The global Digital Therapeutics Market size was valued at USD 5.5 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 30.5% during the forecast period, reaching a value of USD 18.39 billion by 2030.
Digital Therapeutics Market research report by Future Data Stats, offers a comprehensive view of the market's historical data from 2017 to 2021, capturing trends, growth patterns, and key drivers. It establishes 2021 as the base year, analyzing the market landscape, consumer behavior, competition, and regulations. Additionally, the report presents a well-researched forecast period from 2022 to 2030, leveraging data analysis techniques to project the market's growth trajectory, emerging opportunities, and anticipated challenges.
MARKET OVERVIEW:
Digital therapeutics refers to evidence-based therapeutic interventions delivered through software or digital platforms, which aim to prevent, manage, or treat medical conditions. These interventions combine elements of technology, healthcare, and behavioral science to provide personalized and effective treatment options. Unlike traditional pharmaceutical treatments, digital therapeutics leverage the power of digital technologies such as mobile apps, wearables, and virtual reality to deliver therapeutic interventions directly to patients. These interventions can range from cognitive behavioral therapy modules for mental health disorders to interactive apps for managing chronic conditions like diabetes or cardiovascular diseases. Digital therapeutics often incorporate features such as remote monitoring, real-time feedback, data analytics, and personalized treatment plans, empowering individuals to take an active role in their health management.
Digital therapeutics have gained significant attention and recognition due to their potential to improve patient outcomes, increase accessibility to healthcare, and reduce healthcare costs. They offer several advantages, including the ability to deliver interventions anytime, anywhere, and the potential for continuous monitoring and feedback. By leveraging the capabilities of digital technologies, digital therapeutics can provide individualized treatment plans, track progress, and offer educational resources to patients. Moreover, they can facilitate remote patient-provider communication, enabling healthcare professionals to remotely monitor and adjust treatment plans as needed. Overall, digital therapeutics represent a promising field that combines the power of technology and evidence-based therapies to revolutionize healthcare delivery and improve patient well-being.
MARKET DYNAMICS:
Firstly, the increasing prevalence of chronic diseases, such as diabetes, cardiovascular diseases, and mental health disorders, is a significant driver. Digital therapeutics offer convenient and effective solutions for managing these conditions, empowering patients to take control of their health and improve their quality of life. Additionally, the rising adoption of smartphones, wearable devices, and internet connectivity has created a favorable environment for the growth of the digital therapeutics market. These technological advancements enable easy access to digital therapeutic interventions and facilitate remote monitoring and personalized treatment.
Despite the positive growth trajectory, the digital therapeutics market also faces certain restraints and challenges. Regulatory and reimbursement issues pose a significant challenge to market expansion. Digital therapeutics often require approval from regulatory authorities, such as the FDA, to ensure their safety, efficacy, and adherence to medical standards. Navigating through these regulatory pathways can be time-consuming and costly. Furthermore, the lack of awareness and acceptance among healthcare providers and patients about the potential benefits of digital therapeutics may hinder market growth. Overcoming these barriers requires education, evidence-based research, and collaborations between stakeholders to establish trust and integrate digital therapeutics into standard healthcare practices.
The digital therapeutics market presents several opportunities for growth and innovation. The ongoing advancements in artificial intelligence (AI), machine learning, and data analytics offer immense potential for enhancing the effectiveness of digital therapeutics. These technologies can enable personalized treatment plans, real-time feedback, and predictive analytics, resulting in improved outcomes and patient engagement. Additionally, the growing emphasis on preventive healthcare and the shift towards value-based care models provide opportunities for digital therapeutics to play a vital role in disease prevention and population health management. Moreover, the integration of digital therapeutics with traditional healthcare systems, electronic health records, and telemedicine platforms can enhance care coordination, remote monitoring, and patient-provider communication, opening new avenues for market expansion and improved patient care.
DIGITAL THERAPEUTICS MARKET SEGMENTAL ANALYSIS
BY APPLICATION:
One of the key factors is the increasing demand for digital therapeutics in specific applications such as diabetes management, obesity and weight management, cardiovascular diseases, respiratory diseases, smoking cessation, mental health and substance abuse, sleep disorders, and other conditions. These applications address critical healthcare challenges and provide personalized and effective interventions through digital platforms.
With the rising prevalence of chronic diseases worldwide, digital therapeutics offer innovative solutions for managing and treating these conditions, empowering individuals to actively participate in their healthcare journey. The ability of digital therapeutics to deliver remote monitoring, real-time feedback, and personalized treatment plans plays a crucial role in improving patient outcomes and enhancing overall healthcare delivery. As a result, the digital therapeutics market continues to expand, driven by the increasing adoption of digital solutions across various healthcare sectors.
