Tuesday 12 January 2016

Global Video Telemedicine Market: Government Initiatives to Help Market Expand at a CAGR of 16.5% during 2014-2020

Proliferation of communication technology and devices, coupled with rapidly ageing population, has augmented the growth of the global video telemedicine market. Improved cost and time efficiencies offered by video telemedicine platform have boosted its adoption across the healthcare sector. The global video telemedicine market is estimated to be worth US$1,624.4 mn by 2020. The overall market stood at a valuation of US$559.0 mn in 2013 and is anticipated to expand at a CAGR of 16.5% during the period between 2014 and 2020.


Government Sector Acknowledging Importance of Video Telemedicine, Proposing Bills Related to Reimbursement for Telemedicine

Introduction of 4G technology is expected to revolutionize the global video telemedicine market with gynaecology and dermatology emerging as the key application segments in the market. Acknowledging the importance of video telemedicine, lawmakers across the globe are introducing bills related to telemedicine, thereby augmenting demand from the market. 

According to a new report by the National Conference of State Legislatures, 8 states in the U.S. introduced at least one bill related to telemedicine to their state legislature in 2015. Most of these bills have addressed the reimbursement policies related to telemedicine and are expected to positively impact the global video telemedicine market. 

The growth of the global video telemedicine market looks robust in the near future with market players bidding for telemedicine pilot projects granted by research bodies. For example, a committee of the Massachusetts Health Policy Commission has recently voted on a grant program. The program will award up to US$500,000 each for two telemedicine pilot projects targeted to study the behavioural health needs of people with substance abuse, homebound seniors, and children. As applications of video telemedicine continue to grow, government and research organizations are taking steps to increase its usage across the healthcare sector. 

Grants, Pilot Projects, and Reimbursement Bills for Video Telemedicine to Open New Opportunities for Market Players

Vidyo Inc. is gearing up to offer stiff competition to the established players in the global video telemedicine market. In its latest round of funding in December 2015, the company has raised US$15 mn, including US$10 mn from healthcare giant Kaiser Permanente. According to officials, Vidyo has now raised US$163 mn. The company had launched its first software-based video conferencing product in 2008. With robust funding from healthcare giants such as Kaiser Permanente, Vidyo is anticipated to gain a strong foothold in the market dominated by Polycom, Cisco Systems, and LogiTech International’s LifeSize Communications Inc.


Vidyo’s technology is already being used by some of the top electronic health record management systems across the globe. The VidyoWorks platform provides a level of encryption that complies with the demands in the Health Insurance Portability and Accountability Act (HIPAA) in the U.S. The global video telemedicine market is expected to witness more players such as Vidyo to innovate their platforms and challenge the established players. 

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