Published Date : 23 Mar 2023
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.
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
|Market Size in 2022||USD 3.88 Billion|
|Projected Forecast Value in 2032||USD 17.34 Billion|
|Growth Rate||20.5% from 2023 to 2032|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
|Forecast Period||2023 To 2032|
|Segments Covered||By Product, By Application, By Sales Channel|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
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.
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.
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.
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.
Major Key Players:
By Sales Channel
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