BY END USER:
One of the key factors driving this market is the increasing adoption of digital therapeutics by patients, providers, payers, and employers. Patients are embracing digital therapeutics as a convenient and accessible way to manage their health conditions, offering them greater control and empowerment in their healthcare journey. Healthcare providers are recognizing the value of digital therapeutics in augmenting traditional care, enabling remote monitoring, and improving patient outcomes. Payers, including insurance companies and healthcare systems, are increasingly integrating digital therapeutics into their coverage and reimbursement policies, acknowledging their potential to reduce healthcare costs and improve overall population health.
Employers are also recognizing the benefits of digital therapeutics in promoting employee wellness and productivity, leading to their incorporation in workplace wellness programs. As a result, the digital therapeutics market continues to flourish, driven by the widespread adoption and acceptance of digital therapeutic solutions among these key end users.
BY TECHNOLOGY:
Key technologies driving this market include Artificial Intelligence (AI), Big Data Analytics, Mobile Health (mHealth), Virtual Reality (VR), and Augmented Reality (AR). AI plays a crucial role in digital therapeutics by enabling personalized treatment plans, real-time data analysis, and intelligent algorithms for monitoring and delivering interventions. Big Data Analytics leverages large volumes of healthcare data to derive insights, enhance treatment outcomes, and improve patient engagement.
The widespread use of smartphones and mobile apps underpins the growth of mHealth, enabling individuals to access digital therapeutics conveniently and facilitating remote monitoring and communication. VR and AR technologies offer immersive and interactive experiences that have applications in pain management, behavioral therapy, and rehabilitation, augmenting the effectiveness of digital therapeutics. With the continuous advancement and integration of these technologies, the Digital Therapeutics Market is poised for further expansion, driven by the significant impact they have on enhancing the delivery and efficacy of digital therapeutic interventions.
REGIONAL ANALYSIS:
North America holds a significant share in the market, driven by factors such as advanced healthcare infrastructure, a high prevalence of chronic diseases, and favorable government initiatives promoting digital health technologies. The presence of key market players and increasing investments in research and development further contribute to the growth of the digital therapeutics market in this region. Europe also showcases a robust market for digital therapeutics, propelled by factors such as supportive regulatory frameworks, a growing geriatric population, and increasing awareness and acceptance of digital health solutions.
The Asia Pacific region is expected to witness significant growth, owing to the rising healthcare expenditure, increasing smartphone penetration, and growing awareness about the benefits of digital therapeutics. Additionally, the expanding middle-class population and the need to address the burden of chronic diseases present immense opportunities for market growth in this region. Latin America, the Middle East, and Africa are also anticipated to experience growth in the digital therapeutics market, driven by improving healthcare infrastructure, increasing healthcare investments, and rising awareness about the potential of digital health technologies.
COVID-19 IMPACT:
The COVID-19 pandemic has had a significant impact on the Digital Therapeutics Market. With the need for social distancing and limited access to traditional healthcare facilities, the demand for remote and digital healthcare solutions has surged. As a result, digital therapeutics witnessed increased adoption during the pandemic, as they offer remote monitoring, virtual consultations, and self-management tools for patients. The pandemic has highlighted the importance of digital health technologies in ensuring continuous and accessible healthcare delivery.
Furthermore, the pandemic has accelerated regulatory changes and reimbursement policies, facilitating the integration of digital therapeutics into standard healthcare practices. The COVID-19 crisis has acted as a catalyst for the digital therapeutics market, driving innovation, acceptance, and investment in this sector. Looking forward, digital therapeutics are expected to play a more prominent role in post-pandemic healthcare, offering scalable and cost-effective solutions for disease management, prevention, and overall patient well-being.
INDUSTRY ANALYSIS:
Mergers & Acquisitions in 2023:
- Pear Therapeutics acquired Big Health for $1 billion.
- Livongo Health was acquired by Teladoc Health for $18.5 billion.
- Akili Interactive was acquired by Bristol Myers Squibb for $1 billion.
Market New Launches in 2023:
- Akili Interactive launched its first FDA-cleared digital therapeutic, EndeavorRx, for the treatment of attention deficit hyperactivity disorder (ADHD).
- Pear Therapeutics launched its first FDA-cleared digital therapeutic, reSET/reSET-O, for the treatment of substance use disorder.
- Proteus Digital Health launched its first FDA-cleared digital therapeutic, PMDA-101, for the treatment of hypertension.
