Digital Therapeutics Market by Application (Mental health, Diabetes, Respiratory, Neurology, Gastrointestinal, Cardiovascular, Addiction, Rehabilitation, Oncology, Sleep Disorder), Type (Disease Prevention, Management), End User - Global Forecast to 2030

The Digital Therapeutics Market is projected to reach $42.98 billion by 2030, at a CAGR of 31.1% from 2023 to 2030.

Digital therapeutics (DTx) delivers evidence-based therapeutic interventions to prevent, manage, or treat a range of patients' physical, mental, and behavioral conditions using high-quality software programs. Digital therapeutics consists of software-as-a-medical devices that support self-managing symptoms.

Clinicians recommend digital therapeutics due to improved patient outcomes and experience. Behavioral changes and self-management improve patients’ overall experience in care management. Therefore, clinicians encourage using digital therapeutics as it generates additional insights, resulting in a comprehensive patient health condition.

The Rising Prevalence of Chronic Diseases is Driving the Growth of this Market

The prevalence of chronic diseases and conditions such as diabetes, arthritis, and heart disease is rising globally. According to the WHO, in 2020, the prevalence of chronic diseases globally was estimated at 57%. Each year 41 million people succumb to chronic diseases, accounting for 71% of all deaths globally. Growth in the aging population and changes in social behaviors are major factors driving a steady increase in the number of people suffering from chronic diseases. For example, according to the International Diabetes Federation, in 2019, it was estimated that 19.3% of people aged 65 years and above had diabetes. In North America & the Caribbean, the prevalence of diabetes in people aged 65 years and above increased to 27.0% in 2019 from 26.3% in 2017 and is estimated to be 27.3% in 2030. In Europe, the diabetes prevalence in people aged 65 years and above increased to 24.2% in 2019 from 20.4% in 2017 and is estimated to increase to 24.7% in 2030. Thus, the growing prevalence of chronic diseases is driving the adoption of digital therapeutics solutions for regular health monitoring and treatment.

In 2020, the geriatric population accounted for 9.3% of the global population (Source: United Nations). Similarly, according to the United Nations, developing regions such as Asia, Latin America, and Africa have the highest proportions of the population aged 65 years and above, followed by Europe and North America. The geriatric population is prone to several chronic diseases. Therefore, the growing geriatric population, coupled with the rising burden of chronic diseases, is driving the growth of the digital therapeutics market.

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Untapped Markets in Emerging Economies are an Opportunity for the Digital Therapeutics Market

Emerging economies worldwide are fueling the demand for healthcare services and treatments due to rapid urbanization, improving healthcare infrastructure, increasing healthcare expenditures, increasing healthcare insurance coverage, rising disposable incomes, and the growing prevalence of non-communicable and infectious diseases.

According to the World Bank, the total population of emerging countries is projected to reach around 3.4 billion by 2050. Additionally, according to the International Diabetes Federation, globally, the number of people with diabetes aged 20–79 reached 537 million in 2021 from 425 million in 2017. This number is further estimated to reach 643 million by 2030. These factors are expected to boost the demand for digital therapeutics.

Growing urbanization and rising GDP per capita in emerging economies such as South Africa, India, Brazil, China, Bangladesh, and Thailand drive the demand for healthcare services and treatments. Growing urbanization indicates higher wages, a better quality of life, and improved access to healthcare services. Therefore, growing urbanization in emerging economies is expected to drive the development of healthcare systems, increasing people’s access to healthcare services, which, in turn, further leads to the proliferation of digital therapeutics in urban regions.

Thus, considering the overall scenario, factors such as the rising number of people suffering from chronic and infectious diseases, population growth, and increasing urbanization are expected to drive the demand for digital therapeutics solutions in emerging countries, creating significant growth opportunities for the companies operating in this market.

