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I AgreeAnalysis of Digital Therapeutics market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
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 |
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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.
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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.
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.
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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.
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.
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.
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.
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.
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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.
Attributes |
Details |
Forecast Period |
2022- 2032 |
Historical Data Available For |
2015- 2021 |
Market Analysis |
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Key Regions Covered |
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Key Countries Covered |
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Key Segments Covered |
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The global digital therapeutics market was valued at US$ 4.25 Bn in 2021, as per Fact.MR
The digital therapeutics market is forecast to acquire a share of US$ 5.27 Bn by 2022
From 2015 to 2021, digital therapeutics demand surged at a CAGR of 17%, according to Fact.MR
During the forecast period, the digital therapeutics market is expected to grow at a 26.5% CAGR until 2032
As of 2032, the digital therapeutics industry is anticipated to be valued at US$ 56.41 Bn
In 2022, the diabetes application segment is expected to dominate the digital therapeutics market with a revenue share of 28%
The North American market will dominate the market during the forecast period with a 42% revenue share
The APAC region is forecast to expand at a CAGR of 20% with regard to digital therapeutics demand