Digital Therapeutics Market Size, Share and Trends 2024 to 2034

Digital Therapeutics Market Size and Forecast 2024 to 2034

The global digital therapeutics market size accounted for USD 7.88 billion in 2024 and is expected to reach around USD 56.76 billion by 2034, representing a healthy CAGR of 21.83% from 2024 to 2034. The North America digital therapeutics market size reached USD 2.8 billion in 2023.

Digital Therapeutics Market Key Takeaways

• North America contributed the largest market share of 44.03% in 2023.
• By product, the devices segment has held a major market share of 87.38% in 2023.
• By sales channel, the business-to-business (B2B) segment captured the biggest market share of 65.29% in 2023.
• By application, the diabetes application segment held a higher market share of 26.46% in 2023.

U.S. Digital Therapeutics Market Size and Growth 2024-2034

The U.S. digital therapeutics market size was estimated at USD 2.45 billion in 2023 and is predicted to be worth around USD 20.98 billion by 2034, registering a solid CAGR of 21.38% between 2024 and 2034.

North America emerged as a global leader in the global digital therapeutics market with a revenue share of 44.03% in 2023 owing to the increasing number of reforms pertaining to curtail the rising healthcare spending across the region. Furthermore, the region is a hub for a large number of solutions providers for digital therapeutics that again drive the market growth in the region.

The digital therapeutics market expansion in this region is fueled by factors such as the entry of new startups, changes in the reimbursement structure of digital therapeutics, increased investments in digital therapeutics, and growing government initiatives to assist technological developments.

Apart from this, the Asia Pacific expected to witness the fastest growth over the analysis period because of large consumer base along with rising geriatric population in the region. Due to its early acceptance of new and innovative technology, and increased investment through funding, the Asia-Pacific is likely to dominate the market. The investment is related to increased government investment, and mergers and acquisitions.

Digital Therapeutics Market Growth Factors

The patients can receive evidence-based treatment interventions using digital therapies. It is used to manage, prevent, or treat medical conditions using software applications and equipment. To provide patient care and health results, the digital therapeutics software can be used alone or in conjunction with other therapies. 

The rising frequency of preventable chronic disorders such as cancer and diabetes, the need to control healthcare costs, increased investments in digital medicines, and a growing focus on preventive healthcare are all driving the growth of the digital therapeutics market. 

One of the key factors driving the growth of digital therapeutics market is the rising focus on preventative healthcare by governments around the world. The governments are taking steps and implementing programs to increase the rate of use of these devices, which is a shift from the traditional healthcare methods. 

Increasing penetration of digital healthcare applications & platforms because of rapid adoption of smartphones & tablets expected to spur the market growth over the upcoming years.

Rising prevalence of chronic diseases coupled with increasing need to regulate the escalating cost of healthcare facilities is likely to impel the market growth. Further, constantly changing digital platforms in various sectors has grappled consumers towards using of these digital platforms as well as increasing awareness pertaining to health and fitness are the primary factors that boost the market growth over the forthcoming timeframe.

Although digital therapeutics witnesses significant development and numerous advancements, it is still at a niche phase and the application developers face lot of difficulty due to lack of proper monetization strategy. Presently, advertisements along with the paid content are the prime source of revenue generation, yet are insufficient to meet the financial requirements. The aforementioned factors are anticipated to adversely affect the market growth.

Market Scope

Digital Therapeutics Market Dynamics

Drivers:

Growing geriatric population

The growing geriatric population globally is one of the primary factors driving up demand for digital therapeutics. The global population of people aged 60 and up is expected to reach 2.1 billion by 2050, according to the United Nations. People over the age of 60 are more susceptible to illnesses such as obesity, cancer, and diabetes, increasing the demand for digital therapeutics. Thus, during the forecast period, the growing geriatric population is driving the growth of the digital therapeutics market.

Restraints:

Data privacy concerns

The various health applications lack necessary authorization in several countries, raising issues about the product and data quality, patient privacy, security, and data use responsibly. The patient’s information is accessible by digital therapeutics providers, but they are not allowed to share it with anybody who is not involved in the patient’s treatment. However, with the use of digital technologies to integrate data, the patient’s information is at risk of being accessible by any healthcare professional who is not involved in the patient’s treatment program. Thus, the data privacy concerns is hindering the growth of digital therapeutics market during the forecast period.   

