Digital Therapeutics Market Analysis

Global Digital Therapeutics Market Overview

Digital Therapeutics Market Size was valued at USD 7.92 Billion in 2023. The Global Digital Therapeutics industry is projected to grow from USD 9.59 Billion in 2024 to USD 45.69 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.55% during the forecast period (2024 - 2032).

With the rapidly soaring worldwide geriatric populace, chronic disorders will continue to surge in the next several years. These are the key market drivers enhancing the market growth.

Source Secondary Research, Primary Research, MRFR Database, and Analyst Review

In October 2023, Better Therapeutics, Inc. launched a diabetes digital therapeutic platform AspyreRx. The latter is designed to meet patients’ needs in managing their diabetes.

In August 2023, BlueStar was granted its tenth FDA approval by Welldoc, Inc., for a diabetes digital health solution.

In August 2023, Mahana Therapeutics signed an agreement with Bayer's Consumer Health division to sell digital therapeutics that will help people take charge of their health through technology systems.

In July 2023, Big Health announced the acquisition of Limbix aiming at building a portfolio which include SparkRx as part of its effort to treat teenagers suffering from depression and anxiety disorder.

Kaia Health launched Angela in June 2023, and it’s designed to be HIPAA-compliant AI powered voice-based digital care assistant, companion and guide that aims to improve the overall physical therapy experience on patients.

In February 2022 Biofourmis Care was introduced by Biofourmis; this product is a remote service for monitoring chronic conditions. There were also other services available such as automated medication management to allow adjustment of prescription medications remotely by care teams towards personalized optimal therapies. This strategic launch helped the company to improve health outcomes in the market and reduce total cost of care among patients, thereby gaining significant industry revenue.

Welldoc has partnered with Dexcom since April 2022 enabling BlueStar provide better healthcare delivery for individuals with Type-2 Diabetes. By doing so they brought together two aspects – glucose tracking and lifestyle choices impacts using one new app. While users can monitor multiple areas of their well-being, they can also share more information with care team members.

Pear Therapeutics cooperated with Tufts Health Plan and Spectrum Health Systems in March 2022 wherein tests for F.D.A approved digital Therapeutics meant for use by substance users are targeted at helping them recover effectively. This may encompass creating solutions to bring in more treatment access and care innovation journeys ensuring that resources and treatments are available for a recovery journey from substance use disorder.

June 2022: IQVIA, a company specialising in data science, and EMIS Health, a primary care software provider based in Leeds, will collaborate to enable general practitioners in England to electronically "prescribe" applications to patients, provided that the applications have undergone validation in accordance with NHS criteria. As part of the agreement, IQVIA will contribute to the EMIS App Library's content by integrating their AppScript digital health prescription and monitoring technology with the EMIS Web clinical system. Presently, the library offers nine applications that are accessible nationwide, comprising Pzizz, ReacT2D, and several others that were specifically commissioned for each region. 

Digital therapy products ought to be electronically prescribable by clinicians in the same manner as pharmaceuticals. This would be of immense value to the company. Despite not necessarily requiring a prescription, numerous individuals still derive substantial benefits from the advice of a clinician. An increasing number of these items are in fact prescription-only. 

May 2022: The developers of the widely used meditation and mindfulness software Headspace disclosed the existence of Headspace Health, a digital health subsidiary. The principal aim of the subsidiary is to create a cutting-edge application for prescription meditation. The inception of Headspace Health signifies a significant turning point in the extensive integration of meditation and healthcare. Many medical professionals have long relied on Headspace; they are now at the forefront of an effort to legitimize and offer prescription meditation remedies for physical ailments. Initial randomized control studies conducted by Headspace Health will concentrate on a particular condition. 

Digital Therapeutics Market Trends

• Growing geriatric population degeneration boosts the market growth.

One of the main elements boosting demand for digital therapies is the rising worldwide geriatric population. By 2050, the United Nations projects that there will be 2.1 billion individuals worldwide who are 60 or older. The need for digital medicines is growing as the prevalence of diseases, including obesity, cancer, and diabetes, rises among people over 60. As a result, the market for digital therapies is expected to grow throughout the forecast period due to the growing elderly population.

In numerous nations, various health applications need more authorization, which raises concerns about product and data quality, patient privacy, security, and responsible data usage. Digital therapy providers have access to the patient's information but are not permitted to disclose it to anyone who is not helping the patient with their treatment. Yet, with digital health technology to integrate data, any healthcare professional not participating in the patient's treatment program will have access to the patient's information. As a result, during the anticipated timeframe, the market for digital therapies would have slower growth due to data privacy issues.

Therefore, such medical condition as people with diabetes has enhanced the market CAGR of Digital Therapeutics across the globe in recent years.

However, there have been significant advances in treatment innovations to cater to the demand. For instance, several introductions of biomaterial Digital Therapeutic implants are another factor driving the growth of the Digital Therapeutics market revenue.

Digital Therapeutics Market Segment Insights

Digital Therapeutic  By Product Type Insights

The market segments of Digital Therapeutics , based on product type includes Software, Devices and Others. The software segment captured a significant market share of digital therapeutics based on the product type for 2022 and is projected to register the fastest growth over the analysis timeframe. This is attributed to the increased penetration of smart devices and phones in developing regions. Increasing demand for cutting the cost of healthcare facilities across the globe, along with the integration of advanced technologies such as Artificial intelligence (AI) and Machine Learning (ML) in digital therapeutic apps, are the primary factors that drive the growth of the market revenue of Digital Therapeutics software segment.

Some market players are effectively expanding their product pipeline for machine learning to offer a more personalized and advanced Prescription Digital Therapeutic (PDT) platform. For example, in January 2020, Pear Therapeutics Inc., one of the leading solutions providers for Prescription Digital Therapeutics (PDTs), announced entering into agreements with multiple technology innovators that include Winterlight Labs, Inc., Firsthand Technology, Inc., NeuroLex Laboratories, Inc., and many others. The deal helps the company to bolster its PDT platform by incorporating a machine learning algorithm.

April 2022 Welldoc partnered with Dexcom, which helped provide BlueStar with a single platform for improved health for people with Type-2 Diabetes. This partnership brought together the two most challenging and independent elements of diabetes management – glucose monitoring and the impact of lifestyle choices through a new app experience. Users can manage multiple facets of their health while improving data sharing with their care team.

March 2022Tufts Health Plan and Spectrum Health Systems collaborated with Pear Therapeutics to test F.D.A. with approved digital Therapeutics to assist people with substance use disorders and improvise their recovery journeys. It will be executed by providing solutions for improved treatment access and care innovation journeys to ensure access to the resources and treatments needed to support a recovery journey from substance use disorder.

Figure 1 Digital Therapeutics Market, by Product Type ,2022 & 2032 (USD Billion)

Source Secondary Research, Primary Research, MRFR Database, and Analyst Review

Digital Therapeutic By Application Insights

The Digital Therapeutics market data has been bifurcated by Application into Cardiovascular Diseases, Obesity, Diabetes, Respiratory Diseases, Smoking Cessation, Others. The Diabetes held a steady CAGR during 2022 and led the total market. According to the International Diabetes Federation (I.D.F. ), by 2045, there will be 783 million adults worldwide who have diabetes, up from 536 million in 2021. The percentage of persons with type 2 diabetes is rising worldwide, and in low-income nations, where 1 in 5 people over 65 have the disease, 79% of adults with the disease survive. Is brought on by the rise in obesity, the financial burden of therapy, and the price of and investments in the market for digital medicines.

June 2020 MedRhythms, a Maine-based digital therapeutics company, received Food and Drug Administration clearance because of its patented-digital-therapeutic that uses sensors, music, and software for the treatment of chronic stroke walking deficits; these impairments are strongly linked to the risk of falling, lack of independence, and decreased quality of life and to address a significant unmet needs in healthcare.

February 2022 DynamiCare Health Inc., a digital therapeutics company, received Breakthrough Device Designation for DCH-001 from the U.S. Food and Drug Administration (F.D.A.) to treat tobacco use disorder complicating pregnancy and childbirth. This approval has further broadened the growth opportunity for the Digital Therapeutic industry.

Digital Therapeutic By Sales Channel Insights

Based on sales channels, the Digital Therapeutic industry is divided into B2B, B2C. The B2B segment dominated the overall market with a steady CAGR in the digital therapeutic device market during the estimated period. It is primarily attributed to the increase in awareness among payers, providers, and employers about the benefits of the digital Therapeutics industry and wellness with the inclination of pharmaceutical companies to integrate digital Therapeutics with drug products. On the sales channel, the business-to-customer segment dominated the market of digital therapeutics in 2022 with the highest market share.

