The global digital therapeutics market size was valued at USD 4 billion in 2022 and is expected to reach USD 25.29 billion by 2032 and is poised to garner growth at a CAGR of 20.3% over the forecast period 2023 to 2032.
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North America emerged as a global leader in the global digital therapeutics market with revenue share of 42% in 2022 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.
The digital therapeutics market expansion in this region is fueled by factors such as the entry of new startups, changes in the reimbursement structure of digital therapeutics, increased investments in digital therapeutics, and growing government initiatives to assist technological developments.
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. Due to its early acceptance of new and innovative technology, and increased investment through funding, the Asia-Pacific is likely to dominate the market. The investment is related to increased government investment, and mergers and acquisitions.
The patients can receive evidence-based treatment interventions using digital therapies. It is used to manage, prevent, or treat medical conditions using software applications and equipment. To provide patient care and health results, the digital therapeutics software can be used alone or in conjunction with other therapies.
The rising frequency of preventable chronic disorders such as cancer and diabetes, the need to control healthcare costs, an increased investments in digital medicines, and a growing focus on preventive healthcare are all driving the growth of the digital therapeutics market.
One of the key factors driving the growth of digital therapeutics market is the rising focus on preventative healthcare by governments around the world. The governments are taking steps and implementing programs to increase the rate of use of these devices, which is a shift from the traditional healthcare methods.
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.
| Report Scope | Details |
| Market Size IN 2023 | USD 4.79 Billion |
| Market Size by 2032 | USD 25.29 Billion |
| Growth Rate From 2023 to 2032 | CAGR of 20.3% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Product, Application, Sales Channel |
| Regional Scope | North America, Europe, Asia Pacific, Rest of the World |
| Companies Mentioned | 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. |
Drivers: Growing geriatric population
The growing geriatric population globally is one of the primary factors driving up demand for digital therapeutics. The global population of people aged 60 and up is expected to reach 2.1 billion by 2050, according to the United Nations. People over the age of 60 are more susceptible to illnesses such as obesity, cancer, and diabetes, increasing the demand for digital therapeutics. Thus, during the forecast period, the growing geriatric population is driving the growth of the digital therapeutics market.
Restraints: Data privacy concerns
The various health applications lack necessary authorization in several countries, raising issues about the product and data quality, patient privacy, security, and data use responsibly. The patient’s information is accessible by digital therapeutics providers, but they are not allowed to share it with anybody who is not involved in the patient’s treatment. However, with the use of digital technologies to integrate data, the patient’s information is at risk of being accessible by any healthcare professional who is not involved in the patient’s treatment program. Thus, the data privacy concerns is hindering the growth of digital therapeutics market during the forecast period.
Opportunities: Rising prevalence of chronic diseases
The chronic disease’s high prevalence is a key source of concern for healthcare systems all over the world. The treatment of chronic disorders patients is difficult due to psychological variables influencing the patients. The patients must adapt their behavior as a part of new self-care lifestyle because chronic diseases are generally linked with a high level of unpredictability. Moreover, many chronic diseases and ailments progress with the time, and their prevalence increases as people get older. As a result, chronic problems are likely to increase even more in the coming years as the global senior population continues to grow. As a result, the rising prevalence of chronic diseases is creating lucrative opportunities for the growth of digital therapeutics during the forecast period.
Challenges: Lack of consumer awareness
Motivating people to use digital therapeutics and gaining their trust is a major challenge for providers of digital therapeutics. The old age people are more vulnerable to the chronic disorders. Furthermore, the extent to which behavioral change can be observed with digital therapeutics remains unknown.
Software segment captured the major market share in global digital therapeutics market based on product type for the year 2022 and projected to register the fastest growth over the analysis timeframe. This is attributed to the increased penetration of smart devices and phones in the developing regions. 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.
Based on application, diabetes segment accounted market share of 28.8% in 2022 owing to the rising prevalence of disorders such as diabetes and the rising expenses of treatment. 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.
Based on the sales channel, the business to customer segment dominated the global digital therapeutics market in 2022 with highest market share. This is due to an increase in the prevalence of chronic disorders such as obesity, cancer, diabetes, and high blood pressure, which can be treated by patients only by tracking their physical data.
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:
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 2020 to 2032. 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
By Sales Channel
By Application
By Regional Outlook
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