Industry update: Telehealth

As the coronavirus pandemic has forced healthcare professionals to limit in-person services, demand for telehealth services has grown significantly.

The growth is expected to continue as the ageing UK population, increased government funding and technological advances in the telecommunications sector continue to fuel demand and drive M&A activity in the telehealth industry.

As technology advances, there will be a plethora of opportunities in the telehealth market including the development of innovative devices, pioneering apps and online resources. As a result, industry revenue is expected to grow at a CAGR of c.11% over the next five years, reaching c£900 million by 2027.

For our latest industry report, partners Deval Patel, Engin Zekia and Joanna Loizidou take a deeper look into the Telehealth industry, including an introduction to Telehealth, the market structure, M&A activity and more.

Key takeaways from this report include:

• The industry has a low level of market share concentration, with the top four companies accounting for less than 9% of industry revenue in 2021.
• The coronavirus pandemic has boosted demand for UK telehealth services, resulting in industry revenue increasing at a CAGR of nearly 20% in the five years through to 2021, reaching c.£540 million.
• The telehealth industry can broadly be divided into three dominant segments: virtual consultations, medical devices, and telehealth software.
• Virtual consultations have been the reason for much of the revenue growth recorded in the Telehealth industry, accounting for c.45% of industry revenues.
• Analysis of M&A activity in the UK telehealth services sector reveals over 250 deals completed in the last 12 months, with 2021 being the UK’s most active ever year for telehealth deals.