U.S. eHealth Market Size, Share & Trends Analysis Report By Product (Telemedicine, Health Information Systems, mHealth, ePharmacy), By End Use (Providers, Payers, Patients),- Industry Analysis, Size, Share, Growth, Trends, and Forecast 2024-2033
Description
U.S. eHealth Market Size and Trends
The U.S. eHealth market size was exhibited at USD 121.85 billion in 2023 and is projected to hit around USD 627.02 billion by 2033, growing at a CAGR of 17.8% during the forecast period 2024 to 2033.
U.S. eHealth Market Key Takeaways:
The health information systems (HIS) segment dominated the market with the largest share of 43.0% in 2023.
The e-prescribing segment is expected to witness the fastest CAGR throughout the forecast period.
The providers segment led the market with the largest share of 54.0% in 2023.
The payers segment is expected to witness the fastest CAGR during the forecast period.
Market Overview
The U.S. eHealth market has emerged as a transformative force within the nation’s healthcare ecosystem, reshaping the delivery, accessibility, and efficiency of medical services. Characterized by the integration of digital technologies into healthcare operations, eHealth encompasses a diverse array of solutions, including telemedicine, electronic health records (EHRs), mHealth (mobile health), ePharmacy, and e-prescribing systems. Its rapid expansion is a direct response to the country’s need for scalable, cost-effective, and patient-centric healthcare delivery models.
The digitization of healthcare in the U.S. has been significantly accelerated by a convergence of factors: rising healthcare costs, shortages of medical professionals, increasing chronic disease prevalence, and patient demand for more convenient and personalized care. Moreover, government initiatives such as the HITECH Act and ongoing CMS incentives have propelled the widespread adoption of health IT infrastructure, especially EHR systems. The COVID-19 pandemic further acted as a catalyst, driving telehealth utilization to record levels and normalizing remote consultations as a viable, often preferred, alternative to in-person visits.
eHealth solutions in the U.S. are now central to care coordination, patient engagement, remote monitoring, and clinical decision-making. Healthcare providers leverage AI-based diagnostic platforms, mobile apps for remote monitoring, and cloud-based data systems to enhance outcomes and reduce unnecessary clinical burdens. Meanwhile, patients are increasingly empowered by self-care tools, mobile health trackers, and on-demand virtual consultations, contributing to the democratization of healthcare access.
Major players in the U.S. eHealth landscape, including Epic Systems, Teladoc Health, and Cerner, are investing in interoperability, cybersecurity, and AI to scale their offerings. As the healthcare system moves toward a value-based care model, digital health platforms are proving indispensable in achieving better health outcomes, increasing system efficiency, and reducing costs. The future of eHealth in the U.S. lies in smart, interconnected, and personalized ecosystems that meet the evolving needs of both providers and patients.
Major Trends in the Market
Telemedicine Normalization: Video consultations, virtual triaging, and remote care have become mainstream, particularly in mental health and chronic disease management.
AI Integration into Clinical Workflows: Predictive analytics, natural language processing (NLP), and AI-assisted diagnostics are gaining traction in both EHR platforms and virtual care.
Rise of Consumer mHealth Tools: Mobile applications for fitness tracking, medication reminders, glucose monitoring, and mental wellness are increasingly used by patients to manage personal health.
Patient-Centric Engagement Platforms: Tools that allow scheduling, access to test results, digital consent, and symptom checking are improving patient-provider communication.
Cloud-Based Health Information Systems: The shift from on-premise to cloud-hosted EHR and EMR platforms is enhancing scalability, remote accessibility, and data security.
Growth of ePharmacy and Online Prescription Fulfillment: Patients are turning to digital pharmacies for home delivery of medications, especially for chronic conditions.
Emphasis on Interoperability: Seamless data exchange across healthcare providers, labs, pharmacies, and payers is a major focus area following ONC’s interoperability rules.
Report Scope of U.S. eHealth Market
Report Coverage
Details
Market Size in 2024
USD 143.54 Billion
Market Size by 2033
USD 627.02 Billion
Growth Rate From 2024 to 2033
CAGR of 17.8%
Base Year
2023
Forecast Period
2024-2033
Segments Covered
Product, End use
Market Analysis (Terms Used)
Value (US$ Million/Billion) or (Volume/Units)
Country scope
U.S.
