What is Telemedicine?
Before getting to know telemedicine companies, let’s first understand what telemedicine is, look at the telemedicine market, and then see promising telemedicine companies.
‘Telemedicine’ or ‘Telehealth’ services have been welcomed into the life sciences industry to usher a new era of healthcare into fruition. Simply put, telemedicine is the use of electronic technologies to aid and support healthcare services when distance separates the doctor and patient. Some features of telemedicine include virtual visits between doctor & patient, remote monitoring services to track patients’ health data, such as blood pressure, heart rate and blood sugar levels, education and research.
Benefits of telemedicine services include easier access to care, reduced costs by reducing the need for travel and an improved quality of care through patient access to specialists that may not be available in their local area. Easier access to care should be heavily stressed, especially since the Coronavirus pandemic; one study published by JAMA Internal Medicine found that telemedicine visits were associated with a 30% lower risk of hospitalisation for respiratory illness[i], proving more prominent telemedicine services could have reduced the number of people exposed to Covid-19 and later prevented them becoming subsequently ill.
Global Telemedicine Market
The global telemedicine / telehealth market was valued at USD 87.4 billion in 2022, projected to grow at a 17.2% CAGR, reaching USD 286.2 billion by 2030, Fortune Business Insights reports[ii].
Bloomberg reports some growth drivers, including the following[iii]:
Growing internet & associated technology
- With expansion of internet access and 5G networks, it is much more probable for telemedicine to also grow, especially for those patients in remote areas, areas with low funding or lack of transport access.
Use of artificial intelligence
- As the technology industry focuses more & more on AI, there becomes more & more opportunities within the telemedicine market for AI applications.
Region-wise, North America absolutely dominates the global industry, accounting for 43% of total market share in 2021[iv], with a value of ~USD 80 billion and a CAGR of 24.0%.
Global Telemedicin Companies
A lot of the global telemedicine companies within this market are fairly unpopular, yet strive to achieve wonderful things for the healthcare industry and the unfortunate people needing treatment around the world.
First, we have Teladoc Health, who account for over 10% of the world’s telemedicine market share, recording annual revenues of USD 2.4 billion in FY22, an 18% increase from 2021[v]. This multinational company, headquartered in New York, offers “virtual primary care, mental health, chronic care and everything in between” to their patients[vi].
Next up, accounting for only half of Teladoc’s market share, is American Well (‘Amwell’). The company offers seamless care via virtual consultations, specialty consults, partnerships with hospitals & healthcare providers and clinical programs. Their solutions enable optimised workflows, cost cutting measures, patient retention, improved efficiency and an overall better patient experience through its platform[vii]. The company gained USD 277 million in revenue in 2022, up 10% from the year prior[viii].
UK Telemedicine Market
IBIS World valued the British Telehealth Services industry at GBP 585.6 million in 2022, growing at an annual rate of 19.8% since 2017[ix], while the UK’s telemedicine market was valued at just over GBP 1.2 billion in 2022, forecast to reach GBP 12.7 billion by 2030[x].
It would be wise for investors to enter this ESG-friendly market early, as it is clearly experiencing rapid growth, especially in the UK. Demand is driven hugely in the UK.
From the British Medical Association, the average daily number of hospital beds has been slightly decreasing since 2010, with constant demand. The UK has significantly fewer hospital beds relative to comparable nations, estimated at around 2.4 beds per 1,000 habitants[xi]; telemedicine and telehealth services can reduce this downward pressure on the NHS through the use of devices such as home-based and wearable monitoring equipment, alongside many other ‘virtual’ medicinal services.
UK Telemedicine Companies
Clearly, the British Telehealth and Telemedicine Companies are poised for great expansion and growth. JCinus Partners introduce an array of potential investment opportunities within this sector, mostly London-based seed businesses. Please see below:
We first introduce Company B as one of promising telemedicine companies, a seed company focused on providing holistic care, telehealth and wellness treatments for those with cancer. The business offers quick, online advice from NHS-qualified professionals at affordable pricing rates, alongside more than 20 holistic cancer support treatments. Since its inception in 2020, Perci Health has received GBP 4.9 million in funding from just one investor.
Company D, as one of growth telemedicine companies, is a series A company providing an app-based client engagement platform for veterinarians, supporting them in engaging better with pet owners. The app’s features comprise of a role-based text chat, including the potential to access the capabilities of the entire vet team, video consultations and payment processing services. Founded in 2019, the business has already generated USD 17 million in three rounds of funding.
This next business is a global leader in remote patient engagement solutions, offering clinical exercise prescriptions, patient education, results analysis and many other telehealth services. Founded in 2012, the company already has a global presence, with offices in the Netherlands, Australia, UK and the US. Company F has achieved USD 3.5 million in funding across three rounds. It is expected to be one of global telemedicine companies.
This seed company based in Solihull, Birmingham, operates as a telemedicine platform, connecting patients in the Middle East & Africa with international medical professionals via video chat. Patients are granted highly detailed medical reports post-video consultation from up to four different specialists, with an option to travel abroad to consult with the experts or to receive treatment. This young startup has gained GBP 300,000 over two rounds of funding.
Finally, we present an AI-driven telemedicine platform. The integrated base offers medical services, virtual consultations and AI-powered symptom checkers for efficient, cost-effective patient care. Company Y also strives promote a general healthier culture by engaging with communities and prioritising lifestyle and physical fitness. Founded in 2022, the startup hosted their first round of funding in April 2023.
- [i] https://jamanetwork.com/journals/jamainternalmedicine/fullarticle/2773059
- [ii] https://www.fortunebusinessinsights.com/industry-reports/telemedicine-market-101067
- [iii] https://www.bloomberg.com/press-releases/2023-04-04/telehealth-market-size-worth-usd-224-87-billion-globally-by-2030-at-18-81-cagr-exclusive-report-on-telemedicine-industry-by
- [iv] https://www.bloomberg.com/press-releases/2023-04-04/telehealth-market-size-worth-usd-224-87-billion-globally-by-2030-at-18-81-cagr-exclusive-report-on-telemedicine-industry-by
- [v] https://www.macrotrends.net/stocks/charts/TDOC/teladoc-health/revenue
- [vi] https://www.teladochealth.com/
- [vii] https://business.amwell.com/
- [viii] https://s25.q4cdn.com/628195074/files/doc_financials/2022/q4/1ef739d0-5e0a-48f3-acbc-c87aeb5e88ca.pdf
- [ix] https://www.ibisworld.com/united-kingdom/market-size/telehealth-services/
- [x] https://www.insights10.com/report/uk-telemedicine-market-analysis/#:~:text=UK%20Telemedicine%20Market%20Executive%20Summary,reach%20%2416.2%20Bn%20in%202030
- [xi] https://www.bma.org.uk/advice-and-support/nhs-delivery-and-workforce/pressures/nhs-hospital-beds-data-analysis
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