Digital Therapeutics Market

This study intends to analyse diverse aspects of the global digital therapeutics market. The insights offered in this report are expected to aid in market growth examination over the forecast timeline.

Market Analysis in Brief

In 2022, the digital therapeutics market reflected modest growth and stood at over US$4 Bn in terms of value. According to preliminary study carried out by Fairfield Market Research, the market will continue to grow at a bullish pace in the next few years. The global COVID-19 pandemic played out as a major growth booster for the market as it promoted the use of digital healthcare services and solutions more intensely. With smartphone sales skyrocketing, the accessibility and affordability of digital health technologies will become more affordable and accessible, even across the low and middle income economies. Over 60% of the global population currently consumes Internet and the proportion is constantly on the rise. In line with this, smart health monitoring has also become ubiquitous. In addition to the dramatically ascending rate of chronic disease(s) prevalence, all these factors are expected to contribute toward the stability of the digital therapeutics industry.

Key Report Findings

• Digital therapeutics market growth to remain influenced by rising burden of chronic diseases and the need for their management
• New opportunities apropos to unexplored applications of digital therapies to augment growth of the market
• North America to prevail as a hot bed for the market
• Key players in the market to focus on new launches and other growth strategies such as acquisitions, and collaborations

Growth Drivers

Critical Need for Chronic Disease Management

The prevalence of chronic diseases is increasing worldwide and is projected to continue going forward. Chronic diseases such as cancer, cardiovascular diseases, respiratory diseases, and diabetes were one of the leading causes of mortalities globally. For instance, according to the Global Burden of Disease, Institute for Health Metrics and Evaluation (IHME), the global death rate due to chronic diseases was significantly high since 2010 and the trend is likely to maintain status-quo in the forthcoming years. This establishes a strong breeding ground for the digital therapeutics market.

As per the report by Global Burden of Disease, in 2010, around 75% deaths were caused due to chronic ailments. This number increased significantly in 2020 during which the death rate due to chronic diseases was 79% and by 2030 it is likely to cross 84%. Poor monitoring of prescribed medications and improper adherence to medication routine completely undermine the management of chronic ailments. There is a critically growing need to manage chronic diseases not only using medications but also with lifestyle changes, and strict monitoring.

The need has however necessitated the adoption of effective end-to-end solutions which would comprehensively and proactively monitor health and wellbeing of patients while encouraging behavioral changes that will result in proper adherence to diet, lifestyles, and prescribed medications. By leveraging digital technology, chronic disease management can be improved significantly. The digital therapeutics market is expected to create a momentous impact on the healthcare sector, reducing the re-admission and re-hospitalization rate, in turn reducing the economic and mental burden among patients.

Unexplored Potential, and Cost Effectiveness

Digital therapeutics is being looked upon as an apt alternative to various traditional treatments. Apart from chronic diseases, the applicability of digital therapeutics is being researched upon in the treatment of Alzheimer’s disease, autism, anxiety, and depression. In addition, digital therapeutics facilitate improved personalized healthcare with the ability to customize treatments as per specific needs of the patient. Furthermore, it reduces healthcare costs as it can be used as a replacement for expensive treatments.

Moreover, digital therapeutics can be used to deliver cognitive behavioural therapy, thus supporting patients to manage their mental health alongside reducing the risk of developing chronic mental disorders. In this backdrop, the demand for digital therapies among healthcare providers is increasing and is expected to complement the revenue share of the digital therapeutics market.

Overview of Key Segments

Diabetes Top-ranking Segment by Application

As digital therapeutics has the capability to assist healthcare providers with cost-effective assessment of patients’ lives to achieve improved outcome exclusively based on their specific therapeutic needs, the adoption has been escalating for application in treating a host of chronic diseases. The preliminary market examination shows diabetes as the leading application segment, followed by obesity. Application for management of cardiovascular diseases is also likely to rise high in the years to come. The CVDs segment will thus emerge lucrative in the digital therapeutics market, shows research.

