Market Overview
The
Global Digital Therapeutics Market is expected to reach a value of
USD 6.9 billion in 2023, and it is further anticipated to reach a market value of
USD 62.0 billion by 2032 at a
CAGR of 27.6%. The market has seen a significant increase in the recent past and is predicted to grow significantly during the forecasted period as well.
Digital therapeutics, a component of digital
healthcare, plays a critical role in managing, preventing, and treating medical & psychological conditions. It depends on evidence-based technology, significantly enhancing patient outcomes, which is particularly effective in diagnosing conditions that may go unnoticed by traditional healthcare systems, including chronic diseases, neurological disorders, & more, providing an efficient & impactful approach to healthcare.
Market Dynamic
The demand for digital therapeutics has increased due to the growth in the prevalence of chronic diseases & a growing need for controlled healthcare solutions, driven by a rise in treatment costs. Further, the market's prospects are brightened by a promising lineup of potential products set to launch during the forecast period. Digital therapeutics provide seamless integration with electronic health records (EHRs) & healthcare systems, allowing live access & monitoring of patient data by healthcare providers, which streamlines healthcare delivery, improves care efficiency, & facilitates more informed decision-making, allowing secure & standardized data exchange including patient health records, treatment plans, medication adherence, & progress reports.
However, the higher expenditures associated with developing these therapeutics create a challenge to market growth. Numerous industry players invest significantly in advanced therapeutic solutions, which can drive up costs. Creating digital therapeutics requires expenses related to research, clinical trials, software development, & regulatory approvals, demanding investments in technology, healthcare expertise, & data analytics for effective solutions. These financial barriers can prove daunting for startups & smaller companies seeking entry into the market.
Research Scope and Analysis
By Application
The market includes various applications, including diabetes, obesity, respiratory diseases, cardiovascular diseases (CVDs), central nervous system (CNS) conditions, smoking cessation, & others. The diabetes segment has emerged as the dominant force in the market, boasting the largest market share & showing great promise for the fastest growth throughout the forecast period, as the surging diabetes prevalence has involved the development of personalized solutions for diabetes management, which is showcased by the escalating prevalence of diabetes & other chronic diseases. Digital therapeutics for diabetes provide patients with the technology to track their daily routines & treatment regimens conveniently through wearable devices or smartphones.
In addition, the obesity segment has the second-largest market share, driven by the global increase in obesity rates. Digital therapeutics present affordable solutions for addressing numerous chronic conditions, promising significant growth in this segment in the coming future. Also, cardiovascular diseases (CVDs), smoking cessation, & obesity are all expected to exhibit substantial growth rates during the forecasted period, reflecting the expanding role of digital therapeutics in healthcare.
By End User
In 2023, the patient segment leads in market share, mainly because patients have quickly adopted digital therapeutics, as these solutions provide patients with evidence-based, customized care programs that enhance access to healthcare, mainly for individuals in rural or remote areas. Digital therapeutics empower healthcare providers to monitor patients in real-time, identify gaps in care, & provide timely interventions, thereby streamlining care delivery with evidence-based therapies, which also reduces the need for frequent physician intervention in managing chronic conditions. The market is further categorized by end-users, including patients, providers, employers, payers, & others.
In addition, the provider segment is experiencing higher growth as more healthcare providers harness digital therapeutics to assist & deliver clinically proven therapies outside traditional healthcare settings. Further, providers are improving patient engagement. Payers are also showing a growing interest in covering digital therapeutics, presenting significant growth opportunities. They are encouraged to adopt business models that support treatment adherence, enhance effectiveness, & minimize costs, aligning with the evolving landscape of digital healthcare solutions.
