Digital Therapeutics - Market Insights, Competitive Landscape, and Market Forecast - 2030

Digital Therapeutics Market By Application (Prevention, Management, And Treatment), Indication (Diabetes, Obesity, Cardiovascular Diseases, Respiratory Diseases, And Others), and geography is expected to grow at a steady CAGR forecast till 2030 owing to the increasing accessibility of virtual care and shifting focus among the population on lowering the healthcare cost

The global digital therapeutics market is estimated to grow at a CAGR of 27.73% during the forecast period from 2024 to 2030. The demand for digital therapeutics is being boosted by the increasing prevalence of chronic diseases such as diabetes, mental illness, cancer, and heart failure (HF), advancements in technology such as the continuous advancements in mobile technology, wearable devices, artificial intelligence, machine learning, and data analytics have facilitated the development of more sophisticated and effective digital therapeutics solutions. Rising healthcare cost as healthcare costs have been steadily increasing in many countries. Digital therapeutics offer an opportunity to reduce healthcare expenses by providing remote and efficient healthcare delivery, reducing the need for frequent hospital visits, and preventing costly complications associated with chronic diseases. Regulatory support, growing acceptance among healthcare professionals, health insurance coverage, and strategic partnerships and investments among others are some of the major factors contributing to the overall growth of the digital therapeutics market and driving the market growth during the forecast period from 2024-2030.

Digital Therapeutics Market Dynamics:

As per the International Diabetes Federation 2022, in the year 2021, approximately 537 million people were living with diabetes, globally. As per the aforementioned source, the total number of patients suffering from diabetes is projected to grow to about 643 million patients by the year 2030 and about 783 million people by 2045.

Digital therapeutic applications (DTx) such as Blue Star, Diabeo System, Livongo Diabetes Program, and Tidepool, among others, use web-based applications or cloud platforms to provide an evidence-based, personalized, rapid point-of-care management of chronic, behavior-modifiable conditions, including diabetes mellitus. DTx can improve patient compliance, therapeutic success, and economic outcomes in diabetes management by enabling active patient engagement, lifestyle change, comprehensive medical care, and periodic monitoring of glycemic status. Thus, the rising prevalence of diabetes will increase the demand for digital therapeutic software which are used in the management and treatment of diabetes, thereby propelling the overall market of digital therapeutics.

The market is anticipated to be driven by rising smartphone adoption in both developed and developing nations, the affordability of digital health technology for patients and providers, and rising demand for patient-centered care and integrated healthcare systems. Kepios estimates that 4.27 billion people used the internet worldwide in April 2021, making up more than 60% of the world's population. It is anticipated that as this number rises, so will public awareness of smart health tracking. Additionally, it is projected that the COVID-19 pandemic, helpful regulatory actions, early indications of reimbursement, and the rising prevalence of chronic diseases will fuel market expansion.

The increasing focus of major key players on developing such technologically advanced software with easy access for physicians and patients is expected to propel the market during the forecast period. For instance, in July 2022, AmerisourceBergen Corporation launched DTx Connect, a fully integrated ordering, dispensing, and fulfillment platform that aims to facilitate patient access to physician-ordered therapeutics and diagnostics. The platform integrates with electronic medical records (EMR), giving physicians easy access to prescription and non-prescription therapies.

Therefore, the above-mentioned factors are contributing to the growth of the digital therapeutics market during the forecast period from 2024-2030.

However, cybersecurity and privacy concerns, unstable payment models, and others may restrict the digital therapeutics market growth.

Digital Therapeutics Market Segment Analysis:

Digital Therapeutics Market by Application (Prevention, Management, and Treatment), Indication (Diabetes, Obesity, Cardiovascular Diseases, Respiratory Diseases, and Others), and Geography (North America, Europe, Asia-Pacific, and the Rest of the World)

In the indication segment of the digital therapeutics market, the obesity category is expected to amass a significant revenue share in the year 2023. This can be attributed to the increasing statistics of obesity across the globe.

