Digital Therapeutics Market

Digital Therapeutics Market Size:

The global digital therapeutics market size reached US$ 6.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 26.8 Billion by 2032, exhibiting a growth rate (CAGR) of 17.5% during 2024-2032. The market is expanding due to rising healthcare expenditure, increasing prevalence of chronic diseases, the growing geriatric population, and technological advancements offering easily accessible, cost-effective, personalized medical treatments.

Digital Therapeutics Market Analysis:

• Major Market Drivers: The rising incidence of chronic conditions like diabetes and cardiovascular diseases is escalating the demand for digital therapeutics, which offer ongoing management and personalized care. Moreover, several innovations in artificial intelligence (AI), machine learning, and mobile health technologies are driving the development of sophisticated digital therapeutics solutions that can provide tailored treatments and real-time monitoring.
• Key Market Trends: Digital therapeutics are widely integrated with conventional healthcare systems, allowing for a more seamless experience between digital and in-person care. Moreover, the growing acceptance and approval of digital therapeutics by regulatory bodies, such as the FDA, are resulting in the widespread adoption of digital therapeutics across the region.
• Geographical Trends: The market in North America is robust due to a growing rate of chronic diseases and significant investments in digital health technologies. Besides, the markets in Europe and Asia-Pacific are experiencing rapid growth, driven by increasing healthcare digitization and rising healthcare expenditures.
• Competitive Landscape: Some of the major digital therapeutics companies include 2Morrow Inc., Canary Health Inc., Click Therapeutics Inc., Mango Health Inc. (TrialCard Incorporated), Noom Health Inc., Omada Health Inc., Pear Therapeutics, Inc., Propeller Health (ResMed), Teladoc Health Inc., Voluntis Inc. and WellDoc Inc. among many others.
• Challenges and Opportunities: Navigating regulatory requirements and securing reimbursement from insurers remain significant challenges for digital therapeutics companies. On the other hand, there are substantial opportunities for growth in personalized medicine and preventative care, as digital therapeutics continue to evolve and demonstrate their efficacy in diverse therapeutic areas.
   

Digital Therapeutics Market Trends:

Increasing Prevalence of Chronic Diseases:

The escalating prevalence of chronic diseases globally is a primary driver for the digital therapeutics (DTx) market. Additionally, chronic conditions such as cardiovascular diseases, cancer, diabetes, and chronic respiratory diseases lead to significant morbidity and mortality and necessitate sustained medical intervention. Digital therapeutics offer innovative management solutions that are adaptive and personalized. For instance, on 6 February 2024, Better Therapeutics Inc., a leader in developing prescription digital therapeutics (PDTs) for cardiometabolic diseases, announced a rebate agreement with a top Pharmacy Benefit Manager (PBM) reaching an agreement on behalf of over 70 million lives in the US. The rebate agreement covers the PBM’s commercial clients, allowing plan participants to add AspyreRx to their formularies with rebate eligibility. AspyreRx is the first prescription-only digital therapeutic for treating adults with type 2 diabetes (T2D) which was introduced in 2023, by the company, following U.S. Food and Drug Administration (FDA) authorization in July 2023. These technologies enable continuous disease monitoring, real-time data feedback, and behavior modification strategies that are crucial for chronic disease management. As a result, digital therapeutics market dynamics are shifting toward digital solutions in healthcare that aim to improve patient outcomes while enhancing the quality of life for millions suffering from chronic conditions.

