Recently, the medical care sector has shown its inability to handle a striking demand in service. Therefore, telemedicine or remote care applications could become irreplaceable tools in next-gen healthcare. Enabling virtual treatment, they have become robust alternatives to physical doctor visits amid the COVID-19 outbreak.
In just a few months, the service received spikes of attention and venture investments. In the first quarter of 2020, health tech startups closed 142 deals and received $788 million of funding in the USA. The high interest from investors, community support, and simplified US regulations open up exciting opportunities for telemedicine startups.
"Mental health, an otherwise underfunded health sector, also saw a 65% year-over-year increase in funding, suggesting the pandemic could shine a light on previously overlooked areas for health innovation." - StartUp Health
Right now, we witness the rising number of partnerships between telehealth businesses and medical institutions. No wonder, as telemedicine allows physicians to expand the distance between them and the patients, organize secure quarantine rooms, and reduce the risk of spreading the disease. Thus, telemedicine startups are beginning to explore the B2B market which hasn’t been considered until now. Virtual care apps become the first line of defense for medical staff.
Meanwhile, analysts predict some positive telemedicine growth dynamics in the next few years. According to MordorIntelligence, telehome and telehospitals are predicted to grow the fastest in the North American market with a CAGR of 18% until 2025. The main factors driving change are:
All of this creates favorable conditions for launching health tech startups and simplifies their go-to-market strategies.
The recently launched applications prove an unexplored potential of this segment. A US startup Tyto Care released a new kind of telehealth application coupled with the complete toolkit to make remote health examinations at home. It includes a stethoscope, an otoscope, headphones for listening to lung sounds, and more. All the devices are interconnected and unified into a single software system.
The health tech startup received $100 million of overall funding and got 3x growth in sales in a single year. Now it’s planning to reach the European and Asian markets. Does this mean that all telemedicine startups will be successful? Of course not. However, it already shows how telemedicine app development provides great value in the current environment.
Recently, the US physicians and lawmakers required to remove the telemedicine service restrictions after the pandemic ended. Mike King states that users who have tried remote service are unlikely to get back to routine processes and face-to-face meetings. If this is true, we are in the middle of the industry change.
Let’s explore the new applications of telemedicine amid the pandemic.
Thus, health tech startups willing to build their tech products should consider the market changes happening now.
Telemedicine app development is an exciting opportunity. However, it requires careful planning and industry understanding. Thus, we prepared for you a detailed whitepaper on telemedicine development & market trends.
It covers the opportunities and challenges for health tech startups in 2020. Based on detailed market analysis, expert thoughts, and real-life examples, we carefully examine the rising tendencies and profitable areas in this niche. It also explains the bottlenecks to complete service adoption and how telehealth companies deal with them.
Explore a full guide on health tech development, including the costs, time, and necessary feature set for your service. At ByteAnt, we are convinced that with complete and in-depth info, one has more chances to set its tech product for success.
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