The World Obesity Atlas 2022, published by the World Obesity Federation, predicts that one billion people globally, including 1 in 5 women and 1 in 7 men, will be living with obesity by 2030. Obesity is a major public health challenge that affects almost every country in the world. Globally, obesity rates have been increasing steadily over the last three decades. In almost every region, there are now more people living with obesity than underweight, and if current numbers continue to rise, as many as 1 billion adults, or 12% of the world population, will be living with obesity by 2025. The above-mentioned source also stated that almost 2.3 billion children and adults were living with overweight and obesity, in 2022, globally and if current trends continue, 2.7 billion adults could be living with overweight or obesity by 2025.

World Health Organization (WHO) European Regional Obesity Report 2022, stated that overweight and obesity affect almost 60% of adults and nearly one in three children (29% of boys and 27% of girls) in the WHO European Region, in 2022.

The use of a digital therapeutics platform in people with obesity and metabolic syndrome can lead to a reduction in both weight and body mass index (BMI), thereby reducing the risk for comorbidities. Digital therapeutic platforms allow clinicians to deliver lifestyle-modification interventions remotely. These interventions have the potential to influence weight loss in people with obesity and metabolic syndrome through the delivery of evidence-based care even in settings that are resource-limited.

Thus, the increasing prevalence of obesity and overweight will increase the demand for digital therapeutics for managing and treating obesity and overweight.

The WDTx Platform by Wellthy Therapeutics Pvt Ltd. provides a 52-week lifestyle modification program focused on diet, physical activity, weight management, remote patient monitoring, glycemic control, and blood pressure control. The platform provides artificial intelligence-augmented healthcare tracking, evidence-backed content, and personalized health coach support.

Thus, the above-mentioned factors are likely to propel the demand for obesity-managing digital therapeutics, thereby contributing to the growth of the digital therapeutics market during the forecast period from 2024-2030.

North America is expected to dominate the overall Digital Therapeutics Market:

Among all the regions, North America is estimated to account for the largest share of the Digital Therapeutics market in the year 2023. This domination is due to the increasing demand for digital therapeutics among the physicians and patients in the region, the increasing patient pool suffering from chronic diseases, the rising demand for remote patient monitoring and telemedicine, the presence of key market players among the key factors that contribute to the growth of the digital therapeutics, among others will propel the market of digital therapeutics in North America.

The rising burden of the geriatric patient population in the region will increase the demand for digital therapeutics as elderly patients are more prone to chronic diseases. The U.S. Census Bureau, Population Projections, latest data reported that the number of Americans ages 65 and older is projected to nearly double from 52 million in 2018 to 95 million by 2060, and the 65-and-older age group's share of the total population will rise from 16 percent to 23 percent.

The favorable regulatory authorities will propel the overall market of digital therapeutics in the region. For instance, in April 2020, the Food and Drug Administration of the US released guidelines and planned to expand the accessibility of digital therapeutic devices for psychiatric patients. It was aimed to subsidize those people who followed the guidelines and practiced social isolation without a clinic visit during the COVID-19 pandemic situation

Furthermore, the growing healthcare IT expenditure to advance infrastructure, technological literacy, readiness to adopt advanced technological solutions, favorable government initiatives, the emergence of startups, lucrative funding options growing smartphone penetration, and advancements in internet connectivity, will propel the demand for digital therapeutics in North America.

Some of the major players in this region are Proteus Digital Health, Inc., Omada Health, Inc., WellDoc, Inc., and Livongo Health, Inc.

Thus, all the above-mentioned factors will lead to an increase in the North America Digital Therapeutics market growth during the forecasting period of 2024-2030.

Digital Therapeutics Market Key Players:

Some of the key market players operating in the digital therapeutics market include Limbix Health, Inc., GAIA AG, BigHealth, DarioHealth Corp, HYGIEIA, Akili, Inc, Pear Therapeutics (US), Inc., CANARY HEALTH, Noom, Inc., Omada Health Inc., Welldoc, Inc., 2Morrow, Inc., ResMed, Teladoc Health, Inc., Fitbit Health Solutions, and others.

