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The digital therapeutics market size was USD 5.53 billion in 2022 and is projected to grow from USD 6.77 billion in 2023 to USD 28.66 billion by 2030, exhibiting a CAGR of 22.9%. North America Dominated the Market due to Large Population Suffering from Chronic Illnesses.
Digital therapeutics (DTx) includes the software and devices that digitally maintain evidence-based therapeutic interventions for the prevention and management of diseases. The software and devices aid in the treatment of various disorders related to mental health, diabetes, respiratory diseases, and cardiovascular diseases. The increased demand for these products is also due to the increasing prevalence of chronic diseases such as diabetes, mental illness, cancer, and heart failure (HF), worldwide. Hence, the adoption of therapeutics for managing and treating various chronic illnesses is increasing among patients.
Additionally, the increased demand for these products amongst the pharmaceutical industries and physicians is also anticipated to drive market growth. The increased focus on research and development activities among market players to develop novel and advanced therapeutics for treating various diseases is expected to spur the growth of these products. For instance, in 2020, Akili, Inc. received clearance from the U.S. FDA for Interactive’s video game treatment EndeavorRx for children with attention deficit/hyperactivity disorder (ADHD).
COVID-19 Positively Impacted the Market Due to Increased Adoption of Digital Therapeutics
The COVID-19 impact on the global digital therapeutics market growth will be positive during the forecast period. Due to the outbreak of the COVID-19 pandemic and lockdown restrictions, the demand for efficient diagnosis and treatment at home significantly increased over the world. Moreover, the initiatives undertaken by major key players in the market to manage patients during the COVID-19 pandemic played a major role in the increased adoption of these products.
Henceforth, the major players in the market witnessed increased revenues generated from the software and devices owing to the high demand and shifting adoption towards online treatment rather than visiting clinics and pharmacies during the COVID-19 pandemic.
A surge in the high demand for treatment at home for various chronic diseases during the pandemic has created an opportunity for market players to introduce novel and advanced software and devices in the market, thereby boosting the steady market growth during the forecast period of 2023-2030.
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Technological Advancements in These Products to Augment the Market Growth
Technological advancements in digital software and devices are helping healthcare professionals to record and monitor clinical data regularly and provide better treatment to their patients. The high-performance capabilities of these products are a great aid to the healthcare industry.
Digital therapeutics assists in providing specialized medications, lifestyle and nutrition management, tracking day-to-day activities, and treating physical, mental and behavioral health conditions. Novel and technologically advanced therapeutics provides data-based insights to its customer, limits human error, increases customer satisfaction, and provides a high-quality user experience, leading to an increased demand for such therapeutics in the market.
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.
Also, the rising partnerships and collaborations amongst the market players and research organizations to develop innovative and more effective products for chronic conditions are expected to propel the digital therapeutics market during the forecast period.
Rising Prevalence of Chronic Diseases to Drive the Demand for Digital Therapeutics
The usage of therapeutics software and devices is driven due to the increased demand for the management and treatment of chronic diseases worldwide. Adding to this, the growing prevalence of all types of chronic conditions, such as type 1 diabetes & type 2 diabetes, cancers, Alzheimer’s diseases, mental disorders, obesity, and gastrointestinal disorders especially in emerging countries, is expected to propel the demand for this software during the forecast period.
The growing initiatives undertaken by various healthcare agencies and market players, such as the creation of awareness regarding the prevention and treatment of chronic diseases, have increased the demand for this software. Moreover, an increase in the number of physicians in developed and emerging countries referring their patients to use these products for chronic conditions are some other major factors expected to augment the demand in the market.
Increasing Usage of Smartphones for Digital Therapeutics to Drive the Market
With growing digitalization, healthcare has witnessed several changes over the last few years. The emergence of smart medical devices and a cloud-based data platform combined with smartphones enables better treatment and health monitoring. This has resulted in the increased focus of market players and other organizations to develop and launch innovative technologies with inbuilt applications for treating many chronic diseases with the help of these products.
With the rising focus of major industry players on approvals from regulatory bodies, launches of new digital therapeutics mobile applications in the market are likely to accelerate the market growth in the forecast period.
Such major developments in this market have led to effective chronic disease management among patients and the increasing demand for such applications. This is expected to boost market growth in the forecast period.
The increased usage of smartphones coupled with the introduction of mobile applications for the treatment of chronic diseases is expected to spur the global digital therapeutics market forecast.
Limitations Associated with the Digital Therapeutics to Limit its Adoption
This market represents an emerging field of software and device-driven based products intended to prevent, manage or treat medical conditions. However, increasing issues related to cybersecurity are a major concern limiting the adoption of therapeutics. Patients are concerned about the risks and vulnerabilities in protecting their medical data. Certain risks and cyberattacks are responsible for the restrained adoption of these products in the forecast period.
Such high risks of cyber security breaches associated with the patient’s personal health information have been restricting the global adoption of these products by the patient population. Furthermore, limitations associated with therapeutic products, such as the generation of false and over-predictive results and mismanagement of the patient’s health, are expected to limit the market growth during the forecast period.
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Rising Usage of Health Monitoring Apps to Surge Growth of the Software and Services Segment during 2023-2030
Based on type, the market is segmented into devices and, software & services.
Software and services accounted for the highest market share in 2022 due to the increased adoption of software. The software offers patients convenient usability, easy access, and personal medications. The rising focus of market players on the development of software for patients suffering from chronic conditions such as cardiovascular diseases, diabetes, and mental health would contribute to the segment’s growth.
