Digital Therapeutics Market Size, Share & Trends Analysis Report By Application (Diabetes, Obesity, CVD), By End User (Patients, Providers, Payers, Employers), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global digital therapeutics market size was valued at USD 4.20 billion in 2021 and is estimated to grow at a compound annual growth rate (CAGR) of 26.1% from 2022 to 2030. Increasing smartphone penetration in developed & developing countries, the cost-effectiveness of digital health technology for providers & patients, and increasing demand for integrated healthcare systems & patient-centric care are expected to drive the market. According to Kepios, in April 2021, there were 4.27 billion internet users globally, which is over 60% of the global population. As this number increases, the awareness about smart health tracking is expected to improve. Furthermore, the COVID-19 pandemic, supportive regulatory initiatives & early signs of reimbursement, and increasing prevalence of chronic diseases are also anticipated to fuel the market growth.

The COVID-19 pandemic significantly impacted the market. A major COVID-related driver is a rise in demand for convenient and accessible digital health solutions. The April 2020 guidelines released by the FDA stated that for the duration of the pandemic, it will allow the distribution and use of digital health therapeutic devices for mental health disorders. Providers can, thus, commercialize their solutions without complying with usual regulatory requirements, provided the devices do not create any undue public health emergency. Growing regulatory initiatives are anticipated to propel the standardization and R&D in the market over the forecast period.

For instance, the Software Pre-Cert Pilot Program is part of the Digital Health Innovation Action Plan of the FDA, intended for a more efficient regulatory oversight of Software-based Medical Devices (SaMD) developed by manufacturers. The program is aimed at developing an efficient regulatory oversight for assessing organizations to establish trust that they can develop high-quality SaMD products. As per the 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. Cardiovascular diseases, cancer, diabetes, chronic kidney disease, chronic lung disease, and Alzheimer’s have been identified as the leading causes of death and disability in the country.

Poor nutrition, use of tobacco, alcoholism, and lack of physical exercise further increase the risk of developing a chronic disease. Healthcare costs are impacted exponentially as most chronic diseases do not exist in isolation and a patient often suffers from co-morbidities. Smartphone ownership is even becoming essential with improving global interconnectivity, economically and socially. Smartphone penetration is an important factor related to the growth of the market.

Application Insights

The diabetes application segment accounted for the largest share of more than 28.5% of the global revenue in 2021. Factors driving the segment growth include the increasing prevalence of diabetes and other chronic diseases. Digital therapeutics can assist healthcare providers to assess patients’ lives and improve the course of treatment based on their individual therapeutic needs. According to the CDC, in 2020, nearly 34.2 people were suffering from diabetes and 10.5% of this population was in the U.S.The obesity application segment held the second-largest share in 2021 owing to the growing obese population globally. Digital therapeutics provide cost-effective solutions for the treatment of many chronic diseases, which is expected to fuel the market in near future.

CVDs and smoking cessation, along with obesity, are expected to demonstrate significant growth rates during the forecast period. The rising adoption of digital therapeutic products for managing respiratory diseases is driving the market growth. These products include Hailie by Adherium, Respiro by Amiko, Propeller by Propeller Health, BreatheSmart by Cohero Health, and CareTRx by Teva. Digital therapeutics have the potential to transform the treatment course of COPD and asthma. This is because poor medication adherence is a major issue while treating respiratory diseases. Digital therapeutic solutions can help solve this issue efficiently.

End-user Insights

On the basis of end-users, the global market has been further segmented into patients, providers, payers, employers, and others. The patient end-user segment accounted for the largest share of more than 33.0% of the global revenue in 2021. This growth was mainly due to the increased adoption of digital therapeutic solutions by patients. Patients are primary users of therapeutic healthcare applications and programs. With the growing number of patients suffering from chronic conditions, the demand for digital therapeutics is increasing.

Growth of the providers' end-user segment, on the other hand, can be attributed to more providers leveraging digital therapeutics to deliver & support therapies that are clinically proven, outside of a care setting, in addition to providing reliable patient engagement. Payers are also becoming increasingly interested in covering digital therapeutics, and the segment is showing a significant scope for growth. Payers are encouraged to undertake initiatives by business models that facilitate adherence and enhance efficacy while reducing costs.

Regional Insights

On the basis of geographies, the global market has been divided into North America, Asia Pacific, Europe, Latin America, and Middle East and Africa. North America accounted for the largest share of more than 41% of the global revenue in 2021. This is owing to various factors, such as increased use of digital health products and favorable reimbursement scenarios that focus on improving quality of life through improved tracking & diagnostics. An increase in the prevalence of chronic diseases and the geriatric population in the region is expected to drive the market. Some of the major players in this region are Proteus Digital Health, Inc., Omada Health, Inc., WellDoc, Inc., and Livongo Health, Inc.

Most of these companies are based in the U.S., which further adds to their local dominance. The Asia Pacific region is expected to expand at the fastest growth rate during the projected period. This high growth can be attributed to the increase in demand for effective healthcare, rise in smartphone penetration, and improved access to the internet. Growing demand for personal care devices and related services, as a result of increased government spending on healthcare, is also expected to accelerate market growth.

Key Companies & Market Share Insights

The industry is marked by the presence of various large- and small-scale businesses operators. The market is highly competitive and dominated by key participants that focus on executing innovative strategies like mergers and acquisitions, market penetration, partnerships, and distribution agreements to increase their revenue. For instance, in December 2021, Teladoc expanded its partnership with the National Labor Alliance for offering its full suite of virtual care products and services. These products and services included specialty care, general medical, expert medical services, mental health, virtual primary care programs, and chronic condition management. Some of the key players in the global digital therapeutics market include:

• Omada Health, Inc.

• WellDoc, Inc.

• 2Morrow, Inc.

• Livongo Health, Inc. (Teladoc Health, Inc.)

• Propeller Health

• Fitbit Inc.

• Canary Health

• Mango Health

• Noom, Inc.

• Pear Therapeutics 

Digital Therapeutics Market Report Scope

Segments Covered in the Report

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 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global digital therapeutics market report on the basis of application, end user, and region:

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Diabetes

  • Obesity

  • CVD

  • Respiratory Diseases

  • Smoking Cessation

  • CNS Diseases

  • Others

• End-user Outlook (Revenue, USD Million, 2017 - 2030)

  • Patients

  • Providers

  • Payers

  • Employers

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia