Global Teledermatology Market Overview

Teledermatology Market Size Was Valued at USD 14.85 Billion in 2023 and is Projected to Reach USD 92.45 Billion by 2032, Growing at a CAGR of 22.53% From 2024-2032.

• The teledermatology market is experiencing significant growth, driven by the rising prevalence of skin conditions and the global shortage of dermatologists. This field, a subspecialty of dermatology and one of the most prominent applications of telemedicine, leverages modern communication technologies to provide remote skin consultations. By employing store-and-forward (SAF) methods, images and medical information are securely stored on digital devices and electronically transferred to dermatologists for asynchronous review. The real-time or interactive teledermatology allows direct patient-doctor communication via audio and visual tools. Hybrid models combining these approaches further enhance efficiency and accessibility. These advancements are crucial in addressing the long waiting times for in-person consultations, especially for elderly populations increasingly affected by conditions like psoriasis, eczema, skin cancer, and acne.
• Market growth is further bolstered by the widespread adoption of telemedicine as healthcare providers seek innovative solutions to meet rising demand. According to the American Academy of Dermatology, approximately 100 million Americans experience skin conditions annually, underscoring the vast need for dermatological care. Teledermatology reduces geographic barriers, enabling patients to receive timely diagnoses and treatment plans without needing in-person visits. Its applications are particularly valuable in underserved or remote areas, where specialist availability is limited. As a result, teledermatology has become a cornerstone of e-health, offering a scalable, cost-effective solution to bridge the gap between patients and specialists. This growing demand positions the teledermatology market as a vital component of modern healthcare, poised for lucrative expansion in the coming years.

Market Dynamics and Key Factors in Teledermatology Market:

Drivers

• Teledermatology can be utilized by health care workers for various applications such as providing clinical services to patients, monitoring patient health, consulting with other health care practitioners, and providing patients with educational resources. Teledermatology is the best solution to issues concerning cancer diagnosis, screening, and treatment, as well as pigmented skin lesions. Teledermatology is the most convenient option for the geriatric population as in old age it becomes difficult for them to visit clinics. The growing geriatric population across the globe will create more demand for dermatologists in years to come. According to a study conducted in São Paulo, Brazil, teledermatology managed 66.66% of the total participants (age above 60) without the need for an in-presence visit.
• Improved telecommunication infrastructure in developing nations is another driving factor for the teledermatology market. The major investments in 4G LTE networks that these countries are planning to implement will boost the teledermatological market. This will enable a doctor in the United States, or even in another country's urban region, to treat patients in rural areas remotely. Due to an increase in the incidence of skin disorders such as skin cancer, eczema, and psoriasis, the number of dermatological services has increased significantly. According to the American Association of Dermatology, around 50 million Americans have acne, 30 million have eczema, and 7.5 million have psoriasis. Every day, around 9,500 people in the United States are diagnosed with skin cancer. Thereby, the growing number of skin disorders around the globe is expected to strengthen the growth of the teledermatology market over the analysis period.

Restraints:

• The most serious concern about online consultations has been the accuracy of diagnosis. Poor-quality photographs shared by the patient might reduce diagnosis accuracy and increase errors drastically. Untrained individuals may not know which lesions to photograph, how to picture them, or may choose to overlook private parts, oral mucosa, and other areas. It's also tough to photograph places that aren't easily accessible to the patient, such as the back, buttocks, and scalp. All these factors can affect the diagnosis of skin disorders, thus hampering the growth of the teledermatology market over the forecast period.

Opportunities:

• According to a study, physicians receive lesser reimbursement for teledermatology visits because teledermatology reduces visit costs by $10–$80 when compared to in-person consultations. Before COVID-19, insurance companies paid less for teledermatology visits than for in-person visits. To encourage physicians to practice teledermatology during COVID-19, insurance companies have begun to provide payment parity for teledermatology appointments while keeping physician salaries the same.
• The adoption of artificial intelligence is one of the key trends in teledermatology. Healthcare organizations are rapidly expanding telemedicine programs and embracing long-distance consultations. Through teledermatology, new developments in deep learning, a type of artificial intelligence (AI), have been utilized to diagnose cases of melanoma from lesion images. In the coming decade, the smartphone industry estimates that next-generation devices and widespread adoption will put deep learning-capable hardware in the hands of consumers all around the world thereby, creating opportunities for market players.

