A quick peek into the report
Introduction to Digital Therapeutics Market
The global digital therapeutics market is projected to reach $46.80 billion by 2033 from $4.90 billion in 2022, growing at a CAGR of 22.93% during the forecast period 2023-2033. The key factors driving the growth of the global digital therapeutics market include the multiple benefits offered by digital therapeutics over traditional treatment, continuous technological advancements in the field, and increasing demand for cost-effective solutions.
Market Introduction
The global digital therapeutics market consists of evidence-based and clinically evaluated software and devices. These tools are designed for the treatment of diverse diseases and disorders.
Additionally, digital therapeutics can be employed either independently or in conjunction with devices to address both physical and behavioral health conditions.
Impact Analysis:
The digital therapeutics market has made an impact in the following ways:
Increased Accessibility of Care: Digital therapeutics offer convenient and accessible care options for patients, particularly those living in remote areas or facing mobility limitations. This expanded access is improving health outcomes and reducing disparities in healthcare delivery.
Improved Patient Engagement and Adherence: Digital therapeutics can personalize interventions and provide patients with real-time feedback and support, leading to higher engagement and adherence to treatment plans. This ultimately translates to better health outcomes and reduced healthcare costs.
Enhanced Data Collection and Analysis: Digital therapeutics enable continuous data collection about patients' health and behavior, providing valuable insights for healthcare providers and researchers, helping them to deliver personalized treatment strategies, and contributing to the development of new solutions.
Reduced Costs of Healthcare Delivery: By enabling early intervention and self-management of chronic conditions, digital therapeutics is potentially reducing dependence on traditional healthcare services, leading to cost savings for both patients and healthcare systems.
Market Segmentation:
Segmentation 1: by Product Type
• Software
• Devices
The software segment held the highest share in the global digital therapeutics market (by product type) in 2022 and is anticipated to hold its dominance till the end of the forecast period.
Segmentation 2: by Application
• Treatment/Patient Care-Related Applications
• Preventive Applications
The treatment/patient care-related applications segment held the highest share in the global digital therapeutics market (by application) in 2022 and is anticipated to hold its dominance till the end of the forecast period.
Segmentation 3: by Sales Channel
• Business-to-Business
• Business-to-Customer
The business-to-business segment held the highest share in the global digital therapeutics market (by sales channel) in 2022 and is anticipated to hold its dominance till the end of the forecast period.
Segmentation 4: by Region
• North America - U.S., Canada
• Europe - U.K., Germany, France, Italy, Spain, and Rest-of-Europe
• Asia-Pacific - China, Japan, India, South Korea, Australia, and Rest-of-Asia-Pacific
• Latin America - Brazil, Mexico, and Rest-of-Latin America
• Middle East and Africa - K.S.A., U.A.E., Israel, South Africa, and Rest-of-Middle East and Africa
*All the regions include a detailed analysis based on product type, application, and sales channel.
China dominated the Asia-Pacific digital therapeutics market in 2022. The country has a growing population with chronic conditions such as diabetes, hypertension, and cardiovascular diseases. Digital therapeutics offers effective and accessible management solutions for these conditions.
The Chinese government recognizes the potential of digital therapeutics and is actively promoting its development and adoption.
Recent Developments in the Digital Therapeutics Market
• In November 2023, Vida Health partnered with Capital Rx to introduce Rx Activate, a high-touch chronic condition management program.
• In November 2023, Vida Health collaborated with Withings Health Solutions to enhance virtual cardiometabolic care by integrating powerful health monitors.
• In September 2023, Click Therapeutics, Inc. announced a collaboration with Indivior to jointly develop and commercialize innovative prescription digital therapeutics for substance use disorders.
• In July 2023, ResMed Inc. completed the acquisition of Somnoware, a leading provider of digital sleep and respiratory care diagnostics software.
• In April 2023, Glooko, Inc. partnered with Hedia, integrating Hedia's technology into Glooko's diabetes management platforms. This collaboration aims to offer an interoperable solution, combining connected care, remote patient monitoring, and digital therapeutic technologies to improve access for individuals with Type 1 and Type 2 diabetes in need of bolus insulin dosing advice.
• In February 2023, Glooko, Inc. announced a global collaboration with Sanofi to enhance support for individuals with diabetes and healthcare professionals by integrating SoloSmart with the Glooko platform.
• In January 2023, Omada Health Inc. collaborated with Intermountain Healthcare and Castell to establish an integrated virtual care option for diabetes management and prevention.
Demand – Drivers and Limitations
Market Demand Drivers:
Multiple Benefits Provided by Digital Therapeutics over Traditional Treatment: The adoption of digital therapeutics is surging due to their personalized, technology-driven approach to managing various conditions. Unlike traditional methods, they offer real-time monitoring, data collection, and tailored interventions, addressing individual needs. This paradigm shift positions them as a promising growth area, heralding a new era of patient-centric healthcare.