Key Companies Profiled
CVS Health; Teladoc Health, Inc.; American Well; Veradigm LLC; UNITEDHEALTH GROUP; Medtronic; Epocrates; Telecare Corporation; Medisafe; Set Point Medical; IBM; Doximity, Inc.; LiftLabs
Key Market Driver: Accelerated Digital Transformation Post-COVID-19
One of the most significant drivers for the U.S. eHealth market is the accelerated digital transformation triggered by the COVID-19 pandemic. The public health crisis exposed systemic vulnerabilities—ranging from access disparities to overburdened healthcare facilities and highlighted the value of digital infrastructure in maintaining care continuity during disruptions.
Telemedicine usage increased by over 3,000% in early 2020, and many health systems have since made virtual care an integral part of their service offerings. The necessity to limit physical interactions pushed both providers and patients to rapidly adopt telehealth, remote monitoring, and ePrescribing tools. Reimbursement flexibility from CMS, alongside regulatory waivers, removed many long-standing barriers to digital health adoption.
Post-pandemic, the foundational shift in attitudes has remained. Patients now expect digital access, while providers recognize its efficiency and scalability. Hospitals have invested in AI-enhanced triage systems, virtual ICUs, and mobile-first interfaces. This momentum has permanently embedded digital transformation in strategic health planning, fueling sustained growth of eHealth technologies.
Key Market Restraint: Data Privacy and Interoperability Challenges
Despite its growth, a prominent restraint in the U.S. eHealth market is the challenge of ensuring data privacy and achieving seamless interoperability. As more healthcare operations and patient interactions migrate to digital platforms, concerns around data breaches, ransomware attacks, and compliance with HIPAA regulations are intensifying.
The U.S. healthcare sector has consistently ranked among the most targeted industries for cyberattacks, and eHealth platforms—often storing sensitive patient information on cloud systems—are particularly vulnerable. Inadequate encryption, poor access controls, and weak third-party integrations increase risk exposure. Furthermore, although the 21st Century Cures Act emphasizes interoperability, many systems still operate in silos due to inconsistent data standards and vendor resistance.
The lack of universal interoperability means that health information cannot always be easily shared between providers, resulting in fragmented care and duplicated tests. These inefficiencies diminish the promise of eHealth and may delay treatment decisions. Addressing these concerns requires not only stronger cybersecurity investments but also regulatory enforcement and industry-wide collaboration on data exchange standards.
Key Market Opportunity: AI and Predictive Analytics in Population Health
A promising opportunity in the U.S. eHealth market lies in the use of artificial intelligence and predictive analytics for population health management. Healthcare providers, payers, and government agencies are increasingly turning to data-driven insights to anticipate disease outbreaks, optimize resource allocation, and personalize preventive care.
With vast datasets available through EHRs, wearable devices, and insurance claims, AI models can identify at-risk populations, predict hospitalization likelihood, and support chronic disease interventions. For instance, AI algorithms can analyze social determinants of health (SDOH) alongside clinical metrics to tailor outreach programs for underserved communities. Health systems are also using predictive tools to manage readmissions, medication adherence, and workforce planning.
This evolution supports the U.S. transition toward value-based care, where providers are reimbursed based on outcomes rather than services rendered. As such, investment in AI-driven population health tools is expected to accelerate. Companies integrating such analytics into their platforms are better positioned to deliver measurable ROI and establish long-term partnerships with hospitals, payers, and public health bodies.
U.S. eHealth Market By Product Insights
Telemedicine dominated the U.S. eHealth market by product segment, particularly following its explosive growth during the COVID-19 pandemic. It continues to hold a strong position across primary care, behavioral health, chronic condition management, and follow-up consultations. Platforms like Teladoc Health, Amwell, and MDLIVE have become household names, offering HIPAA-compliant video conferencing, digital triage tools, and AI-based symptom checkers. Hospital systems have also deployed telehealth portals integrated into EHR systems to streamline virtual care delivery.
However, Health Information Systems (HIS), especially Electronic Health Records (EHRs), are the fastest-growing segment, driven by regulatory mandates and the expanding complexity of healthcare coordination. EHR adoption in the U.S. has surpassed 90% in hospitals, and systems like Epic, Cerner, and Allscripts continue to innovate with AI-enabled decision support, voice recognition, and cloud-based hosting. Additionally, Population Health Management (PHM) tools within HIS suites are gaining prominence, allowing providers to stratify risk, target interventions, and improve long-term outcomes in patient populations.
U.S. eHealth Market By End Use Insights
Providers constitute the largest end-use segment in the U.S. eHealth market, as hospitals, clinics, and physicians rely on digital tools to enhance diagnostics, streamline workflows, and improve patient outcomes. EHR systems, clinical decision support, and teleconsultation platforms are central to modern provider operations. Many hospital networks have developed unified digital health platforms that include telemedicine, ePrescribing, and automated patient engagement solutions to reduce administrative burdens.
