Press Release

Digital Therapeutics Market Revenue and Trends 2025 to 2033

The global digital therapeutics market revenue surpassed US$ 7.07 billion in 2024 and is predicted to attain around US$ 45.56 billion by 2033, growing at a CAGR of 23.0% during the forecast period from 2025 to 2033.

Digital therapeutics (DTx) are set to gain significant momentum as they demonstrate their effectiveness in addressing unmet healthcare needs, enhancing patient outcomes, and complementing traditional treatment modalities over the coming year. Driven by the urgent demand for solutions to chronic diseases, the global digital therapeutics market is transforming into a virtual pharmacy for healthcare. 

This evolution is supported by validated artificial intelligence (AI) software and sensor-rich wearables, which enable more comprehensive and personalized patient care. By integrating outcomes-based reimbursement models, expanding behavioral health services, and optimizing supply chains, DTx is reshaping patient engagement on a global scale.

Digital Therapeutics Market Key Takeaways

• The digital therapeutics market is anticipated to exceed US$ 45.56 billion by 2033, showcasing a robust compound annual growth rate (CAGR) of 23.0% during the forecast period from 2025 to 2033.
• In terms of application, treatment and care-related applications dominate the market, accounting for 72% of the demand. This significant share is primarily due to the ability of these applications to address high-cost episodes that are readily identifiable in claims data by payers and healthcare providers.
• When analyzing the components of digital therapeutics, the software component emerges as the leading revenue generator, holding 54.50% of the total revenue. This dominance is attributed to the fact that it is the clinical algorithms and user experience that deliver the therapeutic effects, rather than hardware components like silicon.
• Looking at the sales channels, the B2B (business-to-business) sales channel represents a substantial portion of the market, accounting for 76.60% of revenue. This trend is driven by institutional buyers who possess control over risk pools and budget authority, making them key decision-makers in the procurement of digital therapeutic solutions.

Regional Analysis

North America continues to dominate the global digital therapeutics market, accounting for approximately 38% of the total market share. This leadership position is largely attributed to the region's ability to translate policy initiatives into rapid commercial scaling. The Centers for Medicare & Medicaid Services (CMS) has taken significant steps to encourage the adoption of digital therapeutics by reimbursing sixteen categories of remote-monitoring Current Procedural Terminology (CPT) codes. 

This reimbursement framework allows healthcare providers to receive compensation for using digital health tools, making it more financially viable for them to integrate these technologies into their practice. Additionally, CMS has introduced transitional coverage for FDA-cleared prescription digital therapeutics. This coverage is crucial as it enables payers to offset penalties associated with hospital readmissions for chronic care patients.

The penetration of digital therapeutics among end-users in North America is notably broad. According to surveys conducted by Rock Health, approximately one in five insured Americans, equating to nearly 55 million individuals, has interacted with at least one clinically validated therapeutic application within the past year. This widespread usage highlights the growing acceptance and reliance on digital health solutions among consumers.

Market Overview

The rising prevalence of chronic diseases, alongside the increasing necessity to manage the spiraling costs of healthcare facilities, is expected to drive market growth. As more individuals are diagnosed with chronic conditions, healthcare systems are under increasing pressure to provide effective management solutions while keeping costs in check. This demand is propelling the adoption of digital therapeutics (DTx) as a viable option for both patients and providers.

Moreover, the rapidly evolving digital landscape across various sectors has encouraged consumers to engage more with digital platforms. This growing trend is coupled with heightened awareness of health and fitness, which further stimulates market growth. As people become more health-conscious and seek convenient ways to monitor and manage their well-being, the utilization of digital health solutions is likely to expand, fostering a more robust market for digital therapeutics in the near future.

For the successful integration of digital therapeutics into clinical workflows, stronger partnerships between DTx companies and healthcare providers will be essential. By 2025, these collaborations will increasingly focus on co-design initiatives, where healthcare providers take an active role in shaping the development and deployment of digital therapies. This cooperative approach will help ensure that DTx tools are tailored to meet the real-world challenges faced by healthcare professionals.

Market Growth Factors

Driver

Rising Prevalence of Chronic Conditions: The increasing prevalence of chronic conditions such as diabetes, hypertension, and cardiovascular diseases is driving a significant demand for continuous biometric monitoring. As these health issues become more common, there is a growing need for effective management solutions that enable patients to monitor their health metrics in real time. 

Value-Based Care and Outcomes-Driven Digital Therapeutics: Another key factor driving the digital therapeutics market is the shift towards value-based care, which emphasizes patient outcomes over the volume of services provided. This healthcare model incentivizes the development of outcomes-driven digital therapeutics that leverage precise biosignal chips to deliver actionable insights and improve patient health outcomes.

Restraint

Analog-Digital Co-Simulation Complexity: One of the significant challenges facing the digital therapeutics market is the complexity associated with analog-digital co-simulation in the design of therapeutic chipsets. This complexity can significantly hamper the rapid iteration of designs, which is crucial for keeping pace with the fast-evolving landscape of digital health solutions.

Cross-Market Regulatory Divergence: Another critical obstacle to the advancement of the digital therapeutics market is the cross-market regulatory divergence that affects the certification of mixed-signal therapeutic hardware. Regulatory bodies across different regions often have varying requirements and standards for the approval of medical devices, which can lead to increased certification costs for manufacturers.

Top Trends

Integration of Photoplethysmography and ECG Analog Blocks: The integration of photoplethysmography (PPG) and electrocardiogram (ECG) analog blocks into single, configurable Application-Specific Integrated Circuits (ASICs) presents significant growth opportunities within the digital therapeutics market. 

Shift Toward Battery-less Energy Harvesting Sensors: Another promising trend contributing to the growth of the digital therapeutics market is the shift toward battery-less energy harvesting sensors. These sensors utilize alternative energy sources, such as kinetic energy from body movements or ambient energy, to power themselves, eliminating the need for traditional batteries.

Recent Developments

• In April 2025, the American Telemedicine Association announced that its advocacy group, ATA Action, successfully acquired the Digital Therapeutics Alliance. This acquisition aims to enhance the promotion and adoption of software-based healthcare tools, further advancing the integration of digital therapeutics into patient care.
• In April 2025, Amara Therapeutics, an Irish medtech company dedicated to women’s health, revealed the initiation of a clinical trial to assess its digital therapeutic solution for overactive bladder (OAB) in women. The company has also secured a significant funding round of €1.8 million, supported by Enterprise Ireland, raising its total funding to €4.8 million since its establishment in 2021. This funding will aid in the development and implementation of their innovative health solutions.
• In February 2025, Dawn Health, in partnership with Novartis, launched Cora BC, a new application designed to assist breast cancer patients throughout their treatment journeys. Initially, the app will be available in Germany, with plans for expansion into the UK, Canada, Australia, and other international markets. This initiative reflects the growing emphasis on digital solutions to enhance patient support and engagement in healthcare.

Top Companies in the Digital Therapeutics Market:

• 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

Market Segmentation Overview

By Component:

• Hardware
• Software
• Services

By Application:

• 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:

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

By Geography

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa (MEA)