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.

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 people about digital therapeutics future possibilities.

MARKET DRIVERS:

The growing usage of smartphones and other smart healthcare devices is propelling the digital therapeutics market growth.

These devices relate to the Internet's help and thus provide us with real-time data. Increasing government preventive healthcare initiatives will further increase people's awareness 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.

MARKET RESTRAINTS:

Lack of access to digital therapeutics programs in developing countries is one of the major factors hindering market growth. The lack of access to proper technology has led to low awareness among people about the benefits of these programs and has hindered the market's growth. The main concern regarding this market is patient data privacy concerns and unstable payment models, which remain a significant challenge for the development of this market. In addition, resistance from traditional healthcare providers will negatively affect market growth during the forecast period.

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 close to 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 have become very useful. The increase in smartphone usage during the pandemic will undoubtedly help the market grow.

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 leads with the highest share of the digital therapeutics market from past years and continues the same growth in the forecast period. The rise in the software companies' support to reduce healthcare costs globally fuels the demand for this segment. In addition, increasing incidences of obesity-related problems, growing awareness of maintaining a healthy diet, and launching different smartphone applications 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. 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 digital diagnostic and digital therapeutic devices for autism. These devices would help earlier identify and treat pediatric behavioral 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 sub-segment had the largest market share in 2012 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 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 in revenue and growth rate during the forecast period. The initiatives carried out by pharmaceutical companies to develop their product and promote them using digital therapeutics is 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 at the fastest growth rate during the forecast period and have 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:

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

Geographically, the North American digital therapeutics market dominated the global market in 2019 and is expected to grow healthy 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. In addition, developing healthcare services will fuel the market's growth.

The European digital therapeutics market had the second-largest market in 2019 and will grow reasonably. The rising number of cases 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 APAC is expected to witness the highest growth rate. The increase in population in countries like India and China, the growing access to people of advanced IT infrastructure, and the increasing usage of smartphones contribute to regional market growth.

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.