Patients, however, are the fastest-growing end users, empowered by access to mobile health apps, remote monitoring devices, and digital pharmacies. The shift toward self-managed care, fueled by high smartphone penetration and rising health consciousness, has led to the proliferation of consumer-facing tools. Apps that track vitals, nutrition, medication adherence, and mental wellness are seeing robust adoption, particularly among younger demographics and chronic disease patients. This growth is encouraging software developers to prioritize UX/UI and data integration for consumer-facing eHealth tools.
Country-Level Analysis
In the U.S., the eHealth sector benefits from strong policy support, a mature technology ecosystem, and significant healthcare expenditure. Federal initiatives such as the Promoting Interoperability Program and the Health Information Technology for Economic and Clinical Health (HITECH) Act have long incentivized the digitization of health records and the adoption of interoperable systems. The Office of the National Coordinator for Health Information Technology (ONC) continues to refine data-sharing standards to align with the goals of value-based care.
CMS has also expanded reimbursement for telehealth services, including virtual check-ins, remote patient monitoring, and chronic care management. Additionally, the FDA’s Digital Health Center of Excellence is streamlining the evaluation of software-based medical devices, fostering innovation in digital therapeutics and AI-powered diagnostics.
Private sector momentum is equally strong. Major hospital networks such as Kaiser Permanente, Cleveland Clinic, and Mayo Clinic have built comprehensive digital ecosystems. Venture capital investment in U.S. digital health startups reached record levels in recent years, funding innovations in virtual mental health, AI radiology tools, and chronic disease platforms. Together, these public-private dynamics position the U.S. as a global leader in eHealth adoption, innovation, and commercialization.
Some of the prominent players in the U.S. eHealth market include:
CVS Health
Teladoc Health, Inc.
American Well
Veradigm LLC
UNITEDHEALTH GROUP
Medtronic
Epocrates
Telecare Corporation
Medisafe
Set Point Medical
IBM
Doximity, Inc.
LiftLabs
Segments Covered in the Report
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the U.S. eHealth market
Product
Telemedicine
Health Information Systems
Electronic Health Record
Electronic Medical Record
Patient Engagement Solution
Population Health Management
mHealth
Monitoring services
Diagnosis services
Healthcare Systems Strengthening Services
Others
ePharmacy
E-Prescribing
Computerized Physician Order Entry
End Use
Patients
Providers
Payers
The U.S. eHealth market size was exhibited at USD 121.85 billion in 2023 and is projected to hit around USD 627.02 billion by 2033, growing at a CAGR of 17.8% during the forecast period 2024 to 2033.
U.S. eHealth Market Key Takeaways:
The health information systems (HIS) segment dominated the market with the largest share of 43.0% in 2023.
The e-prescribing segment is expected to witness the fastest CAGR throughout the forecast period.
The providers segment led the market with the largest share of 54.0% in 2023.
The payers segment is expected to witness the fastest CAGR during the forecast period.
Market Overview
The U.S. eHealth market has emerged as a transformative force within the nation’s healthcare ecosystem, reshaping the delivery, accessibility, and efficiency of medical services. Characterized by the integration of digital technologies into healthcare operations, eHealth encompasses a diverse array of solutions, including telemedicine, electronic health records (EHRs), mHealth (mobile health), ePharmacy, and e-prescribing systems. Its rapid expansion is a direct response to the country’s need for scalable, cost-effective, and patient-centric healthcare delivery models.
The digitization of healthcare in the U.S. has been significantly accelerated by a convergence of factors: rising healthcare costs, shortages of medical professionals, increasing chronic disease prevalence, and patient demand for more convenient and personalized care. Moreover, government initiatives such as the HITECH Act and ongoing CMS incentives have propelled the widespread adoption of health IT infrastructure, especially EHR systems. The COVID-19 pandemic further acted as a catalyst, driving telehealth utilization to record levels and normalizing remote consultations as a viable, often preferred, alternative to in-person visits.
eHealth solutions in the U.S. are now central to care coordination, patient engagement, remote monitoring, and clinical decision-making. Healthcare providers leverage AI-based diagnostic platforms, mobile apps for remote monitoring, and cloud-based data systems to enhance outcomes and reduce unnecessary clinical burdens. Meanwhile, patients are increasingly empowered by self-care tools, mobile health trackers, and on-demand virtual consultations, contributing to the democratization of healthcare access.
