Towards Healthcare
Virtual Health Services Market to Rise at 22.44% CAGR till 2034

Virtual Health Services Market Driving Future Care

Market insights predict, the virtual health services industry is expected to grow from USD 10.64 billion in 2024 to USD 79.57 billion by 2034, driven by a CAGR of 22.44%. The expansion of virtual health services is driven by increased access to care, convenience, and time savings for the global population. North America dominated the market in 2024 owing to the broad adoption of telehealth services, supportive reimbursement policies, and large telehealth platforms.

Category: Healthcare IT Insight Code: 6058 Format: PDF / PPT / Excel

The global virtual health services market size reached USD 10.64 billion in 2024, grew to USD 13 billion in 2025, and is projected to hit around USD 79.57 billion by 2034, expanding at a CAGR of 22.44% during the forecast period from 2025 to 2034.

Virtual Health Services Market Size 2024 to 2034

Virtual healthcare includes various remote healthcare services that use information and communication technology, clinical services, administration, medical education, and training for healthcare providers. Virtual care communication tools such as videoconferencing software, remote health monitoring, wearable devices, personal health records, etc., improve patient engagement and patient communication.

The expansion of telehealth and telemedicine is driven by different therapies, such as occupational therapy, speech-language therapy, physical therapy, and telehealth nurses. Virtual healthcare is advantageous in increasing patient accessibility and patient engagement, and decreasing costs and travel expenses for medical visits.

Key Takeaways

  • Virtual health services sector pushed the market to USD 10.64 billion by 2024.
  • Long-term projections show USD 79.57 billion valuation by 2034.
  • Growth is expected at a steady CAGR of 22.44% in between 2025 to 2034.
  • North America held the major revenue share of approximately 46% and dominated the virtual health services market in 2024. 
  • Asia-Pacific is expected to witness the fastest growth during the predicted timeframe of 2025-2034.
  • By service type, the synchronous virtual visits segment dominated the market in 2024 with a revenue share of approximately 45%.
  • By service type, the remote patient monitoring segment is expected to grow at the fastest CAGR during the forecast period.
  • By delivery model/provider type, the provider-to-patient platforms segment dominated the virtual health services market in 2024 with a revenue share of approximately 50%.
  • By delivery model/provider type, the employer/workplace virtual care programs segment is expected to grow at the fastest CAGR during the forecast period.
  • By technology/ modality, the video & voice communication segment dominated the market in 2024 with a revenue share of approximately 48%.
  • By technology/modality, the remote monitoring devices & wearables segment is expected to witness the fastest growth during the forecast period.
  • By end user/patient, the general acute care/adults segment dominated the market in 2024 with a revenue share of approximately 55%.
  • By end-user/patient, the behavioral health patients segment is expected to witness the fastest growth during the forecast period.
  • By payer/reimbursement model, the fee-for-service telehealth reimbursement segment dominated the virtual health services market in 2024.
  • By payer/reimbursement model, the value-based/capitated programs segment is expected to witness the fastest growth during the forecast period.

Quick Facts Table

Table Scope
Market Size in 2025 USD 13 Billion
Projected Market Size in 2034 USD 79.57 Billion
CAGR (2025 - 2034) 22.44%
Leading Region North America 
Market Segmentation By Service Type, By Delivery Model/Provider Type, By Technology/Modality, By End User/Patient Segment, By Payer/Reimbursement Model, By Region
Top Key Players Teladoc Health, Amwell, Doctor On Demand / Included Health, MDLive, Babylon Health, PlushCare, VA / U.S. Department of Veterans Affairs, Kaiser Permanente, UnitedHealth Group / Optum, CVS Health / MinuteClinic & CVS Virtual Care, Walgreens Boots Alliance / Care-centric partnerships, Babylon / local partners, Amwell competitors in specialty: DoctorSpring / Specialty telehealth vendors, Livongo / chronic care platforms, Philips, ResMed, BioTelemetry / Philips-owned cardiac & RPM services, Hims & Hers Health, Microsoft / Google Cloud, Epic / Ce er

Market Overview

What is the Virtual Health Services Market? 

