Global Digital Derm and Wound Therapeutics Market Size (2024 – 2030)

As per the latest research findings, the global market for digital derm and wound therapeutics attained a valuation of USD 9.37 billion and is forecasted to achieve a market size of USD 12.41 billion by the year 2030. Throughout the analysis period of 2024 to 2030, the market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 4.1%.

Overview of the Sector

Utilizing various communication technologies, teledermatology expands the reach of dermatologists to individuals seeking their specialized services. Teledermatology predominantly functions in an asynchronous (store-and-forward) manner, where images are captured on digital devices such as smartphones and computers before being electronically transmitted to a consulting dermatologist. The market is poised for substantial growth over the projected timeline due to an escalating incidence of skin disorders among the aging populace coupled with a scarcity of dermatological professionals. Consequently, patients are experiencing prolonged wait times for consultations. According to the data from Walk-in Dermatology Management, LLC, as of August 2020, only 3.3 dermatologists were accessible for every 100,000 individuals.

The surge in collaborations among pharmacies, insurance entities, merchants, and telehealth firms is driving the adoption of teleconsultations. This increased awareness among people regarding the advantages of virtual visits, such as cost-effectiveness and enhanced accessibility, is propelling the market forward. For instance, DermTech introduced its DermTech Pigmented Lesion Assay in May 2020, offering a telemedicine solution enabling remote utilization of its non-invasive adhesive patch test for diagnosing melanoma.

Impact of COVID-19 on the Sector

The COVID-19 pandemic has significantly influenced the market dynamics and is expected to continue to do so during the analysis timeframe. The utilization of telemedicine and teledermatology experienced a rapid surge amidst the COVID-19 outbreak. The enforcement of lockdowns and social distancing measures to curb the spread of the virus led to a substantial decline in patient visits and consultations. A survey conducted by the American Association of Dermatology in the United States during 2020 revealed a 43% reduction in weekly patient consultations during the lockdown phase compared to the pre-pandemic levels. In France, specialist appointments plummeted by 60% and general practitioner (GP) consultations dropped by 40% during the lockdown period. With reduced in-person visits and relaxation of regulations, telemedicine has gained considerable traction, particularly among dermatologists. Additionally, a survey conducted among teledermatology patients in December 2020, as reported by the Dermatology online journal, highlighted that over 90% of patients expressed willingness to utilize telehealth services again, with approximately 80% of them recommending these services to others.

During the lockdown period of COVID-19, the number of dermatologists in the United States offering telehealth consultations nearly quadrupled. Furthermore, the initiatives from diverse commercial and governmental bodies to mitigate the spread of the disease are expected to bolster market expansion. Additionally, regulatory amendments announced by the Centers for Medicare & Medicaid Services (CMS) on March 30 aimed to simplify rules and expand virtual consultation coverage, ensuring healthcare practitioners could administer treatment to patients more effectively.

Market Drivers

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

The primary driver of market expansion is the growing acceptance among patients and healthcare providers. A survey conducted by the National Business Group on Health in 2017 revealed that over 96% of U.S. firms with 500 or more employees intended to offer insurance coverage for telehealth services by 2019. In November 2020, One Touch Telehealth introduced Version 5.0 of its software, tailored to the surge in video telehealth usage during the pandemic, making virtual care accessible for every user category across diverse healthcare settings. This advancement enhances the operational efficiency of telehealth workflows, thereby contributing to market growth throughout the forecast period.

The rising prevalence of skin ailments is fueling market expansion.

The significant increase in the prevalence of skin disorders such as skin cancer, eczema, and psoriasis has led to a substantial rise in dermatological services. As reported by the American Association of Dermatology, approximately 50 million Americans suffer from acne, 30 million from eczema, and 7.5 million from psoriasis. Moreover, an estimated 9,500 individuals in the United States are diagnosed with skin cancer daily. Consequently, the escalating rates of skin issues are driving the tele dermatology industry forward.

Market Restraints

Inadequate reimbursement facilities, particularly in underdeveloped nations, will restrain market growth.

Despite the establishment of payment regulations for teledermatology services in numerous countries, inadequate and inaccurate reimbursement, particularly in underdeveloped regions, remains a significant hindrance to widespread adoption. The high cost of healthcare has long been a predominant concern in underdeveloped nations, prompting these economies to hurriedly embrace telehealth services without adequate strategy or preparation.

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: services and products. As of 2020, the services sector stood out prominently. It notably reduces the need for referrals, eliminating the necessity for patients to endure long queues for consultations. Based on findings from the Merritt Hawkins Survey, the average waiting period for consultations increased from 28.8 days in 2014 to 32.2 days in 2017, owing to a scarcity of dermatologists in the United States. Consequently, an increasing number of hospitals are embracing virtual consultations, further propelling the services sector.

Global Digital Derm and Wound Therapeutics Market- By Modality

• Store and Forward
• Real Time
• Others

The store-and-forward (SAF) segment is anticipated to exhibit substantial growth during the forecasted period. Teledermatology heavily relies on the SAF modality due to the requirement of skin images for diagnosis. The segment's expansion is fueled by the escalating use of teledermatology for secondary opinions and substantial governmental support. A study published in the journal Telemedicine and e-Health indicated that in 2017, SAF was employed by 729 per cent of active non-governmental initiatives in the United States. This is expected to contribute to the growth of the SAF segment.

Throughout the forecast period, the real-time category has been dominating the teledermatology market. The market is forecasted to expand due to the increased utilization of video consultations for conditions such as acne, hair loss, and aesthetic concerns.

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

• Healthcare Facilities
• Homecare

The homecare category is projected to witness substantial growth during the research period. Key drivers for this segment's growth include significant cost savings in healthcare and the increasing acceptance of homecare services. Additionally, telemonitoring and education for elderly patients, eliminating the necessity for hospital visits, are expected to further bolster market growth.

The healthcare facilities category held the largest share due to the rising number of government-funded pilot projects for teledermatology and telecommunication technologies aimed at educating medical professionals in medical schools.

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

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

In 2020, the North American market was valued at USD 4.62 billion. The market in North America is poised for growth driven by the presence of numerous large-scale companies such as DermatologistsOnCall and MDLive, substantial governmental support, and an increase in teleconsultations. The COVID-19 pandemic has accelerated reforms and the adoption of telehealth by governments, physicians, health systems, and insurance companies globally, which is expected to drive market growth in the forecast period. Even in India, which has been slower in telehealth reforms, the Ministry of Health and Family Welfare, in collaboration with NITI Aayog, established formal telemedicine guidelines in March 2020. Moreover, McKinsey predicts a significant surge in the utilization of telehealth services in the United States by May 2020.

Global Digital Derm and Wound Therapeutics Market- By Companies

1. Analyzed Iagnosis
2. Honeywell Life Care Solutions
3. Philips Healthcare
4. AMD Global Telemedicine INC
5. GE Healthcare
6. Aerotel Medical Systems
7. Click Diagnostics
8. Dermlink
9. Allscripts Healthcare Solutions Inc.
10. McKesson Corporation

NOTABLE EVENTS IN THE GLOBAL DIGITAL DERM AND WOUND THERAPEUTICS MARKET RECENTLY:

• Product Launch: DermTech introduced the Pigmented Lesion Assay test in May 2020. This telemedicine solution aids in remote patch testing for melanoma detection.
• Product Launch: In April 2020, Sakhiya Skin Clinic in India initiated the provision of free skincare treatments utilizing teledermatology platforms.