The global Digital Therapeutics Market is set to reach a valuation of USD 4.8 Billion in 2022. Expanding at an impressive 24.4% CAGR over the forecast period, total sales in the digital therapeutics market will reach USD 42.5 Billion by 2032.
| Data Points | Market Insights |
|---|---|
| Digital Therapeutics Market Value (2021) | USD 3.9 Billion |
| Estimated Market Value (2022) | USD 4.8 Billion |
| Projected Market Size (2032) | USD 42.5 Billion |
| Value-based CAGR (2022 to 2032) | 24.4% |
| Market Share of Top 5 Countries | 44.4% |
Digital therapies are software solutions used in the treatment of medical disorders, and they are a new trend emerging from the rapidly progressing mobile health market. These products are similar to consumer wellness applications in which they allow consumers to have more control over their care, but with one major difference: digital therapies are focused on providing enhanced clinical outcomes.
Digital treatments can provide aid to patients at many stages of their health care journey, in addition to addressing specific medical disorders. Through the process, digital treatment (DTx) gather, synthesizes, and analyse patient data so clinical professionals can fabricate treatment options and work with the patient to wean off complications. Better outcomes and fewer medical interventions are the end results.
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
The digital therapeutics market grew at a CAGR of 22.0% between 2017 and 2021. The market value for global digital therapeutics held nearly 2.7% of the overall USD 146 Billion digital health market in 2021.
The power of mobile technology to capture and hold people's attention is well known. A rising number of start-ups and established technology players are betting on that power to help people enhance their health outcomes in measurable ways.
These companies are driving software and health-care convergence in ways that can potentially change how the conventional approach of the life sciences industry, which involves both large pharma companies and medical technology or medical device companies, supports the patient health-care journey from beginning to end, spawning a new branch of medicine known as digital therapeutics.
Conventional therapies and treatments are still unable to meet unmet patient demand, while digital medicines offer the potential to do so. Enterprises that use digital therapies to close these gaps, together with substantially shorter product development timetables, may have a considerable edge over traditional life sciences companies.
Rising prevalence of preventable chronic diseases, the pressing need to regulate the cost of health care, a need for safe and accessible workarounds for the treatment of chronic and mental health diseases, a growing focus on predictive, preventative, personalised, and participatory healthcare, increasing investments in digital therapeutics are driving growth in the digital therapeutics market.
Digital therapeutics provide patient-oriented solutions through aspects such as digital behavioural interventions to devise evidence-based solutions on patient data, artificial intelligence and machine learning interventions, mobile health applications, gamification, and virtual reality. Driven by this, the market is expected to grow at a 24.4% CAGR and offer an absolute $ opportunity of nearly USD 1 Billion between 2023 and 2022.
Numerous start-ups and existing technology companies are banking on the ability of mobile technology to help people improve their health in quantifiable ways. Manufacturers are driving software and healthcare convergence in ways that are expected to change the life sciences industry's traditional approach, which includes both large pharma and medical technology or medical device companies, supports the patient's medical journey. This has spawned a new branch of medicine known as digital therapeutics and will provide lucrative opportunities for growth over the forecast period.
Furthermore, digital therapeutics provide pharmaceutical and MedTech businesses with a low-cost approach to differentiate products, especially when compared to the research and development costs generally involved with traditional medicine or medical device.
Many businesses are refocusing their R&D efforts away from core product lines and toward revolutionary innovation. Digital medicines also have the potential to lengthen product life cycles, differentiate in-development goods, and cover market gaps that traditional medicine may not be able to fill. All these factors are expected to augment the growth in the market over the assessment period.
Principal Consultant
Wearable healthcare faces several challenges, including the fact that the data provided cannot always be used to track, diagnose, and treat health disorders due to ongoing concerns about data accuracy, consistency, and privacy.
Additionally, stakeholder awareness, acceptance, and engagement are issues for many firms that have joined the DTx industry. Most DTx solutions have entered the market with product-centric revenue models and go-to-market strategies to date.
