Telehealth: Why a Medicare Extension to 2027 Supports a USD 760.94 Billion Market
Executive summary. Telehealth delivers care at a distance: video and phone consultations, remote patient monitoring, online prescriptions, digital mental health services and virtual follow-ups. It grew from a pandemic stopgap into a permanent part of how people see doctors, manage chronic conditions and get prescriptions. The question now is not whether telehealth will last, but which models will be paid for and trusted. Strategic Revenue Insights estimates the global telehealth market at USD 121.60 billion in 2024, rising to USD 760.94 billion by 2033 at a 22.60 percent compound annual growth rate. Demand for remote care, AI and IoT advances, cost pressure, chronic disease and ageing populations are driving it. This article sets out five lessons from the providers, platforms and payers moving first, with takeaways for strategy, product, operations, channels and revenue.
The structure of the market shows where growth is concentrating. Strategic Revenue Insights' Telehealth Market research finds that healthcare providers and large enterprises dominate adoption, that software and cloud deployment are growing strongly, and that Asia Pacific was the largest region in 2024, with India showing the highest growth rate among the countries listed. The research names regulatory hurdles, inconsistent reimbursement and data privacy concerns as restraints, identifies rural access, AI, mental health, wearables and government investment as opportunities, and lists Teladoc Health, Amwell, Doctor on Demand and MDLive among the key companies.
Policy and consumer demand are both supporting the market. The US Congress extended Medicare telehealth flexibilities, including care delivered to patients at home, through 31 December 2027 in the Consolidated Appropriations Act of 2026, signed in February 2026. Direct-to-consumer platform Hims & Hers reported 2025 revenue of about USD 2.35 billion, up 59 percent, with 2.51 million subscribers, according to the company.
Why the Telehealth Market Is Entering a New Phase
Three structural forces are converging.
Reimbursement is stabilising. Payers and governments are setting longer-term rules for paying for virtual care. SRI's research names inconsistent reimbursement as a restraint, and the Medicare extension reduces near-term uncertainty in the largest market.
Chronic care is moving home. Diabetes, heart disease, obesity and mental health need ongoing support, not occasional visits. SRI's research names chronic disease and ageing populations as drivers. Remote monitoring links to devices such as those in how over-the-counter CGMs are opening metabolic health.
Consumers buy care like a subscription. Direct-to-consumer platforms bundle consultations, prescriptions and delivery into monthly plans, as Hims & Hers shows.
These forces explain SRI's forecast of rapid growth to 2033, with value concentrating in chronic care, mental health, software platforms and Asia Pacific.
Five Lessons From the Companies Moving First
The providers and platforms turning these forces into advantage share a recognisable pattern. We have distilled it into five lessons, each followed by a takeaway for a specific leadership function.
Lesson 1: Own a Condition, Not Just a Call
One-off video visits became a commodity. The companies moving first build programmes around specific conditions, such as weight management, diabetes, mental health, sexual health and dermatology, combining consultations, prescriptions, monitoring and coaching. Weight-management demand, explored in how obesity pills are reshaping GLP-1 drugs, shows how a single condition can build a large virtual care business.
"In telehealth, the video call is the cheapest part. The value is in owning the patient's journey with a condition."
Takeaway on strategy. Build condition-specific programmes that combine consultations, prescriptions, monitoring and coaching, rather than selling generic video visits.
Lesson 2: Use AI and Devices to Extend Clinicians
SRI's research names AI and IoT advances as drivers and identifies AI, machine learning, wearables and mobile apps as opportunities. The companies moving first use AI to triage patients, draft notes and flag risks, and connect wearables and home devices so clinicians see data between visits.
Takeaway on product. Use AI for triage, documentation and risk alerts, connect home devices and wearables, and design workflows that let each clinician safely serve more patients.
Lesson 3: Privacy and Compliance Build Trust
SRI's research names data privacy and security concerns and regulatory hurdles as restraints. Patients share sensitive information, and rules on prescribing, licensing and data protection vary by country and state.
The companies moving first invest in security, transparent data use, licensed clinicians across jurisdictions and careful prescribing practices, especially for controlled and high-demand medicines.
"Telehealth scales at the speed of trust. One data breach or prescribing scandal can undo years of growth."
Takeaway on operations. Invest in security and transparent data practices, maintain licensing across jurisdictions, and apply strict clinical governance to prescribing.
Lesson 4: Sell to Payers, Employers and Consumers
Telehealth has several buyers. Health systems use it to extend capacity, insurers and governments pay for it, employers offer it as a benefit and consumers pay directly. The companies moving first combine these channels and show outcomes and cost savings to each buyer. Value-based care tools, described in how accountable care software supports value-based care, help prove those outcomes.
Takeaway on channels. Combine payer, employer, health system and direct-to-consumer channels, and show each buyer measurable outcomes and savings.
