Digital Therapeutics Market

Industry Analysis

At a global level, the digital therapeutics market is showcasing a remarkable growth rate during the forecast period. As per our report, the global digital therapeutics market size was estimated at USD 2.42 billion in 2019. This market is forecasted to grow USD 10.7 billion in 2024, registering a CAGR of 34.62% from 2019 to 2024.

Digital therapeutics is a division of digital health that uses digital and online health technology for treating the medical condition of the individuals. Digital therapeutics (DTx) uses digital and online technology to treat the disease depending upon the medical condition of the patient. It monitors the patient to improve their long-term health results. Digital therapeutics can be used with a combination of traditional methods where it will give effective results. Chronic obstructive pulmonary disease, type II diabetes, dementia, congestive heart failure, Alzheimer’s disease, and asthma are effectively treated by digital therapeutics. These treatment procedures use different software applications through the internet to manage or prevent complications while treating the patient.

MARKET DRIVERS

The increasing burden of chronic diseases, growing usage of smartphones and advancements in the technology, and majorly driving the global digital therapeutics market.

The prevalence of chronic diseases across the world is growing at a significant pace. As per the Centers for Disease Control and Prevention (CDC), 6 in 10 every adult with 1 and 4 in every ten are suffering from 2 chronic diseases. The concept of digital therapeutics is helping chronic disease patients to consult their doctors through their smartphones and allowing them to manage their conditions much efficiently.

Increasing geriatric population across the globe is one of the causes for the rising number of people with chronic diseases. Growing support from the IT industry, the prevalence for the cure of chronic diseases through latest technologies and on-going R&D activities to reduce the cost of healthcare are other prominent factor propelling the global digital therapeutics market growth.

Besides, raising funds from the public and private organizations to develop innovative procedures in favour of the end-users is favouring the market. Overcoming challenges in traditional healthcare procedures like the ability to induce behavioural change is also a key factor prompting the demand of the market. Unmet patient needs have been covered by the digital therapeutics, which is additionally enhancing the growth rate of the market. COVID-19 outbreak is also apart in improving the development of these systems globally.

MARKET RESTRAINTS

Lack of skilled professionals in laboratories, people in rural areas, are less aware of these technologies are majorly hindering the growth of the global digital therapeutics market. Rising concern towards data privacy and lack of complete knowledge over the use of modern methods and people’s interest in the traditional way of medical treatment are limiting market growth to a small extent. Less support from the government authorities in underdeveloped countries is also a factor declining the growth rate of the global digital therapeutics market.

REPORT COVERAGE

This market research report on the global digital therapeutics market has been segmented based on the product, sales channel, application and region.

Digital Therapeutics Market - By Product

• Software
• Device
• Others

Based on the product, the software segment is leading with the highest shares of the market from past years and is to continue the same growth in the forecast period. Rise in the support from the software companies to reduce healthcare costs across the world is fueling the demand of this segment. Increasing incidences of obesity-related problems and growing awareness to maintain healthy diet and launch of different applications in smartphones are significantly increasing the need for the software segment in this space.

However, in the coming future, the devices segment is expected to grow at a healthy rate during the forecast period. Digital therapeutics provides the health or social care interventions delivered through a smart device for supporting the healthy behaviours. Further, also provide therapeutic effects for the treatment of type II diabetes, Alzheimer’s disease, dementia, congestive heart failure, chronic obstructive pulmonary disease, asthma, and other disorders. There is a rise in the research and development activities for devices related to digital therapeutics. For instance, in February 2019, Cognoa had received the Breakthrough Device Designation from the Food and Drug Administration (FDA) for the digital diagnostic and digital therapeutic devices for autism. These devices would help in earlier identification and treatment of pediatric behavioural health conditions.

Digital Therapeutics Market - By Sales Channel

• B2C
  • Patients
  • Caregivers
• B2B
  • Providers
  • Payers
  • Employers
  • Pharmaceutical Companies
  • Other Buyers

Based on the sales channel, the B2B segment is ruling with the highest shares of the market. Adoption of latest technologies by payers and employers is solely leveraging the growth rate of the market. An increasing number of pharmaceutical companies is also a factor propelling the demand of the market.

