to be the fastest-growing segment over the forecast period. This growth can be attributed to the increasing demand for end-to-end virtual care solutions for various behavioral health conditions, such as depression, grief and loss, anxiety, bipolar, LGBTQ support, relationship issues, panic disorders, stress management, trauma, posttraumatic stress disorder, and addiction.
Based on commercial plan type, the self-funded/ASO group plans segment accounted for the highest revenue share of 33.3% in 2020 in the U.S. virtual visits market. This is owing to factors such as, the increasing prevalence of chronic diseases, rising healthcare costs, and surging demand for affordable healthcare solutions.
In terms of revenue, North America Virtual visits market stood at US$986.41 Mn in 2017 which is highest among all the regions considered in the report and is expected to expand at a CAGR OF 25.8% FROM 2017-2027. The rising crisis of healthcare access, lack of space and available time are some of the factors driving the market. Since North America acts as catalyst for major technological advancements with substantial opportunities in California and New York, the application and consumption of newer technologies is higher in the region. The availability of trained work force and other necessary resources is also driving the growth. Canada is also flourishing as a technological centre with growing opportunities and development in cloud, IT security and software.
Some of the prominent players in the U.S. virtual visits market include: Teladoc, Inc., American Well Corporation, MDLive, Doctor on Demand, Inc., Zipnosis, MeMD, HealthTap, Vidyo, Inc., eVisit Telemedicine Solution, PlushCare, Inc.
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