Delray Beach, Fla. – September 28, 2026 -- The global telehealth and telemedicine market is projected to grow from USD 118.8 billion in 2026 to USD 198.9 billion by 2031, expanding at a compound annual growth rate of 10.9%, according to a new report from MarketsandMarkets. A separate figure cited in the same report puts the 2025 market at USD 106.0 billion, underscoring the sector's rapid acceleration ahead of the forecast period.
Remote patient monitoring drives fastest segment growth as chronic disease burden rises
By function, remote patient monitoring (RPM) held the largest market share in 2025 and is expected to be the fastest-growing segment through 2031, fueled by rising cases of diabetes, hypertension, and cardiovascular disease. The U.S. Centers for Medicare & Medicaid Services has increased reimbursement for RPM services, adding a regulatory tailwind alongside cost savings from reduced hospital readmissions. Wearable and IoT-enabled devices paired with data analytics have further improved adoption rates.
Healthcare providers segment retains largest share on virtual-consultation adoption
Hospitals, clinics, and physician groups accounted for the largest end-user share of the market in 2025 as they integrated telemedicine into routine care delivery, particularly to reach rural and underserved populations. Providers are using these platforms to cut unnecessary hospital visits while managing a growing population of patients with chronic conditions.
Vendors shift from standalone video calls to AI-enabled, connected-care platforms
Koninklijke Philips N.V., Medtronic, Epic Systems Corporation, Teladoc Health, GE HealthCare, and Amwell are repositioning their offerings across the telehealth value chain through partnerships and AI integration. Teladoc Health launched Teladoc One in July 2026, combining multidisciplinary care teams with continuous AI support across virtual and local provider settings. Epic Systems released AI Charting in February 2026, using AI to listen during patient visits, draft clinical notes, and queue orders. Medtronic continues to support remote monitoring of implanted cardiac devices via its CareLink ecosystem, while GE HealthCare offers Tele-ICU 2.0 for remote critical-care collaboration.
Asia Pacific set for fastest regional growth through 2031
Asia Pacific is projected to register the highest CAGR during the forecast period, driven by rising smartphone and internet penetration, government-backed digital health initiatives, and large populations in India, China, and Japan facing physician shortages. North America and Europe remain established markets alongside Latin America and the Middle East & Africa.
Acquisitions consolidate virtual-care and AI documentation capabilities
Deal activity is accelerating platform consolidation in the sector. In January 2025, Transcarent acquired Accolade in an all-cash transaction valued at USD 621 million to expand its technology-enabled healthcare and virtual care platform. In 2024, Commure acquired Augmedix in an all-cash deal worth USD 139 million to strengthen AI-enabled clinical documentation and workflow tools. Fabric has pursued a similar acquisition-led strategy, absorbing virtual care businesses including MeMD and TeamHealth's virtual care unit.
Other named players in the competitive landscape include Oracle, Doximity, Siemens Healthineers AG, and Cisco Systems, according to the report.