For a variety of chronic ailments like obesity, diabetes, and mental problems, healthcare businesses offer digital therapies as evidence-based treatment. With digital therapeutics, patients can regularly monitor their health issues and follow the instructions provided in the programs, software, or devices to lessen or control the disease symptoms.
The market worth of digital therapeutics in 2021 was USD 3.12 billion and will reach USD 35.78 billion by 2030 at a 31.4% CAGR during 2021-2030.
Digital therapeutics firms have grown their investments in patient healthcare over the past few years by an average of 40% annually, bringing the total amount invested by 2021 to over USD 1 billion.
The increasing emphasis placed on preventative healthcare by governments worldwide is one of the main factors fuelling the growth of the digital therapeutics industry. Governments are moving away from conventional healthcare practices and putting policies in place to boost the usage of these gadgets.
Market Dynamics
Drivers
Digital therapeutics market share growth is anticipated to be driven by the rapidly rising cases of chronic and lifestyle-related diseases like diabetes and mental disorders among millennials due to lifestyle changes like reduced physical activity and bad food eating habits. Worldwide, a great number of people struggle with various illnesses like high blood pressure. Therefore, digital therapeutics offers these patients the most precise and safe treatment options for preventing diseases.
Restraints
Due to difficulties with product quality, the accuracy of treatment recommendations, data privacy and security, the majority of social healthcare applications do not receive approval from federal initiatives. Additionally, a lack of appropriate healthcare insurance severely hampered the market’s expansion. According to the WHO, almost 50% of the world’s population lacks access to quality medical care. In 2020, about 28.0 million persons were without health insurance globally, or 8.6 percent of the total population.
Opportunities
The increased use of mobile and AI technologies has improved the function of digital therapeutics in the healthcare industry and is thus anticipated to offer the market significant growth prospects in the future. The practice of integrating digital therapeutics with medications for the improvement of patient health outcomes has shown an exponential development rate over the past several years. As a result, Big Pharma like Thermo Fisher, GE Healthcare, Medtronic, and others have been interested in investing in digital therapeutics through strategic partnerships with global internet giants.
Market Segmentation
Application Insights
In 2021, the diabetic application sector accounted for the greatest global revenue share, more than 28.5%. The rising incidence of diabetes and other chronic conditions is one of the factors fuelling the segment’s expansion. Healthcare professionals can use digital therapeutics to help patients’ lifestyles be assessed and treatment plans improved depending on each patient’s unique therapeutic needs.
Due to the increasing number of obese people worldwide in 2021, the obesity application segment had the second-largest share. Digital therapies offer affordable treatments for a variety of chronic ailments, which will drive market growth in the near future.
End User Insights
The global market has been further divided into patients, providers, payers, employers, and others based on end-users. The largest market share was contributed by the patient segment, with 33.0% of the revenue share in 2021. This expansion is mostly due to the expanding use of digital therapeutics solutions by patients more frequently. Patients mostly use therapeutic healthcare applications and programs. The demand for digital treatments is expanding as more individuals are diagnosed with chronic diseases.
Regional Insights
The market has been segmented into Latin America, North America, Asia Pacific, Europe, the Middle East, and Africa based on geography.
North America led the entire market with a revenue share of 41% in 2021. This is due to a number of causes, including an increase in the usage of digital health goods and advantageous reimbursement situations that emphasize raising the quality of life through better tracking and diagnostics. An increase in the frequency of chronic diseases and the geriatric population in the area will drive the market. Proteus Digital Health, Inc., Omada Health, Inc., WellDoc, Inc., and Livongo Health, Inc. are a few of the prominent competitors in this area.
Key Players
- Click Therapeutics, Inc.
- Fitbit, Inc. (Twine Health, Inc.)
- 2MORROW, Inc.
- Akili Interactive Labs, Inc.
- Happify, Inc.
- Kaia Health
- Omada Health, Inc.
- Pear Therapeutics, Inc.
- Livongo Health, Inc.
- Voluntis, Inc.
- Welldoc, Inc.
- Medtronic Plc.
- Proteus Digital Health, Inc.
- Resmed, Inc. (Propeller Health)
- f-star therapeutics
- gsk digital therapeutics
- q digital
- omega therapeutics
- g1 therapeutics
- viridian therapeutics
The market worth of digital therapeutics in 2021 was USD 3.12 billion and will reach USD 35.78 billion by 2030 at a 31.4% CAGR during 2021-2030. The market is driven by rising smartphone adoption in both developed and developing nations, the affordability of digital health technology for patients and providers, and rising demand for patient-centered care and integrated healthcare systems.
