Digital Therapeutics Market Size, Share, Trends, Growth 2032

Digital Therapeutics Industry Prospective:

The global digital therapeutics market size was worth around USD 6.12 billion in 2023 and is predicted to grow to around USD 48.79 billion by 2032 with a compound annual growth rate (CAGR) of roughly 25.94% between 2024 and 2032.      

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Digital Therapeutics Market: Overview

Digital therapeutics are evidence-based, clinically tested programs and devices that may be used to treat a wide range of diseases and problems. They can treat physical and behavioral health disorders such as pain, diabetes, anxiety, post-traumatic stress disorder, and asthma either on their own or in conjunction with pharmaceuticals, devices, and other therapies.

The digital therapeutics market is being driven by several factors including the growing prevalence of chronic disease, rising healthcare costs, advancements in technology, rising acceptance and adoption of telehealth, focus on preventive healthcare and others.

Key Insights

• As per the analysis shared by our research analyst, the global Digital Therapeutics market is estimated to grow annually at a CAGR of around 25.94% over the forecast period (2024-2032).
• In terms of revenue, the global digital therapeutics market size was valued at around USD 6.12 billion in 2023 and is projected to reach USD 48.79 billion, by 2032.
• The growing prevalence of chronic disease is expected to propel the market growth during the forecast period.
• Based on the application, the Diabetes segment is expected to capture a significant market share over the forecast period.
• Based on the end-use, the Patients segment is expected to capture the largest market share over the forecast period.
• Based on region, North America is expected to dominate the market over the forecast period.

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Digital Therapeutics Market: Growth Drivers

Increasing usage of smartphones and tablets drives market growth

The market for digital therapies is expanding as a result of people's growing reliance on smartphones and tablets as well as other healthcare apps. In addition to lowering the incidence of drug errors, enabling preventive treatment, and improving staffing accuracy, smartphone and tablet-based healthcare apps carry several benefits. A major factor driving demand for digital therapeutics (DTx) treatments is the growing use of personal technology devices in the healthcare industry.

By offering information in several languages, giving patients pertinent information about illnesses and treatments, and increasing the capacity of doctors to care for patients, DTx is improving patient access to the safety and efficaciousness of therapies. It also eliminates the stigma attached to traditional therapy and is a sophisticated way of care delivery that is simple to apply at home.

Digital Therapeutics Market: Restraints

High development and regulatory costs hinder the market growth

The global market for these solutions must overcome several fundamental difficulties, including the high costs of product development and regulatory compliance. To establish digital medicine, a substantial upfront investment is required for R&D, clinical trials, and regulatory filings. Furthermore, obtaining regulatory approval from agencies such as the FDA can be costly and time-consuming. These costs can be especially severe for smaller companies, which hinders competition and innovation in the market.

Consequently, companies may find it difficult to turn a profit and secure funding. The high development costs associated with digital pharmaceuticals are a major barrier to entry for new players and impede access to innovative treatments. Therefore, during the projection period, regulatory costs and high development could pose hurdles to the expansion of the market.

Digital Therapeutics Market: Opportunities

Increasing product launches provides a lucrative opportunity for market growth

The increasing product launches are expected to provide a lucrative opportunity for market growth during the forecast period. For instance, in October 2023, an industry leader in the creation of prescription digital therapeutics (PDTs) for the treatment of cardiometabolic diseases, Better Therapeutics, Inc., recently announced the commercial launch of AspyreRx, the first app for cognitive behavioral therapy (CBT) to be approved by the US Food and Drug Administration (FDA) as a Class II device for the treatment of adults with type 2 diabetes (T2D). With support from a randomized controlled trial (RCT) that showed statistically and clinically substantial durable decreases in A1c at 90 and 180 days compared to the standard of care control group, AspyreRx is a prescription-only treatment.

