The global Digital Therapeutics market was estimated to be US$ 5.82 billion in 2022 and is expected to reach US$ 62.29 Billion by 2032 at a CAGR of 26.9%.
Digital therapeutics include 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 diabetes, respiratory diseases, and cardiovascular diseases. The rising prevalence of chronic diseases such as cancer, diabetes, and mental diseases worldwide is increasing the adoption of therapeutics for managing and treating various illnesses among patients.
Digital Therapeutics Market Growth Drivers
Increasing demand for patient-centric care & integrated healthcare systems is expected to drive the market
Digital therapy ensures therapeutic interventions that are high quality, safe, and evidence-based. The digital therapy software application can be used to provide patient care and improve health outcomes.
Digital Therapeutics products offered by top companies include CT-152, MR-001, Pear-001, Bluestar, and Propeller Health. These solutions improve medication adherence and encourage long-term behaviour change in patients.
Digital therapeutics can play an important role in the treatment of chronic conditions such as cardiovascular diseases, diabetes, and cancer, among others.
The key factor driving the growth of the market is the cost-effectiveness of digital health technology for providers and patients, as well as the increase in smartphone penetration in developed and developing countries. According to Kepios, the number of internet users worldwide reached 5 billion, which is nearly 63% of the global population. The awareness of smart health tracking is expected to increase as these figures continue to rise.
The increasing demand for patient-centric care and integrated healthcare systems is expected to drive the market. Additionally, the growing incidence of chronic diseases also contributes to market growth. According to the CDC's National Centre for Chronic Disease Prevention and Health Promotion, 6 out of 10 American adults suffer from a chronic disease, while 4 out of 10 adults have two or more chronic diseases. For instance, in February 2022, Teladoc Health, Inc. launched Chronic Care Complete, a novel solution for comprehensive chronic condition management aimed at improving healthcare outcomes.
Application Segmentation of Global Digital Therapeutics Market
Diabetes is the largest application segment in the market
In terms of application, diabetes is the largest segment in the category. This growth is attributed to the rising prevalence of diabetes globally. The changing lifestyle of people and poor diets are increasing the prevalence of the disease. Digital therapeutics provide patients with technology to track their routines and treatments daily on smartphones and wearable devices, offering patient-centric solutions for diabetes management.
According to the CDC, nearly 37.3 million people in the U.S. had diabetes, accounting for 11.3% of the population. The increasing prevalence of diabetes is fuelling the development of individualized solutions for treating diabetics. Additionally, there were 96 million people suffering from prediabetes over 18 years, representing 38.0% of the U.S. population.
Regional Trends in Global Digital Therapeutics Market
North America dominates the global digital therapeutics market
North America dominates the global digital therapeutics market due to its excellent healthcare infrastructure. The region is expected to experience significant market growth with the increasing prevalence of chronic diseases and technological advancements. Additionally, countries such as the U.S. and Canada have world-class healthcare infrastructure, and technological advancements and innovations are progressing at a rapid pace, augmenting the growth of the therapeutics market.
Asia Pacific is also expected to grow at a faster rate, driven by its growing population. Developing countries like India and China are investing significantly in healthcare infrastructure to address the burden of rising diseases. They are focusing on early detection of chronic diseases and deriving efficient treatment solutions. Research and development, as well as the growth of organizations working in the field of therapeutic treatments, are anticipated to increase in the forecasted period.
The Middle East & Africa region is anticipated to grow at a limited pace in the forecasted period. This region houses low and middle-income countries where the healthcare infrastructure is not well-developed. Economies continue to struggle to grow, and technological development is limited.
Key Players & Market Strategies:
Companies operating in global digital therapeutics market have adopted various growth strategies to expand their market presence and gain a competitive edge.
Here are some of the major growth strategies adopted by these companies:
Partnerships and collaborations: Various companies have formed partnerships and collaborations to enhance their technological capabilities, expand their product offerings, and enter new markets.
For instance, In March 2022, DarioHealth Corp., a market leader in digital therapeutics (DTx), signed a contract with Sanofi U.S. The multi-year, $30 million agreement, which is contingent upon a number of events, will hasten the commercial acceptance of Dario's whole line of digital therapies and promote the growth of digital health solutions on the Dario platform.
Acquisitions and mergers: To expand their market presence and gain access to new capabilities and technologies, various companies operating in the digital therapeutics market are focusing on merger and acquisition activities.
For instance, Better Therapeutics, a provider of prescription digital therapeutics that uses cognitive behavioral therapy to treat the underlying causes of cardiometabolic diseases, and Mountain Crest Acquisition Corp. II, a publicly traded SPAC, entered into a merger agreement in April 2021. Better Therapeutics was able to develop and market its medications more quickly thanks to the relationship, which gave patients results that changed their lives.
Some of the key players in the global digital therapeutics market include Omada Health, Inc., Welldoc, Inc., 2Morrow, Inc., Livongo Health, Inc. (Teladoc Health, Inc.), Propeller Health (ResMed), Fitbit LLC, Canary Health, Noom, Inc., Pear Therapeutics, Inc., Akili Interactive Labs, Inc., Hygieia, DarioHealth Corp., Big Health, Gaia AG, and Limbix Health, Inc.
Global Digital Therapeutics Market Segmentation
Based on Application Outlook:
- Diabetes
- Obesity
- CVD
- Respiratory Diseases
- Smoking Cessation
- CNS Diseases
- Others
Based on End Use Outlook:
- Patients
- Providers
- Payers
- Employers
- Others
Based on Region
- North America
- United States
- Canada
- Rest of North America
- Europe
- Germany
- United Kingdom
- Italy
- France
- Spain
- Rest of Europe
- Asia Pacific
- Japan
- India
- China
- Australia
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- UAE
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- South America
- Brazil
- Rest of South America
