PUBLISHER: Grand View Research | PRODUCT CODE: 1404747
PUBLISHER: Grand View Research | PRODUCT CODE: 1404747
The global digital therapeutics market size is expected to reach USD 32.5 billion by 2030, exhibiting a CAGR of 27.2% from 2024 to 2030, according to a new report by Grand View Research, Inc. Rising adoption of smartphones, cost-effectiveness of digital health technology for healthcare providers and patients, and growing demand for integrated healthcare systems and patient-centered care primarily drive the market. Globalization and changing lifestyles, such as increased prevalence of smoking, poor nutrition, lack of exercise, and increased alcoholism, increases the risk of developing chronic diseases. Possessing a smartphone is progressively gaining significance in enhancing global connectivity, thereby playing a crucial role in propelling market expansion.
COVID-19 has acted as a catalyst for widespread adoption of digital therapeutics solutions. Teladoc, for example, reported a staggering 38-fold increase in telehealth usage compared to pre-pandemic levels. This surge in adoption was further bolstered by supportive measures implemented by influential regulatory bodies such as the FDA. An instance is issuance of guidelines by the U.S. FDA in April 2020 aimed at broadening the accessibility of digital health therapeutic devices designed for individuals with psychiatric conditions. In line with this, Kepios data reveals a global annual growth rate of 7.6% in number of internet users, equating to an average daily addition of 900,000 new users. Although developed and developing economies have achieved high smartphone and internet penetration, regions such as Africa and South Asia are experiencing slower progress due to their less advanced economies.
However, growth of the market is being impeded by challenges such as limited awareness and understanding of digital therapies in developing countries and concerns regarding patient data privacy. Developers and manufacturers of digital therapeutics have not been able to assure the security and confidentiality of patient data, leading to consumer apprehension. This fear regarding data privacy is a significant barrier to the widespread adoption of digital therapeutics. Concerns about data breaches and potential exposure to unwanted personal surveillance through technology further hinder market growth.
Despite these challenges, digital therapeutics has emerged as a crucial treatment option for patients with various medical conditions, primarily due to personalized treatment programs and the strategic initiatives taken by key industry players. These initiatives involve acquisitions, product approvals, product launches, and partnerships. Furthermore, the increasing prevalence of chronic diseases like heart disease, diabetes, and anxiety disorders has compelled major market players to invest in digital treatment solutions. Currently, numerous manufacturers are developing products specifically targeting anxiety disorders, and several such products are at different stages of development. This presents a significant opportunity for market growth.