February 16, 2025

Virtual Health Service is driven by increasing adoption of telehealth

The adoption of virtual healthcare solutions has grown rapidly over the past few years owing to the technological advancements in telecommunication as well as focus on patient comfort and convenience. Through virtual health services, healthcare providers can treat and monitor patients remotely using digital communication tools and sensors. This removes the need for in-person visits and enables healthcare access for people in rural areas. Virtual health solutions provide various benefits such as reduced healthcare costs, timely medical assistance, and flexibility.

The global 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 key trends:

One of the major trends in the virtual health service market is growing integration with wearable devices. Continuous monitoring enabled by devices such as smartwatches and fitness bands allows seamless collection and analysis of vital health statistics. This data can be effectively utilized by healthcare providers for remote consultations, medication management as well as early detection of potential health issues. Integration of virtual care solutions with wearables empowers patients to take a more proactive role in healthcare management. As wearable technology continues to advance, the role of virtual health services alongside remote patient monitoring will become more prominent.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the virtual health service market is moderate to low. Large capital investments are required to enter this market and existing players have established brand names and reputation.
Bargaining power of buyers: The bargaining power of buyers in the virtual health service market is high. Buyers have many options to choose from and they can switch between virtual health service providers easily.
Bargaining power of suppliers: The bargaining power of suppliers in the virtual health service market is low. Suppliers include doctors, hospitals and software/platform developers. Suppliers have less differentiating power and switching costs are low.
Threat of new substitutes: The threat of new substitutes in the virtual health service market is moderate. Traditional in-person visits are substitutes for virtual visits. However, virtual services provide convenience that is hard to substitute.
Competitive rivalry: The competitive rivalry in the virtual health service market is high. The market has many large and small players competing on pricing, innovation, service quality and customer experience.

Key Takeaways
The global virtual health service market is expected to witness high growth. The adoption of telemedicine and remote care delivery models are fueling the market growth.

Regional analysis: North America dominates the virtual health service market currently due to technological advancements and favorable reimbursement policies for telehealth and telemedicine services. However, Asia Pacific is expected to grow at the fastest pace due to rising internet penetration, increasing investments by key players and growing awareness.

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), Livongo (acquired by Teladoc Health). These players are focusing on partnerships, acquisitions and new service launches to gain higher market shares.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Ravina
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Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. 

Ravina Pandya

Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. 

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