B2C is next to the B2B in holding prominent shares of the market. Owing to the rising number of patients due to the growing prevalence to improve the services provided by caregivers is majorly lavishing the market demand.

Digital Therapeutics Market - By Application

• Preventive Applications
  • Prediabetes
  • Obesity
  • Nutrition
  • Lifestyle Management
  • Other Preventive Applications
• Treatment/Care-related Applications
  • Diabetes
  • CNS Disorders
  • Chronic Respiratory Disorders
  • Musculoskeletal Disorders
  • Cardiovascular Diseases
  • Smoking Cessation
  • Medication Adherence
  • Gastrointestinal Disorders
  • Substance Use & Addiction Management
  • Rehabilitation & Patient Care
  • Other Treatment/Care-related Applications

Based on the application, Preventive segment type is holding the most significant shares of the market by owing to increasing obesity people across the world. Changes in lifestyle and food habits are the leading causes of obesity which is solely surging the demand of the market. Initiative steps by the government in making policies favourable to the ordinary people and taking measures over preventable healthcare is likely to bolster the growth rate of the market.

Treatment/care-related applications segment is to have a high growth rate in the coming years. Rising occurrences of various chronic diseases like diabetes, chronic pulmonary obstructive disease, asthma and others is a primary factor for the market to grow tremendously.

Regional Analysis

Geographically, the market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East and Africa.  The North American region dominated the global digital therapeutics market in the past years. It is due to the booming economy and growing developments in healthcare infrastructure. Within the North American digital therapeutics market, The United States is ranking top in leading dominant shares of the market. Quick adoption of the latest technologies is a crucial factor for the market to grow in this country. Canada is next to the United States in holding the highest shares of the market with the increasing awareness in maintaining a proper diet and practising physical activities daily.

Next to North America, the Asia Pacific digital therapeutics market is estimated to grow at a CAGR of 21.4% from 2019 to 2024. The increasing number of the elderly population, increasing support from the public and private organizations to improve the healthcare infrastructure, are accelerating market growth in this region. India and China are significant countries contributing dominant shares of the market as there is an increasing population with chronic diseases.

European digital therapeutics market is following the Asia Pacific is dominating the most significant shares of the market and projected to grow at a CAGR of 19.2% during the forecast period. Rising demand to promote quality services in the healthcare digitally and increasing support from the healthcare providers in developed countries are leveraging the growth rate of the market. Improving reimbursement policies by government organizations is one more factor gearing up the growth rate of the market.

TOP COMPANIES IN THE MARKET

Key market participants leading the global digital therapeutics market profiled in this report are 2Morrow, Inc., Pear Therapeutics, Inc., Fitbit, Inc. (Twine Health, Inc.), Proteus Digital Health, Inc., Livongo Health, Inc., Resmed, Inc. (Propeller Health), Voluntis, Inc., Omada Health, Inc. and Welldoc, Inc. and Medtronic Plc.

The report study will analyze the revenue impact of COVID-19 pandemic on the sales revenue of market leaders, market followers and disrupters in the report and the same is reflected in the analysis.

RECENT MARKET DEVELOPMENTS

In February 2019, the Food and Drug Administration (FDA) approved breakthrough device designation by Cognoa for digital therapeutics for autism. These devices would identify the behavioural health conditions in children at an early stage which helps to provide proper treatment.

In April 2020, Novartis international Ag has announced its acquisition with Amblyotech Inc. to develop an innovative therapeutic program specifically for the treatment of amblyopia and stereopsis vision disorders. This acquisition will boost up the company’s position in the market to the next level.

In April 2020, MedRhythms received an issuance of the patent entitled “Enhancing Music for Repetitive Motion Activities”. This application issued with a patent number as “US20190022351A1”.

BrightInsight, a California based Startup Company, offered an integrated software platform where it is the first company to provide this system in developing digital therapeutics with a raise of USD 40 million in Series B round 2020.