Digital Therapeutics Market

Global Digital Therapeutics Market Size (2023 to 2028)

The global digital therapeutics market size was worth USD 4.38 billion in 2022. The market is expected to showcase a remarkable growth rate during the forecast period and is forecasted to grow by USD 19.40 billion in 2028, registering a CAGR of 34.62% during the forecast period.

Global Digital Therapeutics Market Share Insights:

• Based on product, the software segment held the major share of the global market in 2022.
• Based on sales channels, the B2B segment accounted for the leading share of the global market in 2022.
• Based on application, the diabetes segment had the largest share of the global market in 2022.
• Based on region, North America dominated the market in 2022.

MARKET DRIVERS:

The growing prevalence of chronic diseases worldwide and the need for effective disease management solutions primarily drive the growth of the digital therapeutics market. The number of people suffering from chronic diseases such as diabetes, cardiovascular diseases, respiratory diseases and mental health disorders is growing rapidly. Chronic diseases are the primary cause of mortalities worldwide and account for 71% of the overall deaths says WHO. The traditional approaches to treating chronic diseases involve a combination of medications, lifestyle changes and frequent visits to the healthcare providers. Still, these practices do not guarantee optimal disease management and patient outcomes. Digital therapeutics is a technological healthcare solution that can provide evidence-based interventions, support, and monitoring directly to patients. Patients can involve in their own care, access personalized treatment plans, receive real-time feedback, and monitor their progress remotely using digital therapeutics. Patients suffering from chronic diseases have been using digital therapeutics solutions to improve patient outcomes, enhance healthcare efficiency and transform the way chronic diseases are managed globally and this trend is likely to fuel in the coming years and drive the market growth.

The rapid adoption of smartphones, wearables and digital health platforms fuels the growth rate of the digital therapeutics market.  Smartphones and wearables have become more affordable and accessible worldwide. Technological advancements have tremendously improved the user experience and functionality and made these devices appealing to users. On the other hand, digital health platforms have become a comprehensive healthcare solution to manage health and wellness. These digital health platforms have been offering numerous services including remote patient monitoring, telehealth consultations, personalized health coaching, and access to digital therapeutics programs. The convenience, portability, and connectivity offered by smartphones, wearables, and digital health platforms have been helping people to focus on preventative healthcare and self-management and contributing to the increasing demand for digital health solutions including digital therapeutics.

The growing healthcare costs, increasing need for cost-effective treatment options, favorable government initiatives and policies promoting digital therapeutics, technological advancements including artificial intelligence and machine learning that enable personalized treatment and monitoring and expansion of digital health infrastructure and connectivity promote the digital therapeutics market growth. The growing demand for non-invasive and convenient treatment options, increasing patient awareness and acceptance of digital therapeutics, integration of digital therapeutics into healthcare systems and reimbursement policies and the growing number of collaborations and partnerships between pharmaceutical companies and digital health providers accelerate the market growth.

The growing focus on preventive healthcare and wellness, rising interest from investors and venture capital firms in digital therapeutics, increasing need for remote patient monitoring and management, especially in rural and underserved areas, improving patient engagement and adherence to treatment regimens and the expansion of telehealth and telemedicine services propel the market growth. The growing use of digital therapeutics in mental health and behavioral health conditions, expansion of regulatory frameworks and approvals for digital therapeutics and shift towards value-based care and outcome-driven healthcare models support the market growth.

MARKET RESTRAINTS:

Limited awareness and understanding of digital therapeutics among healthcare providers and patients, regulatory challenges and the need for clear guidelines and frameworks for digital therapeutics hamper the market growth. Reimbursement complexities and the lack of standardized reimbursement policies for digital therapeutics interventions, data privacy and security concerns, particularly regarding the collection and storage of personal health information and resistance to change and traditional healthcare systems that may be resistant to adopting digital therapeutics further hinder the market growth. Limited interoperability and integration of digital therapeutics platforms with existing healthcare systems and electronic health records, technical challenges, such as connectivity issues, compatibility with different devices, and user interface limitations, limit the growth rate of the digital therapeutics market.

Impact of COVID-19 on the global digital therapeutics market:

The COVID-19 pandemic has fuelled the demand levels for digital therapeutics. The usage and adoption of digital health solutions including digital therapeutics have seen a spike during the COVID-19 pandemic. The measures taken by the governments of several countries such as lockdowns, travel bans and social distancing have resulted in an increasing demand for remote healthcare services. People found digital therapeutics as a promising healthcare option during the COVID-19 pandemic to avail virtual care, remote monitoring, and self-management of chronic diseases and the demand for digital therapeutics has increased and driven the market growth. In addition, telehealth usage has increased significantly during the COVID-19 pandemic and this has created a favorable environment for digital therapeutics. Furthermore, the number of people suffering from mental health issues has increased notably during the COVID-19 pandemic and a considerable amount of the patient population suffering from mental health issues have used digital therapeutics to avail mental health solutions, including virtual therapy, cognitive behavioral therapy (CBT), mindfulness apps, and stress management programs. Likewise, the digital therapeutics market has experienced a favorable boost from the COVID-19 pandemic.

