U.S. Virtual Visits Market: Age Group 18-34 Dominated, Capturing The Revenue Share

U.S. Virtual Visits Industry Overview

The U.S. virtual visits market size is expected to reach USD 105.5 billion in terms of revenue and 5.2 billion in terms of volume by the end of the forecast period and is expected to grow at a CAGR of 30.9% in terms of revenue, and 36.9% in terms of volume as per a new report published by Grand View Research, Inc. Increasing demand for telehealth and teleconsultation and introduction of new and advanced technologies has positively impacted the growth of the market in the U.S. Increasing penetration of smartphones and assisted technologies has also been a key factor for the fast growth of the market.

In the service segment, cold and flu management had the largest market share in 2021. The major factor behind the growth of the market is the growing demand for teleconsultations for patients for treatment of common conditions like cold and flu to reduce the chances of contracting additional illnesses due to hospital visits. The availability of specialists through telehealth and teleconsultations, even in remote areas has brought about a revolution in the virtual visits market, acting as a key factor for the growth of the market.

Based on age, the 18 to 34 years segment had the largest market share in 2021. The growth is a result of increasing smartphone penetration and increased internet usage by the consumers in this age group. The increase in the number of young adults suffering from mental health issues has also risen in the past few years and more so during COVID-19, resulting in a large market share.

Based on gender, women dominated the market with a revenue share of 65% in 2021. The increasing demand for telemedicine and telehealth had increased due to COVID-19 to reduce the chances of contracting additional infections, especially in pregnant females. The virtual visits made it easier for all to get access to specialists and better healthcare facilities within the comfort of their homes, proving to be a major factor in the growth of this segment and the market overall.

Based on the type of commercial plans, self-funded/ASO group plans had the largest revenue share. Growth in this segment has been a result of ASO groups proposing and encouraging virtual visits in their coverage plans to avoid regular visits to hospitals in avoidable conditions. During the pandemic, only non-emergency visits throughout the country were encouraged by healthcare providers to avoid the risk of infection. In wake of the pandemic, employers are increasingly preferring self-coverage plans and providing cost-effective healthcare services for their employees to diminish the exploding healthcare costs, which is further enhancing the growth of the market.

The COVID-19 pandemic created a massive growth spurt for the virtual visits market in the U.S. With the people needing healthcare solutions during the peak of the pandemic, teleconsultations were providing the necessary care that was needed. The huge jump in the uptake of virtual consultations was a result of government initiatives as well as fear of contracting the disease by physically visiting the hospitals. It came as a necessary relief for the healthcare providers as well, where they were less burdened due to the use of teleconsultations in case of non-emergency cases. The overall productivity of the healthcare system had also improved, proving the virtual visit market has been a great success and would be a way to consult in the future as well.

U.S. Virtual Visits Market Segmentation

Grand View Research has segmented the U.S. virtual visits market based on service type, commercial plan type, age group, and gender:

Based on the Service Type, the market is segmented into Cold & Flu management, Allergies, Urgent Care, Preventive Care, Chronic Care Management, and Behavioral Health.

• The cold and flu management segment in the service type dominated the market and held a share of 29.8% in 2021. This can be attributed to the fact that the patients are increasingly preferring virtual visits to consult physicians regarding cold and flu symptoms. The majority of the patients in this category resorted to teleconsultations to avoid the spread of infection and contracting additional symptoms through physical visits to hospitals.
• Behavioral health is the fastest-growing segment and is expected to grow at a significant rate during the forecast period. The onset of the pandemic made teleconsultations and virtual visits a norm, even in the behavioral health segment. 

 

Based on the Age Group, the market is segmented into Age 18-34, Age 35-49, Age 50-64, Age 65 and above.

• Consumer groups aged between 18 – 34 years held the largest revenue share of 31.8% in 2021, in the regional market. An increase in penetration of smartphones in this age group, increasingly high internet usage, and a steady incline in the number of mental health issues have resulted in a large market share.
• Consumers of the age group 35 to 49 years are the fastest-growing age group of consumers, with the highest CAGR over the forecast period due to the increasing prevalence of chronic illnesses like diabetes, hypertension, various cardiovascular diseases, etc. in the age group.

 

 Based on the Commercial Plan Type, the market is segmented into Small Group, Self-funded/ASO Group Plans, Medicaid, Medicare.

• Self-funded/ASO group plans in the commercial plans type had the largest revenue share of 34.3% as of 2021, in the regional market. This can be attributed to an increase in the prevalence of chronic diseases, skyrocketing healthcare costs, and an increase in demand for affordable healthcare solutions.
• The fastest-growing segment was the small group commercial plan type, it is expected to expand at a significant CAGR over the forecast period. Demand for virtual care has been steadily increasing and more so due to the COVID-19 pandemic, several initiatives undertaken by both public and private entities for decreasing the burden of healthcare costs on small businesses and their employees have resulted in the growth of small group commercial plan type.

 

Based on the Gender, the market is segmented into Male, and Female.

• The regional virtual visits market was dominated by the women segment in the gender type, with a revenue share of 65% in 2021. The pandemic brought to light the need to access healthcare facilities in a safe environment for pregnant women to avoid the risk of contracting the virus through hospital visits, which was the primary factor for the large revenue share for this segment. 
• The men’s segment is the fastest-growing gender type, with the indication of a fast-paced growth during the forecast period. This can be attributed to the ease of use of teleconsultations for various conditions like increasing mental health issues, sexual health concerns like erectile dysfunction, STDs, etc. without visiting the doctor in person, stress management, and various other health conditions. 

 

Key Companies & Market Share Insights

The rise in the adoption of telehealth services has created a huge demand for virtual visits. The U.S. virtual visits market has a majority of small as well as big players making it the largest market for virtual visits. The high demand has created fierce competition in the regional market. The steady increase in demand for virtual visits has made space for new companies to venture into this field through connected apps and disruptive technology, opening up space for innovation in this field.

The companies are strategically expanding their offering through new and improved apps or connected devices, collaborating with third parties and other companies to make virtual care accessible to all. The competition is a key propellant for growth in the virtual visits market in the U.S. As per an article published by McKinsey, the investment in digital health and virtual care has recorded monumental growth, making way for more innovative technologies to foster growth, digital health investment as of 2020 was three times more than that in 2017. Some of the prominent players in the U.S. virtual visits market include:

• American Well Corporation
• MDLive, Inc
• Doctor On Demand, Inc
• eVisit Telemedicine Solution
• Teladoc Health, Inc
• MeMD
• HealthTap, Inc
• Vidyo, Inc
• PlushCare, Inc
• Zipnosis

Order a free sample PDF of the U.S. Virtual Visits Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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