Digital Therapeutics: A Transformative Solution for Managing Chronic Diseases in Modern Healthcare

Digital therapeutics (DTx) are revolutionizing chronic disease management by offering personalized, real-time support to improve patient adherence and optimize treatment strategies. Learn how DTx is reshaping healthcare delivery.

All over the world, the escalating burden of chronic disease presents a significant challenge to modern healthcare systems. Most of these lifelong conditions are irreversible and typically require continuous medication along with substantial behavioral and lifestyle adjustments for management. However, many patients struggle profoundly with adhering to prescribed regimens and making necessary changes. Physicians often lack the tools to effectively monitor patient compliance, leading to suboptimal outcomes and higher population-level disease burdens. Digital therapeutics, emerging at this pivotal moment, offer promising solutions by enabling personalized, real-time monitoring and support to address these challenges. By enhancing adherence and optimizing treatment strategies, digital therapeutics transform the management of chronic conditions, creating opportunities for more effective healthcare delivery.

These pressing challenges have created a critical need for comprehensive, digitally-enabled disease management solutions. The response from the digital health sector has been robust: global digital health funding soared to $57.2 billion in 2021, a 79 % increase over the previous year. Within this landscape, a powerful synergy is emerging between agile digital-native start-ups and established healthcare incumbents. Both entities are crucial players in developing and scaling pioneering digital therapeutics (DTx) programs.

The rising burden of chronic diseases underscores the urgent need for innovative management solutions. Digital therapeutics (DTx) are increasingly seen as a key component in addressing this challenge. According to the World Health Organization, noncommunicable diseases (NCDs) account for approximately 74% of all deaths globally, highlighting the critical demand for scalable management strategies. A holistic approach to managing chronic conditions is essential, integrating medication, monitoring, and behavioral modifications to enhance care delivery and patient outcomes efficiently.

Digital Therapeutics: Rapid Market Expansion Fueled by Chronic Disease Surge and Digital-First Care Models

According to Precedence Research, the global digital therapeutics market size is valued at USD 9.73 billion in 2025 and is projected to reach around USD 56.76 billion by 2034, growing at a CAGR of 21.65%. This growth is driven by the rising chronic disease burden, expanding reimbursement pathways, and rapid adoption of clinically validated digital care platforms.

Research Shows that Digital Therapeutics Lead to Better Patient Outcomes

• Type 2 Diabetes (Virta Health): A study found that remote care significantly reduced HbA1c levels by an average of 1.3% over two years and helped over 60% of participants reverse their diabetes status through individualized nutrition and health coaching.
• Hypertension: A meta-analysis indicated that home blood pressure monitoring combined with telehealth can lower systolic BP by 4.5 to 10 mmHg, reducing cardiovascular risk significantly.
• Chronic Insomnia (Somryst DTx): A DTx delivering Cognitive Behavioral Therapy for Insomnia showed sustained improvements in sleep over 18 months, with many participants achieving remission from insomnia symptoms.
• Irritable Bowel Syndrome (Mahana Therapeutics): A DTx offering gut-directed CBT also demonstrated significant symptom improvements, effectively addressing a condition often challenging to manage with medication alone.

The complementary strengths of start-ups and incumbents are essential for success in this new health order: Start-ups provide the agility, innovation, and user-centric design necessary to build engaging, effective DTx solutions that drive behavioral change. At the same time, incumbents offer the clinical validation, regulatory expertise, established distribution channels, and payer relationships needed to scale these solutions rapidly and ensure broad market adoption and reimbursement.

By teaming up, these seemingly disparate entities are closing the gap between patient needs and current healthcare capabilities, ensuring that pioneering digital therapeutics can be built, validated, and scaled effectively to tackle the global burden of chronic conditions.

In 2024, Biofourmis partnered with various healthcare systems to integrate its AI-powered analytics and continuous monitoring platform into standard care for patients with certain chronic conditions, demonstrating a viable approach to reducing hospital readmissions and emergency department visits.

In 2019, the startup Pear Therapeutics collaborated with a pharmaceutical incumbent to commercially launch their FDA-approved prescription digital therapeutics for the treatment of certain health conditions, leveraging the incumbent's established market access channels.

Digital Therapeutics: A Vital Tool for Chronic Care Management

Digital therapeutics can play an important role in chronic disease management. The burden of chronic diseases has been increasing globally and is expected to continue. Chronic, noncommunicable diseases, such as cardiovascular disease, cancer, diabetes, and respiratory disease accounted for 75 % of all non-pandemic-related deaths globally in 2021. Experts indicate the world is currently off track to meet the goal of reducing premature mortality from NCDs by one-third by 2030, driven by factors like population growth and aging.

