Digital therapeutics refer to evidence-based therapeutic interventions driven by high-quality software programs to prevent, manage, or treat a medical disorder or disease. They incorporate advanced digital and mobile technologies to positively influence health-related outcomes for various chronic conditions such as diabetes, obesity, cardiovascular diseases, psychiatric disorders, and others. Digital therapeutics help in improving therapeutic effectiveness, convenience for patients and lowers healthcare costs. They deliver real-time customized recommendations to patients and healthcare providers to actively engage and motivate patients for achieving desired therapeutic goals.
The global digital therapeutics market is estimated to be valued at US$ 6.6 Bn in 2023 and is expected to exhibit a CAGR of 20% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising prevalence of chronic diseases is the major driver of the digital therapeutics market. According to World Health Organization (WHO), chronic diseases accounted for approximately 60% of all deaths globally in 2020. Cardiovascular diseases, cancer, diabetes and respiratory diseases accounted for around 75% of all deaths due to chronic conditions. Digital therapeutics help in better management of such chronic diseases by providing real-time monitoring and recommendations to patients leading to overall improvement in their health outcomes.
The above driver is further strengthened by the ongoing COVID-19 pandemic propelling healthcare systems to look for innovative digital therapeutic solutions. Digital therapeutics have enabled continuous monitoring and disease management of chronic conditions while maintaining social distancing policies during the pandemic. They have proven vital in mitigating avoidable emergency room visits and hospitalizations.
SWOT Analysis
Strength: Digital therapeutics provide personalized treatment and care to patients remotely through digital means. This enables better accessibility and continuity of care. They are cost-effective compared to traditional therapies and reduce healthcare expenses. Advanced technologies powering digital therapeutics like AI and machine learning enable precise analysis of patient health data.
Weakness: Safety, efficacy and quality of some digital therapeutics are still being validated which limits prescribing and adoption. Over-dependence on technologies can impact treatment if systems face outages or cyber threats. Lack of interoperability between different systems poses integration challenges.
Opportunity: Growing burden of chronic diseases worldwide presents a massive market potential for digital therapeutics. Increasing internet and smartphone penetration has enabled access to more users globally. Partnerships between technology and pharma companies can accelerate development and adoption of evidence-based digital therapies.
Threats: Stricter regulations may increase development and compliance costs which small players may find difficult to meet. Data privacy and security concerns can undermine user trust. Established treatment methods and traditional healthcare providers present competition to digital options. Technology changes rapidly which requires continuous investments in R&D.
Key Takeaways
The global digital therapeutics market is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to reach US$ 6.6 Bn by 2024, growing at an estimated CAGR of 20%.
Regional analysis: Asia Pacific region is forecast to witness the highest growth during the forecast period. Rapidly improving digital infrastructure and healthcare systems in developing nations, growing geriatric population susceptible to chronic diseases, and government initiatives promoting digital health are driving the digital therapeutics market in Asia Pacific. China dominates the Asia Pacific digital therapeutics market owing to large patient pool and ongoing advancements in healthcare technologies.
Key players: Key players operating in the digital therapeutics market are Happify, Inc., 2Morrow, Inc., Akili Interactive Labs, Inc., Click Therapeutics, Inc., and Fitbit, Inc. (Twine Health, Inc.). These leaders are focusing on new product launches, partnerships, geographical expansions and mergers & acquisitions to strengthen their market position.
