Analysis of the Digital Therapeutics Market: Assessment of Market Size, Trends, Statistics, and Competitors
Global Digital Therapeutics Market by Product (Software & Devices), By Application (Diabetes, Central Nervous System (CNS) Disorders, Obesity, Cardiovascular Disease (CVD), Chronic Respiratory Disorders, Smoking Cessation, Substance Use & Addiction Management, Medication Adherence, and Others), by Distribution Channel (B2B & B2C), and by Region (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa) – Market Size, Share, COVID-19 Impact, Regional Analysis & Forecast Till 2030
Category - Healthcare
Report Code - OMR-H-254
Format: PDF, PPT, and Excel
Digital Therapeutics Market Overview
Digital therapeutics (DTx) can be defined as products that have the ability to deliver verified therapeutic interventions for patients in the form of quality software for preventing, regulating, and treating a distinct medical disorder. DTx can be closely related to “smart pills,” which are often integrated with an ingestible sensor and communicate with software applications for tracking progress. Historically, DTx was offered to a smaller group of patients in technology companies and educational institutes, with big pharmaceutical companies focusing on developing various commercial applications. This was made possible due to increased investments, strategic coordinative & expansive efforts with the tech companies. These trends have managed to engulf the last decade for digital therapeutics globally, with an increased focus being diverted toward filling in the vacuum created by consumer awareness. In its initial tenure, the pandemic had a substantial impact on business sectors worldwide, with the majority being affected substantially negatively. The collective growth of the industries was either halted or progressed slowly as essential services and the healthcare sector was strongly optimized. Moreover, during the initial stages of the pandemic, a majority of the population was forced to adopt work-from-home solutions and had to endure prolonged lockdowns/quarantine measures. Factors such as these proved to be the perfect paving ground for the rise of chronic illnesses and disorders, which improved the viability of the digital therapeutic market.
Digital Therapeutics Market Growth Factors
Growing Prevalence of Chronic Diseases to Propel Market Growth
CVD accounted for a major contributing factor to the burden on healthcare systems, with the American Heart Association pre-empting 23.6 million deaths by 2030 from a rise of 17.3 million deaths in 2016. Chronic diseases are certainly touted with higher levels of uncertainty towards patients as they progress rapidly with intensity and age. The rising geriatric population will further aid the growth trajectory of the market. Diabetes will further put a huge splurge on the global digital therapeutics market by growing in number during the forecast period. According to the International Diabetes Federation, in 2021, around 537 million adults (aged 20-79) were living with diabetes, which is expected to grow approximately to 643 million by 2030 and further 783 million by 2045, respectively. In addition, the availability of a robust reimbursement structure that tries to cut spending, the rise in the number of geriatric people, the desire for wireless and mobile systems, and the availability of wireless and portable systems are just a few more reasons driving the market growth.
Rising Need for Improved Healthcare Deliver to Augment Market Growth
Healthcare systems worldwide were stressed by the initial surge of cases during the early stages of the pandemic. As a result, both patients and doctors are looking for digital tools to help improve healthcare delivery. Due to the COVID-19 pandemic, the groundwork for a flourishing global digital therapeutics market was established. It has been estimated that 5 billion people, or 63% of the world's population, have access to the Internet. This figure is anticipated to climb as more people gain access to cellphones and the internet. Smart health tracking applications, made possible by smartphones with built-in internet services, will expand the worldwide digital therapeutics market.
Digital Therapeutics Industry Segmentation
Product
• Software
• Device
Application
• Diabetes
• Central Nervous System (CNS) Disorders
• Obesity
• Cardiovascular Disease (CVD)
• Chronic Respiratory Disorders
• Smoking Cessation
• Substance Use & Addiction Management
• Medication Adherence
• Others
Distribution Channel
• B2B
o Providers
o Payers
o Employers
o Others
• B2C
o Patients
o Caregivers
Digital Therapeutics Market Regional Segmentation
North America
o U.S.
o Canada
o Mexico
Europe
o Germany
o U.K.
o France
o Spain
o Italy
o Rest of Europe (RoE)
Asia Pacific (APAC)
o Japan
o China
o India
o South Korea
o Rest of APAC
Latin America
o Argentina
o Brazil
o Rest of Latin America
Middle East & Africa
o South Africa
o UAE
o Saudi Arabia
o Rest of MEA
Product Insights
Software to Capture Largest Market Share Owing to Increasing Penetration of Smartphones/Smart Devices
Based on product, the market can be divided into software & devices.
