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