The devices segment also registers a significant global digital therapeutics market share. Various advantages associated with devices include real-time diagnosis and personalized treatments which are easily accessible to consumers. Furthermore, robust research on advanced devices for the treatment of chronic diseases is anticipated to fuel segmental growth during the forecast period.
Treatment Segment to Account as the Dominant Segment in 2021 Owing to Strong Usage of These Products for This Application
In terms of application, the market is segmented into prevention and treatment.
The prevention segment is further sub-segmented into pre-diabetes, obesity, and others. The treatment segment is further sub-segmented into diabetes, respiratory care, mental health, cardiovascular, and others. The prevention segment registered a significant CAGR in the forecast period. Increasing modern lifestyle-related conditions such as smoking cessation, obesity, prediabetes, and various other chronic conditions are expected to boost the demand for these devices during the forecast period.
The treatment segment registered the highest share in the market. The growing prevalence of people suffering from cardiovascular diseases, diabetes, and poor mental health conditions is boosting the demand for this application area. Furthermore, major key players are focusing on the formation of strategic collaborations with other organizations to introduce medication adherence software, leading to the high adoption of these products in the forecast period.
Rising Inclinations Among Pharmaceutical Companies to adopt Digital Therapeutics Driving B2B Segment
In terms of sales channels, the market is segmented into B2B and B2C.
The B2B segment is expected to hold the highest share of the market during the forecast period. The B2B (Business to Business) segment consists of the payer, provider, employer, and pharmaceutical companies. The market share is dominated by key market players and pharmaceutical companies owing to the increasing number of mergers and collaborations amongst them for new product launches. Furthermore, the increasing focus of companies in providing the product to their employees, is expanding the customer base, thereby propelling segmental growth.
The B2C (Business to Customer) segment is expected to show a significant rise in CAGR during the forecast period owing to growing awareness about the benefits and ease of use of these products amongst patients and caregivers.
North America Digital Therapeutics Market Size, 2022 (USD Billion)
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The digital therapeutics market size in North America stood at USD 2.64 billion in 2022. The dominance of this regional market is attributable to the growing number of cases of patients suffering from chronic diseases and mental health disorders, such as substance use disorders
Moreover, an increasing number of collaborations and agreements amongst the key players to focus on the research and development of these products is expected to increase the introduction of these devices in the region.
Europe held the second-largest share in the market and is expected to grow at a significant CAGR owing to the country's increased healthcare expenditure per person. Furthermore, the rising focus on partnerships and regional expansion amongst the key market players coupled with new product launches is expected to spur market growth in the forecast period.
The Asia Pacific market exhibited the highest compound annual growth rate owing to the increased adoption of technologically advanced products and favorable government policies. The high adoption of economically available internet and mobile is expected to boost the adoption of these products, thereby propelling the market growth in the region.
The rest of the world accounted for a significant share of the market owing to the increased awareness about these products and recent developments in the healthcare sector of the region. Moreover, the ongoing studies related to these products and awareness programs initiated by governmental organizations have led to an increase in the adoption of these products, fueling the market growth in the region.
Pear Therapeutics, Inc with Strong Portfolio of Mental Health Solutions is Expected to Emerge as a Prominent Player in 2022
This is a partially fragmented market comprising several players in digital therapeutics with a diverse range of products, including mobile software and devices. Industry leader Pear Therapeutics, Inc, holds a dominant position with a strong portfolio of software. The increasing sales of reSET & reSET-O in the U.S. are contributing to its strong market share. Also, the rising R&D expenditure of the company for the development of these products is another factor contributing to the higher market share of the company.
Other market players, such as AppliedVR, Inc., Welldoc, Inc., CureApp, Inc., and Brain+ A/S are focusing on the execution of innovative strategies such as mergers and acquisitions, market penetration, partnerships, and distribution agreements to increase their revenue in the market. For instance, in 2021, AppliedVR, Inc. received the U.S. FDA clearance through the De Novo pathway for RelieVRx, to provide adjunctive pain-relief treatment based on cognitive behavioral therapy skills for patients with a diagnosis of chronic low back pain.
An Infographic Representation of Digital Therapeutics Market
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The digital therapeutics market report covers a detailed analysis and overview. It focuses on key aspects such as competitive landscape, type, application, sales channel, and region. Besides this, it offers insights into the market drivers, market trends, market dynamics, COVID-19 impact on the market, and other key insights. In addition to the factors mentioned above, the report encompasses regulatory and reimbursement scenario and pipeline analysis that have contributed to the growth of the market over recent years.
CAGR of 22.9% from 2023-2030
Value (USD billion)
By Type, By Application, By Sales Channel, By Region
By Sales Channel
The global digital therapeutics market size was valued at USD 5.53 billion in 2022 & is projected to grow USD 28.66 billion by 2030.
In 2022, the market value stood at USD 2.64 billion.
The digital therapeutics market will exhibit strong growth at a CAGR of 22.9% during the forecast period to hit USD 28.66 billion by 2030.
Currently, the software and services segment is leading by type.
Rising prevalence of chronic diseases, increasing usage of smartphones, rising number of approvals and launches of digital therapeutic products are the key drivers of the market.
Omada Health Inc., CureApp Inc., Teladoc Health Inc., and GAIA AG, are the major players in the market.
North America dominated the market in 2022.
Increase in the number of patients requiring long term treatment for care for chronic diseases coupled with the increasing adoption of innovative products are some of the factors expected to drive the adoption of these products.
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