Ineffective management of chronic diseases is largely undermined by subpar monitoring of and adherence to prescribed medications and lifestyle modifications. This challenge is particularly pronounced among patients with type 2 diabetes, where compliance rates hover between a suboptimal 69 and 79 %. Chronic conditions need comprehensive management that goes beyond medication alone, requiring regular monitoring and significant behavioral changes. Hence, healthcare providers need better end-to-end solutions that proactively and comprehensively monitor patient health, as well as encourage sustainable behavioral changes to improve adherence to prescribed medications, diet, and lifestyles.

Digital technologies and digital therapeutics (DTx) are playing a crucial role in tackling these challenges and improving disease management. The potential for DTx to have a big impact is evidenced by the rapid growth in the market. A growing body of evidence indicates that these digital interventions work effectively, with numerous studies demonstrating improved outcomes across various chronic diseases. Research has shown that digital solutions for disease management can drive better outcomes for patients living with chronic diseases. Examples include the following:

• A 2025 study by the Cleveland Clinic demonstrated how an AI-enabled system (Twin Health) could enhance the monitoring and treatment of patients with type 2 diabetes. After 12 months, 71% of users reached their A1C targets, compared to only 2% in the usual care group. In a separate trial using the same technology, 94.9% of patients achieved an A1C of less than 6.5% (a measure of clinical remission or excellent control) on no medication or metformin only.
• A 2024 home digital monitoring study for heart failure patients in a real-world setting demonstrated a viable approach to reducing hospital readmissions and emergency department visits. The intervention significantly reduced hospitalizations and ED visits at both three and six months after implementation. Another study using a specialized Remote Dielectric Sensing (ReDS) vest technology to measure lung fluid found that 90-day readmissions were significantly reduced from 33% to 17%.
• Studies involving digital therapeutics for respiratory conditions like asthma show powerful results. The Propeller Health platform, which uses a sensor on inhalers, has been shown in real-world studies to reduce the frequency of asthma attacks by 58% and emergency department visits for respiratory issues by 35%.
• For substance use disorder, an FDA-approved prescription digital therapeutic (reSET) was shown in clinical trials to help patients achieve a 40% abstinence rate for three months when combined with standard therapy, compared to a 17.6% abstinence rate for those receiving standard therapy alone.

Eight Core Elements of Effective Digital Therapeutics

Strong digital therapeutics solutions incorporate a set of key elements designed to maximize patient engagement, clinical effectiveness, and economic value.

• Regular Monitoring, Measurement, and Feedback Through Connected Medical Devices: The integration of IoT medical devices provides continuous streams of vital health data, enabling timely intervention and personalized feedback. These devices offer patients immediate alerts for out-of-range readings and share data with care teams. For instance, Biofourmis, a Boston-based digital therapeutics company, utilizes continuous monitoring via connected devices and AI-powered analytics to manage chronic heart conditions. In a 2024 study, their heart failure management solution was associated with significantly lower hospitalization rates and improved patient outcomes compared to standard care, providing automated medication management combined with multidisciplinary remote clinical support for chronic condition management.
• Keeping Payers and Providers in the Loop: Transparent data sharing, with patient consent, aligns incentives among patients, providers, and payers, enabling value-based care models and rewarding positive health behaviors. This ensures all stakeholders are informed about progress and challenges. For example, Omada Health partners with major health plans and employers to provide integrated chronic care management for conditions like diabetes and hypertension. Their program leverages connected devices and a digital platform that keeps the care team and payers informed of patient progress. Their studies show high engagement and significant cost savings through reduced hospital admissions and emergency room visits, aligning financial incentives with improved health outcomes.
• Personalized Coaching and Support: One-on-one coaching, often through a digital interface (chat or video), offers the tailored support needed to customize diet, exercise, and behavioral plans based on individual patient needs. This human element greatly improves adherence and effectiveness. For example, Hinge Health has built a multi-billion-dollar business providing digital musculoskeletal (MSK) care. Their solution combines wearable sensors for motion tracking with personalized exercise therapy and dedicated one-on-one health coaching. A 2024 clinical study on their program demonstrated an average of 60% reduction in pain for participants with chronic MSK conditions, emphasizing the impact of personalized coaching on better therapeutic results.
• Gamified Behavioral Modification: Incorporating game mechanics and incentives into the DTx solution can motivate and track adherence to prescribed diets, lifestyle practices, and medications. This approach makes behavior change more engaging and sustainable. For example, Discovery's Vitality program remains a leading example, rewarding healthy choices with tangible incentives such as discounted flights or gym memberships. This well-established model has successfully encouraged millions of users to adopt healthier lifestyles, utilizing behavioral economics to foster long-term engagement and reduce healthcare costs for insurers.
• Building a Thriving Community: Virtual patient communities provide a space for shared experiences, peer challenges, and mutual motivation. This social support can significantly enhance adherence and emotional well-being. For example, Platforms like PatientsLikeMe continue to demonstrate the value of community. A recent analysis found that nearly 60 percent of users across various conditions, from ALS to mood disorders, believed the network helped them better understand their medications and side effects, as well as connect with others facing similar challenges. Peer support can ease the burden on formal care systems and boost patient confidence.
• Health Mall: Patients prefer a seamless, integrated healthcare experience rather than a fragmented transition across multiple apps and services. A health mall acts as a centralized platform for all digital health needs. For example, major healthcare organizations like UnitedHealth Group (UHG) and its subsidiary Optum are developing integrated digital health ecosystems. These platforms aim to provide a single entry point for members to access personalized care, order prescriptions, schedule appointments, and manage benefits. This unified approach reduces friction and encourages engagement with multiple health services.
• Patient Education: Digital educational materials that are easy to access supply patients and their families with vital information on disease conditions, treatment options, diet, and healthy lifestyle choices. Well-informed patients are more active partners in their care. For example, the Midday app, a collaboration between the Mayo Clinic and Lisa Health, offers support and extensive educational content for women experiencing menopause, providing personalized insights and medically verified information on symptom management, treatment options, and lifestyle adjustments to navigate this life stage effectively.
• Advanced Analytics to Predict and Prevent Health Events: Organizations are harnessing artificial intelligence and machine learning to develop algorithms that recognize triggers for health crises. These insights support preventative measures before a crisis occurs. For example, Optum uses advanced analytics to forecast hospital readmissions among high-risk patients. By analyzing claims data, electronic health records, and sometimes social determinants of health, their predictive models can identify at-risk patients, ultimately enhancing overall health outcomes.