Growth Opportunities Across Regions

North America at the Forefront

Geographically, developed economies in North America are poised to account for a significant revenue share in the digital therapeutics market. Development and early adoption of novel technologies in the medical sector, increasing investments in medical technologies and stable economic growth are few of the factors bolstering the growth of the market in North America. The proliferation of digital therapies has transformed the healthcare domain with a complete focus on patient outcome and success.

Supportive Regulation

On the back of growing popularity of digital therapeutics, regulatory authorities have issued guidelines to expand the reach of digital therapies. The United States Food and Drug Administration (FDA), in April 2020, issued several guidelines to improve the reach and availability of digital therapeutics for mental health. Also, the FDA has been providing subsidies to individuals who have been following home segregation guidelines during and post the COVID 19 pandemic. Such initiatives continue to influence the expansion of the digital therapeutics market in North America.

Chronic Disease Burden, and Presence of Major Companies

Strong presence of major companies providing digital therapeutics and surge in new entrants establishing their footprint in developed nations such as the United States is also complementing the growth of the digital therapeutics market. Key players in North America have been relying on growth strategies such as acquisitions, and mergers to consolidate their position in the North American soil. For instance, in 2021, Philips announced its plan to acquire BioTelemetry Inc. which is one of the biggest providers of remote monitoring and remote cardiac diagnostics in the United States. Such strategic moves are most likely to impact the market in the region.

Expanding Elderly Population

Furthermore, rise in geriatric population coupled with constant pressure from growing prevalence of chronic diseases remain instrumental in driving the digital therapeutics market growth. The rising burden of chronic diseases has pushed the demand for portable and wireless systems that is backed by favorable reimbursement policies.

According to the analysis of the National Centre for Chronic Disease Prevention and Health Promotion, in the United States around 4 in 10 adult individuals suffer from at least two chronic diseases, and about 6 in 10 adult individuals suffer from at least one chronic ailment. These have translated into heavy cost burden on the healthcare system of the country every year with an estimation of around US$3.8 Tn. This factor has majorly fuelled the demand for digital therapies and devices, in turn augmenting the growth of the digital therapeutics market in North America.

Digital Therapeutics Market: Competitive Landscape

Few of the major players in the digital therapeutics market include Koninklijke Philips N. V., Livongo Health, Canary Health, Omada Health Inc., Pear Therapeutics, CogniFit Inc., Click Therapeutics Inc., Teladoc Health Inc., and Biofourmis.

Recent Notable Developments

• In June 2021, an agreement was signed by Novartis to acquire Akili Interactive Labs which is a digital therapeutics provider focused on innovating digital treatments for psychological and neurological conditions
• In January 2021, Merck acquired HealthPrize Technologies, a company focused on developing digital therapeutics. With this acquisition, Merck aims to expand its own digital health offering portfolio while enhancing its market position in the digital therapeutics space
• In February 2022, biotechnology company Biofourmis announced launch of Biofourmis Care. This is a technology powered care management solution which provides superior quality remote care to patients suffering from chronic ailments

Regional Classification of the Global Digital Therapeutics Market is Described Below:

North America

• U.S.
• Canada

Europe

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

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa

*Regions and countries are subject to change based on data availability

Key Elements Included In The Study: Global Digital Therapeutics Market

• Digital Therapeutics Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2018 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

Post Sale Support, Research Updates & Offerings

We value the trust shown by our customers in Fairfield Market Research. We support our clients through our post sale support, research updates and offerings.

• The report will be prepared in a PPT format and will be delivered in a PDF format.

• Additionally, Market Estimation and Forecast numbers will be shared in Excel Workbook.

• If a report being sold was published over a year ago, we will offer a complimentary copy of the updated research report along with Market Estimation and Forecast numbers within 2-3 weeks’ time of the sale.

• If we update this research study within the next 2 quarters, post purchase of the report, we will offer a Complimentary copy of the updated Market Estimation and Forecast numbers in Excel Workbook.

• If there is a geopolitical conflict, pandemic, recession, and the like which can impact global economic scenario and business activity, which might entirely alter the market dynamics or future projections in the industry, we will create a Research Update upon your request at a nominal charge.