In order to improve long-term health outcomes, digital therapeutics is a series of applications that help treat diseases by changing patients' behaviors and providing remote monitoring. Digital treatments encompass various goods, including sensors, wearable technology, and mobile applications.
In 2021, the market for digital therapeutics was worth USD 3.02 billion, and by 2030, it will reach USD 35.78 billion, expanding at a 31.4% CAGR during the forecast period.
Due to the rising use of smartphones and tablets together with healthcare apps, the rise in chronic disease cases, and the growing need to control healthcare expenses, there is an increased need for digital medicines globally. However, the lack of knowledge of digital therapeutics in developing countries and the growing worry over patient data are impeding the market's expansion.
Market Dynamics
Drivers
Digital therapies are in high demand because of their benefits, including their ability to influence behavior, be user-friendly, convenient for patients, and increase drug compliance. The use of healthcare applications to diagnose, treat, and manage illness is spreading along with the proliferation of smartphones and tablets. It allows for the simple recording and monitoring of patient's vital signs without the need for intervention. Mobile consultations are made possible, and chronic disease management is made effective. Digital medicines offer the chance to lengthen product life cycles, distinguish items in development, and close market gaps caused by traditional medication.
Restraints
Due to difficulties with product quality, the accuracy of treatment recommendations, data privacy, and security, the majority of social healthcare applications do not receive approval from federal initiatives. Additionally, the market's expansion is severely hampered by a lack of appropriate healthcare insurance. According to the WHO, almost 50% of the world's population lacks access to quality medical care. In 2020, about 28.0 million persons were without health insurance worldwide or 8.6 percent of the population.
Opportunity
The rising incidence of chronic disease is a major cause of worry for global healthcare systems. As a result, chronic issues will probably worsen in the upcoming years with expanding geriatric population. As a result, during the forecast period, there will be attractive prospects for the expansion of digital therapeutics due to the increased prevalence of chronic diseases.
Market Segmentation
By Product
Based on product type, the software segment held the biggest market share in 2022. This is due to the rising use of smartphones and other smart devices in emerging countries. The main reasons influencing the growth of the software segment are the rising need for healthcare cost reduction around the globe and the incorporation of innovative technologies like Artificial Intelligence & Machine Learning in digital therapeutic apps.
By Application
In 2022, the diabetes segment was the largest market holder, with 29.3% of the revenue share due to the increasing frequency of diseases like diabetes. According to data from the American Diabetes Association, about 10.5% of Americans had diabetes in 2018; 21% went undiagnosed. Additionally, each year 1.5 million new cases of diabetes are diagnosed. Diabetes costs the US economy close to USD 350 billion, including direct medical expenses and lost productivity costs.
In addition, obesity is the second major disease of concern that will rise at the greatest rate in the years to come. The fundamental reason for the rise in obese patients is a change in eating habits influenced by the Western pattern, which includes packaged meals with high-fat contents.
By Sales Channel
With the largest market share in 2022, the business-to-customer sector ruled the global market for digital therapeutics. Chronic conditions like obesity, cancer, diabetes, and high blood pressure are becoming more common. Patients can only manage these conditions by keeping track of their physical data.
Regional Analysis
North America was the market leader for digital therapies in 2022, with a share of 42% due to the growing number of measures aimed at reducing the region's escalating healthcare costs. The introduction of new startups, modifications in the way in which digital therapies are reimbursed, higher investments in digital therapeutics, and expanding government initiatives to support technology advancements are all contributing factors to the market expansion of digital therapeutics in this region.
Key Players
Medtronic Plc.Akili Interactive Labs, Inc.2MORROW, Inc.Pear Therapeutics, Inc.Fitbit, Inc. (Twine Health, Inc.)Click Therapeutics, Inc.Kaia Health Happify, Inc.Livongo Health, Inc.Omada Health, Inc.Resmed, Inc. (Propeller Health)Proteus Digital Health, Inc.Voluntis, Inc.f-star therapeuticsWelldoc, Inc.omega therapeuticsgsk digital therapeuticsg1 therapeuticsviridian therapeuticsq digital
In 2021, the market for digital therapeutics was worth USD 3.02 billion, and by 2030, it will reach USD 35.78 billion, expanding at a 31.4% CAGR during the forecast period. The market for digital therapeutics is being driven by an increase in the prevalence of preventable chronic illnesses, the desire to lower healthcare costs, a greater focus on preventative medicine, and increased investment in digital therapies.
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