Digital therapeutics comprise digitally delivered interventions used to treat, manage, or prevent diseases through therapeutic outcomes. These therapies employ digital and online health technologies to positively influence health behaviors and treat a wide range of medical conditions. Their use is gaining popularity as they allow remotely delivering therapies and leveraging sensor technologies, smartphones, and software to collect real-time data on patients’ health metrics. 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 key trends:
Growing demand for personalized healthcare solutions has augmented the adoption of digital therapeutics. Personalized digital interventions help design tailored therapeutic programs for individuals based on their clinical profile, lifestyle, and preferences. These solutions analyze patients’ genetic, clinical, and behavioral data to deliver customized treatment plans. They allow remotely monitoring health parameters and adapting digital care plans accordingly. With the ability to integrate genetic and phenotypic data with lifestyle inputs, digital therapies are emerging as an effective way to offer personalized care for chronic conditions, thereby driving the digital therapeutics market growth.
Strength: Digital therapeutics can provide cost-effective treatment solutions with a high level of accessibility and scalability. They also allow continuous monitoring and support for patients.
Weakness: Data privacy and cybersecurity concerns remain due to the use of personal health information. There is also a lack of rigorous evidence for the clinical efficacy and care-coordination benefits of many digital therapeutic products.
Opportunity: The rising burden of chronic diseases and growing geriatric population present a massive market potential for digital therapeutics. Integration of digital therapeutics with traditional care models can widen their scope of delivery.
Threats: Reimbursement challenges and the lack of prescribed status limit monetization opportunities for digital therapeutic firms. Competing with effective conventional therapies for certain conditions is also difficult.
The global digital therapeutics market is expected to witness high growth. The market is estimated to reach a value of US$ 6.6 Billion by 2024 from US$ 2.1 Billion in 2019, registering a CAGR of around 20% during 2019-2024.
Regional analysis – North America dominates the global digital therapeutics market and is expected to continue its dominance over the forecast period. This is attributed to the higher adoption of digital health solutions driven by favorable regulations and increasing investments in this region. However, Asia Pacific is anticipated to witness the fastest growth rate owing to the rising healthcare expenditure and growing internet penetration in developing countries of this region.
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 leading players are focusing on product launches, collaborations, and expansion strategies to strengthen their market position and to tap the high-growth potential markets. For instance, in 2022, Click Therapeutics partnered with Sutter Health to deploy its prescription digital therapeutic for depression in Northern California.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it