Global Digital Therapeutics Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the global Digital Therapeutics Market is expected to record a CAGR of 23% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 5.85 billion. By 2032, the valuation is anticipated to reach USD 6.89 billion.

The Digital Therapeutics market refers to the growing sector of healthcare that utilizes digital technologies, such as software, mobile apps, and other digital platforms, to deliver therapeutic interventions for the prevention, management, and treatment of medical conditions. Digital therapeutics are evidence-based interventions designed to engage patients and provide them with specific medical or therapeutic benefits.

 Key characteristics of the Digital Therapeutics market include:

• Evidence-Based Interventions: Digital therapeutics are developed based on scientific evidence and clinical trials, ensuring their effectiveness in managing or treating specific health conditions.

• Remote Monitoring and Management: These interventions often allow healthcare providers to remotely monitor patients’ health data, adherence to treatment plans, and progress. This enables personalized care and early intervention.

• Patient Engagement: Digital therapeutics aim to engage patients actively in their own healthcare by providing education, motivation, and tools for self-management. They can include features like reminders, tracking, and interactive elements to keep users engaged.

Digital Therapeutics Market – Significant Growth Factors

The market’s robust growth is primarily propelled by the cost-effectiveness of digital health technology, benefiting both healthcare providers and patients. Furthermore, the increasing prevalence of smartphones in both developed and developing countries is a significant driver.

To illustrate, as of April 2022, data from Kepios revealed that there were 5 billion internet users worldwide, constituting 63% of the global population. This growing internet user base is expected to boost awareness and adoption of smart health-tracking solutions.

Moreover, the rising demand for patient-centric care and integrated healthcare systems is poised to be a driving force in the market. Additionally, favorable reimbursement policies, the impact of the COVID-19 pandemic on healthcare delivery, initial signs of reimbursement support, and the increasing incidence of chronic diseases are all expected to further stimulate market growth. These factors collectively contribute to the expansion of the digital health technology market.

The increasing global internet penetration has had a positive and transformative impact on the market. According to statistics provided in the GSM Association’s report titled “The Mobile Economy 2022,” there were 5.5 billion people using mobile services in 2021, and this number is projected to further increase to 5.9 billion by 2025, representing approximately 70% of the global population.

Notably, smartphone adoption is also on the rise, with smartphone penetration reaching 76% in 2021 and expected to climb to 85% by 2025, as indicated in the same report. This significant expansion in the use of smartphones is a driving force behind the growth of various mobile health (mHealth) applications within the market.

It facilitates increased access to healthcare-related information, services, and applications, making healthcare more accessible and convenient for consumers. As more individuals across the globe embrace smartphones, the market for mHealth applications is experiencing substantial growth, further revolutionizing the healthcare landscape.

Significant Growth Factors in the Digital Therapeutics Market:

• Rising Chronic Diseases: The increasing prevalence of chronic conditions, such as diabetes, cardiovascular diseases, and respiratory disorders, is a major driver of the digital therapeutics market. These digital interventions offer effective ways to manage and monitor chronic diseases, reducing the burden on healthcare systems.

• Patient-Centric Care: There is a growing shift toward patient-centric healthcare, where individuals actively participate in their own health management. Digital therapeutics empower patients with tools, resources, and real-time data, fostering greater engagement and self-care.

• Cost-Effective Healthcare: Digital therapeutics can offer cost-effective solutions for both patients and healthcare providers. By reducing hospitalizations, emergency room visits, and the need for traditional medications, they help lower healthcare costs.

• Supportive Reimbursement: An increasing number of healthcare systems and insurers are recognizing the value of digital therapeutics and offering reimbursement for these interventions. This provides a strong financial incentive for patients and providers to adopt them.

• Advancements in Technology: Continuous technological advancements, including wearable devices, mobile apps, and remote monitoring tools, enhance the capabilities and reach of digital therapeutics. This drives innovation in the market.

• Telehealth Integration: The integration of digital therapeutics with telehealth services has become more prevalent, especially during the COVID-19 pandemic. This combination provides a comprehensive approach to virtual healthcare delivery.

Digital Therapeutics Market – Mergers and Acquisitions

• Propeller Health and ResMed (2018): ResMed, a leader in sleep and respiratory care, acquired Propeller Health, a digital therapeutics company focused on respiratory health management. This acquisition allowed ResMed to enhance its digital health offerings and improve patient outcomes in chronic obstructive pulmonary disease (COPD) and asthma management.

• Dexcom and TypeZero Technologies (2018): Continuous glucose monitoring leader Dexcom acquired TypeZero Technologies, a developer of automated insulin delivery systems and other diabetes management solutions. This acquisition aimed to strengthen Dexcom’s position in the digital therapeutics space for diabetes management.

• Livongo and Teladoc Health (2020): One of the most notable M&A deals in digital therapeutics was the merger of Livongo, a chronic disease management platform, and Teladoc Health, a leading telehealth provider. The combined entity, known as Teladoc Health, offers a comprehensive virtual care platform, integrating digital therapeutics and telehealth services.

• Otsuka Pharmaceutical and Click Therapeutics (2021): Otsuka Pharmaceutical, a global healthcare company, partnered with Click Therapeutics to develop and commercialize prescription digital therapeutics. This collaboration aimed to create novel digital therapeutics for mental health conditions.

• Pear Therapeutics and Sandoz (2021): Pear Therapeutics, a pioneer in prescription digital therapeutics, partnered with Sandoz, a division of Novartis, to commercialize digital therapeutics for substance use disorders. This collaboration aimed to expand the availability of evidence-based digital interventions.

