PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1499985
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1499985
Global digital therapeutics market is projected to witness a CAGR of 20.20% during the forecast period 2024-2031F, growing from USD 6.39 billion in 2023 to USD 27.84 billion in 2031F. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.
Software-driven, evidence-based therapeutic treatments for the prevention, management, or treatment of diseases or medical disorders are referred to as "digital therapeutics" or "DTx." These cutting-edge interventions are made to resemble efficient treatment plans. They frequently work in conjunction with drugs, equipment, or other types of therapies. Using state-of-the-art technology, DTX solutions enable patients to adopt therapeutic behaviors that take an active role in their health outcomes. The expanding field of digital therapeutics offers a wide array of enhanced treatment alternatives to physicians, facilitating customized care and tackling a wide range of ailments. Digital medicines have the potential to completely change the way we treat and prevent illnesses, improving patient outcomes and overall healthcare delivery in the process. The market for digital therapeutics is expanding due to several factors, including the growing prevalence of chronic diseases like diabetes and cancer that can be prevented, the desire to reduce healthcare costs, higher investments in digital medications, and an increasing emphasis on preventive healthcare.
The growing emphasis that governments worldwide place on preventative healthcare is one of the main factors propelling the growth of the digital therapeutics industry. Governments are moving away from traditional healthcare techniques and increasing the use rate of these gadgets through the implementation of programmes and procedures. The rising usage of smartphones and tablets is projected to drive the expansion of digital healthcare applications and platforms, which is expected to propel the market over the coming years. The market is projected to develop due to the increased prevalence of chronic diseases and the growing need to control the rising cost of healthcare facilities. In addition, consumers are becoming more accustomed to using digital platforms across various industries, and rising health and fitness consciousness is one of the main drivers of the market's growth.
For instance, in April 2024, medical professionals along with industry experts have extoled the mandatory linking of Central Government Healthcare Scheme (CGHS) beneficiary's IDs with Ayushman Bharat Health Account (ABHA) numbers and have suggested the significance of revolutionizing healthcare accessibility and digital health management. This initiative can reshape the healthcare landscape by offering a seamless integration of healthcare services and enhancing patient-focused care.
Increasing Internet Penetration Leads to Market Growth
The market for digital therapies is predicted to grow dramatically as smartphone and internet adoption increases. Due to its accessibility and convenience, digital and online health technologies are being adopted more and more in digital therapeutics, a newer healthcare discipline that uses them to treat a range of medical and psychological issues. Due to their widespread use, smartphones have been useful and important in this rise by giving these therapies a platform. Avoiding travel for treatments or in-person medical consultations allows patients to obtain therapeutic interventions effortlessly and whenever needed. Moreover, the quick rise in internet usage promotes digital medicines' development and usability. High-speed internet access has made it feasible to implement complex apps and algorithms that can instantaneously link patients with medical specialists, offer tailored treatments, and track patients' health in real-time. Therefore, it is anticipated that the market will see a rise in the adoption and demand for digital treatments in line with the increasing prevalence of smartphones and internet connectivity.
The digital therapeutics industry is expected to experience significant expansion, primarily because telehealth and remote patient monitoring (RPM) systems are becoming more widely used. The demand for digital therapies is anticipated to increase as patients and healthcare professionals become more accustomed to using these technologies. Personalized treatment plans, ongoing patient monitoring, and distant consultations are made possible via telehealth and RPM systems. In addition to being convenient, this allows patients to participate actively in their treatment process. Furthermore, in areas where traditional care delivery models frequently falter, such as the management of general well-being, mental health concerns, and chronic illnesses, new technologies hold promise. Consequently, demand for digital therapies is expected to soar as healthcare continues to digitize due to its potential to revolutionize patient experience and care delivery.
For instance, conducting a ground-breaking project in April 2024 to transform healthcare via a digital platform that will allow easy access to medical services throughout the state is the Department of Health and Family Welfare. With the introduction of a digital health service similar to an Aadhaar card, individuals can avail the treatment at any healthcare facility across any state, avoiding any geographical barriers.
Expansion of Market Due to Growing Need for Cost-Effective Healthcare
One problem that most of the population faces is the rising cost of healthcare. The need for more affordable healthcare is increasing as costs keep rising, which is expected to drive the demand for digital therapies. Digital therapies are a new healthcare service that is becoming increasingly popular. They are used to treat medical diseases economically. By utilizing digital tools and technologies, these health solutions aim to prevent, manage, or treat various behavioral, mental, and physical health issues. These solutions are especially attractive since they can improve access to care while remaining cost-effective. Digital therapies have a remarkable potential to lower healthcare delivery costs. They may lessen the need for in-person consultations by substituting them with digital consultations, which are more economical and require less time. Digital medicines can also offer real-time feedback and monitoring, facilitating early intervention and minimizing the need for expensive hospital stays or treatments. The need for these creative, economical solutions is predicted to soar worldwide as healthcare expenses keep rising.
