Global Digital Therapeutics Market, By Product Type (Software, and Device), By Application (Preventive Applications, Treatment/Care-related Applications), By End-User (Providers, Payers, Employers, Pharmaceutical Companies, Other End-Users), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

Digital Therapeutics Market size is expected to be worth around USD 62.4 Billion by 2032 from USD 6.5 Billion in 2022, growing at a CAGR of 26.1% during the forecast period from 2023 to 2032.

Digital therapeutic systems have the potential to improve and bring considerable transformation in patient health and can be used to treat a variety of medical diseases.  High demand due to the COVID-19 pandemic, various supporting regulatory actions & early indications of reimbursements, rising smartphone penetration in developed & developing nations, and the rising frequency of chronic disorders are key factors boosting the market growth.

Additionally, it is anticipated that the cost-effectiveness of digital health technology for patients and providers as well as the rising demand for integrated healthcare systems and patient-centric care will boost market expansion.

Key Takeaways

• Market Value: The Global Digital Therapeutics Market to grow at a CAGR of 26.1% between 2023 and 2032.
• Market Drivers:
  • High demand due to the COVID-19 pandemic.
  • Supportive regulatory actions and early indications of reimbursements.
  • Increased smartphone penetration in developed and developing nations.
  • Rising frequency of chronic disorders.
  • Cost-effectiveness of digital health technology for patients and providers.
  • Growing demand for integrated healthcare systems and patient-centric care.
• Product Type Analysis: Software dominates the market, driven by the FDA’s regulatory initiatives for Software-based Medical Devices.
• Application Analysis: Treatment/care-related applications hold the highest market share due to the rising incidence of chronic diseases.
• End-User Analysis: Patients represent the most lucrative segment with a 30.0% revenue share, driven by increased adoption of digital therapeutic solutions.
• Restraints: Privacy and security concerns.
• Opportunities:
  • Advances in technology, including wearable devices and mobile apps.
  • Growing investment from venture capital firms and pharmaceutical companies.
• Trends:
  • Expansion into other treatment areas beyond chronic diseases.
  • Integration of digital therapeutics with wearable devices.
• COVID-19 Impact:
  • Increased investments in the digital therapeutics market due to pandemic-induced lifestyle changes and awareness.
  • Favorable regulatory changes and increased demand for digital therapeutics products.
• Regional Analysis:
  • North America holds the largest market share, followed by Europe and the Asia-Pacific region.
  • Europe is the fastest-growing market.

Product Type Analysis

Based on product type, the market for global digital therapeutics is segmented into software and device. Among these types, the software segment is the dominant the market with largest and fastest growing segment and is expected to continuously grow. The FDA’s Digital Health Innovation Action Plan includes the Software Pre-Cert Pilot Program, which aims to improve the regulatory monitoring of manufacturers’ Software-based Medical Devices (SaMD). The program’s objective is to create an effective regulatory oversight system for evaluating businesses in order to build trust that they can provide high-quality SaMD products.

Application Analysis

By Application, the market is further divided into preventive applications and treatment/care-related applications. The treatment/care-related application segment dominated the market and is expected to hold the highest market share. The rising incidence of diabetes and other chronic conditions is one of the factors driving the segment expansion. Healthcare professionals can use digital therapeutics to help patients’ lives be assessed and treatment plans improved depending on each individual’s therapeutic needs.

End-User Analysis

Based on end-user, the market is segmented into providers, payers, employers, and pharmaceutical companies. Among these end-users, the patient segment is estimated to be the most lucrative segment in the Global Digital Therapeutics market, with the largest revenue share of 30.0%. Its expansion was mostly brought on by patients using digital therapeutic solutions more frequently. Therapeutic healthcare applications and programmers are mostly used by patients. The demand for digital treatments is expanding as more individuals are being diagnosed with chronic diseases.

