Digital Therapeutics Market (By Product Type: Device and Software; By Sales Channel: Business-to-Consumer (B2C) and Business-to-Business (B2B); By Application: Obesity, Diabetes, Central Nervous System (CNS) Disease, Gastrointestinal Disorder (GID), Cardiovascular Disease (CVD), Smoking Cessation, Respiratory Disease, and Others) - Global Market Size, Trends Analysis, Segment Forecasts, Regional Outlook 2020 - 2027

The global digital therapeutics market was valued at US$ 2.69 billion in 2019 and expected to reach US$ 11.82 billion by 2027, with at a compound annual growth rate (CAGR) of 20.3% during the forecast period 2020 to 2027.

Growth Factors

Increasing penetration of digital healthcare applications & platforms because of rapid adoption of smartphones & tablets expected to spur the market growth over the upcoming years. Rising prevalence of chronic diseases coupled with increasing need to regulate the escalating cost of healthcare facilities is likely to impel the market growth. Further, constantly changing digital platform in various sectors has grappled consumers towards using of these digital platforms as well as increasing awareness pertaining to health and fitness are the primary factors that boost the market growth over the forthcoming timeframe.

Although, digital therapeutics witnesses significant development and numerous advancements, it is still at a niche phase and the application developers face lot of difficulty due to lack of proper monetization strategy. Presently, advertisements along with the paid content are the prime source of revenue generation, yet are insufficient to meet the financial requirements. The aforementioned factors are anticipated to adversely affect the market growth.

Product Type Insights

Software segment captured the major market share in global digital therapeutics market based on product type for the year 2019 and projected to register the fastest growth over the analysis timeframe. Increasing demand for cutting the cost of healthcare facilities across the globe along with integration of advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) in digital therapeutic apps are the primary factors that drive the growth of software segment.

Some market players are effectively expanding their product pipeline for machine learning to offer more personalized and advanced Prescription Digital Therapeutic (PDT) platform. For example, in January 2020, Pear Therapeutics Inc., one of the leading solutions providers for Prescription Digital Therapeutics (PDTs), announced to enter into agreements with multiple technology innovators that include Winterlight Labs, Inc., Firsthand Technology, Inc., NeuroLex Laboratories, Inc., and many others. The agreement helps the company to bolster its PDT platform by incorporating machine learning algorithm.

Application Insights

Based on application, diabetes dominated the global digital therapeutics market in 2019 and estimated to forecast same trend over the upcoming period. This is mainly because of the rising prevalence of diabetes across the globe. As per the stats published by American Diabetes Association, around 10.5% of America population suffered from diabetes in 2018 out of which 21% were undiagnosed. In addition, 1.5 Million of new cases are diagnosed with diabetes every year. In the United States, diabetes costs nearly USD 350 Billion including both direct medical cost as well as reduced productivity costs.In order to regulate this, digital therapies are booming with their effectiveness in several aspects.

Apart from this, obesity is the other major concerned disease that expected to exhibit the fastest growth over the forthcoming years. Changing eating habits largely influenced by the western pattern that contains packaged foods with high fat contents are primary cause for increase in the cases of obesity. Furthermore, hectic life style and daily routine reduces the frequency of exercises and daily warm ups that again attributed as the major factor for the collection of fat in body. In order to control this, general public are prominently influenced by the apps related to fitness along with online assistance from concerned doctors, this helps in tracking daily physical activity and health data.

Regional Insights

North America emerged as a global leader in the global digital therapeutics market owing to increasing number of reforms pertaining to curtail the rising healthcare spending across the region. Furthermore, the region is a hub for large number of solutions providers for digital therapeutics that again drive the market growth in the region. Apart from this, the Asia Pacific expected to witness the fastest growth over the analysis period because of large consumer base along with rising geriatric population in the region.

Key Companies & Market Share Insights

The global digital therapeutics market is at its niche stage, yet experience significant spending on solution upgradation and enhancement. The market players are actively adopting strategies such as partnership, collaboration, and new product launch to maintain their competitiveness in the market. For instance, in October 2019, Novo Nordisk, a Denmark-based pharmaceutical company signed a partnership agreement with Noom Inc., a startup company in digital therapeutics. This agreement with will help the company to drive larger pool of customers for its mobile weight management platform. Similarly, in 2017, Oxil, an Australia-based technology company, introduced an app to tackle the increasing cases of obesity across the globe.

Some of the prominent players in the digital therapeutics market include:

  • Fitbit Health Solutions
  • 2MORROW, Inc.
  • Medtronic Plc.
  • Livongo Health, Inc.
  • Pear Therapeutics, Inc.
  • Omada Health, Inc.
  • Resmed, Inc. (Propeller Health)
  • Proteus Digital Health, Inc.
  • Welldoc, Inc.
  • Voluntis, Inc.
  • Canary Health Inc.
  • Noom, Inc.
  • Mango Health Inc.
  • Dthera Sciences

Segments Covered in the Report

This research study comprises complete assessment of the market by means of far-reaching qualitative and quantitative perceptions, and predictions regarding the market. This report delivers classification of marketplace into impending and niche sectors. Further, this research study calculates market size and its development drift at global, regional, and country from 2016 to 2027. This report contains market breakdown and its revenue estimation by classifying it on the basis of product type, sales channel, application, and region:

By Product

  • Device
  • Software

By Sales Channel

  • Business-to-Consumer (B2C)
    • Caregiver
    • Patient
  • Business-to-Business (B2B)
    • Healthcare Provider
    • Employer
    • Others

By Application

  • Obesity
  • Diabetes
  • Central Nervous System (CNS) Disease
  • Gastrointestinal Disorder (GID)
  • Cardiovascular Disease (CVD)
  • Smoking Cessation
  • Respiratory Disease
  • Others

By Regional Outlook

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Rest of the World

Frequently Asked Questions About This Report