DIGITAL THERAPEUTICS MARKET: OVERVIEW
As per Roots Analysis, the global digital therapeutics market is estimated to grow from USD 2.83 billion in the current year to USD 19.76 billion by 2035, at a CAGR of 19.32% during the forecast period, till 2035.
The market sizing and opportunity analysis has been segmented across the following parameters:
Type of Solution
- Software Solution
- Gaming Solution
- Combination Solution
Type of Therapy
Purpose of Solution
- Medication Replacement
- Medication Augmentation
Type of Business Model
Therapeutic Area
- Cardiovascular Disorders
- Chronic Pain
- Mental Health Problems
- Metabolic Disorders
- Neurological Disorders
- Respiratory Disorders
- Sleep Disorders
- Substance Use Disorders
- Other Disorders
Key Geographical Regions
- North America
- Europe
- Asia
- Latin America
- Middle East and North Africa
- Rest of the World
DIGITAL THERAPEUTICS MARKET: GROWTH AND TRENDS
Digital health is one of the most promising approaches to improving healthcare, at a global scale. In recent years, digital therapeutics have garnered significant interest from several stakeholders, especially for conditions that remain poorly addressed by pharmacological interventions, including chronic diseases and mental health issues. Moreover, given the ongoing efforts to promote the use of digital health solutions, along with the incorporation of patient centric features and advanced technologies, their adoption rates are anticipated to improve significantly in the long term. On the contrary, low digital literacy rates among patients and staff members are a major concern. With persistent advancements in digital health, hospitals have started taking initiatives to provide sessions to their staff members to spread awareness and implement such digital solutions.
Given the rising popularity of digital therapeutics and the emergence of several novel technologies, digital therapeutics companies are integrating advanced techniques to their respective portfolio to ensure higher adoptions. Driven by the growing awareness among patients and active efforts undertaken by the government, as well as industry stakeholders to meet the existing demand, the digital therapeutics market is expected to witness lucrative growth opportunities.
DIGITAL THERAPEUTICS MARKET: KEY INSIGHTS
The report delves into the current state of the digital therapeutics market and identifies potential growth opportunities within the industry. Some key findings from the report include:
- At present, over 415 digital therapeutics are either commercially available or under development for various target indications; more than 45% of such solutions are offered as standalone software applications.
- Amongst these, 220 digital solutions are focused on women's health; around 30% of such solutions target reproductive health related applications.
- 150+ developers are engaged in the development / evaluation of digital therapeutic solutions, targeting different age groups and a wide range of disease indications.
- In pursuit of gaining a competitive edge, the digital therapeutic solution developers are focused on the integration of advanced features into their respective products and affiliated offerings.
- More than 1.6 million patients have been recruited / enrolled across 500+ clinical trials registered for this novel class of therapies; nearly 40% of such studies are still actively recruiting patients.
- To support the ongoing innovation in this field, several private and public investors have made substantial capital investments, amounting to over USD 8 billion, across ~370 instances.
- Owing to the growing interest and lucrative opportunity associated with this domain, industry stakeholders are actively forging partnerships; ~20% of the deals have been focused on the commercialization of proprietary solutions.
- In order to promote the adoption of their digital health solutions, developers are exploring various marketing strategies that highlight the key features of their products, across a number of platforms.
- Given the rising incidence of chronic clinical conditions and the recent surge in demand for remote and digital health solutions, the market for digital therapeutics is anticipated to grow at a CAGR of ~20%, till 2035.
DIGITAL THERAPEUTICS MARKET: KEY SEGMENTS
Currently, Software Solutions Occupy the Largest Share of the Digital Therapeutics Market
Based on the type of solution, the market is segmented into software solution, gaming solution and combination solution. At present, the software solution segment holds the maximum share of the digital therapeutics market. This trend is unlikely to change in the near future.
Curative Solutions are Likely to Dominate the Digital Therapeutics Market During the Forecast Period
Based on the type of therapy, the market is segmented into curative and preventive solutions. At present, curative solution holds the maximum share within the digital therapeutics market. This trend is likely to remain the same in the forthcoming years.
Medication Replacement Solutions Segment is Likely to Dominate the Digital Therapeutics Market During the Forecast Period
Based on the purpose of solution, the market is segmented into medication replacement solutions and medical augmentation solutions. At present, medication replacement solution holds a larger share of the digital therapeutics market. This trend is likely to remain the same in the coming decade. It is worth highlighting that medical augmentation solution is likely to grow at a relatively higher CAGR.
Currently, B2B Model Occupies the Largest Share of the Digital Therapeutics Market
Based on the business model, the market is segmented into B2B and B2C. It is worth highlighting that majority of the current digital therapeutics market is captured by the B2B model.
Metabolic Disorders Account for the Largest Share of the Digital Therapeutics Market
Based on the target therapeutic area, the market is segmented into cardiovascular disorders, chronic pain, mental health problems, metabolic disorders, neurological disorders respiratory disorders, sleep disorders, substance use disorders and other disorders. While metabolic disorders account for a relatively higher market share, it is worth highlighting that the neurological disorders segment is expected to witness substantial market growth in the coming years.
North America Accounts for the Largest Share of the Market
Based on key geographical regions, the market is segmented into North America, Europe, Asia, Middle East and North Africa, Latin America, and the Rest of the world. The majority share is expected to be captured by developers based in North America. It is worth highlighting that, over the years, the market in Asia is expected to grow at a higher CAGR.