The software segment occupied the largest market share in 2022 and is expected to carry the trend throughout the forecast timeline. Increased penetration of smartphones and the rising availability of connectivity features have enabled software solutions to gain a solid edge over its counterpart. The advancement of Artificial Intelligence (AI), Machine Learning (ML), and other like-minded entanglements will further progress the market share toward software solutions.
Devices are expected to grow with the fastest growing CAGR growth as a large number of consumers are looking for an alternative route of administration that can substitute their requirements.
The devices market sector is expected to expand at a significant pace throughout the anticipated time frame. The increasing incidence of chronic diseases will drive the researched market, increasing the demand for low-cost therapies such as digital therapeutic devices. Technology-based treatments have become increasingly popular for treating many medical conditions. Consumers in developed countries have a growing understanding of the benefits of cutting-edge medical technologies. This shift in priorities has implications for the medical industry as a whole, as the rising demand for cutting-edge therapies demands new technologies.
Application Insights
Diabetes to Accommodate Largest Market Share Due to the Growing Prevalence of Diabetes Among Youngsters and the Geriatric Population
On the basis of application, the market can be split between diabetes, central nervous system (CNS) disorders, obesity, cardiovascular disease (CVD), chronic respiratory disorders, smoking cessation, substance use & addiction management, medication adherence, and others.
Diabetes is expected to dominate the largest market share during the coming years. Factors contributing to the excessive segmental growth can be cited as the rising prevalence of diabetes among the population, with Type 2 diabetes showing a towering growth over its younger sibling. Additionally, over the years, a systematic trend of undiagnosed diabetes cases was found to be forthcoming, pushing the segmental value of the latter towards an inflated state. Obesity will also exhibit a steady market growth over the forecast as changing eating habits contested by rising consumption of packaged foods containing higher fat will be noted.
During the foreseeable future, CVDs are projected to expand rapidly. The increasing use of digital therapeutics for treating respiratory disorders is a major factor in the market's growth. The advent of digital therapeutics may drastically alter asthma and chronic obstructive pulmonary disease treatment. This is essential because complying with medication is a significant challenge when dealing with respiratory disorders. Effective responses to this problem can be obtained through digital therapeutics.
Regional Insights
North America to Tower Global Market Domination due to Rising Investments
Based on region, the market can be split between North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
North America is expected to regain the bulk of the market share after its previous supremacy over the global digital therapeutics market due to an influx of startups catering towards providing a berth of services and increasing investments to improve infrastructural needs. Additionally, improvements in the United States aimed at improving reimbursement policies will turn the tide towards uplifting consumers’ confidence and inclination regarding digital therapeutics. North America further favors a rising geriatric population that converts towards increased digital health product usage. These collective efforts will push the region towards a dominating position during the forecast period.
Europe will clock the second position regarding market share as the region will witness an increased usage of smartphone-based health solutions. Europe also houses some prominent players residing within its boundaries, which is vital as it enjoys the latest product launches at the earliest convenience.
Asia Pacific will witness substantial market share due to improving access to the internet, rising smartphone usage, and growing demand for improved healthcare solutions among its general population.
Digital Therapeutics Industry Analysis
There are a number of powerful rivals in the digital therapeutics market. Competition has stepped up as new competitors flood the market. Companies have partnered with several healthcare providers, employers, payers, and healthcare systems.
Market leaders are concentrating on developing and implementing innovative strategies for increasing their businesses and expanding their market share. In addition, these companies are spending significantly on R&D to secure the largest possible proportion of the digital therapeutics market's profits.
Digital Therapeutics Market Recent Developments
• In June 2022, Pfizer and Sidekick Health announced teaming up to launch a new digital therapeutic solution for patients suffering from atopic dermatitis (AD). This team-up will boost treatment adherence among patients and is one of the latest string of developments in digital therapeutics.
• In June 2022, Kranus Health developed a digital therapeutic solution for treating erectile dysfunction that abstains from any pill usage. They further integrated €6 million in Series A funding for bringing a new medication for ED-related disorders.
Global Digital Therapeutics Market Prominent Players
• Omada Healthcare Inc. (U.S.)
• Noom, Inc. (U.S.)
• CANARY HEALTH (U.S.)
• Welldoc (U.S.)
