 Strategic analysis of the
European telemedicine markets
From Frost & Sullivan
Improved security for patient data set to spur telemedicine uptake as a
mainstream technology
The European telemedicine markets are at a critical growth phase where
vendors need to capitalise on growing opportunities and gain the early-mover
advantage over competitors. However, they must first counter the resistance
of patients and healthcare professionals who remain doubtful regarding the
security and long-term viability of the technology.
"Patient confidentiality is a key issue that hinders full-fledged
adoption of telemedicine and restricts it to specialist applications," notes
Chris Cherrington, Research Analyst at Frost & Sullivan (http://healthcare.frost.com
 ). "In order to succeed in
the mainstream market, telemedicine vendors must give immediate attention to
removing the insecurities that surround the transmission of patient
information over a public network."
Such concerns are being addressed by improved data security standards and
encryption techniques. Virtual private networks (VPNs) or controlled
networks such as the United Kingdom's NHSnet have been extremely successful
in providing managed secure networks.
Patient Smartcards are also gaining prominence as tools to secure patient
data, especially in France. However, this technique is under scrutiny due to
a lack of standards and interoperability issues and is, therefore, unlikely
to be realised in the near term.
Encouraging signs are now present about the gradual dissolution of
resistance to telemedicine, thereby accelerating its mainstream acceptance.
While better security has allayed fears about personal data being
compromised among both healthcare professionals and patients, governments
have also become more open to funding healthcare technology that creates
noticeable improvements in service quality at no extra cost or at reduced
costs.
This growing interest is expected to push the telemedicine market growth
at a CAGR of 42% from €72.2 million in 2003 to
€1.50 billion in 2010.
Besides an ageing population, the growing demand for home-based
treatments
is creating a conducive atmosphere for the uptake of telemedicine as a
mainstream technology — especially in remote patient monitoring (RPM). This
would benefit patients in terms of convenience and simultaneously allow
healthcare facilities to control costs.
The proliferation of more affordable broadband Internet access and high
quality telephony and videoconferencing throughout Europe is set to underpin
the continued expansion of transmission technologies such as telemedicine.
In order to benefit from the favourable healthcare environment,
telemedicine
vendors need to work with professional and trade associations to generate
greater excitement about the technology. This is achievable through offering
training programmes and educational packages, and giving end users a
'hands-on' experience with telemedicine technologies through various events
and conferences.
With end users demanding proof of the positive impact of telemedicine in
terms of return on investment and cost savings, sponsoring or supporting of
high profile projects, developing lease and private-public partnership
schemes and making provisions for 'pay-as-you-go' options for smaller volume
end-users is also likely to sustain interest in telemedicine.
Pilot schemes/specialist applications such as the use of telemedicine to
provide emergency cover in remote parts of Scandinavia have been successful.
Now these applications are poised to be realised on a larger scale.
"Emergency medical care and training applications for remote sites and
viewers are making their way into the mainstream market with their ability
to provide cost savings and convenience to healthcare providers", adds Mr
Cherrington.
Telecardiology remains the largest contributor to the growth of
telemedicine. Increasing cardiac problems, coupled with the popularity of
RPM, are projected to push its revenue contributions to the telemedicine
market from 49% in 2004 to 71% in 2010. Teleradiology's contribution, on the
other hand, is expected to fall from 48% to 28% during the same period.
"The telecardiology market is set to experience high levels of growth in
the
coming years as they are now working with healthcare facilities to meet the
patients demand for at-home treatments", concludes Mr Cherrington. "If the
industry can use this to develop other applications, the future for
telemedicine is indeed a very bright one."
If you are interested in an analysis overview providing an introduction
into
the Strategic Analysis of the European Telemedicine Markets, then send an
email to Katja Feick, Corporate Communications, at
katja.feick@frost.com
with the following information: Full name, company name, title, contact tel
number, email. Upon receipt of the above information, an overview will be
emailed to you. |
