The Solactive Telemedicine and Digital Health Index includes companies working in at least one of four areas: telemedicine, healthcare analytics, connected healthcare devices or managed digitization. Companies related to connected medical devices develop medical devices that automatically communicate data and results to patients and/or physicians to provide real-time support or dynamic patient treatment. Companies in the administrative digitization play a vital role in innovative management processes for healthcare providers, including patient intake, staffing solutions, digital health security or doctor/hospital search, appointment and rating.

The selection of index components is based on Solactive’s proprietary natural language processing algorithm ARTIS®, which uses algorithms to analyze large volumes of public documents to assess a company’s relevance, taking into account its presence and its importance to the Telemedicine subject.

According to Emergen Research, the global telemedicine market is expected to grow from $84 billion in 2022 to $450 billion in 2032. Global healthcare workforce shortage, technological innovation and government support will be key drivers of this expansion, which is expected to grow at a CAGR of 18%.

Telemedicine has experienced a surge during the coronavirus pandemic, as social restrictions encouraged remote interactions between healthcare providers and patients. Even though the COVID-19 public health emergency ended in May, the U.S. Congress extended certain telehealth flexibilities through the end of 2024.

Major telemedicine companies Teladoc Health (TDOC) and American Well Corporation (AMWL) experienced rapid growth from January 2020 to January 2021, outperforming the overall healthcare industry.

However, shares of Teladoc Health (TDOC) and Amwell (AMWL) are down more than 90% from their peaks during the pandemic in January 2021, as demand for telemedicine temporarily weakened and competition weighed over the industry's long-term outlook.