• Pear Therapeutics, Inc. (U.S.)
• Mango Health (U.S.)
• Cognoa, Inc. (U.S.)
• Click Therapeutics, Inc. (U.S.)
• Mindstrong Health (U.S.)
• Akili Interactive Labs, Inc. (U.S.)
• Happify, Inc. (U.S.)
• ResMed (U.S.)
• Ginger Software (U.S.)
• Others
Frequently Asked Questions (FAQs)
At what rate will the Digital Therapeutics Market Expand?
Objective Market Research says the global Digital Therapeutics Market will increase at a CAGR of 24.8% during the forecast period.
What are the factors driving the global Digital Therapeutics market?
The high prevalence of chronic diseases, the rising need for integrated healthcare systems and patient-centric treatment, and the widespread adoption of smartphones all contribute to the growth of the global Digital Therapeutics market.
Which application accounted for the largest Digital Therapeutics market share?
Diabetes is expected to dominate the largest market share during the forecast period as this disease's prevalence is growing rapidly among the population.
What region holds the major share in the global market scape?
During the projected time frame, North America will dominate the digital therapeutics market due to rising demand for these devices and favorable reimbursement scenarios that prioritize enhancing patients' lives through better monitoring and diagnosis.
Which are the dominating players in the market during the forecast period?
Some of the prominent players in the global Digital Therapeutics market are Omada Healthcare Inc. (U.S.), Noom, Inc. (U.S.), CANARY HEALTH (U.S.), Welldoc (U.S.), Pear Therapeutics Inc. (U.S.), Mango Health (U.S.), Cognoa, Inc. (U.S.), Click Therapeutics, Inc. (U.S.), Mindstrong Health (U.S.), Akili Interactive Labs, Inc. (U.S.), Happify, Inc. (U.S.), ResMed (U.S.), and Ginger Software (U.S.), among others.