Lesson 5: Asia Pacific Leads, India Grows Fastest
SRI's research identifies Asia Pacific as the largest region in 2024, with India showing the highest growth rate among listed countries. Large populations, doctor shortages, smartphone adoption and government digital health programmes drive Asian demand. SRI's research also names expansion into rural and underserved areas and government infrastructure investment as opportunities.
The capabilities that decide who captures this demand are specific:
Condition-specific programmes that own the patient journey.
AI and connected devices that extend clinicians.
Strong privacy, licensing and clinical governance.
Multiple buyer channels with proven outcomes.
Mobile-first services for Asia Pacific and rural markets.
Companies evaluating these competitive dynamics in greater detail can use SRI's Telehealth Market analysis to assess component, deployment, application and regional dynamics and the positioning of the leading providers.
Takeaway on market development. Build mobile-first, low-cost services for India and Southeast Asia, partner with governments on rural access, and adapt to local prescribing rules.
Where the Opportunity Is Concentrating
Value is moving toward chronic care, mental health, software platforms and Asia Pacific.
By application, healthcare providers dominate adoption.
By component, software and cloud deployment grow strongly.
By service, mental health and remote monitoring are major opportunities.
By geography, Asia Pacific leads, with India growing fastest among listed countries.
At the Horizon: What to Watch Over the Next Three Years
Permanent reimbursement. Whether Medicare and other payers make telehealth flexibilities permanent after 2027 will shape investment.
AI regulation. Rules on AI in diagnosis and documentation will decide how far automation can extend clinicians.
Consolidation. Mergers among telehealth platforms and health systems will reshape competition.
"The next phase of telehealth will be won by the companies that turn virtual visits into trusted, continuous care."
The Strategic Revenue Opportunity
For providers, the task is to build condition programmes with proven outcomes. For platforms, the opportunity lies in software, AI and device integration. For payers and employers, the priority is lower cost and better access. For investors, the signal is subscriber growth, retention and reimbursement stability.
Market intelligence turns these questions into decisions. Segment-level analysis shows where component and application demand is concentrating, competitive analysis shows how providers are positioned, and regional analysis shows where policy and access needs will pull growth first. This is the path from market signals to strategic insight to revenue impact.
Takeaway on revenue. Treat the telehealth market as four revenue pools: condition programmes sold by subscription, virtual visits reimbursed by payers, platforms and software sold to health systems, and remote monitoring sold with devices. Each needs its own pricing model.
The Next Leg: Preparing for the Journey Ahead
The defining shift in telehealth is that it has moved from emergency workaround to a permanent channel of care. That changes how care is designed, paid for and regulated. The companies moving first are not the ones with the most video visits; they are the ones owning conditions, extending clinicians with AI and devices, earning trust, selling to every buyer and expanding where access needs are greatest.
The next three years will decide which providers and platforms become the default front door to healthcare. Decision-makers should invest in condition programmes, AI and compliance and track reimbursement after 2027, AI rules and consolidation. Companies evaluating growth opportunities in this market can use Strategic Revenue Insights' Telehealth Market report to assess market size, competitive dynamics, regional opportunities and strategic growth priorities.
Sources: Strategic Revenue Insights, Telehealth Market report (2026); Consolidated Appropriations Act of 2026 (US Congress); Hims & Hers fourth quarter and full year 2025 results.
Frequently Asked Questions
How big is the telehealth market?
Strategic Revenue Insights estimates the global telehealth market at USD 121.60 billion in 2024, rising to USD 760.94 billion by 2033 at a 22.60 percent compound annual growth rate. Asia Pacific was the largest region in 2024, and India showed the highest growth rate among listed countries.
What is driving growth in telehealth?
Demand for remote healthcare, advances in AI and IoT, the need for cost-effective care delivery, the lasting effect of COVID-19 and rising chronic disease and ageing populations are the main drivers of telehealth growth, according to Strategic Revenue Insights.
Will Medicare keep paying for telehealth?
The US Congress extended Medicare telehealth flexibilities, including care delivered to patients at home, through 31 December 2027 in the Consolidated Appropriations Act of 2026. Whether they become permanent after 2027 depends on further legislation.
What are the main challenges for telehealth companies?
The main challenges are regulatory hurdles, inconsistent reimbursement policies across regions and data privacy and security concerns. Companies address them through strong compliance, licensing across jurisdictions and proven clinical outcomes.
About the authors: This article was prepared by the Strategic Revenue Insights research team, which combines market intelligence, competitive analysis and strategic advisory for growth-stage, mid-market and enterprise organisations across the healthcare sector.
Sector analyst: Kamrul Hasan, Research Manager. Our market estimates combine primary research (interviews, surveys and expert panels) with secondary data (industry reports, databases and public disclosures); read more about how Strategic Revenue Insights works. To discuss this market with our analysts, contact our team.
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