Digital Therapeutics Market Analysis - Global Industry Size, Share, Trends and Forecast 2021 - 2028

The Digital Therapeutics Market size accounted for USD 4,508 Million in 2021 and is expected to reach USD 19,028 Million by 2028 at a considerable CAGR of 22.8% during the forecast period of 2021 to 2028.

Digital therapeutics offers evidence-based therapeutics solutions to assist patients via an enhanced software program to ensure the appropriate treatment of medical disorders. It works by analyzing patient’s data received through linked devices and sends notifications about the change in patient’s behavior. It is specifically needed for patients those are at risk with diabetes, obesity, type II diabetes, and others. The linked devices have external sensors to monitor the result of medication taken by the patient. Diabetes and obesity are the major application areas for digital therapeutics. Devices such as insulin pumps, wearable gadgets and blood glucose meters are linked to the system or application to be able to send and receive the patient critical data. 

Market Growth Drivers:

• Rising awareness towards individual well being and health
• Mental health is an additional driver for the escalation of the digital therapeutics market Increase in smart phones and internet usage amid public is one more noteworthy technological driver for the market of digital therapeutics

Market Restraints

• Cyber Security: Patient’s data privacy concerns related with digital therapeutic devices, hamper the development of this market
• The elevated price of software development and public’s preference towards the traditional healthcare suppliers instead of digital consultancy is limiting the growth of digital therapeutics market

Market Opportunities:

• Government proposals for precautionary healthcare measures, technological development in mobile healthcare, and enhancement in business enterprise asset funds are expected to increase the growth of the digital therapeutic market.
• The growing acceptance of smart phones and tablets, united with healthcare apps and increasing need to manage healthcare expenses are anticipated to stimulate the expansion of digital therapeutics market.

Report Coverage: 

Market Dynamics

Digital landscape has been growing rapidly and the rising health consciousness among people is directed to drive the market. The market is also driven by increasing incidences of chronic diseases and technical development. Customer’s changing preference towards digital health and their demand will also increase for the available, custom-made, and easy medical solutions. Digital therapeutics apps consist of Asthma app, Lifestyle management apps, Mental health app, Nutrition app for diabetes and others which are attracting customers. 

The usage of internet and growing demand for smartphones is other major driver for the market of digital therapeutics. The Food and Drug Administration (FDA) is making way for the fast development of digital therapeutics market, motivating DTx key players to launch their software platforms faster than earlier. This is happening because of the increase in venture capital and spending on the DTx market and the acceptance of regulatory guidelines, the customers are also taking keen interest in digital health and digital platforms so, the key players are trying to invest more for this market. 

Mental health is another factor that is expected to drive the growth for the market of digital therapeutics. The pandemic deepened mental health confronts and exposed the necessity for the latest treatment choices. This gives fantastic opportunities for digital therapeutics companies. For instance, U.S. Food and Drug Administration (U.S.FDA), in November 2020, gave marketing allowance to Nightwear, a digital therapeutics company for the momentary lessening of sleep trouble in Post-Traumatic Stress Disorder patients.

Market Segmentation

The global digital therapeutics market is segmented based on application, end-user and region.

Market by Application

• Preventive
• Pre-Diabetes
• Obesity
• Smoking Cessation
• Others
• Treatment/Care
• Diabetes
• Cardiovascular Diseases (CVD)
• Respiratory Diseases
• Neurological Diseases
• Others

Application Insights

The diabetes segment conquered the market for digital therapeutics, globally and detained the leading revenue share of more than 26% in 2020. The segment is projected to witness the highest development throughout the forecast period. This development is determined by the increasing occurrence in diabetes worldwide. In 2019, according to the International Diabetes Federation (IDF), 463 million people suffered with diabetes and by 2045, this number is estimated to reach around 700 million. This is projected to thrust demand for digital therapeutics solutions. For example, patients suffering from diabetes need valuable administration, education, and supervision to handle symptoms like polyuria, polydipsia, polyphagia, and medical reminders.

Market by End-user

• Patients
• Providers
• Others

End-use Insights

The patient segment conquered the market for digital therapeutics and seized the leading revenue share of more than 30% in 2020 and is projected to record the utmost CAGR throughout the forecast period. Patients are the key end-user of therapeutics healthcare applications and curriculums. With the mushrooming number of patients going through the distress of chronic circumstances, the need for digital therapeutics is rising. 

Digital Therapeutics Market Regional Overview

North America

• U.S.
• Canada

Europe

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

Latin America

• Brazil
• Mexico
• Rest of Latin America

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Middle East & Africa

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

Regional Insights of Digital Therapeutics Market

North America is expected to be the largest market for digital therapeutics because of the fully developed health sector and increase in chronic diseases. Due to COVID-19, in April 2020, some rules and regulations were released by the U.S.FDA for the accessibility of digital therapeutic health devices for patients who are suffering from medical conditions. 

Asia Pacific region is expected to record the highest growth rate during the forecast period. This growth is mainly spurred by two major reasons– the presence of a large younger population base as compared to the other regions and fast digitization and urbanization.

Digital Therapeutics Market Competitive Landscape

This section of the report pinpoints various key vendors of the market. Some of the prominent vendors offered in the report include Livongo Health, Twine Health Inc., Noom Health Inc, Omada Health Inc, 2morrow Inc., Propeller Health, Canary Health Inc., Mango Health Inc., and WellDoc Inc.