Example Players in the Digital Therapeutics Market
- Ampersand Health
- Akili Interactives
- Better Therapeutics
- Brain+
- Click Therapeutics
- CogniFit
- GAIA
- Healios
- JOGO Health
- Jolly Good
- KORE Digital Health Therapeutics
- Livongo Health
- Lucid
- MedRhythms
- Pear Therapeutics
- Redicare Control
- Susmed
- The Learning Corp
- Voluntis
- WellDoc
Primary Research Overview
The opinions and insights presented in this study were influenced by discussions conducted with multiple stakeholders. The research report features detailed transcripts of interviews held with the following industry stakeholders:
- Chief of Staffs to CEO and Strategy Lead, Ampersand Health
- Ex-Chief Executive Officer, Canary Health
- Marketing Director, Dnurse Technology
- Chief Strategy Officer, EMBR Labs
- Founder and Chief Executive Officer, Exosystems
- Chief Executive Officer, Floreo
- Chief Commercial Officer, GAIA
- Chairman and Chief Executive Officer, Healios
- Co-Founder and President, Joggo Health
- Chief Executive Officer, metaMe Health
- Chief Executive Officer, SelfBack
- Ex-Chief Executive Officer, Somatix
- Chief Executive Officer, Tilak Healthcare
- Chief Executive Officer, Turnaround Health
- Co-Founder and Chief Executive Officer, Vida Health
- Ex-Communication Manager, Voluntis
- Ex-Vice President Marketing, Ex-Senior Manager Consumer Marketing, and Ex-Marketing and Public Relations, Wellthy Therapeutics
- Founder and Chief Executive Officer, Undisclosed
DIGITAL THERAPEUTICS MARKET: RESEARCH COVERAGE
- Market Sizing and Opportunity Analysis: The report features an in-depth analysis of the digital therapeutics market, focusing on key market segments, including [A] type of solution, [B] type of therapy, [C] purpose of solution, [D] type of business model, [E] target therapeutic area and [F] key geographical regions.
- Market Landscape: A comprehensive evaluation of digital therapeutics solutions, considering various parameters, such as [A] status of development, [B] type of solution, [C] type of therapy, [D] purpose of solution, [E] target indication(s), [F] therapeutic area and [G] target population. Additionally, it includes information related to digital therapeutics solution developers, highlighting their [H] year of establishment, [I] company size, [J] type of business model and [K] location of their headquarters.
- Product Competitiveness Analysis: A comprehensive competitive analysis of digital therapeutics solutions, examining factors, such as [A] product portfolio (based on the number of digital therapeutic solutions being developed for that therapeutic area) and [B] key product specific parameters (such as status of development, type of solution, type of therapy, prescription requirement and purpose of solution).
- Company Profiles: In-depth profiles of key industry players that are either offering or engaged in the development of digital therapeutics solutions, focusing on [A] company overviews, [B] product portfolio, [C] recent developments and [D] an informed future outlook.
- Clinical Trials Analysis: Examination of completed, ongoing, and planned clinical studies of various digital therapeutics, based on parameters like [A] trial registration year, [B] trial phase, [C] number of patients enrolled, [D] study design, [E] trial recruitment status and trial focus, [F] type of organization, [G] regional distribution of trials and [H] an insightful clinical end-points analysis (for top ten recent initiated trials for popular therapeutic areas).
- Funding and Investment Analysis: A detailed evaluation of the investments made in the digital therapeutics' market, encompassing grants, debt financing, seed funding, venture series, initial public offering, secondary offerings, private placements and other equity.
- Partnerships and Collaborations: An analysis of partnerships established in this sector, since 2016, covering marketing and distribution agreements, mergers / acquisitions, pilot product offerings, product / technology integration agreements, product / technology licensing agreements, product development agreements, product evaluation agreements, product training agreements, product development agreements, research and development agreements, and commercialization agreements.
- Go-To-Market Strategy: A detailed analysis of various business models and go-to-market strategies adopted by firms engaged in developing digital therapeutics solutions, highlighting details on various channels adopted by the stakeholders in order to raise awareness and offer access to their proprietary products.
- Bowman's Clock Pricing Strategy: A Bowman's clock pricing strategy framework evaluates the competitive position of various companies within this sector by examining their product prices and features. Additionally, it introduces an equation designed to estimate the potential price of digital therapeutics based on their attributes.
KEY QUESTIONS ANSWERED IN THIS REPORT
- How many companies are currently engaged in this market?
- Which are the leading companies in this market?
- What kind of partnership models are commonly adopted by industry stakeholders?
- What factors are likely to influence the evolution of this market?
- What is the current and future market size?
- What is the CAGR of this market?
- How is the current and future market opportunity likely to be distributed across key market segments?
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- The report provides a comprehensive market analysis, offering detailed revenue projections of the overall market and its specific sub-segments. This information is valuable to both established market leaders and emerging entrants.
- Stakeholders can leverage the report to gain a deeper understanding of the competitive dynamics within the market. By analyzing the competitive landscape, businesses can make informed decisions to optimize their market positioning and develop effective go-to-market strategies.
- The report offers stakeholders a comprehensive overview of the market, including key drivers, barriers, opportunities, and challenges. This information empowers stakeholders to stay abreast of market trends and make data-driven decisions to capitalize on growth prospects.
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