Incumbent Strategies for Sustainable Growth in Digital Therapeutics

Established healthcare entities can flourish in the burgeoning digital therapeutics landscape by leveraging their existing clinical credibility and deep institutional knowledge. Incumbents can adeptly navigate this evolution by architecting cohesive, evidence-based solutions that harmonize with established clinical workflows. The core strategy mandates a shift from product-centric thinking to a platform-based ecosystem, allowing for the seamless integration of digital health solutions within existing care pathways and electronic health records. This approach can turn existing infrastructure into an advantage, creating robust and reliable solutions that resonate with the medical community's demand for validated efficacy.

A critical determinant of success for these traditional organizations hinges upon their ability to demonstrate value and effectiveness. Unlike nimble startups, incumbents possess the infrastructure and experience to conduct thorough evaluations and generate the requisite real-world evidence. By prioritizing solutions that secure strong endorsements, incumbents can establish a standard for trustworthiness. This strategic focus helps ensure that their digital health offerings are perceived as legitimate medical interventions, thereby cultivating provider confidence and patient adherence in a crowded market.

Furthermore, leveraging established distribution channels and payer relationships offers incumbents an unparalleled opportunity for market penetration and scale. Instead of starting from scratch for market access, these organizations can integrate digital health products into existing relationships. This leveraging of incumbent infrastructure can reduce the friction of market entry and accelerate adoption. By integrating digital health products into existing value-based care agreements, they can present a clear, quantifiable impact to key stakeholders, solidifying their role as essential partners.

Ultimately, thriving in the digital health arena demands a cultural and operational evolution within incumbent organizations. The successful entity will foster innovation while maintaining its commitment to rigor and quality. This requires cultivating a symbiotic relationship between existing subject matter experts and new-age digital talent, ensuring that the digital health solutions are both medically informed and digitally intuitive, reinforcing strengths in redefining healthcare delivery.

Your Guide to Digital Therapeutics for Chronic Conditions

About the Authors

Aditi Shivarkar

Aditi, Vice President at Precedence Research, brings over 15 years of expertise at the intersection of technology, innovation, and strategic market intelligence. A visionary leader, she excels in transforming complex data into actionable insights that empower businesses to thrive in dynamic markets. Her leadership combines analytical precision with forward-thinking strategy, driving measurable growth, competitive advantage, and lasting impact across industries.

aditi@precedenceresearch.com

+1 8044 419344

@aditi-shivarkar

Aman Singh

Aman Singh with over 13 years of progressive expertise at the intersection of technology, innovation, and strategic market intelligence, Aman Singh stands as a leading authority in global research and consulting. Renowned for his ability to decode complex technological transformations, he provides forward-looking insights that drive strategic decision-making. At Precedence Research, Aman leads a global team of analysts, fostering a culture of research excellence, analytical precision, and visionary thinking.

aman.singh@precedenceresearch.com

+1 8044 419344

@aman-singh

Piyush Pawar

Piyush Pawar brings over a decade of experience as Senior Manager, Sales & Business Growth, acting as the essential liaison between clients and our research authors. He translates sophisticated insights into practical strategies, ensuring client objectives are met with precision. Piyush’s expertise in market dynamics, relationship management, and strategic execution enables organizations to leverage intelligence effectively, achieving operational excellence, innovation, and sustained growth.

piyush.pawar@precedenceresearch.com

+1 8044 419344

@piyush-pawar

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