Instead of satisfying unmet requirements of patients and other essential stakeholders across the end-to-end continuum of care, their focus has been on selling more products. As a result, the market for isolated digital point solutions is fragmented, confused, and overcrowded. There is no genuinely comprehensive, patient-centric experience to assist patients in navigating the present complex healthcare system.
As a result of the additional time and money spent on product development, the marketing and commercial sales teams are underp ressure to produce successful go-to-market plans for DTx launch, scale-up, and growth. These factors, together, induce a restrictive impact upon the growth of the overall digital therapeutics market.
Rapid Adoption of Connective Technology-Based Medical Equipment Will Fuel Sales of Digital Therapeutics
The U.S. dominated the North America digital therapeutics market in 2021, holding about 90.3% of the market share. As per FMI, the trend is projected to continue over the forecast period. Growth is associated with the high burden of chronic disease in the general population within the country.
Increasing incidence of gastrointestinal and central nervous system diseases is underpinning the demand for digital therapeutics. With growing adoption of telemedicine, integration and adoption of mobile health analytics in the USA, sales are expected to increase over the forecast period.
Growing Demand for Digital Therapeutics for Insomnia Will Augment Growth
China is expected to account for 48.0% of the East Asia digital therapeutics market share in 2022. After the third wave of automation and digital technology integration propelled by the advent of the COVID-19 pandemic, China has established full automation solutions for medical and production facilities.
The local government has joined forces with leading DTx organisations with a joint commitment of 20 billion RMB ($32 billion) in funding support to formalise a massive DTx Industrial Park project, which is a promising indicator of Chinese DTx market progress. The project's details and funding proposal have yet to be revealed, but a newly built DTx Industrial Park in Zhejiang Province will soon serve as the DTx industrial flagship in China.
Rising Awareness Regarding Digital Therapeutics Technology Will Boost Sales in Germany
With a high volume of the disease burden associated with chronic ailments such as cardiovascular diseases, diabetes, and cancer, demand for digital therapeutics in Germany is anticipated to remain high. As per the report, the Germany digital therapeutics market will expand at a 20.6% CAGR over the forecast period.
In 2019, the German Parliament passed the Digital Healthcare Act (DigitaleVersorgung-Gesetz, or DVG), allowing all German doctors to prescribe digital treatments to publicly-insured patients in Germany. This has enhanced the accessibility of safe digital solutions for the treatment of chronic and mental health diseases.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
Demand for Combination Therapy Will Gain Traction
Based on solution, the combination therapy segment is projected to account for 68.4% of the total market share in 2022. Combination therapy with biopharmaceuticals, or “smart drugs” offers an exciting way to improve patient adherence and outcomes. Pharmaceutical companies can assist patients in improving their health outcomes by digitising drugs and utilising digital interventions to encourage their proper usage.
Adoption of Digital Therapeutics for Disease Prevention Will Rise
In terms of applications, the prevention segment is forecast to hold 35.8% of the total market share in 2022. For patients at risk of developing more serious ailments, digital therapeutics are routinely used as a prophylactic measure. These prevention measures provide approaches and solutions that could delay the onset of the chronic disease.
Sales of Digital Therapeutics for Central Nervous Systems Disorders Will Boost Demand
By indication, sales in the central nervous system disorders segment will increase at a CAGR of 29.2% over the assessment period. Several drugs that are now in use were discovered as a result of drug discovery research intended to treat central nervous system (CNS) illnesses.
However, not all drugs can relieve patients of the symptoms of their disorders, and CNS dysfunction is still a medical area with many unmet needs. Medical solutions which utilize digital technologies can address these unmet needs.
Sales of Digital Therapeutics Direct to Patients Will Gain Momentum
Based on distribution channel, the direct-to-patients/consumers segment will hold about 60.1% of the total market share over the forecast period. With the products being sold directly to the consumer, the availability of mobile health solutions provide customers with solutions linked to enhanced patient compliance and better clinical outcomes.