Opportunities:

Rising prevalence of chronic diseases

The chronic disease’s high prevalence is a key source of concern for healthcare systems all over the world. The treatment of chronic disorders patients is difficult due to psychological variables influencing the patients. The patients must adapt their behavior as a part of new self-care lifestyle because chronic diseases are generally linked with a high level of unpredictability. Moreover, many chronic diseases and ailments progress with the time, and their prevalence increases as people get older. As a result, chronic problems are likely to increase even more in the coming years as the global senior population continues to grow. As a result, the rising prevalence of chronic diseases is creating lucrative opportunities for the growth of digital therapeutics during the forecast period. 

Challenges:

Lack of consumer awareness

Motivating people to use digital therapeutics and gaining their trust is a major challenge for providers of digital therapeutics. The old age people are more vulnerable to the chronic disorders. Furthermore, the extent to which behavioral change can be observed with digital therapeutics remains unknown.

Product Insights

The devices segment dominated the market in 2023, accounting for 87.38% market share. The segment growth is mainly attributed to the increasing usage of wearable devices and monitoring tools among physicians as well as patients. Digital health devices enable remote healthcare. The rising instances of chronic diseases further contributed to the increased adoption of digital healthcare devices, as some chronic diseases, including diabetes, cardiovascular diseases, and respiratory diseases, require regular monitoring to manage conditions. For instance,

• According to the WHO, cardiovascular diseases (CVDs) are one of the key causes of death across the globe, taking about 17.9 million lives each year.

Global Digital Therapeutics Market Revenue, By Product, 2022-2023(USD Million)

Application Insights

Based on application, the diabetes segment accounted market share of 26.46% in 2023 owing to the rising prevalence of disorders such as diabetes and the rising expenses of treatment.  As per the stats published by American Diabetes Association, around 10.5% of America population suffered from diabetes in 2018 out of which 21% were undiagnosed. In addition, 1.5 Million of new cases are diagnosed with diabetes every year. In the United States, diabetes costs nearly USD 350 Billion including both direct medical cost as well as reduced productivity costs. In order to regulate this, digital therapies are booming with their effectiveness in several aspects.

Apart from this, obesity is the other major concerned disease that expected to exhibit the fastest growth over the forthcoming years. Changing eating habits largely influenced by the western pattern that contains packaged foods with high fat contents are primary cause for increase in the cases of obesity. Furthermore, hectic life style and daily routine reduces the frequency of exercises and daily warm ups that again attributed as the major factor for the collection of fat in body. In order to control this, general public are prominently influenced by the apps related to fitness along with online assistance from concerned doctors, this helps in tracking daily physical activity and health data.

Global Digital Therapeutics Market Revenue, By Application, 2022-2023(USD Million)

Sales Channel Insights

The business-to-business (B2B) segment led the digital therapeutics market in 2023. Digital therapeutics are particularly effective in managing chronic diseases such as diabetes, hypertension, and mental health disorders. B2B customers, such as healthcare providers and employers, face significant costs related to these conditions and thus have a strong incentive to adopt digital therapeutics to manage them more efficiently. Digital therapeutics offer robust data analytics capabilities, providing healthcare providers and employers with actionable insights into patient or employee health trends. This data can be used to personalize treatments, improve health outcomes, and demonstrate the value of these solutions. These solutions are designed to integrate with existing healthcare IT systems, such as EHRs and health information exchanges (HIEs), facilitating seamless data flow and enhancing the overall care delivery process.

Digital Therapeutics Market Companies

• Fitbit Health Solutions
• 2MORROW, Inc.
• Medtronic Plc.
• Livongo Health, Inc.
• Pear Therapeutics, Inc.
• Omada Health, Inc.
• Resmed, Inc. (Propeller Health)
• Proteus Digital Health, Inc.
• Welldoc, Inc.
• Voluntis, Inc.
• Canary Health Inc.
• Noom, Inc.
• Mango Health Inc.
• Dthera Sciences

Recent Developments

• In September 2023, Fitbit introduced Fitbit Charge 6 to track heart rate during workouts.
• In September 2023, 2Morrow and FIT HR entered into a partnership to bring evidence-based digital wellness solutions to more than 120 local and national small to midsize organizations.

Segments Covered in the Report

By Product

• Device
• Software

By Sales Channel

• Business-to-Consumer (B2C)
  • Caregiver
  • Patient
• Business-to-Business (B2B)
  • Healthcare Provider
  • Employer
  • Others

By Application

• Obesity
• Diabetes
• Central Nervous System (CNS) Disease
• Gastrointestinal Disorder (GID)
• Cardiovascular Disease (CVD)
• Smoking Cessation
• Respiratory Disease
• Others

By Regional Outlook

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
• MEA