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Table of Content
1. Introduction
1.1 Market Definition
1.2 Objective of the Study
1.3 Market Scope
1.4 Years Considered in the Study
1.4.1 Historic Year: 2019-2021
1.4.2 Base Year: 2022
1.4.3 Forecast Period: 2023-2030
1.5 Currency Used in the Study
1.6 Boundaries for the Study
1.7 Collaborators/Stakeholders/Benefactors
2. Research Methodology
2.1 Research Outline
2.2 Data Collection Methods
2.3 Data Sources
2.3.1 Secondary Sources
2.3.1.1 Paid Sources
2.3.1.2 Unpaid Sources
2.3.2 Primary Sources
2.4 Market Estimation Methodology
2.4.1 Top-Down Approach
2.4.2 Bottom-Up Approach
2.5 Data Triangulation
2.6 Assumptions of the Study
2.7 Limitations of the Study
3. Executive Summary
3.1 Market Outlook
3.2 Analysts Perspective
4. Market Overview
4.1 Market Dynamics
4.1.1 Drivers
4.1.1.1. Growing prevalence of chronic disease
4.1.1.2. Technological advancements
4.1.2. Restrain
4.1.2.1. Privacy concerns among the patient population
4.1.3. Opportunities
4.1.3.1. Huge undiagnosed population
4.1.4. Impact of Market Dynamics
4.2. Impact of COVID-19 pandemic
4.3. Value Chain Analysis
4.4. Porter’s Five Forces Analysis
4.4.1. Bargaining Power of Buyers
4.4.2. Bargaining Power of Suppliers
4.4.3. Threat of Substitution
4.4.4. Threat of New Entrants
4.4.5. Competitive Rivalry
5. Global Digital Therapeutics Market Analysis & Forecast, by Product from 2019-2030 (in USD million)
5.1. Software
5.2. Device
6. Global Digital Therapeutics Market Analysis & Forecast, by Application from 2019-2030 (in USD million)
6.1. Diabetes
6.2. Central Nervous System (CNS) Disorders
6.3. Obesity
6.4. Cardiovascular Disease (CVD)
6.5. Chronic Respiratory Disorders
6.6. Smoking Cessation
6.7. Substance Use & Addiction Management
6.8. Medication Adherence
6.9. Others
7. Global Digital Therapeutics Market Analysis & Forecast, by Distribution Channel from 2019-2030 (in USD million)
7.1. B2B
7.1.1. Providers
7.1.2. Payers
7.1.3. Employers
7.1.4. Others
7.2. B2B
7.2.1. Patients
7.2.2. Caregivers
8. Global Digital Therapeutics Market Analysis & Forecast, by Region from 2019-2030 (in USD million)
8.1. North America
8.1.1. North America Digital Therapeutics Market Analysis & Forecast, By Country
8.1.1.1. U.S.
8.1.1.2. Canada
8.1.1.3. Mexico
8.1.2. North America Digital Therapeutics Market Analysis & Forecast, By Product
8.1.3. North America Digital Therapeutics Market Analysis & Forecast, By Application
8.1.4. North America Digital Therapeutics Market Analysis & Forecast, By Distribution Channel
8.2. Europe
8.2.1. Europe Digital Therapeutics Market Analysis & Forecast, By Country
8.2.1.1. Germany
8.2.1.2. UK
8.2.1.3. France
8.2.1.4. Spain
8.2.1.5. Italy
8.2.1.6. Rest of Europe (RoE)
8.2.2. Europe Digital Therapeutics Market Analysis & Forecast, By Product
8.2.3. Europe Digital Therapeutics Market Analysis & Forecast, By Application
8.2.4. Europe Digital Therapeutics Market Analysis & Forecast, By Distribution Channel
8.3. Asia-Pacific (APAC)
8.3.1. Asia-Pacific Digital Therapeutics Market Analysis & Forecast, By Country
8.3.1.1. Japan
8.3.1.2. China
8.3.1.3. India
8.3.1.4. South Korea
8.3.1.5. Rest of the APAC
8.3.2. Asia-Pacific Digital Therapeutics Market Analysis & Forecast, By Product
8.3.3. Asia-Pacific Digital Therapeutics Market Analysis & Forecast, By Application
8.3.4. Asia-Pacific Digital Therapeutics Market Analysis & Forecast, By Distribution Channel
8.4. Latin America
8.4.1. Digital Therapeutics Market Analysis & Forecast, By Country/Region
8.4.1.1. Argentina
8.4.1.2. Brazil
8.4.1.3. Rest of Latin America
8.4.2. Latin America Digital Therapeutics Market Analysis & Forecast, By Product
8.4.3. Latin America Digital Therapeutics Market Analysis & Forecast, By Application
8.4.4. Latin America Digital Therapeutics Market Analysis & Forecast, By Distribution Channel
8.5. Middle East & Africa
8.5.1. Middle East & Africa Digital Therapeutics Market Analysis & Forecast, By Country/Region
8.5.1.1. South Africa
8.5.1.2. UAE
8.5.1.3. Saudi Arabia
8.5.1.4. Rest of Middle East & Africa
8.5.2. Middle East & Africa Digital Therapeutics Market Analysis & Forecast, By Product
8.5.3. Middle East & Africa Digital Therapeutics Market Analysis & Forecast, By Application
8.5.4. Middle East & Africa Digital Therapeutics Market Analysis & Forecast, By Distribution Channel
9. Competitive Landscape
9.1. Market Share Analysis (2022)
9.2. Market Positioning of Top Players (2022)
9.3. Key Developments & Growth Strategies (2020-2022)
9.3.1. Product Launches
9.3.2. Merges, Collaborations & Agreements
9.3.3. Expansion
9.4. SWOT Analysis
10. Company Profiles (Business Overview, Products Offered, Financial Details*, Recent Developments)
10.1. Omada Health Inc (U.S.)
10.1.1. Company Snapshot
10.1.2. Business Overview
10.1.3. Financial Data
10.1.4. Key Products Offered
10.1.5. Recent Developments
10.2. Noom, Inc (U.S.)
10.3. CANARY HEALTH (U.S.)
10.4. Welldoc (U.S.)
10.5. Pear Therapeutics, Inc (U.S.)
10.6. Mango Health (U.S.)
10.7. Cognoa, Inc (U.S.)
10.8. Click Therapeutics, Inc (U.S.)
10.9. Mindstrong Health (U.S.)
10.10. Akili Interactive Labs, Inc (U.S.)
10.11. Happify, Inc (U.S.)
10.12. ResMed (U.S.)
10.13. Ginger Software (U.S.)
10.14. Others
11. Appendix
11.1. Currency Exchange Rate to USD
11.2. Abbreviations
* Financial details captured might be subjected to information available and not be given for privately-held companies or for companies that do not report it in the public domain