The global telehospital/clinic and telehome market is expected to grow to $43.4 billion by 2019, with a five-year compound annual growth rate (CAGR) of 17.7%, according to the latest BCC Research report. The dominant market segment of telehome is surging at a tremendous 24% CAGR.

Healthcare providers are turning to telemedicine to cut costs.The implementation of the new U.S. healthcare law has increased the number of people with health insurance and seeking medical services. At the same time, providers are turning to telemedicine services as a tool to cut healthcare costs and bring about significant savings.

The telehospital/clinic market category, which comprises services that are provided within or between hospitals, clinics or other healthcare providers, is expected to reach $19.5 billion in 2019 and register a CAGR of 12%.

On the other hand, the telehome category is poised to jump from just $6.5 billion in 2013 to nearly $24 billion in 2019, increasing its share of the market from 40% in 2013 to 55% by 2019.

“The growing adoption of telemedicine services is expected to significantly impact larger markets such as healthcare, health insurance, home care, telecommunications (telecom), networking, disease management, e-health, and healthcare IT,” said BCC Research healthcare analyst Andrew McWilliams.