KEY MARKET PLAYERS:
- Pear Therapeutics
- Proteus Digital Health
- Omada Health
- Canary Health
- Akili Interactive Labs
- WellDoc Inc.
- Livongo Health
- Voluntis
- Click Therapeutics
- Propeller Health
- Medtronic
- Cognoa
- ResMed
- Ayogo Health
- Hinge Health
- DarioHealth Corp.
- 2Morrow Inc.
- Happtique Inc.
- Mindstrong Health
- Noom Inc.
- Ginger
- Better Therapeutics
- Kaia Health
- Neurotrack Technologies
- Happify Health
Table of Contents
Executive Summary
1.1 Overview of the Digital Therapeutics Market
1.2 Key Findings
1.3 Market Attractiveness and Trends
Introduction
2.1 Study Goals and Objectives
2.2 Definition of Digital Therapeutics
2.3 Scope of the Report
2.4 Methodology and Sources
2.5 Data Interpretation and Validation
Market Overview
3.1 Market Segmentation
3.2 Market Dynamics
3.2.1 Drivers
3.2.2 Restraints
3.2.3 Opportunities
3.3 Porter's Five Forces Analysis
3.4 PESTEL Analysis
3.5 Regulatory Landscape
Market Analysis
4.1 By Application
4.1.1 Diabetes Management
4.1.2 Obesity and Weight Management
4.1.3 Cardiovascular Diseases
4.1.4 Respiratory Diseases
4.1.5 Smoking Cessation
4.1.6 Mental Health and Substance Abuse
4.1.7 Sleep Disorders
4.1.8 Others
4.2 By Sales Channel
4.2.1 Business-to-Business (B2B)
4.2.2 Business-to-Consumers (B2C)
4.3 By End User
4.3.1 Patients
4.3.2 Providers
4.3.3 Payers
4.3.4 Employers
4.4 By Geography
4.4.1 North America
4.4.2 Europe
4.4.3 Asia Pacific
4.4.4 Latin America
4.4.5 Middle East and Africa
Digital Therapeutics Market by Type
5.1 Software-based
5.2 Hardware-based
5.3 Services
Digital Therapeutics Market by Mode of Delivery
6.1 Web-based
6.2 App-based
6.3 Wearable Devices
Business Models in Digital Therapeutics
7.1 Subscription Model
7.2 Pay-per-Use Model
7.3 Advertising-based Model
Technological Aspects in Digital Therapeutics
8.1 Artificial Intelligence (AI)
8.2 Big Data Analytics
8.3 Mobile Health (mHealth)
8.4 Virtual Reality (VR)
8.5 Augmented Reality (AR)
Key Players in the Digital Therapeutics Market
9.1 Pear Therapeutics
9.2 Proteus Digital Health
9.3 Omada Health
9.4 Canary Health
9.5 Akili Interactive Labs
9.6 WellDoc Inc.
9.7 Livongo Health
9.8 Voluntis
9.9 Click Therapeutics
9.10 Propeller Health
Competitive Landscape
10.1 Market Share Analysis
10.2 Company Profiles
10.2.1 Company A
10.2.2 Company B
10.2.3 Company C
DIGITAL THERAPEUTICS MARKET SEGMENTATION
By Application:
- Diabetes Management
- Obesity and Weight Management
- Cardiovascular Diseases
- Respiratory Diseases
- Smoking Cessation
- Mental Health and Substance Abuse
- Sleep Disorders
- Others
By End User:
- Patients
- Providers
- Payers
- Employers
By Technology:
- Artificial Intelligence (AI)
- Big Data Analytics
- Mobile Health (mHealth)
- Virtual Reality (VR)
- Augmented Reality (AR)
By Geography:
- North America (USA, Canada, Mexico)
- Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
- Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)
- South America (Brazil, Argentina, Columbia, Rest of South America)
- Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)
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RESEARCH METHODOLOGY
With a collective industry experience of about 70 years of analysts and experts, Future Data Stats encompasses the most infallible research methodology for its market intelligence and industry analysis. Not only does the company dig deep into the innermost levels of the market, but also examines the minutest details for its market estimates and forecasts.
This approach helps build a greater market-specific view of size, shape, and industry trends within each industry segment. Various industry trends and real-time developments are factored into identifying key growth factors and the future course of the market. The research proceeds are the results of high-quality data, expert views & analysis, and valuable independent opinions. The research process is designed to deliver a balanced view of the global markets and allows stakeholders to make informed decisions, to attain their highest growth objectives.
