Digital Therapeutics Market Size, Share & Trends Analysis Report By Application (Diabetes, Obesity, Smoking Cessation, Respiratory Diseases), By End-use (Patients, Providers, Payers, Employers), By Region, And Segment Forecasts, 2024 - 2030

Digital Therapeutics Market Size & Trends

The global digital therapeutics market size was valued at USD 6.2 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 27.2% from 2024 to 2030. This growth is primarily driven by the cost-effectiveness of digital health technology for providers & patients and rising smartphone penetration in developed as well as developing countries. According to Kepios, there were 5 billion internet users in April 2022 around the world, which accounted for 63.0% of the global population. As this figure increases, awareness of smart health tracking is expected to enhance. Further, increasing demand for patient-centric care & integrated healthcare systems are expected to drive the market. Supportive reimbursement, COVID-19 pandemic, early signs of reimbursement, and rising incidence of chronic diseases are also expected to fuel the market growth.

Rise in internet penetration across the globe had a positive impact on the market. According to The Mobile Economy 2022 statistics published by GSM Association, the number of people using mobile services was 5.3 billion in 2021, and the number of distinctive mobile subscribers is expected to rise to 5.7 billion by 2025 (70% of the global population). Penetration of smartphones is also rising significantly. According to the same report, smartphone penetration was 75% in 2021 and is expected to reach 84% by 2025. Consumers' growing use of smartphones is driving the growth of various mHealth applications in market.

COVID-19 notably propelled the rate of change in digital therapeutics by accelerating regulatory flexibility, thus expanding access to digital health products, and fueling patient demand. Pandemic has increased the demand for accessible and convenient digital health solutions. For instance, as per the guidelines released by the FDA in April 2020, FDA stated that for the duration of pandemic, it would enable the use and distribution of digital health therapeutic devices for psychiatric disorders. Thus, vendors can commercialize their solutions without complying with usual regulatory requirements, provided the devices do not create any undue public health emergency.

Market Dynamics

Increasing incidence of chronic diseases significantly contributes to market growth. As per CDC’s National Center for Chronic Disease Prevention and Health Promotion, 6 in 10 American adults suffer from a chronic disease, while 4 out of 10 adults have 2 or more chronic diseases. In February 2022, Chronic Care Complete was launched by Teladoc Health, Inc., that represents the novel solution for complete chronic condition management that aims to improve healthcare outcomes. Moreover, cardiovascular diseases, cancer, diabetes, chronic kidney disease, chronic lung disease, and Alzheimer's have been identified as leading causes of death and disability in the country.

Growing regulatory initiatives are anticipated to propel standardization and R&D in the market over the forecast period. The Software Pre-Cert Pilot Program is part of FDA's Digital Health Innovation Action Plan intended to imply a more efficient governing oversight of software-based medical devices (SaMD) developed by manufacturers. The program aims to develop an efficient regulatory oversight for assessing organizations to establish trust that they can develop high-quality Software-as-a-Medical-Device (SaMD) products. For instance, initiatives, such as National Digital Health Mission (NDHM), are expected to accelerate the adoption rate of e-healthcare model in India.

Application Insights

Based on applications, the market is segmented into diabetes, obesity, CVDs, smoking cessation, CNS disease, and others. The diabetes segment dominated the market with the largest market share of 29.4% in 2023 and is expected to register the fastest CAGR of 28.8% over the forecast period. Factors that drive the segment growth include the growing prevalence of diabetes and other chronic diseases.

The increasing prevalence of diabetes is boosting the need to develop individualized solutions for treating diabetics. According to CDC, as of 2020, nearly 37.3 million (11.3%) people had diabetes in the U.S. Similarly, 96 million people over 18 years were suffering from prediabetes, and 38.0% of the U.S. population. Thus, digital therapeutics makes this process easier by providing a patient-centric approach. Solutions for diabetes provide patients with technology to help keep track of their routines and treatments daily on wearable devices or smartphones.

The obesity segment held the second-largest market share, due to the growing obesity in population globally. Digital therapeutics provide cost-effective solutions for treatment of many chronic diseases, which is expected to fuel the segment growth in the near future. CVDs and smoking cessation, along with obesity, are expected to demonstrate significant growth rates during the forecast period.

End-use Insights

Based on end-use, the market is segmented into providers, patients, employers, payers, and others. The patient segment held the largest market share of 34.08% in 2023, owing to patients' rapid adoption of digital therapeutics. Patients receive evidence-based, personalized care programs. Digital therapeutics can also help improve access to care for people, especially those from rural and remote areas. It can help providers monitor patients in real time and identifies the gap in care and provide timely interventions. It improves the efficiency of care delivery through evidence-based care therapies. These solutions can reduce the need for frequent intervention of physicians in managing people with chronic conditions.

The growth of the providers segment can be attributed to more providers leveraging digital therapeutics to support & deliver therapies that are medically proven, outside of a care setting, in addition to providing reliable patient engagement. Payers are increasingly interested in covering digital therapeutics due to which the segment shows a significant growth scope. Also, they are encouraged to undertake initiatives by business models that facilitate adherence and enhance efficacy while reducing costs.

Regional Insights

North America dominated the market with a revenue share of 40.43% in 2023. The overall market in the region is expected to grow significantly over the forecast period owing to favorable reimbursement scenarios focused on improved tracking and diagnosis, and improved quality of life through increased use of digital health products. Moreover, strategic initiatives undertaken by key players in this region, such as new product launches and mergers & acquisitions, are expected to result in lucrative growth.

Asia Pacific is anticipated to witness substantial growth, with the fastest CAGR of 29.4% over the forecast period due to high demand for IT services and increased government spending on healthcare. Furthermore, demand for healthcare IT systems has been increasing as they enable efficient management of hospitals' clinical, financial, and administrative aspects. A rise in smartphone penetration, an increase in demand for effective healthcare, and improved access to internet are the underlying factors facilitating a rapid increase in Asia Pacific's digital therapeutics industry.

Key Companies & Market Share Insights

The market is highly competitive and is dominated by a few large companies. Participants are adopting various strategies such as mergers, partnerships, collaborations, and acquisitions to enhance their marketplace presence.

Recent Developments

• In October 2023, Better Therapeutics, Inc lanuched AspyreRx, a diabetes digital therapeutic platform. The platform offers a customised experience to assist patients in improving the way they manage their diabetes.

• In August 2023, Welldoc, Inc. announced that it received the 10th FDA approval for its BlueStar diabetes digital health solution.

Digital Therapeutics Market Report Scope 

Global Digital Therapeutics Market Report Segmentation

This report forecasts revenue growth at global, regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global digital therapeutics market report based on application, end-use, and region:

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Diabetes

  • Obesity

  • CVD

  • Respiratory Diseases

  • Smoking Cessation

  • CNS Diseases

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Patients

  • Providers

  • Payers

  • Employers

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Israel

    • Kuwait