Crucial Factor Fueling The Digital Therapeutics Market Expansion In The Upcoming Years

The global digital therapeutics market is currently valued at nearly USD 4.66 billion but is projected to gross USD 17.34 billion by 2030, growing at a CAGR of 20.5% in the next eight years.

The global digital therapeutics market growth is driven by the growing geriatric population, rising focus on preventive healthcare, increasing investments in digital medicines, and increasing incidence of chronic diseases or disorders such as cancer, diabetes, obesity, diabetes, mental disorders, and others.

Market Overview:

Digital Therapeutics (DTx) represents a digital health solution that delivers therapeutic interventions directly to patients to prevent, manage and treat diseases or disorders. These systems generally use software or technologies that are evidence-based and clinically validated in order to collect real-time patient data and provide better patient outcomes and experiences. Investor interest in digital therapeutics has significantly increased as a result of ongoing digitization efforts and the evolution of the healthcare sector.

Government organizations have taken several active steps such as establishing regulations, publishing laws, and implementing legislation in the field of digital therapeutics. For instance, The Breakthrough device designation program was approved by the USFDA to grant approvals for digital therapeutics. It's worth noting that, till September 2022, the USFDA had authorized over 730 digital health products, including wellness applications, digital therapeutics, and digital biomarkers.

Other nations, such as Denmark, Germany, South Korea, and the UK, where regulatory bodies have published various legislation relating to digital therapeutics and digital health solutions, also showed a similar trend.

Additionally, the market has grown as a result of the rising need to control the escalating expense of healthcare facilities. Furthermore, the wide adoption of smartphones and other electronic products such as fitness trackers in the market which are generally used for the measurement of various human body parameters, escalating sales of electronic consumer goods that are used to measure various human core vitals and rising investment in the sector act as a crucial factor fueling the market expansion in the upcoming years.

Digital Therapeutics Market Report Scope

Report Highlights:

• By Product, The diabetes segment accounted for the larger market share of more than 27% in 2022 owing to the increasing incidence of diabetes and the rising expenses of treatment. Diabetes is a type of chronic disorder that occurs either when the pancreas unable to produce enough insulin or when the body cannot effectively use the insulin it produces. According to WHO, around 422 mn population is having diabetes across the globe. Most cases are coming from low and middle-income countries, and 1.5 mn deaths occur due to diabetes every year globally.
• By Sales Channel, The Business-to-Consumer (B2C) segment is expected to be fast-growing during the forecast period owing to the growing awareness of digital therapeutics in the treatment of patients and the rising prevalence of chronic diseases such as cancer, obesity, high blood pressure, and diabetes, which can be treated by patients only through tracking their physical data.
• By Application, The software segment is expected to expand at a robust growth rate during the forecast period due to the rapid penetration of smartphones and electronic gadgets in developing countries, growing demand for healthcare facilities and digital therapeutic applications that use cutting-edge technologies such as artificial intelligence (AI) and machine learning (ML) are the primary drivers of the expansion of the software segment.

Regional Insights:

North America registered the largest revenue share of more than 40% in 2022, due to the sophisticated healthcare infrastructure, increasing investments in digital therapeutics, rising government initiatives to assist technological developments, rising healthcare spending across the region, and increasing prevalence of chronic diseases. Additionally, the region is a hub for a large number of solutions providers for digital therapeutics that fuel the market growth in the region.

Revenue from the Asia-Pacific market is expected to register a rapid CAGR during the forecast period due to the rising geriatric population in the region, increasing government investment, and early adoption of new and innovative technology.

Market Dynamics:

Drivers

Growing geriatric population

The growing geriatric population is one of the primary factors spurring the demand for digital therapeutics. According to US Census Data, there are approximately 24.1 million citizens who are over the age of 65. According to Eurostat, in the EU, 1 out of 5 citizens is above the age of 65. An aging population over the age of 60 is generally more susceptible to chronic disorders such as obesity, cancer, and diabetes, which in turn increases the demand for digital therapeutics products. Therefore, the growing geriatric population is expected to drive the growth of the digital therapeutics market during the forecast period.

Restraint

Lack of data privacy

Several health applications lack the necessary authorization in various countries, raising issues regarding product and data quality, patient privacy, and security. Providers of digital therapeutics have easy access to the patient's information, but they are not allowed to share it with anybody who is not assisting the patient with their treatment. Nevertheless, there is a chance that any healthcare professional who is not a part of the patient's treatment program can access the patient's information with the use of digital technologies to integrate data. As a result, data privacy issues are hampering the growth of the digital therapeutics market during the forecast period.

Opportunities

Increasing prevalence of chronic disorders

The increasing prevalence of chronic disorders such as diabetes, cancer, asthma, obesity, high blood pressure, and other disorders act as a primary concern for healthcare systems across the globe. According to World Health Organization (WHO), Cardiovascular diseases are the leading cause of NCD deaths, accounting for 17.9 million deaths annually. Cancers are next with 9.3 million deaths, followed by chronic respiratory disorders with 4.1 million deaths, and diabetes (2.0 million including kidney disease deaths caused by diabetes. Most of these health conditions are irreversible and need to be managed through lifelong medication use.

However, many patients struggle to take their prescribed medications and implement the behavioral and lifestyle changes necessary to manage their disorders or diseases and stable their health status. As a result of these problems, there is a growing demand for comprehensive disease management solutions enabled by digital technologies. Digital technologies can play a vital role in improvising disease management by tackling these challenges.

The potential for digital therapeutics is projected to have a great impact the fact that almost two-thirds of the global population now has internet access. In addition to medication, regular monitoring and lifestyle changes are also necessary for the management of chronic illnesses. In order to enhance patient adherence to prescribed drugs, diets, and lifestyles, healthcare professionals need better end-to-end solutions that actively and extensively monitor patient health.

Recent Developments: 

• In January 2023, Pear Therapeutics, Inc., announced the expansion of its partnership with BrightView Health. The project aims to make reSET® and reSET-O® available to eligible individuals with substance use disorders (SUD) and opioid use disorders (OUD). BrightView, a pioneer in SUD and OUD treatment, started piloting Pear’s products in its centers across 6 locations in Ohio and Kentucky in early 2022, and plans to broaden the initiative across Ohio, Kentucky, Delaware, Virginia, and Massachusetts.
• In June 2022, Eli Lilly partnered with digital therapeutics developer Sidekick Health to create personalized apps that help breast cancer patients adhere to their medication regimens. This duo intends to broaden its research into other diseases and treatments.

Major Key Players:

• 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

Market Segmentation:

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

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