The global market for remote access health systems will be worth more than $8bn (£3.97bn) by 2012, according to analyst Datamonitor.

Telehealth systems deliver medical services via digital networks, allowing patients to be advised or treated at home or elsewhere. Current procedures include the domestic monitoring of blood sugar levels among diabetics and remote consultations conducted via video conferencing.

Take-up is growing rapidly. Datamonitor predicts a five-year compound annual growth rate of 56 per cent compared with 9.9 per cent in the clinical market.

The aging population and a shortage of healthcare services will boost demand for telehealth networks.

But unclear returns on investment may slow progress, said Datamonitor analyst Christine Chang.

'With no financial incentive for healthcare providers to implement the technology, providers are likely to view telehealth as an increase in workload without a subsequent increase in pay,' said Chang.

'Today's strong customer base will continue to grow as the benefits of telehealth become more apparent, said Chang.

'However, the work flow processes and technology need to improve before telehealth adoption becomes more widespread.'

In May the Department of Health announced £12m funding for telehealth trials in Kent, Newham and Cornwall.