Major players in the U.S. eHealth landscape, including Epic Systems, Teladoc Health, and Cerner, are investing in interoperability, cybersecurity, and AI to scale their offerings. As the healthcare system moves toward a value-based care model, digital health platforms are proving indispensable in achieving better health outcomes, increasing system efficiency, and reducing costs. The future of eHealth in the U.S. lies in smart, interconnected, and personalized ecosystems that meet the evolving needs of both providers and patients.
Major Trends in the Market
Telemedicine Normalization: Video consultations, virtual triaging, and remote care have become mainstream, particularly in mental health and chronic disease management.
AI Integration into Clinical Workflows: Predictive analytics, natural language processing (NLP), and AI-assisted diagnostics are gaining traction in both EHR platforms and virtual care.
Rise of Consumer mHealth Tools: Mobile applications for fitness tracking, medication reminders, glucose monitoring, and mental wellness are increasingly used by patients to manage personal health.
Patient-Centric Engagement Platforms: Tools that allow scheduling, access to test results, digital consent, and symptom checking are improving patient-provider communication.
Cloud-Based Health Information Systems: The shift from on-premise to cloud-hosted EHR and EMR platforms is enhancing scalability, remote accessibility, and data security.
Growth of ePharmacy and Online Prescription Fulfillment: Patients are turning to digital pharmacies for home delivery of medications, especially for chronic conditions.
Emphasis on Interoperability: Seamless data exchange across healthcare providers, labs, pharmacies, and payers is a major focus area following ONC’s interoperability rules.
Report Scope of U.S. eHealth Market
Report Coverage
Details
Market Size in 2024
USD 143.54 Billion
Market Size by 2033
USD 627.02 Billion
Growth Rate From 2024 to 2033
CAGR of 17.8%
Base Year
2023
Forecast Period
2024-2033
Segments Covered
Product, End use
Market Analysis (Terms Used)
Value (US$ Million/Billion) or (Volume/Units)
Country scope
U.S.
Key Companies Profiled
CVS Health; Teladoc Health, Inc.; American Well; Veradigm LLC; UNITEDHEALTH GROUP; Medtronic; Epocrates; Telecare Corporation; Medisafe; Set Point Medical; IBM; Doximity, Inc.; LiftLabs
Key Market Driver: Accelerated Digital Transformation Post-COVID-19
One of the most significant drivers for the U.S. eHealth market is the accelerated digital transformation triggered by the COVID-19 pandemic. The public health crisis exposed systemic vulnerabilities—ranging from access disparities to overburdened healthcare facilities and highlighted the value of digital infrastructure in maintaining care continuity during disruptions.
Telemedicine usage increased by over 3,000% in early 2020, and many health systems have since made virtual care an integral part of their service offerings. The necessity to limit physical interactions pushed both providers and patients to rapidly adopt telehealth, remote monitoring, and ePrescribing tools. Reimbursement flexibility from CMS, alongside regulatory waivers, removed many long-standing barriers to digital health adoption.
Post-pandemic, the foundational shift in attitudes has remained. Patients now expect digital access, while providers recognize its efficiency and scalability. Hospitals have invested in AI-enhanced triage systems, virtual ICUs, and mobile-first interfaces. This momentum has permanently embedded digital transformation in strategic health planning, fueling sustained growth of eHealth technologies.
Key Market Restraint: Data Privacy and Interoperability Challenges
Despite its growth, a prominent restraint in the U.S. eHealth market is the challenge of ensuring data privacy and achieving seamless interoperability. As more healthcare operations and patient interactions migrate to digital platforms, concerns around data breaches, ransomware attacks, and compliance with HIPAA regulations are intensifying.
The U.S. healthcare sector has consistently ranked among the most targeted industries for cyberattacks, and eHealth platforms—often storing sensitive patient information on cloud systems—are particularly vulnerable. Inadequate encryption, poor access controls, and weak third-party integrations increase risk exposure. Furthermore, although the 21st Century Cures Act emphasizes interoperability, many systems still operate in silos due to inconsistent data standards and vendor resistance.
The lack of universal interoperability means that health information cannot always be easily shared between providers, resulting in fragmented care and duplicated tests. These inefficiencies diminish the promise of eHealth and may delay treatment decisions. Addressing these concerns requires not only stronger cybersecurity investments but also regulatory enforcement and industry-wide collaboration on data exchange standards.
Key Market Opportunity: AI and Predictive Analytics in Population Health
A promising opportunity in the U.S. eHealth market lies in the use of artificial intelligence and predictive analytics for population health management. Healthcare providers, payers, and government agencies are increasingly turning to data-driven insights to anticipate disease outbreaks, optimize resource allocation, and personalize preventive care.
With vast datasets available through EHRs, wearable devices, and insurance claims, AI models can identify at-risk populations, predict hospitalization likelihood, and support chronic disease interventions. For instance, AI algorithms can analyze social determinants of health (SDOH) alongside clinical metrics to tailor outreach programs for underserved communities. Health systems are also using predictive tools to manage readmissions, medication adherence, and workforce planning.
This evolution supports the U.S. transition toward value-based care, where providers are reimbursed based on outcomes rather than services rendered. As such, investment in AI-driven population health tools is expected to accelerate. Companies integrating such analytics into their platforms are better positioned to deliver measurable ROI and establish long-term partnerships with hospitals, payers, and public health bodies.
U.S. eHealth Market By Product Insights
Telemedicine dominated the U.S. eHealth market by product segment, particularly following its explosive growth during the COVID-19 pandemic. It continues to hold a strong position across primary care, behavioral health, chronic condition management, and follow-up consultations. Platforms like Teladoc Health, Amwell, and MDLIVE have become household names, offering HIPAA-compliant video conferencing, digital triage tools, and AI-based symptom checkers. Hospital systems have also deployed telehealth portals integrated into EHR systems to streamline virtual care delivery.
However, Health Information Systems (HIS), especially Electronic Health Records (EHRs), are the fastest-growing segment, driven by regulatory mandates and the expanding complexity of healthcare coordination. EHR adoption in the U.S. has surpassed 90% in hospitals, and systems like Epic, Cerner, and Allscripts continue to innovate with AI-enabled decision support, voice recognition, and cloud-based hosting. Additionally, Population Health Management (PHM) tools within HIS suites are gaining prominence, allowing providers to stratify risk, target interventions, and improve long-term outcomes in patient populations.
U.S. eHealth Market By End Use Insights
Providers constitute the largest end-use segment in the U.S. eHealth market, as hospitals, clinics, and physicians rely on digital tools to enhance diagnostics, streamline workflows, and improve patient outcomes. EHR systems, clinical decision support, and teleconsultation platforms are central to modern provider operations. Many hospital networks have developed unified digital health platforms that include telemedicine, ePrescribing, and automated patient engagement solutions to reduce administrative burdens.
Patients, however, are the fastest-growing end users, empowered by access to mobile health apps, remote monitoring devices, and digital pharmacies. The shift toward self-managed care, fueled by high smartphone penetration and rising health consciousness, has led to the proliferation of consumer-facing tools. Apps that track vitals, nutrition, medication adherence, and mental wellness are seeing robust adoption, particularly among younger demographics and chronic disease patients. This growth is encouraging software developers to prioritize UX/UI and data integration for consumer-facing eHealth tools.
Country-Level Analysis
In the U.S., the eHealth sector benefits from strong policy support, a mature technology ecosystem, and significant healthcare expenditure. Federal initiatives such as the Promoting Interoperability Program and the Health Information Technology for Economic and Clinical Health (HITECH) Act have long incentivized the digitization of health records and the adoption of interoperable systems. The Office of the National Coordinator for Health Information Technology (ONC) continues to refine data-sharing standards to align with the goals of value-based care.
CMS has also expanded reimbursement for telehealth services, including virtual check-ins, remote patient monitoring, and chronic care management. Additionally, the FDA’s Digital Health Center of Excellence is streamlining the evaluation of software-based medical devices, fostering innovation in digital therapeutics and AI-powered diagnostics.
Private sector momentum is equally strong. Major hospital networks such as Kaiser Permanente, Cleveland Clinic, and Mayo Clinic have built comprehensive digital ecosystems. Venture capital investment in U.S. digital health startups reached record levels in recent years, funding innovations in virtual mental health, AI radiology tools, and chronic disease platforms. Together, these public-private dynamics position the U.S. as a global leader in eHealth adoption, innovation, and commercialization.
Some of the prominent players in the U.S. eHealth market include:
CVS Health
Teladoc Health, Inc.
American Well
Veradigm LLC
UNITEDHEALTH GROUP
Medtronic
Epocrates
Telecare Corporation
Medisafe
Set Point Medical
IBM
Doximity, Inc.
LiftLabs
Segments Covered in the Report
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the U.S. eHealth market
Product
Telemedicine
Health Information Systems
Electronic Health Record
Electronic Medical Record
Patient Engagement Solution
Population Health Management
mHealth
Monitoring services
Diagnosis services
Healthcare Systems Strengthening Services
Others
ePharmacy
E-Prescribing
Computerized Physician Order Entry
End Use
Patients
Providers
Payers
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497 Pages
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