Increasing Healthcare Expenditure:

According to the California Health Care Foundation (CHCF), the total healthcare expenditures in the United States reached $4.3 Trillion in 2021, averaging $12,914 per person. This represented a 2.7% increase in healthcare spending. This rising expenditure is primarily driven by the growing geriatric population, increased prevalence of chronic diseases, and higher costs of medical treatments and technologies. As healthcare costs continue to increase, there is a pressing need for more sustainable, cost-effective healthcare solutions like digital therapeutics (DTx). These solutions leverage digital systems to deliver evidence-based therapeutic interventions directly to patients. They are designed to manage, prevent, or treat complex medical conditions ranging from diabetes to mental health disorders. Moreover, digital therapeutics can potentially reduce the necessity for more expensive, traditional forms of treatment such as surgery or long-term medication regimes, by integrating into the daily lives of patients thereby curbing healthcare costs. As healthcare systems and insurers increasingly focus on reducing costs while improving patient outcomes, the role of digital therapeutics becomes more critical due to their ability to deliver cost-effective care positions, thus creating a positive digital therapeutics market outlook.

Growing Geriatric Population:

The global demographic shift toward an aging population presents unique challenges and opportunities for the healthcare industry. According to the United Nations, the global population of individuals aged 65 and older is expected to increase from 761 million in 2021 to 1.6 billion by 2050, which is a significant growth in the population in the coming decades. This aging demographic is particularly susceptible to chronic diseases, which is one of the major digital therapeutics market drivers that requires frequent and comprehensive healthcare interventions. Moreover, digital therapeutics offer an effective solution by providing continuous care and management without the need for constant physical healthcare visits. These tools can support elderly patients in managing their health conditions through medication reminders, lifestyle changes, and disease-specific educational content, all from the comfort of their homes. Hence, the convenience and efficiency of digital therapeutics make them highly suitable for elderly care, thus driving their acceptance and expansion in the market as the global population continues to age.

Digital Therapeutics Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on application and end use.

Breakup by Application:

• Diabetes
• Obesity
• CVD
• CNS Disease
• Respiratory Diseases
• Smoking Cessation
• Others
   

Diabetes accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the application. This includes diabetes, obesity, CVD, CNS disease, respiratory diseases, smoking cessation, and others. According to the report, diabetes represented the largest segment.

Diabetes holds the largest market share as it is a condition that affects millions globally. Additionally, digital therapeutics in this area leverage cutting-edge technology to monitor blood sugar levels, administer insulin doses, and provide personalized dietary and exercise recommendations. These tools aim to stabilize patient conditions and enhance the quality of life by making disease management more accessible and efficient. Hence, leading market players are introducing advanced product variants to meet these needs. For instance, on 16 October 2023, Better Therapeutics, Inc., a prominent leader in prescription digital therapeutics (PDTs) for cardiometabolic conditions, announced the commercial release of AspyreRx. This is the first cognitive behavioral therapy (CBT) app to gain U.S. Food and Drug Administration (FDA) approval as a Class II device for managing type 2 diabetes (T2D) in adults. It allows healthcare providers to prescribe AspyreRx, which is accessible for download from the Apple App Store and Google Play Store.

Breakup by End Use:

• Patients
• Providers
• Payers
• Employers
• Others
   

Patients holds the largest share of the industry

A detailed breakup and analysis of the market based on the end use have also been provided in the report. This includes patients, providers, payers, employers, and others. According to the report, patients accounted for the largest market share.

According to the digital therapeutics industry overview, patients represent the largest segment due to the increasing patient-centric healthcare approach and the widespread adoption of smartphones and internet services, which facilitate easy access to therapeutic applications. These digital solutions offer patients tailored treatments for a range of conditions, including chronic diseases such as diabetes and hypertension, as well as mental health disorders. Additionally, the convenience and efficacy of these applications in managing health conditions through personalized care plans and real-time health tracking significantly contribute to their adoption among patients. This trend is further supported by growing healthcare digitization and a shift toward preventive healthcare measures, reinforcing the dominant position of patients in the digital therapeutics market. Therefore, major players are collaborating and launching sophisticated product variations. For instance, on 5 July 2023, ResMed announced the acquisition of Somnoware, a leading provider of digital diagnostics software for sleep and respiratory care. This acquisition expanded ResMed’s sleep management software capabilities, facilitating more efficient patient diagnosis and long-term treatment through enhanced sleep labs and physician tools. The Somnoware platform will complement ResMed’s existing post-testing solutions, AirView and Brightree, and will continue to operate as an open platform. This openness allows sleep labs, pulmonary function testing facilities, and physicians to access results from various testing solutions, accelerating the process of getting diagnosed patients the treatment they need.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest digital therapeutics market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest regional market for digital therapeutics.