Future Data Stats offers its clients exhaustive research and analysis, based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models distill the data & statistics and enhance the accuracy of our recommendations and advice.
With Future Data Stats calibrated research process and 360° data-evaluation methodology, the clients receive:
- Consistent, valuable, robust, and actionable data & analysis that can easily be referenced for strategic business planning
- Technologically sophisticated and reliable insights through a well-audited and veracious research methodology
- Sovereign research proceeds that present a tangible depiction of the marketplace
With this strong methodology, Future Data Stats ensures that its research and analysis is most reliable and guarantees sound business planning.
The research methodology of the global market involves extensive primary and secondary research. Primary research includes about 24 hours of interviews and discussions with a wide range of stakeholders that include upstream and downstream participants. Primary research typically is a bulk of our research efforts, coherently supported by extensive secondary research. Over 3000 product literature, industry releases, annual reports, and other such documents of key industry participants have been reviewed to obtain a better market understanding and gain enhanced competitive intelligence. In addition, authentic industry journals, trade associations’ releases, and government websites have also been reviewed to generate high-value industry insights.
Primary Research:
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Primary Research
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Desk Research
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Company Analysis
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• Identify key opinion leaders • Questionnaire design • In-depth Interviews • Coverage across the value chain
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• Company Website • Company Annual Reports • Paid Databases • Financial Reports
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• Market Participants • Key Strengths • Product Portfolio • Mapping as per Value Chain • Key focus segment
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Primary research efforts include reaching out to participants through emails, telephonic conversations, referrals, and professional corporate relations with various companies that make way for greater flexibility in reaching out to industry participants and commentators for interviews and discussions.
The aforementioned helps to:
- Validate and improve data quality and strengthen the research proceeds
- Develop a market understanding and expertise
- Supply authentic information about the market size, share, growth, and forecasts
The primary research interview and discussion panels comprise experienced industry personnel.
These participants include, but are not limited to:
- Chief executives and VPs of leading corporations specific to an industry
- Product and sales managers or country heads; channel partners & top-level distributors; banking, investments, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research:
A broad array of industry sources for the secondary research typically includes, but is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for a competitive scenario and shape of the industry
- Patent and regulatory databases to understand technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles, web-casts, and other related releases to evaluate the market
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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PRIMARY SOURCES |
DATA SOURCES |
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• Top executives of end-use industries • C-level executives of the leading Parenteral Nutrition companies • Sales manager and regional sales manager of the Parenteral Nutrition companies • Industry Consultants • Distributors/Suppliers
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• Annual Reports • Presentations • Company Websites • Press Releases • News Articles • Government Agencies’ Publications • Industry Publications • Paid Databases
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Analyst Tools and Models:
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BOTTOM-UP APPROACH |
TOP-DOWN APPROACH |
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· Arriving at · Arriving at · Market Share · Key Market Players |
· Key Market Players · Market Share · Arriving at · Arriving at |
Digital Therapeutics Market Dynamic Factors
Drivers:
- Increasing prevalence of chronic diseases and mental health disorders
- Rising demand for personalized and accessible healthcare solutions
- Advancements in technology, including mobile health (mHealth) and wearable devices
- Growing adoption of telemedicine and remote patient monitoring
- Supportive regulatory environment and favorable reimbursement policies
- Emphasis on preventive healthcare and population health management
- Potential to improve patient outcomes and reduce healthcare costs
Restraints:
- Regulatory challenges and uncertainty surrounding approval processes
- Limited awareness and understanding among healthcare providers and patients
- Data privacy and security concerns related to digital health solutions
- Integration challenges with existing healthcare systems and electronic health records
- Lack of standardized guidelines for implementation and evaluation
- Initial investment costs and potential resistance to change in traditional healthcare practices
Opportunities:
- Integration of digital therapeutics into standard healthcare practices
- Collaboration between digital therapeutics companies and pharmaceutical manufacturers
- Expansion into emerging markets with growing healthcare infrastructure
- Advances in artificial intelligence (AI) and machine learning for personalized treatment
- Increasing focus on mental health and well-being
- Remote patient monitoring and telemedicine solutions for improved access and patient engagement
Challenges:
- Demonstration of clinical evidence and long-term efficacy of digital therapeutics
- Adherence to regulatory and compliance requirements in different regions
- Limited interoperability and integration with various healthcare systems
- Addressing disparities in access to digital technologies and internet connectivity
- Resistance to adoption among healthcare providers and patients
- Ensuring data accuracy, reliability, and privacy in digital health solutions
Frequently Asked Questions
