Digital Therapeutics Market

Global Digital Therapeutics Market Outlook (2022-2032)

Digital Therapeutics was valued at US$ 4.25 Bn in 2021, and is expected to increase by 24% Y-o-Y to US$ 5.27 Bn by the end of 2022. The industry is expected to grow at a CAGR of 26.5% from 2022 to 2032, reaching US$ 56.41 Bn.

Report Attributes	Details
Market Value for 2021	US$ 4.25 Bn
Expected Market Size in 2022	US$ 5.27 Bn
Projected Market Valued in 2032	US$ 56.41 Bn
Growth Rate (2022-2032)	26.5% CAGR
Market Share of North America	42%
Revenue Share of patient end-user segment	34%
Key Companies Profiled	Omada Health Inc. WellDoc, Inc. 2Morrow, Inc. Livongo Health, Inc. (Teladoc Health Inc.) Propeller Health Fitbit Inc. Canary Health Mango Health Noom, Inc. Pear Therapeutics Dexcom Voluntis

The total market share of digital therapeutics is expected to embark on a steady growth trajectory, expected to reach a valuation of US$ 5.27 Bn by 2022. The revenues in this market will start rising at a growth rate around 24% and will increase rapidly during the forecast period.

Revenue Analysis of Digital Therapeutics 2015-2021 vs. Market Outlook 2022-2032

According to Fact.MR- a market research and competitive intelligence provider, demand for Digital Therapeutics experienced a staggering 17% CAGR between 2015 and 2021. The market is expected to be driven by the increasing use of smartphones in developed and developing countries, the cost-effectiveness of digital health technology, and an increase in integrated health systems and patient-centric healthcare.

The COVID-19 pandemic had a significant impact on the market. A major COVID associated driver is the demand for convenient, accessible, and affordable digital health services. In its April 2020 guidelines, the FDA announced that digital health therapeutic devices would be allowed to be distributed and used during the pandemic. Hence, providers did not have to comply with the usual regulatory requirements to commercialize their solutions, as long as the devices did not create unexpected health crises. Standardization and R&D in the market are expected to be driven by growing regulatory initiatives over the forecast period.

The penetration of smartphones is a key factor in determining the market's growth. As well as supportive regulatory initiatives, early signs of reimbursement, and increasing prevalence of chronic diseases, the market is expected to grow. It is expected that the market will grow by 1.5x during the forecast period.

What are the Specific Drivers of the Digital Therapeutics Market?

Increasing number of chronic diseases to evoke health consciousness among the public

One of the major market drivers for digital therapeutics is the growing prevalence of chronic diseases. Rapid urbanization has led to the prevalence of sedentary lifestyles. This is directly affecting the health of the population. The U.S healthcare system spends billions of dollars annually on providing care to patients suffering from chronic health conditions, such as diabetes, high blood pressure, congestive heart failure, and chronic obstructive pulmonary disease.

According to the Centers for Disease Control and Prevention, six out of every ten Americans have at least one chronic health condition, and four out of every ten Americans have at least two chronic conditions. As a result, they drive US$ 3.7 trillion in annual health care costs in the US.

Healthcare organizations can utilize evidence-based digital therapeutics to reduce the mounting costs associated with the care of an increasing number of patients with chronic health conditions. In collaboration with iRhythm, Verily (a subsidiary of Alphabet Inc.) developed a study watch with an irregular pulse monitor for continuous monitoring, big data analytics, and cloud-based machine learning to create innovative solutions for screening and monitoring atrial fibrillation (AFib).

Growing Geriatric Population to Accelerate the Market Growth

Geriatric population in less developed countries is expected to rise faster than in developed countries over the forecast period. The major factors contributing to the growth of geriatric populations are longevity and a decrease in fertility rates. According to The World Bank Group, in the United States and the United Kingdom, 16.25% and 19.51% of the total populations are 65-years-old or older in 2019.

An aging population has a much higher chance of contracting various diseases, and thus people within this group need to be constantly monitored. Various smartphone applications, technological advancements in the field of medicine, and government initiatives have all contributed to tackling the chronic diseases that are on the rise in many countries. All these together have been the reasons to drive this market during the forecast period.

Internet hacking and phishing can be a significant threat to this market

In relation to digital health matters, the appropriate legal basis for the processing of data is still unclear. Digital health transformation is a complex, expensive, and lengthy endeavor in which all parties' interests need to be reconciled. In order for digital therapeutics to be widely adopted, cybersecurity and data privacy must be considered. The fact that digital therapeutics solutions and services are delivered over the internet could increase the risk of unauthorized access and manipulation of the underlying data, which could compromise both patient health and trust in the product.