Digital Therapeutic Regional Insights

By region, the study providesmarket insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North America Digital Therapeutics market accounted for USD 6.5 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the growing incidence, including the entry of new startups, changes in the reimbursement structure of digital therapeutics, increased investments in digital therapeutics, and growing government initiatives to assist technological developments.

Further, the significant countries studied in the market report are The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2 Digital Therapeutics Market Share By Region 2022 (%)

Source Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Digital Therapeutics market accounts for the second-largest market share due to the availability of cutting-edge treatment facilities, government backing for the growth of the healthcare industry, an aging population, and an increase in the incidence of degenerative disc disease, rheumatoid arthritis, and osteoarthritis. Further, the Germany market of digital therapeutics had the largest market share, and the UK market of digital therapeutics was the fastest-growing market in the European Region.

The Asia-Pacific Digital Therapeutics Market is expected to grow at the fastest CAGR from 2024 to 2032 due to increased healthcare spending and increased awareness amongst people. Moreover, the Japan market of digital therapeutics held the largest market share, and the India Digital Therapeutic  market was the fastest-growing market in the Asia-Pacific region

Digital Therapeutic Key Market Players& Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the market of digital therapeutics grow even more. Market participants are also taking various strategic initiatives to expand their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Digital Therapeutic industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the  Digital Therapeutic industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. The Digital Therapeutic  industry has provided medicine with some of the most significant benefits in recent years. The Digital Therapeutics markets major player such as Proteus Digital Health (US),ellthy Therapeutics (India), propeller Health (US), E (Sweden),ehaVR (US),kili Interactive Labs (US),inge Health (US),etter Therapeutics (US),Irta Health (US),appify (US),indable Health (Germany)and others, are working on expanding the market demand by investing in research and development activities.

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries. The company was founded in 1876 by, and named after, Colonel Eli Lilly, a pharmaceutical chemist.In May 2021, Eli Lilly signed strategic international agreements with four companies to advance connected solutions and streamline diabetes care management for individuals living with the disease outside of the United States and to offer unique diabetes management platforms that will be compatible with Tempo Smart Button and Lilly's Tempo Pen and to support people with diabetes and healthcare professionals.

Novo Nordisk A/S is a Danish multinational pharmaceutical company headquartered in Bagsværd, Denmark, with production facilities in nine countries and affiliates or offices in five countries. In October 2019, Novo Nordisk, a Denmark-based pharmaceutical company, signed a partnership agreement with Noom Inc., a startup company in digital therapeutics. This agreement will help the company to drive a larger pool of customers for its mobile weight management platform. Similarly, in 2017, Oxil, an Australia-based technology company, introduced an app to tackle the increasing cases of obesity across the globe.

Key Companies in the market of digital therapeutics include

• Proteus Digital Health (US)


• Wellthy Therapeutics (India)


• Propeller Health (US)


• SE (Sweden)


• BehaVR (US)


• Akili Interactive Labs (US)


• Hinge Health (US)


• Better Therapeutics (US)


• Virta Health (US)


• Happify (US)


• Mindable Health (Germany)


• Others

Digital Therapeutic Industry Developments

April 2022 Welldoc partnered with Dexcom, which helped provide BlueStar with a single platform for improved health for people with Type-2 Diabetes. This partnership brought together the two most challenging and independent elements of diabetes management – glucose monitoring and the impact of lifestyle choices through a new app experience. Users can manage multiple facets of their health while improving data sharing with their care team.

March 2022 Tufts Health Plan and Spectrum Health Systems collaborated with Pear Therapeutics to test F.D.A. with approved digital Therapeutics to assist people with substance use disorders and improvise their recovery journeys. It will be executed by providing solutions for improved treatment access and care innovation journeys to ensure access to the resources and treatments needed to support a recovery journey from substance use disorder.

Digital Therapeutics Market Segmentation

Digital Therapeutic By Product Type Outlook

• Software


• Devices


• Others

Digital Therapeutic Application Outlook

• Cardiovascular Diseases


• Obesity


• Diabetes


• Respiratory Diseases


• Smoking Cessation


• Others

Digital Therapeutic Sales Channel Outlook

• B2B


• B2C

Digital Therapeutic Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America