Digital Therapeutics Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

The Global Digital Therapeutics Market is estimated to witness a major jump in revenue from US$ 3,744.3 Million in 2021 to US$ 24,143.3 Million by 2030. The market is registering a CAGR of 23.1% over the projection period 2022-2030. 

Market Snapshot

Digital Therapeutics (DTx) is a mobile software application that treats a disease or condition. It is changing the healthcare delivery system with evidence-based technologies that improve patient outcomes. DTx delivers medical interventions directly to patients using evidence-based, clinically evaluated software to treat, manage and prevent a broad spectrum of diseases and disorders. The products also offer meaningful solutions to healthcare delivery systems impacted by the Covid-19 pandemic. Digital therapeutics use easily scalable technologies to impact complex healthcare challenges. Digital therapeutics can support patients in self-managing symptoms and thereby improve their quality of life and other clinical endpoints. DTx uses digital implements like mobile devices, apps, sensors, virtual reality, the Internet of Things, and other tools to spur behavioral changes in patients. 

Market Dynamics

Increasing the use of wearable devices and investment in digital health will boost the market for digital therapeutics. Wearables and digital therapeutics are driving a more patient-focused, preventative approach to healthcare. The use of wearable devices with digital therapeutic solutions will enable people to manage their symptoms and reduced the chances of any fatality or permanent disability. In addition, the growing prevalence of chronic diseases will increase the demand for the growth of the market. Moreover, the integration of digital therapeutics with other digital health measures such as telemedicine will contribute to the growth of the market over the forecasting period. Digital health refers to the use of digital technologies in health programming and financing. However, the reluctance among people to use digital therapeutics and privacy concerns are major restraining factors faced by digital therapeutics providers which hamper the growth of the market. 

Key Insights of the Report: 

• The latest study published by Astute Analytica analyzes the Global Digital Therapeutics (DTx) Market for the study period of 2017-2030; where historical years are 2017-2020, the base year is 2021, and the forecast period is 2022-2030.
• The research report offers a detailed study of market determinants including market drivers, restraints, opportunities, and trends; along with an attractive presentation in the form of impact analysis to gain a simpler and easy comparison view of all market determinants.
• The research study is a compilation of 14 chapters distributed across 168 pages with 40 lists of tables and 69 lists of figures.
• The market estimates are presented in terms of value (US$ Mn).
• Along with market estimations, the market study was conducted on the basis of various economic models such as PESTLE and Porter’s five force models.
• Detailed value chain analysis of the industry was conducted. It includes raw material providers, manufacturers, distributors, and end-users.
• The competitive dashboard section includes analysis on the basis of Concentration Ratio (CR), based on market size and market presence of key companies.

Regulations/Standard of Digital Therapeutics 

• Digital Care Act (DVG) (Germany) - 

This standard supports and further accelerates the digitalization of the country’s healthcare system. The legislation creates numerous opportunities for health tech companies looking to enter the German market. For example, under the new laws, doctors are not only allowed to prescribe accredited digital health apps; their costs are also covered by the statutory health insurance system.

• European Union (EU) regulation 2017/745 on medical devices -

Digital therapeutics are covered by European Union (EU) regulation 2017/745 on medical devices, which came into force on 26 May 2021. The EU Medical Device Regulation (MDR) resulted in a more stringent pre-market security mechanism which provides greater regulatory oversite from notified bodies and provides additional rules on clinical evidence and post-market surveillance.

• Digital Health Technologies for Remote Data Acquisition in Clinical Investigations (FDA-2021-D-1128) –

The guidelines were issued by the Oncology Center of Excellence, Center for Biologics Evaluation and Research, Center for Devices and Radiological Health, and Center for Drug Evaluation and Research. This guidance provides recommendations to sponsors, investigators, and other stakeholders on the use of digital health technologies (DHTs) to acquire data remotely from participants in clinical investigations evaluating medical products. 

Key Takeaways from the Global Digital Therapeutics (DTx) Market Report

• Based on components, the software segment is estimated to have the highest market share in 2021 owing to its high application from the digital healthcare sector and increased penetration of smartphones and other smart devices mostly in the developing economies. Moreover, the service segment is expected to project the highest CAGR of 24.3% in the global digital therapeutics market during the forecast period.
• On the basis of application, the treatment/care-related segment is estimated to have the highest market share during the forecast period due to the growing incidences of chronic diseases and investments in digital therapeutics to encourage the development of cost-effective and scalable treatment platforms. Whereas, the preventive application segment is expected to project the highest CAGR in the global digital therapeutics market during the forecast period.
• In terms of sales channels, the B2B segment dominated the market in 2021. Whereas, the B2C segment is expected to register the highest CAGR during the forecast period owing to the growing awareness among providers, payers, and employers about the benefits of digital therapeutics and the inclination of pharmaceutical companies to integrate digital therapeutics with their drug products.
• Based on geography, Asia Pacific held the major share in the global digital therapeutics market in 2021. Also, the region is expected to project the highest CAGR in the global digital therapeutics market during the forecast period. The rapid urbanization and increase in digitization in emerging countries such as India and China are key factors responsible for the growth of digital therapeutics in the Asia Pacific region.

Competitive Landscape

The key players in the Global Digital Therapeutics (DTx) Market are Livongo Health, Inc., Omada Health, Inc., Proteus Digital Health, Inc., Akili Interactive Labs, Inc., 2Morrow Inc., Click Therapeutics Inc., Happify Health, Kaia Health, Teladoc Health, Inc., Medtronic, Pear Therapeutics, Inc., ResMed and Voluntis among others. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip on emerging markets. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.

Segmentation Overview 

The global Digital Therapeutics Market is segmented based on component, application, sales channel, and region. The industry trends in global digital therapeutics market are sub-divided into different categories in order to get a holistic view of the global marketplace. 

Following are the different segments of the Global Digital Therapeutics (DTx) Market:

By Component segment of the Global Digital Therapeutics (DTx) Market is sub-segmented into:

• Hardware
• Software 
• Services

By Application segment of the Global Digital Therapeutics (DTx) Market is sub-segmented into:

• Preventive Applications
  • Prediabetes​
  • Obesity​
  • Nutrition​
  • Lifestyle Management​
  • Others​
• Treatment/Care-related Applications​
  • Diabetes​
  • CNS Disorders​
  • Mental Health Disorder
  • Other CNS Disorders​
  • Chronic Respiratory Disorders​
  • Musculoskeletal Disorders​
  • Cardiovascular Diseases
  • Smoking Cessation​
  • Medication Adherence​
  • Gastrointestinal Disorders​
  • Substance Use & Addiction Management​
  • Rehabilitation & Patient Care​

 By Sales Channel segment of the Global Digital Therapeutics (DTx) Market is sub-segmented into:

• Business-to-business (B2B)
  • Employer
  • Healthcare Provider
  • Payers
  • Pharmaceutical Companies
  • Others
• Business-to-consumer (B2C)
  • Patient
  • Caregiver

By Region segment of the Global Digital Therapeutics (DTx) Market is sub-segmented into:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America