Country-wise-Analysis

How will the growth emerge in the North American region during the forecast period?

The increase in the chronic diseases will drive this growth

According to Fact.MR, the North American region is expected to gain a prominent position with 42% of global revenue in 2022. As a result of various factors such as the increased use of digital health products and favorable reimbursement solutions focused on improving quality of life through improved tracking and diagnostics, this has led to an increase in digital health adoption.

The market is expected to be driven by a rise in chronic diseases and an aging population in the region. Proteus Digital Health, Inc., Omada Health, Inc., WellDoc, Inc., and Livongo Health, Inc. are some of the major players in this market. In addition to their local dominance, most of these companies are headquartered in the United States.

What will be the market outlook in the APAC region?

Increasing health awareness and better healthcare will account for steady growth

During the projected period, Asia Pacific is expected to grow at the fastest rate. The high growth rate can be attributed to better access to healthcare, an increase in smartphone penetration, and a rise in smartphone use.

Increasing government spending on healthcare is also expected to boost market growth for personal care devices and related services. According to Fact.MR, the Asia Pacific market is forecast to register a CAGR of 20% from 2022 to 2032.

Category-wise Insights

Which Application Segment is expected to make Maximum Use of Digital Therapeutics?

Treatment for Diabetes to account for bulk of all Digital Therapeutics Deployment

In 2022, the diabetes application segment is projected to account for more than 28% of global revenue in theDigital Therapeutics Market. Diabetes and other chronic diseases are among the factors driving the segment's growth. Health providers can use digital therapeutics to assess patients' lives and improve their treatments based on the needs of each individual patient. In 2020, the CDC estimates that nearly 34.2 million Americans had diabetes, and 10.5% of these patients lived in the United States.

Why is the Obesity Application Segment Gaining Preference?

Globally, the obese population will be the most significant reason for the obesity application segment to hold the second-largest share of this market at the end of 2022. This segment is expected to grow more, almost at a 2x rate to become a prominent segment during the forecast period.

The digital therapeutics market is expected to grow in the coming years due to the availability of cost-effective treatments for many chronic diseases. The forecast period will witness significant growth rates for CVDs, smoking cessation, and obesity.

Who are the Primary End Users of Digital Therapeutics?

Digital Therapeutics for Patients to be Highly Sought After

More than 32.5% of the global revenue will come from the patient end-user segment at the end of 2022. Patient adoption of digital therapeutic solutions was a major factor behind this growth.

Health care patients are the primary consumers of therapeutic applications and programs, thus becoming a significant driver of this market during the forecast period. Digital therapeutics are becoming more popular as chronic conditions become more prevalent.

Competitive Landscape

The industry is characterized by the presence of both large- and small-scale enterprises. Several key players dominate the market and focus on innovative strategies to increase revenues, such as mergers and acquisitions, market penetration, partnerships, and distribution agreements.

• Teladoc, for instance, announced that it will expand its partnership with the National Labor Alliance in December 2021. The products and services offered included specialty care, general medicine, expert medical services, mental health, virtual primary care programs, and chronic condition management.
• Welldoc and Dexcom expanded their strategic partnership in 2021 for a new integrated platform designed to improve the health of people with Type 2 diabetes. BlueStar guides individuals through the complicated process of living with diabetes with the Dexcom G6 system measuring glucose levels below the surface of the skin.
• The European Patent Office (EPO) has granted Voluntis a patent for intelligent patient support in drug dosing applied to diabetes titration using its Theraxium digital therapeutic platform in 2021.

Report Scope

Attributes	Details
Forecast Period	2022- 2032
Historical Data Available For	2015- 2021
Market Analysis	US$ Mn for Value ‘000 Units for Volume
Key Regions Covered	North America Europe Asia Pacific Latin America MEA
Key Countries Covered	U.S Canada Brazil Mexico Germany U.K France Italy BENELUX Nordics China Japan South Korea GCC Turkey South Africa
Key Segments Covered	Application Type End User Region

Key Segments Covered in the Digital Therapeutics Industry Survey

• By Application Type

  • Digital Therapeutics for Diabetes
  • Digital Therapeutics for Obesity
  • Digital Therapeutics for CVD
  • Digital Therapeutics for Respiratory Diseases
  • Digital Therapeutics for Smoking Cessation
  • Digital Therapeutics for CNS Diseases

• By End User

  • Digital Therapeutics for Patients
  • Digital Therapeutics for Providers
  • Digital Therapeutics for Payers
  • Digital Therapeutics for Employers