• Roche and mySugr (2017): Roche Diabetes Care acquired mySugr, a digital health company specializing in diabetes management apps. This acquisition allowed Roche to integrate digital therapeutics into its diabetes care portfolio.

• Welldoc and Glytec (2020): Digital health companies Welldoc and Glytec entered into a collaboration to provide a comprehensive digital diabetes management platform. This partnership aimed to improve diabetes care by combining glucose management solutions.

• Pfizer and Merck KGaA’s Digital Health Spinoff (2021): Pfizer and Merck KGaA launched a joint venture to create a new company focused on developing digital therapeutics and solutions for the treatment of multiple sclerosis. This collaboration represents the growing interest of pharmaceutical giants in the digital therapeutics market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Digital Therapeutics Market – Significant Threats

• Data Privacy and Security Concerns: The collection and storage of sensitive patient health data in digital therapeutics platforms raise significant privacy and security challenges. Data breaches and unauthorized access can erode patient trust and have legal and regulatory consequences.

• Regulatory Hurdles: Digital therapeutics often need to navigate complex regulatory pathways. Evolving and inconsistent regulations across different regions can hinder market entry and expansion.

• Clinical Validation: Ensuring the clinical effectiveness and safety of digital therapeutics is crucial. Failure to provide robust clinical evidence may lead to scepticism among healthcare providers and regulators.

• Integration Challenges: Integrating digital therapeutics into existing healthcare systems, including electronic health records (EHRs) and workflows, can be challenging. Lack of interoperability can hinder seamless adoption.

• Reimbursement Barriers: While progress has been made in reimbursement for digital therapeutics, challenges remain in securing consistent reimbursement policies. The absence of reimbursement can limit patient and provider adoption.

• Market Competition: The digital therapeutics market is becoming increasingly competitive. Established players and new entrants are vying for market share, leading to pricing pressures and market saturation.

• User Engagement and Adherence: Maintaining user engagement and long-term adherence to digital therapeutics applications can be challenging. High dropout rates can limit the effectiveness of these interventions.

• Technological Limitations: Technical issues, such as software bugs, connectivity problems, and device malfunctions, can disrupt the user experience and reduce the reliability of digital therapeutics solutions.

• Health Inequality: Not all individuals have equal access to digital technologies, leading to disparities in healthcare access. This digital divide can exclude certain populations from benefiting from digital therapeutics.

• Clinical Resistance: Some healthcare professionals may be resistant to integrating digital therapeutics into their practice, viewing them as disruptive or a potential replacement for human care providers.

Report Scope

Category-Wise Insights

Based on Application:

In 2022, the diabetes segment emerged as the market leader, capturing the largest share at 30.0%, and it is projected to maintain its prominence by registering the highest Compound Annual Growth Rate (CAGR) of 29.5% throughout the forecast period.

This robust growth can be attributed to the increasing incidence of diabetes and various other chronic diseases. The market encompasses a range of applications, including respiratory diseases, diabetes, obesity, cardiovascular diseases (CVDs), smoking cessation, central nervous system (CNS) diseases, and several others.

Based on End-user

In 2022, the patient segment emerged as the dominant force in the market, commanding the largest market share at 33.7%. This can be attributed to the rapid adoption of digital therapeutics by patients who seek evidence-based, personalized care programs.

Notably, digital therapeutics play a crucial role in improving healthcare access, especially for individuals residing in rural or remote areas. These solutions enable healthcare providers to monitor patients in real time, identify gaps in care, and offer timely interventions.

Moreover, they enhance care delivery efficiency by leveraging evidence-based therapeutic approaches, reducing the need for frequent physician interventions in managing individuals with chronic conditions. Regarding end-use, the market is segmented into providers, patients, employers, payers, and other stakeholders.

Digital Therapeutics Market – Regional Analysis

North America:

• North America, led by the United States, is a prominent player in the Digital Therapeutics market. The region benefits from advanced healthcare infrastructure, a tech-savvy population, and a supportive regulatory environment.

• The FDA’s Digital Health Software Precertification (Pre-Cert) Program has facilitated innovation and market entry for digital therapeutics companies.

Europe:

• Europe, including countries like the United Kingdom, Germany, and France, is a growing market for digital therapeutics. The region’s strong emphasis on evidence-based medicine and healthcare innovation contributes to market growth.

• The European Medicines Agency (EMA) has started to evaluate and provide guidance on digital therapeutics, which is expected to further boost adoption.

Asia-Pacific:

• The Asia-Pacific region, particularly countries like China, Japan, and South Korea, is witnessing rapid growth in the Digital Therapeutics market. The region’s large and aging population, along with increasing healthcare investments, drives demand.

• Regulatory frameworks are evolving, and partnerships with technology companies are fueling market expansion.

Latin America:

• Latin America is gradually embracing digital therapeutics as healthcare infrastructure improves and awareness grows. Telehealth and digital health initiatives have gained momentum in the region.

• Regulatory challenges and economic disparities among countries in the region influence market dynamics.

Middle East and Africa:

• The Middle East and Africa are emerging markets for digital therapeutics. Governments and healthcare providers are investing in digital health solutions to improve healthcare access.

• Market growth is supported by partnerships with international digital health companies.

List of the prominent players in the Digital Therapeutics Market:

• 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.
• BigHealth
• GAIA AG
• Limbix Health Inc.
• Others

The Digital Therapeutics Market is segmented as follows:

By Application

• Diabetes
• Obesity
• CVD
• Respiratory Diseases
• Smoking Cessation
• CNS Diseases
• Others

By End-use

• Patients
• Providers
• Payers
• Employers
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America