REPORT COVERAGE:

This 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 expected to account for the major share of the global market during the forecast period. Ease of accessibility and widespread availability of digital therapeutics software through mobile applications and online platforms and the ability of software to deliver personalized interventions, track progress, and provide real-time feedback to users majorly drive the adoption of software and propelling the software segment in the global market. The integration with electronic health records (EHR) systems and healthcare provider workflows that enable seamless communication and collaboration further fuel the growth rate of the software segment in the global market.

On the other hand, the devices segment is expected to grow at a healthy rate during the forecast period owing to the rapid adoption of wearable devices, such as fitness trackers and smartwatches, that can collect real-time health data for monitoring and intervention purposes. Technological advancements in device sensors, connectivity, and battery life that enhance the accuracy and usability of digital therapeutics interventions and the integration of device data with software platforms drive the growth of the devices segment in the worldwide market.

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 expected to account for the largest share of the global market during the forecast period. Collaboration between digital therapeutics providers and healthcare organizations, including hospitals, clinics, and healthcare systems and the integration of digital therapeutics into existing healthcare infrastructure and electronic health records primarily drive the growth of the B2B segment in the worldwide market. The growing support from healthcare professionals who prescribe and recommend digital therapeutics interventions to their patients, the potential for cost savings and improved patient outcomes for healthcare organizations through the use of digital therapeutics and the rising emphasis on population health management and preventive care strategies where digital therapeutics can play a significant role further contribute to the growth of the B2B segment in the worldwide market.

The B2C segment is expected to grow at a prominent CAGR during the forecast period. The growing consumer awareness and interest in self-care and personal health management, rapid adoption of mobile health applications and wearable devices by individuals and convenience and accessibility of digital therapeutics directly to consumers promote the growth of the B2C segment. The growing demand for personalized and on-demand healthcare solutions and the empowerment of individuals to take control of their health and well-being further fuel the growth rate of the B2C segment.

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, the diabetes segment is expected to register the fastest CAGR during the forecast period owing to the growing prevalence of diabetes globally and the increased demand for effective management and treatment solutions. The growing awareness about the importance of diabetes management and the role of digital therapeutics in improving outcomes, rapid adoption of digital health technologies and mobile applications for diabetes self-management and increasing emphasis on personalized and patient-centric care with digital therapeutics offering tailored interventions for diabetes management propel the diabetes segment in the worldwide market.

The obesity segment is expected to grow at a healthy CAGR during the forecast period. Factors such as the growing prevalence of obesity and overweight population, increasing need for comprehensive weight management solutions, rising awareness of the health risks associated with obesity and the importance of effective interventions majorly fuel the segmental growth. The growing interest in lifestyle modifications, including diet and exercise, for obesity management with digital therapeutics providing convenient tools for tracking and support and growing investment in digital therapeutics for obesity management, including the development of virtual coaching and personalized intervention programs contribute to the growth of the obesity segment.

Digital Therapeutics Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

Geographically, the North American digital therapeutics market dominated the global market in 2022 and is expected to grow healthy during the forecast period owing to technological advancements and high digital literacy. The growing prevalence of chronic diseases, increasing need for remote healthcare solutions and strong healthcare infrastructure and reimbursement policies contribute to the growth of the North American market. The growing adoption of digital health technologies by healthcare providers and payers, favorable government initiatives promoting digital therapeutics and the presence of key market players and significant investment in research and development in North America fuel the regional market growth. The U.S. led the market in North America in 2022.

The European digital therapeutics market had the second-largest market in 2022 and is estimated to grow healthily during the forecast period. The growing focus on preventive healthcare and disease management, the supportive regulatory environment for digital health innovations, the growing aging population and the rising burden of chronic diseases primarily drive the digital therapeutics market growth in Europe. The growing number of initiatives from the governments of European countries promoting digital transformation in healthcare, strong healthcare infrastructure, rapid adoption of telemedicine and increasing number of collaborations between healthcare organizations and technology companies further boost the growth rate of the European market.

The digital therapeutics market in APAC is expected to witness the highest CAGR among all the regions in the worldwide market during the forecast period. The growing healthcare expenditure, increasing awareness of digital health solutions, rising population and increasing burden of chronic diseases drive the digital therapeutics market in the Asia-Pacific region. Rapidly developing healthcare infrastructure and telecommunication networks, growing adoption of smartphones and internet penetration and increasing number of initiatives from the governments of the APAC region promoting digital healthcare and telemedicine favor the digital therapeutics market growth in the Asia-Pacific region.

The Latin American digital therapeutics market is anticipated to hold a substantial share of the global market in the coming years.

The digital therapeutics market in MEA is expected to grow at a moderate CAGR worldwide during the forecast period.

KEY MARKET PARTICIPANTS:

Companies playing a leading role in 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.

RECENT MARKET DEVELOPMENTS:

• In April 2020, Novartis International AG announced its acquisition of Amblyotech Inc. to develop an innovative therapeutic program for treating amblyopia and stereopsis vision disorders. This acquisition will boost the company’s market position 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 “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 the Series B round of 2020.
• 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.