Market Segmentation

• By type, the service segment is expected to lead the teledermatology market in the projected period. Teledermatology offers numerous services such as teleconsultation, telemonitoring, and tele-education. Teleconsultation has reduced the waiting time for patients. The well-developed telecom sector and 4G band spectrum have promoted individuals to adopt teleconsulting services. According to the Merritt Hawkins Survey, the average waiting time for a consultation has increased from 28.8 days in 2014 to 32.2 days in 2017 in the US, attributed to the dermatologist shortage. As a result, there has been an increase in the adoption of virtual visits in several hospitals thus, strengthening the service segment.
• By modality, the store and forward (SAF) segment is anticipated to have the largest share of the teledermatology market over the forecast period. SAF is most widely utilized in teledermatology. It involves taking pictures and videos, which are subsequently evaluated by a dermatologist at different times and places. This procedure is relatively affordable because it does not require any interaction between the patient and the physician. It is especially well suited for those with limited access to health care as no scheduled visits are required. Additionally, it can be utilized across different time zones, for instance, a patient in India can get advice from a dermatologist in America without having an impact on daily activities.
• By end-users, the homecare segment is forecasted to dominate the teledermatology market attributed to the highly developed telecom and IT sector. Homecare offers advantages such as cost savings, convenience, and the ability to provide care to individuals with mobility limitations or those living in remote areas without access to a local doctor or clinic. According to a Harvard report, in 2020 76 percent of hospitals in the United States utilized telehealth services to connect doctors and patients remotely, up from 35 percent a decade ago. Additionally, one in every four Americans over the age of 50 reported they had a virtual health care visit during the first three months of the pandemic, up from 4% of older individuals who had a remote visit the year before.

Players Covered in Teledermatology market are :

• 3Gen Consulting (US)
• FirstDerm (US)
• MetaOptima (Canada)
• MDLIVE Inc. (US)
• VigNet Inc. (US)
• Ping An Healthcare and Technology Company Limited (China)
• Maple (Canada)
• Ksyos (Netherlands)
• CureSkin (India)
• 3Derm (U.S.) and others major players.

Regional Analysis of Teledermatology Market:

• The North American region is anticipated to have the highest share of the teledermatology market during the forecast period. Skin cancer is the most often diagnosed cancer in the United States, however, only 1% of cases turn out to have invasive melanoma. The number of newly diagnosed melanoma cases in the United States was estimated to be 91,270 in 2018. It is estimated that 9,320 people will die as a result of this disease. Melanoma is responsible for the majority of cancer-related deaths; however, it can be entirely cured in most cases if discovered early and treated properly. Teledermatology can play a vital role in diagnosing cancer as well as offer remote treatment to individuals lacking healthcare infrastructure. Government support, the presence of prominent service providers, and a rise in teleconsultations are the major factors driving the growth of the teledermatology market in this region.
• The European region is expected to have the second-highest share of the teledermatology market. European countries are highly advanced, which has resulted in an inclination towards telemedicine services. Countries with the lowest number of dermatologists per million people and dermatologists who work largely in the public sector rather than private practice, such as Spain, the Netherlands, and the United Kingdom, have significantly more experience with teledermatology and have significant established mass digital services. In the United Kingdom, national surveys found that active engagement in teledermatology increased from 17% in 2006 to 48% in 2016, and dermatologists with any experience with teledermatology increased from 27% to 82% within the same period. The COVID-19 pandemic forced both healthcare professionals as well as patients to adopt teledermatology services thus, strengthening the growth of the market.
• The teledermatology market in the Asia-Pacific region is anticipated to develop at the highest CAGR during the forecast period attributed to the rise in the number of service providers. For instance, individuals living in rural regions of India have limited access to healthcare services. Moreover, most individuals seeking medical advice go to their primary care physicians (PCPs) first. However, they lack the knowledge as well as equipment required for proper diagnosing of skin disease. Teledermatology can bridge this gap by allowing individuals to seek medical advice from a dermatologist as well help PCP to connect with a dermatologist regarding specific cases. The growing usage of smartphones and availability of internet services at a cheap rate is supporting the growth of the teledermatology market in this region.

Recent Industry Developments in Teledermatology Market:

• In February 2024, MedX Health Corp., a leading teledermatology company, successfully completed a pilot project with Health Partners in the United Kingdom. Following the pilot, MedX and Health Partners partnered to launch MedX’s DermSecure screening platform. This collaboration aims to serve a wide range of clients, including corporates, government agencies, insurers, health trusts, pension funds, and individuals, offering telehealth, mobile, and on-site services across the United Kingdom and the Republic of Ireland.
• June 2023, DeepX Diagnostics Inc. announced that it had received clearance from the United States Food and Drug Administration (FDA) for its innovative digital dermatoscope, DermoSight. The device, designed for teledermatology, was cleared for use in screening suspected skin cancer lesions. With this approval, DeepX Diagnostics empowered healthcare providers in the United States to enhance the early detection and diagnosis of skin cancer remotely.
• In January 2023, Teladoc Health launched a new digital application that provided tailored whole-person care, including primary care, mental health services, and chronic disease management. The app allowed customers to conveniently access Teladoc’s comprehensive suite of services from a single portable account. This innovative solution aimed to enhance patient experience and improve healthcare accessibility, offering a seamless and personalized care journey for users.