Digital Therapeutics Market

Global Digital Therapeutics Market Size (2022 to 2027)

The global digital therapeutics market size was worth USD 3.26 billion in 2022. The market is expected to showcase a remarkable growth rate during the forecast period and is forecasted to grow by USD 14.4 billion in 2027, registering a CAGR of 34.62% during the forecast period.

Digital therapeutics involves evidence-based therapeutic interventions for 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 growing usage of smartphones and other smart devices is one of the significant growth drivers of the global digital therapeutics market.

These devices are connected with the help of the Internet and thus provide us with real-time data. Increasing government initiatives for preventive healthcare are expected to accelerate the awareness among people and promote digital therapeutics. The entry of more companies into 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 significant advantages. The technological advancements in mobile healthcare are the key to developing the global market.

The global digital therapeutics market growth is further expected to be driven by the factors such as the proliferation of chronic diseases, the constantly changing landscape, and technological advancements in the healthcare sectors worldwide.

Digital therapeutics, on the other hand, are most likely to treat illnesses already underserved by the healthcare system, such as chronic illnesses or neurological disorders. Furthermore, programs from the governments for preventive healthcare, a substantial uptick in venture capital funding, and the advantages of digital therapeutics, such as the potential to elicit behavioral improvement, user-friendliness, patient comfort, and increased prescription enforcement, are further expected to be contributing to digital therapeutics market growth during the forecast period. In addition, end-user awareness is likely to rise due to digital devices and solutions propelling the market. Furthermore, reducing the pressures on doctors' resources will also provide care at a lower cost than conventional therapy.

Meanwhile, further data demonstrating their therapeutic utility continues to emerge. Consumer attitudes toward digital wellbeing are expected to continue to change, as is their demand for affordable, tailored, and engaging medical solutions. Over the years, in emerging countries, the growing demand for smartphones and internet usage has been another significant technological driver for digital therapeutics.

The recent global pandemic of COVID-19 had a considerable influence on the digital therapeutics market.

The increased demand for easy and affordable digital health solutions is expected to accelerate the market's growth rate during the forecast period. Furthermore, COVID-19 has stimulated the medical and healthcare industries' development by allowing them to introduce new products to the market. In addition, increasing government and private organizations' investments are more likely to encourage the digital therapeutic market. 

MARKET RESTRAINTS:

The significant restriction for the global digital therapeutics market is the lack of 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 is estimated to hinder the market's growth rate. Furthermore, the primary concern regarding this market is the patient data privacy concerns and unstable payment models, which remain a significant challenge for developing this market. In addition, resistance from traditional healthcare providers will negatively affect market growth during the forecast period.

Additionally, factors such as inadequate payment systems, resistance from traditional healthcare providers, and patient data privacy concerns present challenges to the market's development. Furthermore, a lack of awareness and access to digital therapeutics programs impedes the market growth. The unfavorable regulatory framework and reimbursement policies will also likely restrain the market growth.

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

COVID-19 has positively impacted the global digital therapeutics market and is predicted to accelerate the market's growth rate. The coronavirus is spread by touch or when the infected person comes near an average person. Digital therapeutics allow 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; thus, less priority is being given to people infected with other diseases. In these types of cases, digital therapeutics become very useful. In addition, the increase in smartphone usage during the pandemic undoubtedly helped the market grow further.

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

The software segment is estimated to lead the global digital therapeutics market during the forecast period based on the product. The rise in the software companies' support for reducing healthcare costs worldwide fuels this segment's demand. Increasing incidences of obesity-related problems and growing awareness to maintain a healthy diet and launch different smartphones significantly increase the need for the software segment in this space.

However, the devices segment is expected to grow healthy during the future forecast period. Digital therapeutics provides the health or social care interventions delivered through a smart device for supporting healthy behaviors. It also offers therapeutic effects for treating type II diabetes, Alzheimer’s, dementia, congestive heart failure, chronic obstructive pulmonary disease, asthma, and other disorders. As a result, there is a rise in the research and development activities for devices related to digital therapeutics. For instance, in February 2019, Cognoa 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 identify and treat pediatric behavioral health conditions earlier.

Digital Therapeutics Market - By Sales Channel:

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

Based on the sales channel, the B2B sub-segment had the largest market share in 2020 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 key reason behind the increasing growth rate of this sub-segment is growing awareness among providers, payers, and employers about the benefits of digital therapeutics. Furthermore, the cost reductions achieved by B2B are another positive factor for the market. In addition, the growing inclination of pharmaceutical companies to combine digital therapeutics with drug products to improve their sales will further propel the market's growth.

The 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 revenue and growth rate during the forecast period. The initiatives by pharmaceutical companies to develop their product and promote them using digital therapeutics are the main positive contributing factor.

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, diabetes is expected to grow with the fastest growth rate during the forecast period and have a significant market share in 2020. Diabetes causes a substantial disease burden and despondence among patients who acquire the disease. In addition, 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 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:

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

Geographically, the North American digital therapeutics market dominated the digital therapeutics market in 2021 worldwide 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 grow. In addition, developing healthcare services will fuel the market's growth.

The European digital therapeutics market had the second-largest market in 2021 and will grow at a reasonable rate in the future. The rising number of diseases due to the increasing population and unhealthy lifestyle is the main contributing factor. In addition, 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. The increase in population in countries like India and China is responsible for the high growth rate. In addition, the increased usage of smartphones and smart devices will further increase the market's growth.

During the forecast period, the Latin American digital therapeutics market is expected to grow at a CAGR of 35.78%.

KEY MARKET PLAYERS:

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

RECENT HAPPENINGS IN THE MARKET:

• 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 early, which helps to provide proper treatment.
• In April 2020, Novartis international Ag announced its acquisition of Amblyotech Inc. to develop an innovative therapeutic program to treat amblyopia and stereopsis vision disorders. This acquisition will boost 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 the 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 Series B round 2020.