Recent Developmental Activities in the Digital Therapeutics Market:

In January 2023, Lupin Digital Health, a wholly-owned subsidiary of global pharma major Lupin Limited, launched its digital therapeutics solution, LYFE. LYFE is India's only evidence-based holistic heart care program that significantly reduces the risk of a heart attack and improves vitals and quality of life for cardiac patients

In May 2022, International digital therapeutics innovator, Sidekick Health, launched an integrated digital therapeutics solution for improving the outcomes of patients with Atopic Dermatitis (AD) in conjunction with Pfizer Inc. Sidekick and Pfizer will roll out their integrated digital therapeutics offering, launching first in the UK, followed by Belgium, Norway, the Netherlands, Sweden, France, Ireland, and Japan later in 2022.

In June 2020, the FDA cleared the first video game for children with attention deficit hyperactivity disorder (ADHD), allowing Akili Interactive's EndeavorRx to be prescribed as a digital therapeutic.

In April 2021, Mahana Therapeutics, Inc. received the US FDA 510(K) marketing clearance for its Mahana Parallel Digital Cognitive Behavioral Therapy (CBT) mobile application, it is substantially equivalent to a marketed predicate device for Irritable Bowel Syndrome (IBS)

Key Takeaways from the Digital Therapeutics Market Report Study

Market size analysis for current digital therapeutics market size (2023), and market forecast for 5 years (2024-2030)

Top key product/services/technology developments, mergers, acquisitions, partnerships, and joint ventures happened for the last 3 years

Key companies dominating the global digital therapeutics market.

Various opportunities are available for the other competitors in the digital therapeutics market space.

What are the top-performing segments in 2023? How these segments will perform in 2030?

Which are the top-performing regions and countries in the current digital therapeutics market scenario?

Which are the regions and countries where companies should have concentrated on opportunities for digital therapeutics market growth in the coming future?

Target Audience who can be benefited from this Digital Therapeutics Market Report Study

Digital therapeutics products providers

Research organizations and consulting companies

Digital therapeutics-related organizations, associations, forums, and other alliances

Government and corporate offices

Start-up companies, venture capitalists, and private equity firms

Distributors and Traders dealing in digital therapeutics

Various End-users who want to know more about the digital therapeutics market and the latest technological developments in the digital therapeutics market.

Frequently Asked Questions for the Digital Therapeutics Market:

1. What are digital therapeutics?

Digital Therapeutics (DTx) are evidence-based therapeutic interventions driven by software to prevent, manage, or treat a medical disorder or disease. In other words, DTx is a patient-facing software application that helps patients treat, prevent, or manage the disease and that has a proven clinical benefit.

2. What is the market for global digital therapeutics?

The global digital therapeutics market is estimated to grow at a CAGR of 27.73% during the forecast period from 2024 to 2030.

3. What are the drivers for the global digital therapeutics market?

The demand for digital therapeutics is primarily being heightened by the growing geriatric population prone to chronic diseases, the rising number of patients pool suffering from chronic diseases, the increasing usage of smartphones for digital therapeutics, the rising use of health monitoring apps, the cost-effectiveness of digital health technology for providers & patients, and increasing demand for integrated healthcare systems & patient-centric care among others, thereby contribute to the overall growth of the digital therapeutics market during the forecast period from 2024-2030.

4. Who are the key players operating in the global digital therapeutics market?

Some of the key market players operating in the digital therapeutics market include Limbix Health, Inc., GAIA AG, BigHealth, DarioHealth Corp, HYGIEIA, Akili, Inc, Pear Therapeutics (US), Inc., CANARY HEALTH, Noom, Inc., Omada Health Inc., Welldoc, Inc., 2Morrow, Inc., ResMed, Teladoc Health, Inc., Fitbit Health Solutions, and others.

5. Which region has the highest share in the digital therapeutics market?

North America is expected to dominate the overall digital therapeutics market during the forecast period from 2024-2030. Factors such as the growing prevalence of chronic disorders such as diabetes, cardiovascular diseases, and cancers, among others, and the increasing geriatric population prone to chronic diseases will positively impact the North American digital therapeutics market. Furthermore, high disposable income, sophisticated healthcare infrastructure, incremental healthcare expenditure, an increasing number of start-ups, a well-developed healthcare sector, and increasing investments for R&D, among others also helped the market growth in this region.