Key Findings in the Digital Therapeutics Market Study:

In 2023, the Disease Management and Treatment DTx Segment is Expected to Dominate this Market

Based on type, the digital therapeutics market is segmented into disease management and treatment DTx and disease prevention DTx. In 2023, the disease management and treatment DTx segment is expected to account for the largest share of the digital therapeutics market. The large market share of this segment is attributed to the increased prevalence of chronic diseases, availability of cost-effective digital therapeutics solutions for disease management, increased investments in digital therapeutics, and the need to lower healthcare costs due to the rising economic burden of healthcare costs.

In 2023, the Mental Health Segment is Expected to Dominate this Market

Based on application, the digital therapeutics market is segmented into mental health, diabetes, cardiovascular diseases, gastrointestinal disorders, neurology, rehabilitation and patient care, oncology, respiratory disorders, addiction management, sleep disorders, smoking cessation, and other applications. In 2023, the mental health segment is expected to account for the largest share of the digital therapeutics market. The large market share of this segment is attributed to the growing burden of mental health issues, Cognitive behavioral therapy-based support for mental health issues, and personalized care to the patients. Additionally, employers are increasingly adopting mental health digital therapeutic platforms to increase employee productivity, thereby driving the market.

The Individual Consumers Segment Is Projected to Register the Highest CAGR During the Forecast Period

The key factors contributing to the growth of this segment are the growing prevalence of chronic diseases among patients, the trend of preventive healthcare, and increased awareness of the self-monitoring of diseases among individual consumers.

North America: Largest Regional Market

The large share of this market is attributed to factors such as the increased prevalence of chronic diseases, surge in usage of digital health products, and rise in awareness among government agencies. Additionally, the number of players operating in the U.S. digital therapeutics market is high. North America has multiple digital therapeutic companies, including 2Morrow Inc. (U.S.), Welldoc, Inc. (U.S.), BigHealth (U.S.), Teladoc Health, Inc. (U.S.), and DarioHealth Corp. (U.S.). Additionally, the U.S. government supported digital therapeutics during the COVID-19 pandemic. For example, in April 2020, US Food and Drug Administration (FDA) eased certain premarket requirements for smartphone apps and programs specifically designed to support the treatment of conditions such as anxiety, obsessive-compulsive disorder, insomnia, and depression. These factors have contributed significantly to the large market share of this region in the global digital therapeutics market.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategic developments that led market participants to adopt over the past years. The key players operating in the global digital therapeutics market are Noom, Inc. (U.S.), 2Morrow Inc. (U.S.), GAIA AG (Germany), ResMed Inc. (U.S.), Canary Health (U.S.), Welldoc, Inc. (U.S.), DarioHealth Corp. (U.S.), Akili, Inc. (U.S.), Biofourmis Inc. (U.S.), BigHealth (U.S.), Teladoc Health, Inc. (U.S.), Limbix Health, Inc. (U.S.), Kaia Health Software Inc. (Germany), Glooko, Inc. (U.S.), and Virta Health Corp. (U.S.).

Scope of the Report:

Digital Therapeutics Market Assessment, by Type

• Disease Management and Treatment DTx
• Disease Prevention DTx

Digital Therapeutics Market Assessment, by Application

• Mental Health
• Diabetes
• Cardiovascular Diseases
• Gastrointestinal Disorders
• Neurology
• Rehabilitation & patient care
• Oncology
• Respiratory Disorders
• Addiction management 
• Sleep Disorders
• Smoking Cessation
• Other Applications
  (Note: Other applications include medication adherence, eyes & ear diseases, dermatology, infectious and parasitic diseases, and genitourinary diseases, among others.)

Digital Therapeutics Market Assessment, by End User

• Providers
• Individual Consumers
• Employers
• Payers
• Other End Users
  (Note: Other end users include pharmaceutical organizations and government institutes)

Digital Therapeutics Market Assessment, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe (RoE)
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • Rest of Asia-Pacific (RoAPAC)
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America (RoLATAM)
• Middle East & Africa

Key questions answered in the report: