Cloud-Based Occupational Therapy Market Size (2023 - 2030)

The Cloud-Based Occupational Therapy Market was valued at USD 4.31 billion in 2023 and is projected to reach USD 6.43 billion by 2030. The market is anticipated to expand at a CAGR of 5.12% over the forecast period.

INDUSTRY OVERVIEW

A widespread healthcare speciality is occupational therapy (OT). It entails the use of analysis and treatment in order to create, restore, or preserve the meaningful activities, or occupations, of particular people, groups, or communities. It is a distinct health profession made up of occupational therapists and occupational therapy assistants, which is frequently referred to as an allied health profession (OTA). OTs frequently assist clients who have physical, mental, or emotional challenges. Physical or occupational therapy uses a variety of methods to treat fractured bones, joints, and other body components to reduce pain and restore movement. People with severe musculoskeletal and neuromuscular issues, whether genetically inherited or acquired, benefit from a fresh lease of life. Additionally, it is administered to patients after procedures like joint replacement and muscle restoration, where a bodily component must remain immobile for an extended length of time. The necessity for evaluation and potential treatment of their biophysical issues has expanded as medical discoveries have enhanced the survival rates of prematurely newborns, trauma, and stroke sufferers. This is putting the market for occupational or physical therapy services globally on a steeper growth curve.

Patients' demand for alternative therapies significantly surged throughout the epidemic. At the height of the epidemic, people were reluctant to visit many health facilities in person unless they had a serious illness. The utilisation of cloud-based occupational therapy or telehealth is a great technique to provide care and understand a patient's requirements while doing so. To better assist patients with diverse requirements and comfort levels, occupational therapists are going digital. Through electronic information and telecommunications technologies, occupational therapy experts offer patients with healthcare information and services. For instance, research has shown that physical teletherapy is helpful. Research that was released in The Journal of Bone & Joint Surgery in January 2020 examined 287 individuals who underwent total knee replacement surgery and had an average age of 65. Half of the participants made use of the Virtual Exercise Rehabilitation Assistant (VERA) system, which uses 3D technology and a digitally simulated teacher to provide exercise instructions and offer rapid feedback based on a user's actions. As per the Centers for Medicare and Medicaid Services, occupational therapists in private practice are now able to bill for in-person technology sessions. Several insurance companies have started to pay for occupational therapy done via telehealth. As a result, cloud-based and remote occupational therapy services are popular among consumers.

COVD-19 IMPACT ON THE CLOUD-BASED OCCUPATIONAL THERAPY MARKET

COVID-19 was the most important event impacting the economy and industry around the world.

The pandemic has demanded an insightful change for the market players regarding the need for enhancing capacity, risk management, and supply chain and inventory control. The outbreak of COVID -19 has paced up the usage of digital platforms among businesses and enterprises. Organizations are adopting the digital workspace, to avoid business disruptions that have occurred due to deferred choices and delayed actions.  The occupational therapy market has been severely impacted by the COVID-19 outbreak. the socioeconomic circumstances in various nations. The incidence of COVID-19 has increased exponentially, which has had an impact on the global economy. There were a lot of COVID-19 cases, which led to employment loss. Due to the lack of workers and staff, the occupational therapy market suffered as a result. However, it is anticipated that the occupational therapy sector would be considerably influenced in the post-COVID future.

MARKET DRIVERS:

The rising geriatric population and increasing prevalence of chronic diseases will promote growth

The rising incidence of chronic illnesses among the elderly is one of the key market drivers. During the projection period, it is predicted that the rising number of patients with chronic diseases would increase the demand for rehabilitation services, including in the occupational therapy market. More than 63 million persons in the United States will have osteoarthritis in 2020, per data released by the Centers for Disease Control and Prevention (CDC). By the end of 2040, it's estimated to reach 78 million. Additionally, the nation's ageing population is creating a sizable patient base that needs occupational and physical therapy services. As a result, there are more fall-related injuries every year. For elderly people who need physical treatment, falls are a prevalent cause. In light of this, the growing use of cloud-based occupational therapy is driven by the world's ageing population. In addition, a growing number of physical and occupational therapists and favourable payment rules are anticipated to boost market expansion.

Increased smartphone usage and Internet Penetration is boosting the market growth

The global smartphone users and internet subscriptions have grown substantially in the past few years.1366.14 million smartphones were shipped in 2020 and it is set to reach 1,556.67 million units by 2030. The technology sector is trying to exploit the health care sector by developing more services and devices that help people manage and monitor their personal and family health. The worldwide digital therapeutics market is anticipated to develop due to an increase in smartphone and tablet penetration, as well as the growing need to reduce healthcare costs, considerable advantages to the whole healthcare ecosystem, and an increase in chronic illness occurrences.

Alternative Rehabilitation Therapies becoming more popular to boost the market growth

The increasing inclination of patients toward occupational treatments instead of medicine due to various side effects connected with pharmaceutical therapies is another significant factor that is anticipated to fuel the market's expansion. These and other major problems, such as prescription drug abuse, opioid overdoses, and associated fatalities, are some of the things driving patients away from medicine and into occupational and physical therapy services. During the forecast period, it is predicted that the long-term advantages of physical therapy would increase the demand for rehabilitation therapies, including physical and occupational therapy. Additionally, it is projected that an expanding patient base with chronic pain would increase the demand for pain management strategies, including cloud-based occupational therapy. Additionally, during the projected period, the market is projected to grow due to patients' increasing knowledge of the advantages of physical therapy and occupational therapy.

