Digital Therapeutics Market By Application (Diabetes, Obesity, CVD, CNS Disorder, Respiratory Diseases, Smoking Cessation), By End Use (Patients, Providers, Payers, Employers), And Segment Forecasts, 2018 - 2025

Industry Insights

The global digital therapeutics market size was estimated at USD 1.7 billion in 2016. A constantly changing digital landscape has grappled the general public and has led to increase in awareness related to personal health and fitness. Furthermore, the burden of chronic diseases is huge and requires effective management. Digital therapeutics offer a wide range of services that propel users to embrace healthy habits and efficiently track and manage their conditions. Digital therapeutics is envisaged to become a significant market segment in the coming years.

The increasing smartphone and internet usage among the people is one of the significant drivers for digital therapeutic market. For instance, India was ranked 47th for smartphone penetration in 2013 by Google and 36th in 2015. Another significant factor advocating the popularity of digital therapeutics is the cost saving associated with it. Digital therapeutics allow mobile consultations and efficient management of chronic diseases. Chronic diseases are a major threat to the economy and their growth results in high healthcare costs. Statistics published by the CDC in 2012 state that the number of adults suffering from chronic health conditions in the U.S. accounts to about 50% of the total population, highlighting the increasing importance of chronic disease management.

U.S. digital therapeutics market, by application, 2014 - 2025 (USD million)

Although the digital therapeutics is a growing market, it is still in its niche phase and is affected by the lack of effective monetization strategies faced by application developers. Currently, advertisements and paid content are the most prominent revenue generating models, but are falling short to meet the financial requirements.

Application Insights

The application segment is divided into diabetes, obesity, cardiovascular diseases, central nervous system disease, respiratory diseases, smoking cessation, and others. Diabetes is expected to record the strongest growth owing to its strong market potential. Diabetes causes significant disease burden and despondence among patients who acquire the disease. According to stats, 8.3% of the population of the U.S. is affected by the disease, with 35% of the U.S. adults exhibiting prediabetes symptoms.

Diabetes is expected to register the fastest growth in the coming years because of its high incidence and prevalence. Patients suffering from diabetes require effective management coaching to handle symptoms like polyuria, polydipsia, and polyphagia. Large number of practitioners are using mhealth and have forecasted that diabetes would reach the highest market potential in the span of next 5 years.

End use Insights

The end use segment is categorized into patients, providers, payers, employers, and others. Patients are the primary users of the therapeutic healthcare applications and programs. Chronically ill people require training and guidance, to take proper care of their health and well-being.

Hospitals are expected to grow at the fastest rate due to increased utilization of digital therapeutic applications to deliver affordable urgent care to patients. By using mobile care facilities, hospitals can help patients browse healthcare services and reduce stress levels.

Canada digital therapeutics market share, by end use, 2016 (USD Million)

Regional Insights

The digital therapeutics market by region is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is a major regional segment in digital therapeutic market. Growing number of reforms to curb the increase in healthcare spending in the country coupled with drive to focus on a patient-centric healthcare approach is anticipated to be responsible for the same. Furthermore, North America is a major hub of a large number of digital therapy providers. The U.S. has been reported to spend USD 3 trillion a year on healthcare. In order to curb this expense, there is a dynamic shift in the U.S. healthcare landscape with focus directed toward preventive care, to promote overall patient wellness instead of medical treatment.

Asia Pacific is expected to register fastest growth rate, owing to two major factors: a highly dense population base that converts into a vast target base and rapid urbanization that includes rapidly changing technological landscape. In addition, constant reforms in countries to address lack of proper infrastructure and maintain sustainable growth through financial inclusion is expected to benefit the market.

Competitive Landscape

Some of the key players in this industry include Proteus Digital Health, Inc.; Omada Health, Inc.; WellDoc, Inc.; 2Morrow, Inc.; Livongo Health; Propeller Health; Twine health, Inc.; Canary Health, Inc.; and Mango Health, Inc. Digital therapeutics is currently in a niche stage with homogeneous characteristics. The players are focused on providing optimum customer value on a dynamic level. 

However, growth potential is deemed high in the market, which is characterized by an increasing adoption of therapeutic applications by leading providers to facilitate better healthcare provisions. For instance, Barton Health implemented Proteus Discover, marking the first commercial version of the app in the U.S., focusing on uncontrolled and co-morbid hypertension.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the digital therapeutics market on the basis of application, end use, and region:

• Application Outlook (Revenue, USD Million; 2014 - 2025)

  • Diabetes

  • Obesity

  • CVD

  • CNS Disease

  • Respiratory Diseases

  • Smoking Cessation

  • Others

• End use Outlook (Revenue, USD Million; 2014 - 2025)

  • Patients

  • Providers

  • Payers

  • Employers

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • South Africa