U.S. Direct To Consumer Telehealth Services Market Size, Share & Trends Analysis Report By Product (Remote Monitoring, Real-time Interactions), By Delivery Mode (Web-based, Cloud-based, On-premise), And Segment Forecasts, 2024 - 2030

U.S. DTC Telehealth Services Market Trends

The U.S. direct to consumer telehealth services market size was valued at USD 1.47 billion in 2023 and is projected to grow at a CAGR of 30.3% from 2024 to 2030. The market in the U.S. has been accelerating in its growth, primarily due to the COVID-19 pandemic, and since then, virtual consultations and remote monitoring surged. In addition, the advancements in technology, improved internet connectivity, increasing government support in digitalizing healthcare systems, growing geriatric population, and increasing prevalence of chronic diseases further propel the adoption, thereby driving the market growth.

The research and innovation directed by the top market players, such as American Well (Amwell), Teladoc Health, Inc., CareClix, Inc., and Doctor On Demand are driving the adoption of advanced technologies and innovation techniques of telehealth, thus benefitting the U.S., further driving the market growth.

The rise in population and available treatment options have led to the increased use of telehealth services. For instance, in 2023, a report published in Informedica, about 74% of U.S. consumers use telehealth services. AI and Data analytics have enhanced diagnostics and decision-making processes. For instance, in July 2023, Teladoc Health Inc. collaborated with Microsoft to address the healthcare workforce crisis. It integrated Microsoft Azure OpenAI Service, the Nuance Dragon Ambient eXperience, and Azure Cognitive Services into the Teladoc Health Solo platform. It improved the quality of shared medical information and the care it supports and helped ease the burden on the healthcare workforce, thereby boosting the market growth.

Increasing internet accessibility is a primary requirement for the development of the telehealth services market. The increasing policy support, wearable technology, and remote monitoring empower proactive management systems and drive market growth. For instance, in March 2024, according to Becker’s Hospital CFO Report, the government invested about USD 2 for USDA broadband programs and provided about USD 122 million for the ReConnect program, giving loans and grants for broadband access in underserved areas, such as tribal areas. All these factors have helped drive the market growth.

The growing geriatric population in the U.S. is also a contributing factor to the development of to consumer telehealth services market. For instance, per the statistics published by the Population Reference Bureau in January 2024, the number of people aged 65 and older is projected to increase by 82 million by 2050. This would lead to an increase in the usage of telehealth services, thereby driving market growth. In the U.S., an estimated 129 million people had at least one major chronic disease by 2024. This is expected to drive the demand for remote consultations and further foster growth in the market.

Product Insights

Web-based dominated the market and accounted for a market share of 45.8% in 2023. The growth of web-based applications, virtual therapy, and care has enabled patients to access these services directly. The increased use of the internet and web-based services allows most remote locations to access one computer or monitoring device. According to the statistics published by the World Bank, 92% of the total population in the U.S. was using the internet in 2021, which is further expected to drive segmental growth.

The cloud-based delivery category is estimated to grow at the fastest CAGR over the forecast period. It can be attributed to the rising adoption of cloud storage platforms by both physicians and patients. The utilization of external web servers, seamless information sharing across different stages of the value chain, remote access & authorization, and the ability to promptly detect security threats have further facilitated its adoption. For instance, cloud telephony is a method for helping patients in isolated and rural locations. It can improve the efficiency of delivery by eliminating administrative duties such as making appointments and maintaining patient records. This eventually lowers the number of hospital admissions and ER visits by enabling professionals to concentrate on delivering high-quality care. Thereby boosting the market growth positively.

Delivery Mode Insights

Real time interactions dominated the market and accounted for a market share of 32.3% in 2023. It can be attributed to the rising government initiatives in the U.S., incorporation of telehealth projects across all states, and passing of bills, allowing people to opt for telehealth services, thereby boosting market growth. For instance, patient-generated health data (PGHD) helps doctors treat and understand their patients quickly, as all the information and data are recorded with real-time interactions, so it becomes easier to analyze it and develop a suitable treatment plan. Government initiatives, such as the rural telehealth initiative launched in August 2020, have helped to collaborate and address various health disparities and create awareness regarding broadband services and technology in the rural areas of the U.S. All these factors have helped in driving the growth of this segment positively.

The store and forward segment is expected to grow at the fastest CAGR over the forecast period. It can be attributed to the improving efficiency and convenience rate. Store and forward telehealth can increase patient access to care by allowing them to submit clinical information for evaluation without an in-person visit. In 2023, 33 state Medicaid programs were reimbursed for store and forward telehealth services, with five additional states having laws requiring reimbursement. This expanded coverage by a major payer is driving wider adoption and segment growth.

Country Insights

The U.S. is estimated to witness lucrative growth in this industry. It is attributed to the factors such as improved healthcare facilities, increasing expenditure, and rising government investments. For instance, in February 2021, the U.S. Department of Agriculture (USDA) invested USD 42.3 million in telemedicine infrastructure to improve education and health outcomes. All these factors have contributed to the significant change and development of direct-to-consumer telehealth services, thereby impacting the market and boosting its growth.

Key U.S. Direct To Consumer Telehealth Services Company Insights

Some of the key companies in the direct-to-consumer telehealth services market include American Well (Amwell), Teladoc Health, Inc., CareClix, Inc., and Doctor On Demand. These companies are growing their market revenue by launching new products, collaborations, and adopting various other strategies.

• Teladoc Health, Inc. provides a wide range of direct-to-consumer telehealth services. Teladoc Health offers on-demand virtual visits with board-certified physicians, licensed therapists, and other healthcare providers across a variety of specialties. The company launched an integrated app that includes its full suite of virtual care services, including primary care, mental health, chronic condition management, and expert medical opinions.

• Doximity, a digital platform for medical professionals, has expanded its telehealth offerings to provide comprehensive direct-to-consumer virtual care services. Doximity's flagship telehealth product is the Dialer, which allows healthcare providers to conduct secure voice and video visits with patients directly from their own smartphones.

Recent Developments

• In September 2023, HealthTap, Inc. launched AI-powered patient interviews using GPT-4 to enhance telemedicine visits.

• In July 2023, HealthTap, Inc launched a program to accelerate access to healthcare facilities. Free virtual visits and unlimited texting consultations with doctors were offered for a year.

• In July 2023, HealthTap, Inc. launched a campaign to rapidly increase access to healthcare for U.S. hospitality workers. It offered free virtual doctor visits and a year of unlimited texting with doctors at discounted prescriptions.

U.S. Direct To Consumer Telehealth Services Market Report Scope

U.S. Direct To Consumer Telehealth Services Market Report Segmentation

This report forecasts revenue growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. direct to consumer telehealth services market report based on product, delivery mode, and country.

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Web-based

  • Cloud-based

  • On-premise 

• Delivery Mode Outlook (Revenue, USD Million, 2018 - 2030)

  • Remote Monitoring

  • Real-time Interactions

  • Store & Forward

  • Others