Key Market Segments

Based on Product Type

• Software
• Device

Based on Application

• Preventive Applications
  • Prediabetes
  • Obesity
  • Nutrition
  • Lifestyle Management
  • Other Preventive Applications
• Treatment/Care-related Applications
  • Diabetes
  • CNS Disorders
  • Mental Health Disorder
  • Chronic Respiratory Disorders
  • Musculoskeletal Disorders
  • Cardiovascular Diseases
  • Smoking Cessation
  • Gastrointestinal Disorders
  • Substance Use & Addiction Management
  • Other Treatment/Care-related Applications

Based on End-User

• Providers
• Payers
• Employers
• Pharmaceutical Companies
• Other End-Users

Drivers

Need to control healthcare costs

As healthcare costs increase, more affordable treatment options are in demand. Digital therapeutics offer a less expensive option to treatment modalities, which can be high cost and often include various doctor visits.

Increasing prevalence of chronic diseases

The demand for digital therapeutics has increased as a result of the high prevalence of chronic diseases, rising healthcare facility demand, and increasing treatment costs. For instance, cardiovascular disease (CVD) currently kills 17.3 million people a year, and by 2022, that number is predicted to reach 23.6 million.

Restraints

Privacy and security concerns

Sensitive patient data must be gathered and stored in order to apply digital therapeutics. Data breaches and cyberattacks-related privacy and security problems could limit patient acceptance and market expansion.

Opportunity

Advances in Technology

Advances in technology, such as wearable devices and mobile apps, have made it easier to collect and analyze patient data. This data can be used to develop personalized treatment plans, improving patient outcomes.

Growing Investment

The market has seen a significant increase in investment, with venture capital firms and pharmaceutical companies investing in digital therapeutics startups.

Trends

Extension into Other Treatment Areas

Digital therapeutics are extending into new therapeutic fields outside of conventional chronic diseases, such as mental health, addictions, and neurodegenerative disorders.

Integration with Wearable Devices

Wearable devices like smartwatches and fitness trackers are progressively integrating digital therapies. Through this connectivity, patient data can be monitored in real-time, allowing for more individualized and efficient treatment programmes.

Regional Analysis

North America held the largest market share for digital therapeutics, and it is expected that it will continue to hold this position during the forecast period. The fastest-growing market in Europe. This is ascribed to a rising in the use of smartphones and other digital devices, growth in the prevalence of chronic conditions, the presence of important key players, and rising healthcare costs in the area.

However, the Asia-Pacific area is expected to grow significantly due to increased digitalization, unmet medical needs, and more expenditures in the region’s healthcare industry.

Key Regions

North America

• The U.S.
• Canada

Europe

• Germany
• The U.K.
• France
• Italy
• Spain

Asia Pacific

• China
• India
• Japan
• Australia
• South Korea

Latin America

• Brazil
• Mexico
• Argentina

MEA

• South Africa
• Saudi Arabia
• UAE
• Israel

Key Players Analysis

The industry is defined by the presence of numerous large- and small-scale business operators. Key players that concentrate on implementing strategies like mergers and acquisitions, market penetration, collaborations, and distribution agreements to raise their revenue control the market, which is highly competitive.

For instance, Teladoc increased its collaboration with the National Labor Alliance in December 2021 in order to offer the full range of virtual care products and services. Specialty care, general medical, expert medical services, mental health, virtual primary care programs, and chronic condition management were among the goods and services offered.

Market Key Players

• 2MORROW, Inc.
• Akili Interactive Labs, Inc.
• Fitbit, Inc. (Twine Health, Inc.)
• Happify, Inc.
• Click Therapeutics, Inc.
• Omada Health, Inc.
• Pear Therapeutics, Inc.
• Proteus Digital Health, Inc.
• Resmed, Inc. (Propeller Health)
• Voluntis, Inc.
• Welldoc, Inc.
• F-Star Therapeutics
• Omega Therapeutics
• G1 Therapeutics
• Gsk Digital Therapeutics
• Q digital
• Viridian Therapeutics
• Livongo Health, Inc.
• Medtronic Plc.
• Other Key Players

Recent Developments

• In August 2022: Pear Therapeutics (US) and Select Health (US) agreed to a contract to give members covered access to Pear’s innovative prescription digital therapeutic (PDT), reSET-O, as an adjuvant to outpatient therapy for opioid use disorder (OUD).
• In March 2022: Omada Health (US) began including behavioral health support in its programs. (Diabetes Prevention, Diabetes Management, Hypertension, and Musculoskeletal). The new behavioral health integration includes tools for managing social health factors like food access, stress management, and sleep, as well as resources for assessing anxiety and depression.

Report Scope