US Telemedicine Market

U.S. Telemedicine Market Size

The U.S. telemedicine market size was valued at USD 81 billion in 2024. The market is expected to grow from USD 94.3 billion in 2025 to USD 395.6 billion in 2034, at a CAGR of 17.3%. The market growth is fueled by the rising demand for remote healthcare services. The growth has primarily driven the demand for telehealth services by physicians and other healthcare providers.

As reported by American Medical Association, telehealth usage increased from 14% to 80% from 2016 to 2022. However, the paradigm shift was primarily driven by the COVID-19 pandemic. This rising adoption signifies the shift towards virtual care, accelerating its accessibility and convenience. Therefore, with continued assimilation and improvement of telemedicine solutions, the market is expected to grow, further improving the provision of healthcare services in the future.

Furthermore, the use of the internet, wearable devices and other telecommunication platforms has widened the growth of digital health technologies which in turn increased the accessibility and ease of providing and receiving telemedicine services. These groundbreaking trends correlate with the digital transformation in the healthcare system, thereby bolstering market growth.

Telemedicine refers to the remote delivery of healthcare services using digital communication technologies. These technologies include video consultation, telemonitoring, mHealth apps. It allows real-time communication between patients and healthcare service providers, facilitating remote monitoring, remote consultations, and treatment. It enables doctors to assess, diagnose, and treat a patient without in-person visits, improving accessibility in developed and developing regions.

U.S. Telemedicine Market Trends

Expanding government support and favorable reimbursement policies have significantly driven the adoption of telemedicine in the country. In addition, the COVID-19 pandemic has significantly contributed towards the market demand.

• The COVID-19 pandemic saw a huge surge in deaths and afflictions, causing most governments across the world to ease up on policies with expansion in reimbursements under both Medicare and Medicaid.
  
• For instance, the Centers for Medicare and Medicaid Services (CMS) reported a 12,000% increase in telehealth use within six weeks spanning from early March to mid-April 2020. In addition, several states in U.S. also expanded their telehealth provision under Medicaid and allowed out-of-state practitioners to treat patients remotely. Medicaid data also claimed that around 34.5 million telehealth services were provided to beneficiaries of Medicaid and CHIP between March and June of 2020, which was 2,632% at the same timeframe in 2019. Thus, these policy shifts have gained traction in the industry leading telemedicine to be a viable and sustainable option for healthcare delivery.
  
• Additionally, federal and state measures, along with financial incentives for healthcare workers, have helped integrate telehealth into the U.S. healthcare system. These efforts ensure continued growth and acceptance of telemedicine.
  

U.S. Telemedicine Market Analysis

In 2021, the market was valued at USD 48.8 billion. The following year, it saw a slight increase to USD 57 billion, and by 2023, the market further climbed to USD 67.8 billion. Based on component, the market is segmented into hardware, software, and services. The service segment dominated the market accounting for the market revenue USD 35.1 billion in 2023. The service segment is further categorized as tele-consultation, tele-monitoring, tele-education/training, and other services.

• Telemedicine services demand is increasing due to the need for convenient healthcare and the development of telehealth technologies.
  
• Moreover, the use of these services for patient-doctor engagement, chronic disease management, and continuity of nursing care has received greater emphasis due to their high usage in this area.
  
• In addition, the versatility and spurring demand for telemedicine services further reinforce this segment's dominant position in the market.
  

Based on the specialty area, the U.S. telemedicine market is categorized into pulmonary, psychiatry, cardiology, endocrinology, rheumatology, gynecology, gastroenterology, oncology, and other specialty areas. The psychiatry segment dominated the market with a market share of 30.2% in 2024.

• The growing adoption of telemedicine in psychiatry area by the U.S. populations has spurred due to the growing need for accessible mental health services and demand for remote monitoring.
  
• In addition, telemedicine is preferred as an efficient solution for psychiatric consultations, therapy and follow-up sessions due to the convenience and flexibility of telemedicine.
  
• Moreover, its importance is enhanced by increased awareness of mental health issues, reduced stigma, and government initiatives towards mental health awareness and support for mental health coverage, which has further solidified the segment demand.
  

Based on the end use, the U.S. telemedicine market is categorized into healthcare providers, payers, patients, and other end-users. The healthcare providers segment holds the largest market share of 41.6% and is projected to account for USD 33.7 billion by 2034.

