Global Digital Therapeutics Market - 2022-2029

Market Overview

Digital Therapeutics Market size was valued US$ 3.06 billion in 2021 and is estimated to reach US$ 28.87 billion by 2029, growing at a CAGR of 29.4% during the forecast period (2022-2029).

Digital therapeutics are evidence-based therapeutics, including the program, application, or software to diagnose or treat medical conditions, including the physical, mental, and behavioral conditions. Digital Therapeutics are used independently or in concert with medications, devices, or other therapies to improve patient care and health outcomes. Digital therapeutics targets the clinical outcomes in line with the defined clinical indication and patient population using the regimented intervention. Digital therapeutics provide the patients, providers, and payers with novel therapy options for unmet medical needs.

Market Dynamics

The global digital therapeutics market is growing due to several factors such as the rising demands for digital therapeutics due to their advantages, such as induce behavioural change, user-friendliness, patient convenience, and improved drug compliance and novel digital therapeutics technological advances.

Rising advantages of digital therapeutics and various new technological advancements are expected to drive market growth.

The rising demands for digital therapeutics drive the markets due to their advantages, such as induce behavioural change, user-friendliness, patient convenience, and improved drug compliance. There is growing adoption of smartphones and tablets and the increasing usage of healthcare apps to diagnose, treat, and manage it. It provides the s easy tracking and monitoring of patients and their vital stats without intervention. It allows mobile consultations and efficient management of chronic diseases. Digital therapeutics provide the opportunity to extend product life cycles, differentiate products in development, and fill in the traditional medicine market gaps.

The rise in novel digital therapeutics with technological advancement shall stimulate market growth. For instance, in March 2020, Pear Therapeutics had received clearance from the Food and Drug Administration (FDA) for Somerset, its prescription digital therapeutic for adults with chronic insomnia. Somryst is the tailored cognitive behavioral therapy for insomnia (CBTi) delivered over the course of nine weeks through a smartphone, tablet, or similar device. It is intended to treat the symptoms of patients aged 22 years or older with chronic insomnia and is only available by prescription from a licensed healthcare provider. Somryst can be easily scaled and delivered to patients as a digital treatment.

The pipeline of digital therapeutics is robust with the therapeutics received from the breakthrough therapy designation. The expected approval of these digital therapeutics shall positively impact the market over the forecasted period. For instance, in Oct 2021, Limbix, a digital therapeutic company launched SparkRx, first evidence based digital therapeutic for teenagers and adults with symptoms of depression.

In May 2019, NightWare, Inc had received the Breakthrough Device Designation from the Food and Drug Administration (FDA) for digital intervention therapy, i.e., NightWare that measures and treats nightmares in people with Post-Traumatic Stress Disorder (PTSD). It is a smartwatch application that runs on the Apple Watch platform. It collects biometric data through integrated sensors and uses machine learning algorithms to create a profile of an individual's sleep patterns.

Patient data privacy and unstable payment model is expected to hamper the market growth.

The market is hindered by several digital therapeutics in the early phase stage of development. The patient data privacy concerns and unstable payment models could hurt the market.

Industry Analysis

The global digital therapeutics market provides in-depth analysis of the market based on various industry factors such as Porter's Five Forces, Regulatory Analysis, Supply Chain Analysis, Pricing Analysis.

Segment Analysis

Product type segment is expected to hold the largest market share in global digital therapeutics market

The digital therapeutics market is segmented based on the product type as software, devices, and others. The software segment accounts for the highest market share due to the increasing demand for software to reduce healthcare costs worldwide. The software also provides regular online assistance from certified doctors. The market is dominated by several digital therapeutics software that helps the patients maintain their proper diet, track health data, and daily physical activities.

The devices segment is expected to have a positive market share as the digital therapeutics provides the health or social care interventions delivered through a smart device for supporting healthy behaviours and provide therapeutic effects for the treatment of type II diabetes, Alzheimer's disease, dementia, congestive heart failure, chronic obstructive pulmonary disease, asthma, and other disorders. There is a rise in the research and development activities for devices related to digital therapeutics. For instance, in February 2019, Cognoa had 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 in earlier identification and treatment of pediatric behavioural health conditions.