Virtual health services (telehealth/telemedicine) are digital delivery models that provide clinical care, monitoring, and health-related services remotely using audio/video consultations, asynchronous messaging, remote patient monitoring (RPM), virtual urgent care, telepsychiatry, and digital-first chronic care management. These services reduce geographic barriers, lower the cost of care, expand access for underserved populations, and integrate with in-person care pathways. Growth drivers include broadband/smartphone penetration, aging populations, value-based care models, clinician acceptance of telehealth workflows, and payer and regulatory support for remote-care reimbursement.

What are the Major Trends in the Virtual Health Services Market?

  • The leading companies are investing in advancing telehealth and telemedicine services. For instance, in December 2024, Mulk Inte ational and Ajeenkya DY Patil Group announced the launch of the first large-scale virtual hospital in the Middle East and North Africa, and Asia Pacific that has united 20,000 doctors along with AED 100 million in funding and advanced virtual healthcare solutions.
  • The biopharmaceutical companies are making efforts to introduce health tech innovations. For instance, in June 2025, HealthKois introduced a $400 million investment fund to accelerate biopharma innovations and the next wave of HealthTech in India.
  • Efforts have been made to incorporate AI in every area of healthcare systems. For instance, in April 2025, hellocare.ai raised $47 million to accelerate AI-assisted virtual care and convert hospital rooms into smart and connected care environments.

How is AI Changing the Virtual Health Services Market?

Artificial intelligence is significant in medical diagnosis, radiology, pathology, dermatology, ophthalmology, cardiology, and many other medical purposes. AI facilitates multimodal diagnosis and detection of infectious diseases. AI also plays a pivotal role in treatment planning, personalized medicine, oncology treatment, telemedicine, medical billing, and other versatile applications. It improves patient care through telemedicine platforms and keeps track of patient health.

Market Dynamics 

Driver

What are the Various Trends Observed in the Virtual Health Services Market? 

The key emerging trends, such as medical consultations using virtual and augmented reality, remote patient monitoring, and robust data security measures, drive the expansion of virtual healthcare platforms. Virtual reality is becoming valuable due to its therapeutic applications in mental health therapies, physical rehabilitation, pain management, and interactive experiences.

Restraint

What are the Potential Challenges in the Virtual Health Services Market?

Some of the health systems are reducing or discontinuing virtual medical visits due to less need to take any health precautions for certain patients or a lack of adequate reimbursement to organizations. The growing interest in patients for in-person medical consultation and treatments presents limitations to virtual care among those patients. The changes to payment incentives also lead to reduced preferences for virtual care.

Opportunity

What is the Future of the Virtual Health Services Market?

In August 2025, the World Health Organization and Society of Robotic Surgery introduced a health innovation initiative for the expansion of access to telesurgery and virtual care.This new partnership also aims to promote equity through health systems innovation and telesurgery in remote and underserved regions. In July 2025, the WHO launched a new digital tool to support pregnant women in the self-monitoring of blood pressure.

Segmental Insights

How does the Synchronous Virtual Visits Segment Dominate the Virtual Health Services Market in 2024?

The synchronous virtual visits segment dominated the market in 2024, owing to enhanced access to care and improved access to specialists. These medical visits result in enhanced patient engagement and increased patient privacy. Healthcare providers experience streamlined workflow, increased efficiency, and professional collaborations.

The remote patient monitoring segment is expected to grow at the fastest CAGR in the market during the forecast period due to its benefits in timely disease detection, improved chronic disease management, and increased access to care. Clinical healthcare providers improve their clinical decision-making and optimize clinical staff efficiency. Remote patient monitoring results in enhanced care coordination, reduced risk of infection, and enhanced patient education.

What made Provider-to-Patient Platforms the Dominant Segment in the Virtual Health Services Market in 2024?

The provider-to-patient platforms segment dominated the market in 2024, owing to the benefits of remote healthcare to providers in terms of increased efficiency, productivity, expanded patient reach, and improved patient management. It enhances collaboration and communication and reduces administrative burden. The growth of these remote healthcare platforms is driven by the integration of telemedicine, remote patient monitoring, electronic health records, real-time communication, and many other factors.

The employer/workplace, employer/workplace virtual care programs segment is expected to grow at the fastest CAGR in the market during the predicted timeframe due to increased efforts for enhanced employee wellness and productivity. The focus is shifting towards improved mental health, work-life balance, and early access to primary care at the workplace. The lower healthcare costs and proactive health management are driving the virtual care programs at the workplace for employees.

How did the Video & Voice Communication Segment Dominate the Virtual Health Services Market in 2024?

