Market Scenario
Global digital therapeutics market is projected to experience substantial growth, with revenues increasing from US$ 4,594.0 million in 2022 to US$ 27,456.0 million by 2031. The market is anticipated to register a CAGR of 23.1% during the forecast period of 2023-2031.
Digital Therapeutics (DTx) are mobile software applications that address medical conditions or diseases. They are revolutionizing the healthcare delivery system by utilizing evidence-based technologies to enhance patient outcomes. DTx provides medical interventions directly to patients through clinically-evaluated, evidence-based software, designed to treat, manage, and prevent a wide range of diseases and disorders. These products also present valuable solutions to healthcare delivery systems impacted by the Covid-19 pandemic. Digital therapeutics employ scalable technologies to tackle complex healthcare challenges, supporting patients in self-managing symptoms to improve their quality of life and other clinical endpoints. DTx incorporates digital tools such as mobile devices, apps, sensors, virtual reality, the Internet of Things, and more to encourage behavioral changes in patients.
Market Dynamics
Driver
Increasing Prevalence of Chronic Diseases
Chronic diseases, such as diabetes, cardiovascular diseases, and cancer, are among the leading causes of mortality worldwide. According to the World Health Organization (WHO), chronic diseases are responsible for approximately 71% of all deaths globally. Digital therapeutics (DTx) have the potential to offer an effective and cost-efficient solution to managing and treating chronic diseases. With the rise in chronic disease prevalence, there is an increasing demand for DTx solutions, leading to the growth of the digital therapeutics market.
The increasing prevalence of chronic diseases is driving the growth of the digital therapeutics market in several ways. First, the need for efficient and cost-effective treatments for chronic diseases is increasing, and DTx provides a solution. Second, advances in technology, such as wearables and sensors, have made it possible to collect and analyze health data in real-time, enabling personalized and targeted interventions. Third, the pandemic has highlighted the importance of remote monitoring and virtual care, further fueling the demand for DTx solutions.
Supportive Regulatory Environment
The regulatory environment for digital therapeutics is evolving rapidly, with several regulatory agencies recognizing the potential benefits of DTx in managing and treating chronic diseases. In the United States, the Food and Drug Administration (FDA) has established a regulatory framework for DTx, with several products receiving FDA clearance. Similarly, the European Commission has introduced guidelines for digital health technologies, including DTx. These supportive regulatory environments are driving the growth of the digital therapeutics market.
The supportive regulatory environment is driving the growth of the digital therapeutics market in several ways. First, it provides a clear path for DTx developers to bring their products to market. Second, it instills confidence in healthcare providers and patients in the safety and efficacy of DTx solutions. Third, it promotes innovation by providing a framework for developers to conduct clinical trials and gather evidence to support their claims.
Restraint: Limited Reimbursement Options
One of the major challenges facing the digital therapeutics market is the limited reimbursement options for DTx solutions. Unlike traditional pharmaceuticals, DTx solutions are not always covered by insurance, making them less accessible to patients. This lack of reimbursement options is a significant barrier to the growth of the digital therapeutics market.
The limited reimbursement options for digital therapeutics are a significant restraint on the growth of the market in several ways. First, it limits patient access to DTx solutions, reducing their overall uptake. Second, it creates a financial burden for patients who have to pay out-of-pocket for DTx solutions. Third, it reduces the incentive for DTx developers to invest in the development of new products, limiting innovation in the market.
Segmental Analysis of the Global Digital Therapeutics (DTx) Market
By Component
The software segment, based on components, is estimated to hold the largest market share in 2022, attributable to its widespread use in the digital healthcare sector and the increased penetration of smartphones and other smart devices, particularly in developing economies. The software segment includes digital therapeutics applications, platforms, and analytics software. The adoption of digital therapeutics applications is increasing rapidly, driven by the need for remote monitoring and personalized interventions. Additionally, the growth of platforms such as telemedicine and telehealth is fueling the growth of the software segment.
Furthermore, the service segment is projected to exhibit the highest CAGR of 24.3% in the global digital therapeutics market during the forecast period. This segment includes various services such as monitoring, coaching, and consulting services. The increasing demand for personalized healthcare services and the need for effective patient engagement are driving the growth of the service segment.
By Application
Regarding application, the treatment/care-related segment is expected to dominate the market share throughout the forecast period, fueled by the rising prevalence of chronic diseases and investments in digital therapeutics to promote the development of cost-effective and scalable treatment platforms. The treatment/care-related segment includes applications such as diabetes management, cardiovascular disease management, and respiratory disease management. The increasing adoption of digital therapeutics in disease management is driving the growth of this segment.
Conversely, the preventive application segment is predicted to exhibit the highest CAGR in the global digital therapeutics market during the forecast period. This segment includes applications such as wellness and fitness programs, smoking cessation, and weight management. The increasing focus on preventive healthcare and the growing awareness of the benefits of digital therapeutics in preventing chronic diseases are driving the growth of this segment.
By Sales Channel
In terms of sales channels, the B2B segment held the majority of the market share in 2022. This segment includes sales to healthcare providers, payers, and employers. The increasing adoption of digital therapeutics by healthcare providers and payers is driving the growth of the B2B segment. Moreover, the trend of pharmaceutical companies integrating digital therapeutics with their drug products is further fueling the growth of the B2B segment.
However, the B2C segment is anticipated to register the highest CAGR during the forecast period, driven by increasing awareness among providers, payers, and employers about digital therapeutics' benefits and the growing trend of pharmaceutical companies integrating digital therapeutics with their drug products. The B2C segment includes sales directly to patients, through direct-to-consumer marketing and e-commerce channels. The increasing demand for personalized healthcare solutions and the growing trend of self-monitoring and self-management are driving the growth of the B2C segment.
Regional Analysis
Asia Pacific accounted for the largest market share in the global digital therapeutics market in 2022 and is expected to showcase the highest CAGR during the forecast period. This growth can be attributed to several factors, including rapid urbanization, increased digitization, and a growing aging population in the region. Emerging countries such as India and China are key contributors to the growth of digital therapeutics in the Asia Pacific region.
Rapid urbanization in countries such as China and India has led to lifestyle changes that have resulted in an increase in chronic diseases such as diabetes and cardiovascular diseases. As a result, there is a growing demand for innovative and cost-effective healthcare solutions, such as digital therapeutics. Additionally, the increasing penetration of smartphones and the internet in the region has made it easier for people to access healthcare services remotely, creating a favorable environment for the growth of digital therapeutics.
Moreover, the growing aging population in the region has also contributed to the growth of the digital therapeutics market. The elderly population is more prone to chronic diseases and requires constant monitoring and management of their health. Digital therapeutics offer a solution to this problem, providing remote monitoring and personalized interventions that can help manage chronic diseases effectively.
Furthermore, the Asia Pacific region has a large patient pool and a relatively low cost of clinical trials, making it an attractive destination for digital therapeutics developers to conduct clinical trials and gather evidence to support their claims. This has led to increased investment in the development of digital therapeutics in the region, further contributing to its growth.
List of Key Companies Profiled:
Segmentation Overview
Following are the different segments of the Global Digital Therapeutics (DTx) Market:
By Component:
By Application:
By Sales Channel:
By Region:
| Report Attribute | Details |
|---|---|
| Market Size Value in 2022 | US$ 3,744.3 Mn |
| Expected Revenue in 2031 | US$ 27,456.0 Mn |
| Historic Data | 2018-2021 |
| Base Year | 2022 |
| Forecast Period | 2023-2031 |
| Unit | Value (USD Mn) |
| CAGR | 23.1% |
| Segments covered | By Component, By Application, By Sales Channel, By Region |
| Key Companies | 2MORROW, Inc., Akili Interactive Labs, Inc., Click Therapeutics, Inc., Fitbit, Inc. (Twine Health, Inc.), Happify, Inc., Kaia Health, Livongo Health, Inc., Medtronic Plc., Omada Health, Inc., Pear Therapeutics, Inc., Proteus Digital Health, Inc., Resmed, Inc. (Propeller Health), Voluntis, Inc., Welldoc, Inc., Other Prominent Players |
| Customization Scope | Get your customized report as per your preference. Ask for customization |
Digital Therapeutics (DTx) is a mobile software application that treats a disease or condition. It provides evidence-based technologies that helps in improving patient outcomes.
Digital therapeutics software application can be used independently or in combination with medications or devices to impact complex healthcare challenges in order to provide patient care and health outcomes.
Digital therapeutics support patients in self-managing symptoms by using digital implements like mobile devices, apps, sensors, virtual reality, the Internet of Things and other tools in order to spur behavioural changes in patients.
The growth rate of the global digital therapeutics market is 23.1%, with an estimated value of US$ 27,456.0 Million by 2031.
Factors such as increasing use of wearable devices and investment in digital health are driving the growth in the global digital therapeutics market.
The key trends in the digital therapeutics market are the adoption of different strategies by market players such as product launches, acquisition, mergers and partnerships to strengthen their market position at global level.
The treatment/care related application segment lead the global digital therapeutics market in 2022.
The reluctance among people to use digital therapeutics and privacy concerns are major restraining factors faced by digital therapeutics providers which hampers the growth of the market.
Components, application and sales channel are the different segments of the global digital therapeutics market.
The Business-to-Business (B2B) is further bifurcated into Employer, Healthcare Provider, Payers, Pharmaceutical Companies and Others.
Poland is expected to project the highest CAGR in the Europe Digital Therapeutics Market during the forecast period.
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 are some key players in the global digital therapeutics market.
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| Report ID: AA0322170 