• The healthcare providers are further classified into hospitals and clinics, long-term care centers, and other healthcare providers.
  
• Healthcare providers are the key users of telemedicine solutions that provide remote consultations, disease management solutions and facilitate real-time monitoring.
  
• In addition, the increasing need for efficient health services, improvement in digital health technologies, and supportive reimbursement policies further stimulate the adoption of telemedicine by the healthcare providers.
  
• Moreover, telemedicine utilization helps healthcare providers improve patient outcomes, reduce operational costs, and expand the scope of care, confirming their dominance in the American telemedicine industry.
  

U.S. Telemedicine Market Share

The top 5 player in the market accounted for ~45%. The top key players such as Amwell, Teladoc Health, Cisco Systems, and Koninklijke Philips dominate the landscape offering advanced virtual care solutions across various specialties.

The market is highly competitive, driven by technological advancements, increasing healthcare demand and regulatory support. Teladoc Health's virtual care services go beyond general medicine and cover the areas of mental health and chronic illness management. Amwell has a strong focus on telehealth AI solutions and has built robust partnerships with various insurance and healthcare providers. Cisco Systems is instrumental in providing telehealth infrastructure security and compliance with HIPAA because of its Webex platform.

Other key players bolster market growth by increasing remote patient access. With the integration of AI, remote monitoring, and personalized care models aimed at improving patient outcomes and provider efficiency, competition reinforces among market players.

U.S. Telemedicine Market Companies

Few of the prominent players operating in the U.S. telemedicine industry include:

• AMC Health
• AMD Global Telemedicine
• American Well (Amwell)
• Cisco Systems
• Eagle Telemedicine
• GE Healthcare
• Health Catalyst
• HIPAAVIDEO.net
• Honeywell International
• Koninklijke Philips N.V
• Masimo Corporation
• McKesson Medical-Surgical
• Mend
• Oracle Corporation (Cerner)
• RemetricHealth
• SOC Telemed (Patient Square Capital)
• Specialist Telemed
• Teladoc Health
• Updox
• VCDoctor 
• Veradigm LLC (Allscripts Healthcare Solutions)
  
• Amwell offers virtual care services and programs for behavioral and chronic illness therapies which, paired with partnerships with almost all major health systems and insurers, significantly improve accessibility. Amwell’s Converge telehealth solutions platform enables the delivery of telehealth services through a wide variety of care settings.
  
• Teladoc Health offers primary care, mental health, and chronic condition management services in one place, making registration simple for clients. Teladoc Health is already trusted by more than 80 million members who also benefit from AI devising curated care plans for individual users. Strong partnerships with self-insured employers and insurers across the U.S. help increase the use of its services.
  
• Cisco provides a secure telehealth infrastructure. It allows HIPAA compliant real-time video consultations with patients promoting the Webex Telehealth Connector. In addition to advanced cybersecurity and networking capabilities allows the integration of widely used virtual care, seamless interaction between the patient and the provider is made possible throughout all hospitals, clinics, and remote care.
  

U.S. Telemedicine Industry News

• In May 2024, SHL Telemedicine Ltd introduced its SmartHeart membership program in the U.S. This program allows remote home care using the SmartHeart 12-lead portable ECG device. It also provides ECG interpretation by certified cardiologists 24/7 and telehealth consultations based on patient needs. This project marked a significant step toward offering telehealth services and remote at-home ECG services.
  
• In January 2024, Eli Lilly and Company launched LillyDirect, a digital healthcare solution designed for American patients with obesity, migraines, and diabetes. It includes disease management tools, telehealth services, personalized care, and home delivery of certain medications. This program aimed to make managing chronic diseases easier and more convenient for patients.
  

The U.S. telemedicine market research report includes in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 – 2034 for the following segments:

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Market, By Component

• Hardware
• Software
  • Cloud-based
  • On-premises
• Services
  • Tele-consultation
  • Tele-monitoring
  • Tele-education/training
  • Other services

Market, By Specialty Area

• Pulmonary
• Psychiatry
• Cardiology
• Endocrinology
• Rheumatology
• Gynecology
• Gastroenterology
• Oncology
• Other specialty areas

Market, By End Use

• Healthcare providers
  • Hospitals and clinics
  • Long-term care centers
  • Other healthcare providers
• Payers
• Patients
• Other end use