Continuous Technological Advancements Driving the Adoption of Digital Therapeutics: Digital therapeutics is rising, fueled by technology and widespread smartphones. This synergy creates user-friendly solutions poised to revolutionize healthcare and patient outcomes. AI personalizes and adapts interventions, while big data empowers healthcare professionals with insights for better care. Mobile health platforms democratize access, while real-time monitoring ensures continuous care. The future of digital therapeutics is bright, with the potential to revolutionize healthcare and improve global health outcomes.
Increasing Demand for Cost-Effective Solutions Creating a Demand for Digital Therapeutics: As healthcare costs are increasing, digital therapeutics rise as a cost-effective alternative. By leveraging technology for personalized care and monitoring, they reduce costly hospitalizations and in-person visits. This saves money and improves outcomes, making healthcare more accessible and sustainable, especially for underserved populations. The future is bright for digital therapeutics, poised to transform healthcare and improve global health.
Market Restraints:
Data Privacy and Security Concerns: Digital therapeutics promise a healthcare revolution; however, ethical concerns regarding data privacy, algorithmic bias, and transparency cloud their potential. Furthermore, vast data collection raises privacy fears, while algorithms risk perpetuating biases. To ensure responsible innovation, robust regulations for data privacy, algorithmic fairness, and transparency must be established through collaborative efforts between policymakers, healthcare providers, and tech companies. Only then can digital therapeutics' transformative potential be realized while safeguarding patient well-being.
Lack of Standardized Reimbursement Models: The lack of standardized reimbursement disrupts the adoption of these innovative solutions by both healthcare providers and patients. Standardized reimbursement models are crucial to make digital therapeutics accessible to those who need them most. Collaboration among stakeholders is key to overcoming this hurdle and unlocking the transformative potential of digital therapeutics, paving the way for improved healthcare delivery and patient outcomes.
Market Opportunities:
Expanding Applications of Digital Therapeutics: The applications of digital therapeutics are expanding beyond their initial focus, now addressing pain management, addiction, and rehabilitation, among other applications. This expansion is fueled by the recognition of their effectiveness in addressing a wider range of health challenges. Therefore, the expansion of digital therapeutics into new areas is poised to revolutionize healthcare delivery, improve patient outcomes for a wider range of conditions, and empower individuals to manage their health for a better life.
Rising Fundings and Investment in Digital Therapeutics: The digital therapeutics market is experiencing an investment boom, propelling its growth and paving the way for healthcare advancements. This influx of capital stems from the recognition of digital therapeutics' potential to revolutionize disease management, improve patient outcomes, and enhance healthcare efficiency. As investments continue to pour in, digital therapeutics are poised to transform disease management, improve patient outcomes, and enhance healthcare efficiency, shaping the future of healthcare delivery worldwide.
Analyst’s Thoughts
According to Mridul Pasricha, Senior Research Analyst – BIS Research, “The global digital therapeutics market is expected to experience tremendous growth in the coming years, driven by factors such as rising healthcare costs, increasing chronic disease prevalence, and growing adoption of mobile health technologies. Digital therapeutics offer personalized, accessible, and cost-effective solutions for managing various conditions, making them a promising alternative to traditional healthcare interventions. However, challenges such as data privacy concerns, regulatory hurdles, and lack of reimbursement models need to be addressed for sustainable growth. Overall, the future of digital therapeutics appears promising, with the potential to revolutionize healthcare delivery and improve patient outcomes worldwide.”
Digital Therapeutics Market - A Global and Regional Analysis
Focus on Product Type, Application, Sales Channel, and Country - Analysis and Forecast, 2023-2033
Frequently Asked Questions
The global digital therapeutics market consists of evidence-based and clinically evaluated software and devices. These tools are designed for the treatment of diverse diseases and disorders. Digital therapeutics can be employed either independently or in conjunction with devices to address both physical and behavioral health conditions.
Synergistic activities accounted for the maximum number of key developments, i.e., nearly 64.44% of the total developments in the global digital therapeutics market between January 2020 and November 2023. Key players such as Omada Health Inc., Resmed Inc., and Akili Interactive Labs, Inc. have been involved in synergistic activities to provide digital therapeutics solutions, addressing the growing demand and engaging in various strategies to gain further market share.
The following are the USPs of this report:
• Key trends
• Regulatory framework
• Patent analysis
• New frontiers in the digital therapeutics landscape
• Competitive analysis based on a wide range of application
• Active players in the digital therapeutics ecosystem
• Market dynamics (including drivers, restraints, and opportunities) and their impact analysis
• Region and country-level analysis, including market dynamics, market size, and forecast
• Cross-segmentation at the region level
The report offers valuable insights for various stakeholders in the healthcare sector, including healthcare providers, pharmaceutical and medical device companies, and investors.
For healthcare providers, the report helps them understand how digital therapeutics can enhance patient care and treatment. Additionally, pharmaceutical and medical device companies can utilize the report to identify partnership opportunities and inform their research and development strategies. Moreover, investors can leverage the report to make informed investment decisions based on market trends and forecasts.