The digital therapeutics market is showcasing a remarkable growth rate during the forecast period at a global level. As per our report, the global digital therapeutics market size was estimated at USD 2.42 billion in 2020. This market is forecasted to grow USD 10.7 billion in 2025, registering a CAGR of 34.62% from 2020 to 2025.
Digital therapeutics involves evidence-based therapeutic interventions to patients who use software to treat, monitor, and manage the disease. The constant up gradation in technology worldwide has increased awareness among the people about digital therapeutics' future possibilities.
MARKET DRIVERS:
The main factor driving the growth of the global digital therapeutics market is increasing smartphone usage and other smart devices. These devices are connected with the help of the Internet and thus provides us with real-time data. Increasing government initiatives for preventive healthcare will further increase awareness among people and promote digital therapeutics. The entry of more companies in the market has led to more venture capital investments and has positively contributed to market growth. The user-friendliness and patient convenience factor of digital therapeutics are also a significant advantage. The technological advancements in mobile healthcare are the key to the development of the global market.
MARKET RESTRAINTS:
The significant restriction for the global digital therapeutics market is the lack of access to digital therapeutics programs in developing countries. The lack of access to proper technology has led to low awareness among people about the benefits of these programs and has hindered the growth of the market. The main concern regarding this market is the patient data privacy concerns and unstable payment models, which remains a significant challenge for the development of this market. Resistance from traditional healthcare providers is going to affect market growth during the forecast period negatively.
Impact of COVID-19 on the global digital therapeutics market:
COVID-19 has positively impacted the global digital therapeutics market and will increase the projected growth rate. The coronavirus is spread by touch or when the infected person comes in close proximity with an average person. Digital therapeutics allows us to treat, manage, and monitor the disease at any place without getting in contact with other people. The hospitals in significant areas have been prepared to deal with the current pandemic, and thus less priority is being given to people infected with other diseases. In these types of cases, digital therapeutics become very useful. The increase in smartphone usage during the pandemic will undoubtedly help the market grow during this time.
REPORT COVERAGE:
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REPORT METRIC |
DETAILS |
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Market Size Available |
2019 to 2025 |
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Base Year |
2019 |
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Forecast Period |
2020 to 2025 |
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Segments Covered |
By product, sales channel, application and region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, Drivers, Restraints, Opportunities, Challenges, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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
Based on the product, the software segment leads with the highest shares of the market from past years and continues the same growth in the forecast period. The rise in the software companies' support to reduce healthcare costs across the world fuel the demand for this segment. Increasing incidences of obesity-related problems and growing awareness to maintain a healthy diet and launch different applications in smartphones significantly increase the need for the software segment in this space.
However, the devices segment is expected to grow at a healthy rate during the forecast period in the future. Digital therapeutics provides the health or social care interventions delivered through a smart device for supporting healthy behaviors. Further, it also offers therapeutic effects for treating 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 behavioral health conditions.
Digital Therapeutics Market - By Sales Channel:
Based on the sales channel, the B2B sub-segment had the largest market share in 2019 and is expected to grow at the highest rate during the forecast period. The B2B segment is further subdivided into Providers, Payers, Employers, Pharmaceutical companies, and others. The main reason behind the increasing growth rate of this sub-segment is growing awareness among providers, payers, and employers about the benefits provided by digital therapeutics. The cost reductions achieved by B2B is another positive factor for the market. The growing inclination of pharmaceutical companies to combine digital therapeutics with drug products to improve their sales will further propel the growth of the market.
B2C sub-segment is expected to grow at a prominent rate in the future. It is further sub-segmented into patients and caregivers. The caregiver's sub-segment is expected to dominate in terms of revenue and growth rate during the forecast period. The initiatives carried out by pharmaceutical companies to develop their product and promote it using digital therapeutics is the main positive contributing factor.
Digital Therapeutics Market - By Application
Based on the application, Diabetes is expected to grow with the fastest growth rate during the forecast period and had a significant market share in 2019. Diabetes causes a substantial disease burden and despondence among patients who acquire the disease. The prevalence of unhealthy lifestyles people causes diabetes. Patients who have diabetes require effective management coaching to handle symptoms like polyuria, polydipsia, and polyphagia. The advancement in technology will further increase the usage of mobile health applications as the cases of diabetes are increased.
Obesity is expected to grow at a healthy rate during the forecast period. The increasing prevalence of unhealthy lifestyles among people is the leading cause of obesity.
Digital Therapeutics Market - By Region
Geographically, the North American digital therapeutics market dominated the global market in 2019 and is expected to grow at a healthy rate during the forecast period. The growing demand has led to the entry of new players, and their combination with old players to provide better service has helped the market to grow. The development of healthcare services will fuel the growth of the market.
The European digital therapeutics market had the second-largest market in 2019 and grew at a reasonable rate in the future. The rising number of cases of diseases due to the increasing population and unhealthy lifestyle is the main contributing factor. The improvement in healthcare facilities will further improve the market.
The digital therapeutics market in the Asia Pacific region is expected to witness the highest growth rate in the future. The increase in population in countries like India and China is the main factor responsible for the high growth rate. The increased usage of smartphones and smart devices will further increase the growth 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 the COVID-19 pandemic on the sales revenue of market leaders, market followers, and disrupters in the report. 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 children's behavioral health conditions 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 is issued with a patent number as “US20190022351A1”.
BrightInsight, a California based Startup Company, offered an integrated software platform. 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.
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