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Digital therapeutics deliver therapeutic interventions directly to patients and are designed to prevent, manage, or treat a medical disorder or disease. Digital therapeutics leverage digital and online health technologies to treat medical conditions and promote healthy living. For example, digital therapeutics cover a range of applications including solutions for diabetes, obesity, cardiovascular diseases, and many other clinical areas. These help in enabling individuals to self-manage chronic conditions with digital tools like connected weight scales, blood pressure monitors, and medication reminders to lower costs and improve access to care.
The global digital therapeutics market is estimated to be valued at US$ 6.6 Bn in 2023 and is expected to exhibit a CAGR of 20.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing preference for remote healthcare solutions by patients is expected to drive the market growth during the forecast period. With the rapidly growing geriatric population globally and overburdened healthcare systems, the preference and acceptance for remote healthcare delivery has significantly increased. Digital therapeutics help solve issues like limited access to healthcare in remote areas and high costs associated with in-clinic treatment. In addition, increasing inclination towards self-management of chronic diseases through digital tools will further fuel the digital therapeutics market growth. However, data privacy and security concerns related to healthcare apps and the requirement of informed consent from users can hamper the market growth during the forecast period.
Segment Analysis
The digital therapeutics market can be segmented based on application, sales channel, and therapeutics area. The application-based segments include diabetes, central nervous system (CNS) disease, cardiovascular disease, respiratory disease, smoking cessation, and others. Among these, the diabetes segment dominates with over 25% market share owing to the significant patient pool suffering from diabetes globally.
PEST Analysis
Political: Regulations for data privacy, telemedicine, and drug approval processes related to digital therapeutics impact the market growth. Favorable regulations to promote digital healthcare solutions will boost adoption.
Economic: Growing healthcare costs, rise of value-based care, and focus on preventive healthcare are major drivers. The high costs of traditional therapies increase interest in affordable digital alternatives.
Social: Growing awareness about preventive healthcare management and increased smartphone/internet penetration are key social factors. Self-management of conditions gains acceptance.
Technological: Advancements in AI, machine learning, connected devices, and digital platforms aid development of effective therapeutic solutions. Cloud-computing enables scalability.
Key Takeaways
The global digital therapeutics market is expected to witness high growth at a CAGR of around 20.5% during the forecast period of 2023-2030.
North America dominates with over 35% share and is expected to maintain lead owing to robust digital healthcare infrastructure and early technology adoption. The Asia Pacific region is poised to register fastest growth over 25% CAGR during the forecast period with emerging nations like China and India emerging as lucrative markets.
Key players operating in the digital therapeutics market are Happify, Inc., 2Morrow, Inc., Akili Interactive Labs, Inc., Click Therapeutics, Inc., and Fitbit, Inc. Happify offers digital solutions for depression, anxiety, and other behavioral conditions. 2Morrow focuses on preventing and managing chronic cardiometabolic conditions. Akili provides game-based therapies for cognitive impairment conditions. Click Therapeutics offers prescription digital therapeutics for depression and other behavioral conditions. Fitbit collaborates with healthcare companies to leverage its wearables and platforms for chronic disease management.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