The market for digital therapeutics is a fragmented. With the emergence of start-ups and other market players, the global market is likely to witness the heavy competition. Companies are aiming to launch digital health campaigns and software solutions for a comprehensive patient care regimen. For instance:
| Attribute | Details |
|---|---|
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | USD Billion for Value |
| Key Regions Covered | North America, Latin America, Europe, South Asia, East Asia, Oceania, Middle East and Africa (MEA) |
| Key Countries Covered | The USA., Canada, Brazil, Mexico, Argentina, Germany, Italy, France, Spain, the UK., Russia, BENELUX, China, Japan, South Korea, India, Indonesia, Thailand, Malaysia, Australia, New Zealand, GCC Countries and Turkey |
| Key Companies Covered | Teladoc Health ;Inc.; Click Therapeutics, Inc.; Welldoc; HYGIEIA; DarioHealth Corp; BigHealth; Orexo AB; Akili Interactive Labs, Inc.; Freespira; Voluntis; Kaia Health; Kaiku Health; Theranica Bio-Electronics Ltd.; Propeller Health; Orexo US, Inc.; TALi Digital Limited; Limbix Health, Inc. |
| Key Market Segments Covered | Solution, Application, Indication, Business Model and Region |
The global digital therapeutics market is worth USD 4.8 Billion in 2022 and is set to expand 8.9X over the next ten years.
The global digital therapeutics market is expected to reach USD 42.5 Billion by the end of 2032, with sales revenue expected to register a 24.4% CAGR.
Some of the significant trends in this market are the reimagined regulatory pathway for software as a medical device (SaMD) products, the rising adoption of medical technology, and the global prevalence of chronic and mental diseases.
Canada, the USA, France, the UK., and Italy are expected to drive demand for global digital therapeutics products.
The U.S. is one of the key markets for global digital therapeutics, accounting for about 86.2% of the overall North American market during the forecast period.
The USA, Germany and Canada are the key producers in the global digital therapeutics market space.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Market Background 6. Global Market Demand (in Value or Size in USD Billion) Analysis 2017 to 2021 and Forecast 2022 to 2032 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Solution 7.1. Monotherapy 7.2. Combination Therapy 8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Application 8.1. Prevention 8.2. Management 8.3. Treatment 9. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Indication 9.1. Diabetes 9.2. Obesity 9.3. Gastrointestinal Disorders 9.4. Cardiovascular Disease 9.5. Central Nervous Systems 9.6. Others 10. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Business Model 10.1. Direct to consumer 10.2. Fee-for-service 11. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 11.1. North America 11.2. Latin America 11.3. Europe 11.4. East Asia 11.5. South Asia 11.6. Oceania 11.7. Middle East and Africa (MEA) 12. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032 13. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032 14. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032 15. East Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032 16. South Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032 17. Oceania Market Analysis 2017 to 2021 and Forecast 2022 to 2032 18. Middle East and Africa (MEA) Market Analysis 2017 to 2021 and Forecast 2022 to 2032 19. Market Structure Analysis 20. Competition Analysis 20.1. Teladoc Health, Inc. 20.2. Click Therapeutics, Inc. 20.3. Welldoc 20.4. HYGIEIA 20.5. DarioHealth Corp 20.6. BigHealth 20.7. Orexo AB 20.8. Akili Interactive Labs, Inc. 20.9. Freespira 20.10. Voluntis 20.11. Kaia Health 20.12. Kaiku Health 20.13. Theranica Bio-Electronics Ltd. 20.14. Propeller Health 20.15. Orexo US, Inc. 20.16. TALi Digital Limited 20.17. Limbix Health, Inc. 21. Assumptions and Acronyms Used 22. Research Methodology
Explore Healthcare Insights
View Reports
Digital Therapeutics Market