MARKET RESTRAINTS:

Compensation Caps for Therapies to Limit Market Growth

The vast majority of people rely on medical subsidies to cover their hospital expenses. It is projected that price caps on different physical and occupational treatments implemented by the nation's public and commercial insurance carriers will impede the uptake of these services over the projection period.

Additionally, the high claim denial rates for occupational and physical treatments are significant constraints limiting market expansion. Data entry mistakes, improper use of modifier codes, a lack of proof of medical necessity, and eligibility problems are the main causes of claim denials. The rising claim denial rates have hindered the use of cloud-based occupational therapy across the world.

Reluctance and hesitancy among patients to adopt digital therapeutics are acting as a restraint for the market growth

Digital therapy suppliers confront a significant difficulty in motivating individuals to utilise the technology and gaining their trust. While elderly and underprivileged groups have the highest illness vulnerability and incidence rates, due to low technological literacy, they are the least likely to utilize digital treatments. Additionally, the lack of robust infrastructure in developing nations also inhibits the wide adoption of digital therapeutics, which in turn is affecting the market growth.

CLOUD-BASED OCCUPATIONAL THERAPY MARKET REPORT COVERAGE:

This research report on the Cloud-Based Occupational Therapy Market has been segmented and sub-segmented based on Disease, By Settings and By Region.

CLOUD-BASED OCCUPATIONAL THERAPY MARKET – BY DISEASES

• Mental Disorder

• Physical Disorder

• Others

Based on disease, the cloud-based occupational therapy market is segmented into Mental disorders, Physical disorders and others.  Among these, the Physical disorder segment dominated the market and capture a major market proportion in 2021. The sector is anticipated to develop as a result of rising sports injuries among athletes and rising orthopaedic illness prevalence in the older population. Additionally, rising bone fracture rates are a factor in the segment's expansion. According to data from Schwebel, Goetz & Sieben, there are around 6.3 million bone fracture incidents per year and about 880,000 hospitalizations in the US as a result of fractures.

CLOUD-BASED OCCUPATIONAL THERAPY MARKET - BY SETTINGS  

• Hospitals

• Outpatient Clinics

• Others

Based on disease, the cloud-based occupational therapy market is segmented into Hospitals, Outpatient Clinics and Others. The sector for outpatient clinics is anticipated to be the largest throughout the forecasted period. The rise in the number of physical therapy outpatient clinics, the rise in industrial accidents worldwide, and the rising demand for occupational & physical therapy services are all factors contributing to this segment's domination. Hospitals are estimated to have the second-largest market share and to grow at a considerable CAGR throughout the projection period. The rise in chronic illness prevalence and the expansion of partnerships between market participants and hospitals that provide physical and occupational therapy are the main factors influencing the segment's growth.

CLOUD-BASED OCCUPATIONAL THERAPY MARKET - BY REGION

• North America

• Europe

• The Asia Pacific

• Latin America

• The Middle East

• Africa

By region, the Cloud-Based Occupational Therapy Market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East and Africa. The North American region emerged as the market leader and captured a major proportion of the global revenue in 2021. The North American market is anticipated to expand at a high CAGR over the forecast period. The market growth in the region can be credited to several reasons, including a rise in the usage of digital health platforms and the presence of attractive medical expenses compensation models that emphasize enhancing quality of life through better tracking and diagnostics. The market is likely to be driven by an increase in the frequency of orthopaedic illnesses among the elderly population in the area. During the forecast period, the Asia Pacific region is likely to increase at the quickest rate. This rapid expansion can be ascribed to rising demand for better healthcare, increased smartphone adoption, and enhanced internet connectivity. The economic development and rising investment in the healthcare sector in the Asia Pacific regions such as Japan, India, Australia, South Korea, and Singapore have led to the huge adoption of technologically advanced healthcare systems to cater for the large population. Increased government expenditure on healthcare is predicted to boost demand for personal care devices and related services, which would eventually fuel and accelerate the market development.

CLOUD-BASED OCCUPATIONAL THERAPY MARKET - BY COMPANIES

Some of the major players operating in the Cloud-Based Occupational Therapy Market include:

• WEBPT

• PREMISE HEALTH

• NET HEALTH

• CLINICIENT

• OPTIMA HEALTH CARE, INC.

• CLINICSOURCE

• ACCORD MEDICAL PRODUCTS

• BIO-MED INC.

• DIVINE PHYSIOTHERAPY EQUIPMENTS

• ANYANG XIANGYU MEDICAL EQUIPMENT CO., LTD.

• IDEAL SURGICAL COMPANY

• ALLIANCE THERAPY SERVICES

NOTABLE HAPPENING IN THE CLOUD-BASED OCCUPATIONAL THERAPY MARKET

PARTNERSHIP- In order to offer occupational therapy treatments and related goods inside LA Fitness facilities in the US and Canada, Novo Integrated Sciences, Inc. and LAF Canada Company signed an Amended and Restated Master Facility Licensing Deal in January 2022.

MARKET EXPANSION- Ivy Rehab, a pioneer in outpatient musculoskeletal rehabilitation services and paediatric treatment in the country, grew its footprint in April 2022 with the addition of 12 outpatient clinics through collaboration and the thoughtful launch of new locations.

ACQUISITION- In September 2021, Athletico Physical Therapy announced that it has acquired Endurance Physical Therapy to increase its geographic reach in 13 other states, including Mississippi.