Global Digital Derm and Wound Therapeutics Market Research Report Segmented By Type (Products, Services); Modality (Store and forward, Real Time, Others); End-User (Healthcare Facilities, Homecare); and Region - Size, Share, Growth Analysis | Forecast (2024 2030)

Market Size and Overview:

According to our research report, the global digital derm and wound therapeutics market was valued at USD 9.37 billion and is projected to reach a market size of USD 12.41 billion by 2030. The market is projected to grow with a CAGR of 4.1% per annum during the period of analysis (2024 - 2030).

Industry Overview

Teledermatology utilizes various communication technologies to expand the reach of dermatologists to individuals seeking their expertise. It operates primarily through asynchronous methods, where photos are stored on digital devices like smartphones and computers and then electronically transmitted to referring dermatologists. The market is poised for robust growth due to the increasing prevalence of skin disorders among the aging population and a shortage of dermatologists, leading to prolonged waiting times for consultations. According to Walk-in Dermatology Management, LLC, as of August 2020, only 3.3 dermatologists were available for every 100,000 individuals.

The surge in collaborations between pharmacies, insurance companies, merchants, and telehealth firms is promoting teleconsultations. People are becoming more aware of the advantages of virtual visits, such as cost-effectiveness and enhanced accessibility. DermTech, for instance, introduced its DermTech Pigmented Lesion Assay in May 2020, a telemedicine solution enabling remote use of its non-invasive adhesive patch test for melanoma diagnosis.

Impact of Covid-19 on the industry:

The COVID-19 pandemic significantly accelerated the adoption of telemedicine/teledermatology, given the restrictions on in-person visits to curb the virus's spread. Lockdowns and social distancing measures led to a substantial reduction in patient visits/consultations. A survey by the American Association of Dermatology in 2020 revealed a 43% decline in weekly patient consultations during the lockdown compared to pre-COVID levels. Telemedicine gained popularity among clinicians, particularly dermatologists, as inpatient visits decreased. A December 2020 survey in the Dermatology online journal reported that over 90% of teledermatology patients during the pandemic would use telehealth services again, with approximately 80% recommending the services to others.

During the COVID-19 lockdown, telehealth consultations by dermatologists in the United States nearly quadrupled. Market expansion was further supported by initiatives from commercial and governmental groups to curb the disease's spread, simplified regulations, and expanded virtual consultation coverage by the Centers for Medicare & Medicaid Services (CMS) in March 2020.

Global Digital Derm and Wound Therapeutics Market Drivers:

The market growth is driven by the increasing adoption of telehealth among patients.

Enhanced receptivity among patients and providers is a key driver, with over 96% of large U.S. firms indicating their intention to provide insurance coverage for telehealth services by 2019, according to a 2017 poll by the National Business Group on Health. The release of Version 5.0 of One Touch Telehealth's software in November 2020 further facilitated the integration of virtual care into various healthcare contexts, contributing to operational efficiency.

The rising prevalence of skin diseases, including acne, eczema, psoriasis, and skin cancer, is another significant factor propelling market growth.

The American Association of Dermatology reports substantial numbers, such as 50 million Americans with acne, 30 million with eczema, and 7.5 million with psoriasis, along with a daily diagnosis of skin cancer in 9,500 individuals in the United States.

Global Digital Derm and Wound Therapeutics Market Challenges:

One notable market restraint is the inadequate reimbursement facilities, particularly in underdeveloped countries.

Despite the existence of payment regulations for teledermatology services in many nations, issues of incorrect and insufficient compensation persist, especially in economically disadvantaged regions. The longstanding concern over healthcare costs in underdeveloped countries has led to a hasty adoption of these services without adequate planning or strategy.

Global Digital Derm and Wound Therapeutics Market Segmentation:

Global Digital Derm and Wound Therapeutics Market - By Type

• Products
• Services

• Digital Consultation
• Digital Monitoring
• Tele- Education
• Others

The market is categorized into two segments: products and services. In 2020, the services sector emerged as the predominant category. This sector plays a crucial role in reducing referrals, alleviating the burden of extensive waiting times for patients. According to the Merritt Hawkins Survey, the average wait time for consultations increased from 28.8 days in 2014 to 32.2 days in 2017 due to a shortage of dermatologists in the United States. Consequently, an increasing number of hospitals are adopting virtual visits, providing a substantial boost to the services segment.

Global Digital Derm and Wound Therapeutics Market - By Modality

• Store and forward
• Real Time
• Others

The market is further classified into store-and-forward, real-time, and other modalities. During the projected period, the store-and-forward (SAF) segment is anticipated to exhibit significant growth. Teledermatology heavily relies on the SAF modality for diagnosis, given its necessity for skin images. The segment's expansion is propelled by the increasing use of teledermatology for second opinions and substantial government support. A study published in the journal Telemedicine and e-Health in 2017 reported that 72.9% of active non-governmental initiatives in the United States utilized SAF. This trend is expected to contribute to the growth of the SAF segment.

The real-time category dominated the teledermatology market throughout the projection period. This dominance is attributed to the rise in video consultations for conditions such as acne, hair loss, and aesthetic purposes, contributing to the overall market growth.

Global Digital Derm and Wound Therapeutics Market - By End-User

• Healthcare Facilities
• Homecare

The market is segmented into healthcare facilities and homecare. During the research period, the homecare category is anticipated to experience substantial growth. Key drivers for this growth include significant cost savings in healthcare and the increasing acceptance of homecare services. Telemonitoring and education for senior patients, eliminating the need for hospital visits, are expected to further propel market development.

The healthcare facilities category held the largest share, driven by the increasing number of government-funded pilot projects for teledermatology and the integration of telecommunication technologies in medical schools to educate doctors.

Global Digital Derm and Wound Therapeutics Market - By Geography & Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

The market is geographically segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. In 2020, North America accounted for a market value of USD 4.62 billion. The North American market is influenced by the presence of major companies such as Dermatologists OnCall and MDLive, significant government support, and the upsurge in teleconsultations. The COVID-19 pandemic has accelerated telehealth reforms globally, including India, where formal telemedicine guidelines were established by the Ministry of Health and Family Welfare in collaboration with NITI Aayog in March 2020. McKinsey forecasts a substantial increase in the usage of telehealth services in the United States by May 2020.

Key Players:

• analyzed Iagnosis
• Honeywell Life Care Solutions
• Philips Healthcare
• AMD Global Telemedicine INC
• GE Healthcare
• Aerotel Medical Systems
• Click Diagnostics
• Dermlink
• Allscripts Healthcare Solutions Inc.
• McKesson Corporation

Recent Developments in the Global Digital Derm and Wound Therapeutics Market:

Product Launch: DermTech introduced the Pigmented Lesion Assay test in May 2020, presenting a telemedicine solution facilitating remote patch tests for the detection of melanoma.

Product Launch: In April 2020, Sakhiya Skin Clinic in India commenced offering complimentary skin care treatments through teledermatology platforms.