Internet Healthcare Set for Breakout Year in 2020: Market to Reach Nearly $50 Billion

The global telemedicine market has long been viewed favorably, as the aging population has driven sustained growth across a spectrum of digital health solutions—from medical video apps and remote monitoring devices to various internet-based healthcare applications. But is this nearly 50% annual growth rate still sustainable? U.S. market research firm Grand View Research (GVR) has been studying telemedicine trends for many years. VCBeat presents a translated summary of GVR’s recently released report, offering insights into the future growth potential of the telemedicine market.

According to the latest research data from GVR, the internet healthcare market is set to experience explosive growth within just five years, reaching a market value of nearly $50 billion by 2020.The report states that “the continuous rise in per capita healthcare expenditure has rendered medical services unaffordable for a significant proportion of the population. Consequently, demand for internet-based healthcare services is projected to increase substantially over the next six years. Furthermore, the widespread adoption of smartphones and the growing number of 3G and 4G network users are expected to further drive demand for telemedicine services. As population aging intensifies and the incidence of lifestyle-related diseases continues to rise, the need for affordable and convenient healthcare services will become increasingly urgent.”

The report points out that designers and manufacturers of internet medical devices are poised with confidence to launch a new wave of products into the market, so supply will soon align with demand. In the short term,Disease Monitoring Devices Will Become the Mainstay of the Market(The market revenue for this product category reached $1.2 billion in 2012), and demand for other products is also set to rise, helping to drive the market toward its projected growth.



Telemedicine Poised for Meteoric Rise

Of course, the development of the internet healthcare market will not be smooth sailing; security and privacy are issues that must be addressed along the way. However, as the market matures, these challenges will be resolved. Key findings of the report include:

•Chronic Disease Management Is the Largest Contributor to the Disease Monitoring Services Market, with particularly strong demand in developed markets such as North America and Europe. The post-emergency care treatment market accounted for 19.5% of the total revenue from disease surveillance services in 2012.

•Diagnostic services are more prevalent in emerging markets, and as these services become increasingly widespread, which is expected to significantly facilitate local residents' access to this healthcare service.

• Mobile operators accounted for 48% of the overall market share in 2012, with theirThe majority of revenue comes from disease surveillance services., such as independent aging solutions.

• By 2020, the growth rate of the healthcare service provider market is projected to be lower than the global average, with an estimated compound annual growth rate (CAGR) of approximately 45%. The report states, “Given users’ considerable concerns regarding reliability and the effectiveness of regulatory support, the ability of industry stakeholders to drive profitability becomes critical.”

• North America leads the global market, accounting for 33.5% of total market revenue in 2012. Its highest demand stems from monitoring services, as the rising incidence of chronic diseases has driven increasing demand for internet-based healthcare solutions.

•Higher per capita healthcare spending in developed country markets is expected to become the main driver of regional economic growth. Driven by the demand for affordable healthcare, the Asia-Pacific market is expected to become the fastest-growing regional market, with a compound annual growth rate (CAGR) of approximately 49% from 2014 to 2020.

By Chen Xin

Editor: Zhang Nan