The Digital Therapeutics Market Report is segmented on the basis of the following:
By Application
- Diabetes
- Obesity
- CVD
- Respiratory Diseases
- Smoking Cessation
- CNS Diseases
- Others
By End User
- Patients
- Providers
- Payers
- Employers
- Others
Regional Analysis
North America leads its market dominance in
2023, accounting for a substantial
41.9% of the revenue share, which is also anticipated for significant growth during the forecast period, mainly due to favorable reimbursement structures, a strong focus on better monitoring & diagnosis, & a rise in adoption of digital health products to enhance the overall quality of life. Furthermore, strategic attempts by key industry players, such as product launches, mergers & acquisitions, are expected to further boost the market's growth.
Also, the Asia Pacific region is anticipated to experience major growth, showcasing a fast expansion in the digital therapeutics market over the forecast period, which can be attributed to the growth in demand for IT services, augmented government investments in healthcare, & a rise in need for efficient healthcare management systems in hospitals covering financial, clinical, & administrative aspects. Factors such as a rise in smartphone penetration, a growing demand for effective healthcare solutions, & better internet accessibility contribute to the strong expansion of the digital therapeutics market in the Asia Pacific region.
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The digital therapeutics market is highly competitive & largely controlled by a handful of key players. To strengthen their market position, companies are incorporating diverse tactics like partnerships, mergers, collaborations, & acquisitions. Many are proactively executing strategic initiatives to meet the growing demand, reflecting the industry's dynamic nature as firms compete for prominence in this fast-growing sector.
For instance, in February 2022, the US Food and Drug Administration (FDA) granted Breakthrough Device Designation to DCH-001, a product developed by DynamiCare Health Inc., a company that specializes in digital therapeutics &
telehealth solutions, which signifies that the FDA recognizes the product as having high potential to address essential healthcare needs, accelerate its development, assessment, & regulatory processes. It also highlights the innovation & importance of DCH-001 in the field of digital therapeutics, highlighting its potential to bring valuable advancements to healthcare.
Some of the prominent players in the global Digital Therapeutics Market are
- ResMed
- Solera Network
- Omada Health Inc
- Welldoc Inc
- GAIA AG
- 2Morrow Inc
- Hygieia
- BigHealth
- Fitbit LLC
- Noom Inc
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Digital Therapeutics Market:
The COVID-19 pandemic and the following economic recession highly influenced the global digital therapeutics market. As the pandemic grew the adoption of remote healthcare solutions, and digital therapeutics experienced a growth in demand, as they offered convenient & affordable ways to manage & treat many health conditions. With social distancing measures in place, patients & healthcare providers turned to digital platforms for consultations & monitoring, driving the market's growth. In addition, economic uncertainties supported healthcare systems to seek cost-effective alternatives, making digital therapeutics an attractive option, which convergence of factors propelled the market, reinforcing the importance of technology in the future of healthcare, while also addressing the financial constraints brought on by the recession.
Report Details
| Report Characteristics |
| Market Size (2023) |
USD 6.9 Bn |
| Forecast Value (2032) |
USD 62.0 Bn |
| CAGR (2023-2032) |
27.6% |
| Historical Data |
2017 - 2022 |
| Forecast Data |
2023 - 2032 |
| Base Year |
2022 |
| Estimate Year |
2023 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Application (Diabetes, Obesity, CVD, Respiratory
Diseases, Smoking Cessation, CNS Diseases, and
Others), By End User (Patients, Providers, Payers,
Employers, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
ResMed, Solera Network, Omada Health Inc.,
Welldoc Inc., GAIA AG, 2Morrow Inc., Hygieia,
BigHealth, Fitbit LLC, Noom Inc, and Other Key
Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Digital Therapeutics Market is estimated to reach USD 6.9 billion in 2023, which is further
expected to reach USD 62.0 billion by 2032.
North America dominates the Global Digital Therapeutics Market with a share of 41.9% in 2023.
Some of the major key players in the Global Digital Therapeutics Market are ResMed, Omada Health
Inc., Welldoc Inc., and many others.
The market is growing at a CAGR of 27.6 percent over the forecasted period.