The video & voice communication segment dominated the market in 2024, owing to the numerous benefits of telehealth and telemedicine for both patients and healthcare providers. These services and solutions facilitate flexible scheduling, reduced wait times, and increased access to healthcare for vulnerable populations. They strengthen the patient-provider relationship and allow more comfortable and open communication between the patient and provider.

The remote monitoring devices & wearables segment is expected to grow at the fastest CAGR in the market during the forecast period due to improved chronic disease management and enhanced patient engagement. These remote services and solutions facilitate reduced need for in-person visits and increased access to care. They offer personalized care, increased patient safety, and peace of mind for patients.

Which Segment in End User/ Patient Segment Dominated the Virtual Health Services Market in 2024?

The general acute care/adults segment dominated the market in 2024, owing to the reduced risk of nursing home admissions and improved patient care. Virtual care facilitates a shorter length of hospital stay, lower hospital costs, and lower post-discharge costs. It also allows a patient-centered and interdisciplinary team approach.

The behavioral health patients segment is expected to grow at the fastest CAGR in the market during the forecast period due to improved emotional and mental well-being of patients. Virtual healthcare offers enhanced self-esteem and self-worth for patients. Patients experience better moods, reduced anxiety, greater emotional regulation, and increased resilience.

How does the Fee-for-Service Telehealth Reimbursement Segment Dominate the Virtual Health Services Market in 2024?

The fee-for-service telehealth reimbursement segment dominated the market in 2024, owing to the increased revenue generation for providers and transparency in billing. It improves efficiency, cost savings, flexibility for patients, and patient choice. The providers are reimbursed for each service given, including telehealth services, through this traditional payment model.

The value-based/capitated programs segment is expected to grow at the fastest CAGR in the market during the forecast period due to improved patient outcomes, reduced healthcare costs, and enhanced patient satisfaction. These virtual care programs also provide increased access to care and improved care coordination. They are beneficial for healthcare providers, patients, payers, and the healthcare system.

Regional Analysis

Virtual Health Services Market Share, By Region, 2024 (%)

How does North America Dominate the Virtual Health Services Market in 2024?

North America dominated the market share 46% in 2024, owing to the increased adoption of digital health and telehealth solutions. There is a favorable regulatory environment and reimbursement policies for telehealth services across this region. Gove ments, companies, and healthcare systems are focusing on cost-effectiveness and delivering efficient healthcare services. The Health Resources and Services Administration (HRSA) and the U.S. Gove ment expanded telehealth access options for the health of the rural population and the behavioral health of patients. The American Hospital Association (AHA) makes efforts to permanently adopt expanded access to telehealth and expand the telehealth workforce. It also ensures adequate and fair telehealth reimbursement and supports telehealth for rural and medically underserved areas.

  • In July 2024, the World Health Organization (WHO) introduced a newly launched evidence-based support tool to support telemedicine services in different countries, individual health facilities, and nationwide health systems.

U.S. Market Trends

In November 2024, the U.S. Drug Enforcement Administration (DEA) and the Department of Health and Human Services (HHS) extended telemedicine capabilities. According to Deloitte, the top trends in U.S. healthcare in 2025 are regulatory changes and transformative technologies under health plans and workforce challenges and core business technologies under health systems. There is an increased focus on developing growth strategies to increase revenue and improve cost efficiency and productivity in U.S. healthcare.

What is the Potential of the Virtual Health Services Market in the Asia Pacific?

Asia Pacific is expected to grow at the fastest CAGR in the market during the forecast period due to the increased focus on improving healthcare accessibility and affordability. The healthcare sector in the Asia Pacific is driven by clinical data powered by AI, GenAI, and Agentic AI. The other factors include AI-driven workflow automation that offers scaling efficiency and outcomes, and new patient-centric care models from telemedicine to hospital-at-home. The World Health Organization has set its global strategy on digital health for 2020-2025 to promote healthy lives and well-being for the global population.

  • In February 2025, the Asia eHealth Information Network (AeHIN) conducted a session on national gove ance of AI.