North America represents the leading region in the market. The digital therapeutics market growth factors for the region include the well-established healthcare infrastructure, robust technological advancements, and significant investment in digital health across the region. Moreover, the United States is primarily driven by the widespread adoption rate of digital health technologies among healthcare providers and patients alike. Besides, the presence of major digital therapeutics companies in North America, coupled with favorable government policies and a growing awareness about the benefits of digital therapeutics, further propel the market growth. For instance, on 7 November 2023, Vida Health, a leader in virtual cardiometabolic care, partnered with Withings Health Solutions, a key player in advanced everyday wearables, to provide top-tier digital monitoring devices to Vida members. This partnership offered eligible Vida members access to a Withings Body Pro cellular scale, a BPM Connect Pro cellular blood pressure monitor, or both. Vida’s care teams gained reliable and consistent patient-generated health data, which enhanced their personalized care strategies and improved health outcomes by using these devices.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the digital therapeutics industry include 2Morrow Inc., Canary Health Inc., Click Therapeutics Inc., Mango Health Inc. (TrialCard Incorporated), Noom Health Inc., Omada Health Inc., Pear Therapeutics, Inc., Propeller Health (ResMed), Teladoc Health Inc., Voluntis Inc., and WellDoc Inc.

  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.) 

• At present, companies are strategically enhancing their offerings and expanding their reach to bolster growth in the digital therapeutics market. Additionally, central to their efforts is forging partnerships with established healthcare entities and insurers, which helps integrate digital therapeutics into mainstream medical practice and increases patient accessibility. Moreover, various innovations by firms are advancing their technologies to improve patient engagement and outcomes through more personalized and effective treatments. Along with this, regulatory approvals are aggressively pursued to ensure compliance and enhance market credibility, crucial for broader adoption. Besides, companies invest in educational campaigns to raise awareness among healthcare professionals and patients about the benefits of digital therapeutics, aiming to shift perceptions and foster trust. These combined efforts are essential for driving the adoption and long-term viability of digital therapeutics in the healthcare landscape.

Digital Therapeutics Market News:

• 15 August 2023, Welldoc, a pioneering force in digital health transforming chronic care, announced that it has received its 10th 510(k) clearance from the Food and Drug Administration (FDA) for its acclaimed diabetes digital health platform, BlueStar. This latest clearance further solidifies Welldoc's leadership in the field of diabetes management technology.
• 20 February 2024, Better Therapeutics, Inc., a leader in the development of prescription digital therapeutics (PDTs) for cardiometabolic diseases, announced that the U.S. Food and Drug Administration (FDA) has awarded breakthrough device designation to its innovative Cognitive Behavioral Therapy (CBT) platform. This platform is designed to treat adults with metabolic dysfunction-associated steatohepatitis (MASH), previously known as NASH. The breakthrough status is given to technologies that show promise in being more effective than the current standard of care for patients with serious or life-threatening conditions.
• 29 July 2024, Otsuka Pharmaceutical Europe Ltd. and Otsuka Pharmaceuticals (U.K.) Ltd. (collectively known as Otsuka) is partnering with Health Innovation Oxford & Thames Valley (Oxford HIN) to assess the deployment and integration of a new digital therapeutic (DTx) called CARE for MDD, designed to aid in the management of major depressive disorder (MDD), commonly known as clinical depression. This collaboration aims to enhance support for patients with depressive disorder by exploring solutions beyond traditional medication. It will leverage Oxford HIN's network and expertise in mental health treatment alongside Otsuka's experience in developing therapies for mental health conditions.

Digital Therapeutics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the digital therapeutics market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global digital therapeutics market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the digital therapeutics industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.