For instance, in July 2022, Cencora, Inc. announced the launch of DTx Connect, a platform that combines ordering, dispensing, and fulfillment seamlessly to facilitate patient access to digital therapies and diagnostics from the comfort of their homes requested by physicians. Doctors can easily access prescription and non-prescription software through the platform's integration with electronic medical records (EMR).
Increasing Dominance of Treatment/Care Application Segment to Fuel Market Growth
As per the most recent trends in the digital therapeutics market, the treatment/care application segment is expected to hold a substantial proportion. A wide range of medical illnesses, such as substance misuse, mental health disorders, diabetes, respiratory disorders, and cardiovascular diseases, can be treated and cared for with software-based interventions. The market is being driven by an increase in the need for effective and convenient treatment alternatives due to a global rise in the prevalence of chronic illnesses. Digital therapeutics' personalized interventions can support patients in managing their diseases, keeping an eye on their health, and adhering to their treatment plans. These tactics can range from medication reminders and symptom monitoring to online coaching and cognitive behavioral therapy. Patients can now receive care and treatment at their fingertips because of technological advancements like wearables and smartphone applications. By offering personalized suggestions, educational resources, and instantaneous feedback, these digital solutions empower individuals to participate actively in their healthcare.
For instance, in June 2023, Spokane Regional Health District (SRHD) released a new app called 2Morrow Health Inc., a product of the Washington State Department. The app assists users in making a strategy to help them manage smoking or vaping by providing tools that can control cravings and monitor their progress toward quitting.
Similarly, in March 2022, Curebase, Inc. and Blue Note Therapeutics, Inc. partnered to conduct a home-based clinical trial of prescription digital therapeutics to help people with cancer enhance their results and improve their mental health.
North America to Dominate the Digital Therapeutics Market
North America is anticipated to hold the greatest proportion of the digital therapeutics market. The region's market dynamics are being fueled by increased R&D spending. North America, especially the United States, is renowned for its technological and digital innovation breakthroughs. The area is well-suited for creating and using digital medicine solutions due to its strong infrastructure, high degree of digital literacy, and supportive environment. Increased financing for digital pharmaceuticals is driving North American market numbers. Government initiatives, venture capital firms, and private equity funds are assisting in developing and localizing digital therapies. The United States is promoting partnerships among academic institutions, healthcare providers, and firms that develop digital therapies. Consequently, the growth in partnerships between digital therapeutics startups, major pharmaceutical corporations, and technology firms is what is propelling the digital therapeutics market in North America. Digital treatments are being used by patients, payers, and healthcare professionals at a growing rate in North America. The area boasts a culture that embraces technology to improve healthcare and a high level of digital literacy. In the United States, a clear regulatory framework for digital therapies has been established. Digital therapy evaluation and approval follow protocols and rules set by the Food and Drug Administration (FDA). This regulatory clarity makes it easier and more confident for digital therapeutics businesses to enter the market. For instance, Vida Health, Inc. and Capital Rx, LLC collaborated to launch Rx Activate, a high-touch chronic illness treatment program, in November 2023 in New York.
Similarly, Vida Health, Inc. and Withings Health Solutions partnered in November 2023 to improve virtual cardiometabolic care with the integration of potent health monitors in Boston.
Future Market Scenario (2024-2031F)
One of the main factors contributing to the anticipated growth of the global digital therapeutics market is the increasing prevalence of chronic disorders, increasing geriatric population and increasing demand for affordable healthcare services. Rising internet penetration and involvement of people with technology are also factors that will always propel the market growth in the future. Given that technology is advancing, cutting-edge technology in the area can also be expected. Players in this market are expanding at an unparalleled rate, introducing cost-effective and efficient technologies. For instance, Better Therapeutics, Inc. announced in October 2023 that AspyreRx, the first cognitive behavioral therapy (CBT) app, would go on sale for the treatment of adult patients with type 2 diabetes (T2D).
Key Players Landscape and Outlook
Several companies such as Noom, Inc., Kaia Health Software, Inc., Welldoc, Inc., Better Therapeutics, Inc., Vida Health, Inc., 2Morrow Health Inc., Omada Health, Inc., Akili Interactive Labs, Inc., Teladoc Health, Inc., ConigFit Inc., etc., are expanding business by planning and adopting new strategies. They are complying with new strategic initiatives regarding the launches of newly developed digital platforms to help researchers and to bring up their presence in the market. New product launches, agreements based on contracts, acquisitions and mergers, investments and partnerships are a few ways through which they are trying to achieve the same.
To commercialize digital therapies and enable patients to have more control over their own health through digital solutions, Mahana Therapeutics, Inc. and the Consumer Health division of Bayer AG came together into a distribution and marketing partnership in August 2023.
To improve patients' experiences with physical therapy, Kaia Health Software, Inc. introduced Angela in June 2023. Angela is a voice-activated, AI-powered digital care assistant, companion, and guide that complies with Health Insurance Portability and Accountability Act regulations.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.