Top Companies in the Virtual Health Services Market

Virtual Health Services Market Companies

  • Teladoc Health
  • Amwell
  • Doctor On Demand / Included Health
  • MDLive
  • Babylon Health
  • PlushCare
  • VA / U.S. Department of Veterans Affairs
  • Kaiser Permanente
  • UnitedHealth Group / Optum
  • CVS Health / MinuteClinic & CVS Virtual Care
  • Walgreens Boots Alliance / Care-centric partnerships
  • Babylon / local partners
  • Amwell competitors in specialty: DoctorSpring / Specialty telehealth vendors
  • Livongo / chronic care platforms
  • Philips
  • ResMed
  • BioTelemetry / Philips-owned cardiac & RPM services
  • Hims & Hers Health
  • Microsoft / Google Cloud
  • Epic / Ce er

Latest Announcement by Industry Leaders

In January 2025, Ido Schoenberg, M.D., Amwell chair and CEO, proclaimed that the deprivation of the Amwell Psychiatric Care business will enable the company to shift towards its unified and world-class digital care platform. The transaction strengthens the company balance sheet while considering the growing accretive software contribution to the company product mix.

Recent Developments in the Virtual Health Services Market

  • In August 2025, Teladoc Health announced the acquisition of telecare and expanded access to specialist and allied healthcare through virtual delivery for Australians in public and private health.
  • In November 2024, Philips declared advancements in remote imaging leadership with FDA510 (k) clearance to introduce innovative remote scanning and expand protocol management capabilities.

Segments Covered in the Report

By Service Type

  • Synchronous Virtual Visits (Live Video & Phone)
  • Asynchronous / Store-and-Forward Consults (eConsults, image/text routing)
  • Remote Patient Monitoring (RPM) (chronic disease management, post-acute monitoring
  • Virtual Urgent Care & On-demand Telehealth
  • Telebehavioral / Telepsychiatry
  • Virtual Specialty Care (cardiology, dermatology, endocrinology)
  • Virtual Chronic Care Management & Digital Therapeutics (DTx)

By Delivery Model/Provider Type

  • Provider-to-Patient Platforms (telehealth companies, health systems telemedicine services)
  • Employer/Workplace Virtual Care Programs (direct-to-employer offerings and benefits)
  • Payer-led Virtual Care (insurer-operated platforms) 
  • Virtual-first Primary Care (subscription & hybrid clinics) 
  • Health System/Hub-and-Spoke Telehealth Networks

By Technology/Modality

  • Video & Voice Communication
  • Mobile Apps & Chat / Messaging
  • Remote Monitoring Devices & Wearables
  • AI-enabled Triage, Virtual Assistants & Clinical Decision Support
  • Integration / Interoperability (EHR connectors, APIs)

By End User/Patient Segment

  • General Acute Care / Adults
  • Behavioral Health Patients
  • Chronic Disease Patients (diabetes, hypertension, COPD — RPM heavy)
  • Pediatrics & Mate al Health
  • Rural / Underserved Populations

By Payer/Reimbursement Model

  • Fee-for-Service Telehealth Reimbursement
  • Value-Based / Capitated Programs (drives RPM & chronic care)
  • Employer-sponsored Direct Contracts / Subscription Models
  • Out-of-pocket / Cash-pay (concierge, virtual-first startups)

By Region 

  • North America
    • U.S.
    • Canada
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Norway
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East and Africa (MEA)
    • South Africa
    • UAE
    • Saudi Arabia
    • Kuwait
  • Last Updated: 28 August 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Rohan Patil is a seasoned market research professional with over 5+ years of focused experience in the healthcare sector, bringing deep domain expertise, strategic foresight, and analytical precision to every project he undertakes.

Learn more about Rohan Patil

Aditi Shivarkar, with over 14 years of experience in consumer goods, leads research at Towards Consumer Goods, ensuring precise, actionable insights on trends, consumer preferences, and sustainable packaging for businesses.

Learn more about Aditi Shivarkar

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FAQ's

The virtual health services market currently in 2025 records USD 13 billion and is anticipated to grow to USD 79.57 billion by 2034, advancing at a CAGR of 22.44% from 2024 to 2034.

North America is currently leading the virtual health services market share 46%, driven by growth in digital infrastructure and increased consumer acceptance.

The key players in the virtual health services market include Teladoc Health, Amwell, Babylon Health, PlushCare, Doctor On Demand Included Health, etc.

Key trends include the continued expansion and integration of telehealth and remote patient monitoring, the growth of virtual health assistants, specialized digital mental health solutions, and an emphasis on privacy and data security.

WHO, FDA, AeHIN, HHS, AHA, HRSA, DEA.