Further, the market is also classified based on the sales channel as a business-to-customer (B2C) and business-to-business (B2B). The business-to-business (B2B) segment accounts for the highest market share due to the growing awareness of digital therapeutics' advantages and cost-effectiveness among providers, payers, and employers. Moreover, many pharmaceutical companies focus on developing digital therapeutics with drug products to improve adherence and compliance.

The business-to-customer (B2C) segment is expected to have positive market growth over the forecasted period. The business-to-customer (B2C) segment includes the patients and caregivers. The caregiver segment accounts for the highest market share as the companies are developing digital therapeutics products to help caregivers track and better manage their patients' conditions. Digital therapeutics effectively provide access to reliable, evidence-based interventions that are delivered with high control of quality. Personalized care can be delivered to a patient with the help of digital therapeutics in their own environment. It also reduces the adverse events associated with the delivery of certain traditional therapies.

Geographical Analysis

North America region holds the largest market share in the global digital therapeutics market

By region, the digital therapeutics market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. North America dominated the digital therapeutics market among all regions due to the high technological advancement for digital therapeutics developments. The shifting focus of the healthcare providers towards the patient-centric healthcare approach for patient wellness. A large number of companies manufacturing digital therapeutics are present in this region. The United States accounts for the highest market share due to the increasing investment and funding for digital therapeutics developments. A large number of clinical trials for digital therapeutics are undergoing in the United States. The growing improvement in the reimbursement structure for digital therapeutics shall stimulate market growth. It is further expected that North America shall maintain its dominant market position over the forecasted period.

The Asia Pacific region is expected to have positive market growth due to increasing research and development activities for digital therapeutics. Ass these populations are at high risk of developing chronic diseases, the growing aging population shall stimulate market growth. Several factors such as increasing domestic income, purchasing power, and healthcare expenditure will boost digital therapeutics' demands. There is a growing focus by the government, organizations, and associations for improving healthcare facilities. The rising adoption of novel healthcare technologies shall fuel market growth in developing countries, including India, China, and Japan.

Competitive Landscape

The digital therapeutics market is highly competitive with the presence of several international and local markets. The market is witnessing the entry of new market players. 2Morrow, Inc., Fitbit, Inc. (Twine Health, Inc.), Medtronic Plc., Omada Health, Inc., Pear Therapeutics, Inc., and Proteus Digital Health, Inc. are the leading market players with significant market share.

Companies focus on new product approvals, product development, patent filing, and market expansion strategies for holding their market position. For instance, in 2020, MedRhythms had received the patent's issuance with application number "US20190022351A1". The patent entitled "Enhancing Music for Repetitive Motion Activities" covers the audio engine enabling MedRhythms' digital therapeutics platform.

The companies are entering into collaborations, mergers, strategic partnerships, and acquisitions to increase the demand for digital therapeutics and their expansion across the globe. In April 2020, Novartis International AG had acquired Amblyotech Inc., a clinical-stage digital therapeutics company. This acquisition would help the company advance the innovative therapeutic program to treat amblyopia and stereopsis vision disorders.

In April 2020, Biofourmis had acquired LA-based Gaido Health from Takeda Pharmaceuticals for expanding Biofourmis' portfolio in the oncology space. This acquisition aims at addressing a disconnected oncology care pathway that has led to more than 30% of patients on chemotherapy being readmitted to the hospital or requiring a visit to the emergency department.

The companies are raising the funding and investment to increase their market penetration. For instance, in April 2020, Wellthy Therapeutics, a digital-therapeutics, had raised USD 4 million in pre-Series A funding from Saama Capital, which has purchased a roughly 16% stake in the Southeast Asia company with its investment. This funding would expand into new regions and prepared the launch of its digital respiratory therapeutic portfolio.

Key Companies to Watch

2Morrow Inc.:

Overview: It was founded in 2011. It is a start-up that works together with health plans, employers, retailers, states, providers and various public health organisations that uses its smartphone-based applications that helps patients control smoking, reduces stress, lose weight etc

Product Portfolio:

Acceptance and Commitment Therapy: It use ACT an intervention approach, that is a kind of psychotherapy that focuses on acceptance as a path to deal with negative feelings, thoughts or circumstances. It enhances commitment to health lifestyle and constructive activities that helps people achieve their goals.

Key Developments: In Apr 2021, 2Morrow a start-up that works on behavioural science raised around $1.5M to expand digital therapeutic platform.

The global digital therapeutics market report would provide an access to an approx. 45+market data table, 40+figures and 180pages.