In addition, compared to the control group, the RCT showed statistically significant improvements in blood pressure, weight, mood, and quality of life. It also showed decreased medication consumption and fewer side events. AspyreRx can now be prescribed by licensed healthcare professionals, and it can be downloaded from the Google Play and Apple App Stores.

Digital Therapeutics Market: Challenges

Data privacy and security pose a major challenge to market expansion

One of the main issues with digital therapeutics that depend on gathering and evaluating a lot of personal health data is cybersecurity. The issue is that hackers particularly value healthcare data, which makes it a prime target for cyberattacks. Not to mention that organizations must secure patient data under laws like the GDPR in the EU and HIPAA in the US, which emphasizes the necessity for strong data security procedures.

Digital Therapeutics Market: Segmentation

The global Digital Therapeutics industry is segmented based on Application, End-use and region.

Based on application, the global Digital Therapeutics market is bifurcated into Respiratory Diseases, Smoking Cessation, Obesity, Diabetes, CVD, CNS Diseases and Others. The Diabetes segment is expected to capture a significant market share over the forecast period. The segment growth is attributed to the increasing prevalence of diabetes. According to the World Health Organization report, approximately 422 million individuals globally suffer from diabetes, with the majority residing in low- and middle-income nations. The disease is directly responsible for 1.5 million fatalities annually. Over the past few decades, there has been a steady rise in both the number of cases and the incidence of diabetes. Thus, the aforementioned stats drive the market growth.

Based on the end-use, the global Digital Therapeutics industry is segmented into Providers, Patients, Payers, Employers and Others. The Patients segment is expected to capture the largest market share over the forecast period due to the quick uptake of digital therapies by patients. Patients receive individualized care plans based on evidence. Additionally, digital therapeutics can assist people—especially those living in rural and remote areas—to have better access to care. It can assist healthcare professionals in keeping an eye on patients in real-time, spotting care gaps, and acting quickly to fill them. With the use of evidence-based care therapies, it increases the effectiveness of healthcare delivery. By using these solutions, managing patients with chronic diseases may require fewer doctor visits. Thus, driving the segment expansion.

Digital Therapeutics Market: Report Scope

Regional Analysis

North America is expected to dominate the market during the forecast period

North America is expected to dominate the market during the forecast period. The growing prevalence of chronic disease is the major contributor to the market revenue growth of the region. For instance, according to the data given by the American Diabetes Association, in 2021, 38.4 million Americans, or 11.6% of the population, were diabetic. Diagnosed versus undiagnosed: Of the 38.4 million adults with diabetes, 29.7 million were diagnosed, leaving 8.7 million undiagnosed. Additionally, the presence of major market players such as Fitbit LLC, OMADA HEALTH, INC. and others. These players constantly launch innovative products, perform strategic partnerships, initiate campaigns for awareness and others to gain maximum market share.

For instance, in May 2023, in response to increased interest and demand for GLP-1s, Omada Health, a virtual-first healthcare provider, launched a unique program enhancement for members using the drug. According to FDA recommendations and studies for GLP-1s for long-term weight loss, Omada's program additions are intended to encourage behavior and lifestyle modification in addition to the drug. Thus, this is expected to drive the market growth in the region.

Digital Therapeutics Market: Competitive Analysis

The global Digital Therapeutics market is dominated by players like:

• Fitbit LLC
• OMADA HEALTH INC.
• 2Morrow Inc
• Welldoc Inc.
• Livongo Health Inc. (Teladoc Health Inc.
• Propeller Health (ResMed)
• CANARY HEALTH
• Noom Inc.
• Mango Health
• Pear Therapeutics Inc.
• Akili Interactive Labs Inc.
• DarioHealth Corp.
• HYGIEIA
• BigHealth
• GAIA AG
• Limbix Health Inc.

The Global Digital Therapeutics market is segmented as follows:

By Application

• Respiratory Diseases
• Smoking Cessation
• Obesity
• Diabetes
• CVD
• CNS Diseases
• Others

By End-use

• Providers
• Patients
• Payers
• Employers
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa