Industry Trends

Latin America Telemedicine Market share was valued at USD 1.4 billion in 2019 and is expected to witness 20.3% CAGR from 2020 to 2026.

Telemedicine refers to the practice that allows healthcare professionals to provide health-related services and information via telecommunication and electronic information technology to patients in remote areas. The telemedicine technology is widely used for follow-up visits, medication management and management of chronic condition among others that can be provided remotely via secure audio and video connections.
 

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Increasing prevalence of COVID-19 infection across the region will positively influence industry growth. For instance, according to the United Nations Development Programme (UNDP) statistics, by 14^th September 2020, more than 8.0 million confirmed cases of COVID-19 infection were recorded in the Latin American region. This has led to a significant spike in demand for virtual visits amid the COVID-19 pandemic. Also, due to rise in number of cases, there has been a surge in demand for personal health. To meet this demand, companies are increasing their capability to handle several thousand virtual visits a day to meet the growing need, thus propelling the market growth.

High adoption of sub-optimal lifestyle and habits such as tobacco smoking, alcohol consumption among others are responsible for high prevalence of chronic conditions in Brazil. As per the National Cancer Institute data, in 2017, the per capita cigarette consumption in Brazil was about 570 in people aged 15 years or more. Cigarette smoking is one of the leading causes of preventable death in Brazil, accounting for over 188,000 deaths annually. With growing burden of chronic conditions, the demand for telemedicine services will increase, thereby fostering the market growth.

 Latin America Market, By Service

By service, the telemedicine market is segmented into tele-consulting, tele-monitoring, tele-education and others. The tele-consulting segment was valued at USD 644.3 million in 2019 and is expected to register significant growth during the forecast timeframe. Increasing need for providing healthcare services to patient at remote places coupled with rising demand for saving travel time and cost to avail healthcare service will propel segment growth in the future. Moreover, various government initiatives to encourage use of telemedicine services will further boost the segmental growth.

Latin America Market, By Type

Based on type, the telemedicine market is classified into telehospital and telehome. Telehospital dominated the market with more than 69.5% share in 2019, and it is expected to show similar trend during the forecast period. High growth rate is due to increasing adoption of telemedicine services in hospitals and other healthcare settings. Increasing government funding and grants for encouraging adoption of telemedicine services in hospitals will boost segmental growth in the future. Moreover, growing demand for telemedicine services in hospitals due to the growing COVID-19 pandemic will boost the segment growth.

Latin America Market, By Specialty

The specialty segment of telemedicine market is bifurcated into cardiology, mental health, neurology, gynecology, dermatology, orthopedics and others. Application of telemedicine in neurological diseases is poised to grow at 21.4% CAGR across the forecast timeframe. High pervasiveness of neurological disorders coupled with increasing need for efficient management of neurological disorders will boost application of telemedicine services in neurology. With an increasing demand for neurological services in growing population, telemedicine can be a very effective tool.

Latin America Market, By Delivery Mode

By delivery mode, the telemedicine market is divided into web/mobile-based and call centers. The web/mobile-based segment was valued at USD 848.0 million in 2019 and will witness tremendous growth between 2020 and 2026. High growth rate is attributed to increasing adoption rate of cloud-based services in hospitals and homecare settings. Moreover, growing telecommunication base in Latin America coupled with various government initiatives will boost demand for web/mobile-based telemedicine platforms in the future.

Latin America Market, By Country

Brazil dominated the Latin America telemedicine market with revenue share of 45.3% in 2019 and is expected to reach USD 2.6 billion by 2026. Presence of well-established telecommunications network coupled with rising need to provide immediate and low-cost healthcare services to patients in remote places will boost regional growth. Furthermore, various government initiatives such as the RUTE program and the National Telehealth Primary Care Program will further strengthen telecommunication network that is conducive to regional growth in the upcoming years.

Competitive Market Share

Some of the major industry players involved in Latin America telemedicine market include AMD Global Telemedicine, Aerotel Medical System, Docademic, Honeywell International, Cerner Corporation, Teladoc and Lumed Health among others. Market players are focused on collaboration strategy in order to launch innovative products in the market. For instance, in March 2019, McKesson Corporation announced a collaboration with Navigating Cancer for offering enhanced patient relationship management platform for oncologists. The platform provides patient care management tools and remote monitoring for capturing patient-reported outcomes. This has helped company to cater to customer demand and increase their revenue. 

Industry Background

The work of telemedicine in Latin America began at the end of 1990s, by analysing the communication and information needs in rural primary healthcare in developing economies of Latin America. The first approach in telemedicine line was focused on increasing the efficacy of the epidemiological surveillance systems and allowing distance training in remote areas via low-rate data system and voice calls. Currently, the telemedicine services are primarily used for medication management, follow-up visits and management of chronic condition among others that can be provided remotely via video and audio connections. Furthermore, as the COVID-19 pandemic increases, there is greater demand for telemedicine services from the general public, driving the industry expansion.