Digital Therapeutics Market Size, Share & Trends Analysis Report By Application (Diabetes, Obesity, CVD, CNS Disease, Respiratory Diseases, Smoking Cessation), By End-use (Patients, Providers, Payers, Employers), And Segment Forecasts, 2021 - 2028

Report Overview

The global digital therapeutics market size was valued at USD 3.5 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 23.1% from 2021 to 2028. A constantly changing digital landscape has led to increased awareness among the general public. In addition, the market is driven by the rising prevalence of chronic diseases and rapid technological advancements. The increased awareness of end-users led by the adoption of digital devices and solutions is expected to propel the market. Consumer mindsets are expected to continue to shift towards digital health and so will their demand for accessible, personalized, and engaging medical solutions.

The increasing smartphone and internet usage among people is another significant technological driver for the market for digital therapeutics. According to a July 2020 report by the India Cellular and Electronics Association, the Indian market is the fastest-growing application market in the world. The country had 500 million smartphone users in 2019 and this number is anticipated to reach 829 million by 2022.

The COVID-19 pandemic significantly impacted the market for digital therapeutics. The major COVID-related driver for the market is the emergence of demand for convenient and accessible digital health solutions. April 2020 guidelines released by the FDA, stated that for the duration of the pandemic, it will allow distribution and use of digital health therapeutic devices for mental health disorders. Providers can thus commercialize their solutions without complying with the usual regulatory requirements, provided such devices don’t create an undue risk in light of the public health emergency.

Mental health is another driver that is anticipated to fuel the growth of the market. The pandemic intensified mental health challenges and uncovered the need for new treatment options. This presents tremendous opportunities for digital therapeutics companies. For example, in November 2020, the U.S. Food and Drug Administration (FDA) gave marketing authorization to Nightware, a digital therapeutics company for the temporary reduction of sleep disturbance in Post-traumatic Stress Disorder (PTSD) patients.

Application Insights

The diabetes segment dominated the market for digital therapeutics and held the largest revenue share of more than 28.0% in 2020. The segment is expected to record the fastest growth during the forecast period. This growth is driven by the rising incidence of diabetes in the global population. According to the International Diabetes Federation (IDF), 463 million people were living with diabetes in 2019 and this number is expected to reach 700 million by 2045. This is estimated to boost demand for related digital therapeutics solutions. For instance, Patients suffering from diabetes require effective management, coaching, and guidance to handle symptoms like polyuria, polydipsia, and polyphagia, and medication reminders.

The obesity segment is anticipated to grab the second-largest share of the market. As per CDC’s National Center for Health Statistics prevalence of obesity in the U.S. was 42.4% in 2017 and 2018. This growing number is expected to fuel segment growth.

End-use Insights

The patients segment dominated the market for digital therapeutics and held the largest revenue share of more than 32.0% in 2020 and is expected to register the highest CAGR during the forecast period. Patients are the primary users of therapeutic healthcare applications and programs. With the burgeoning number of patients suffering from chronic conditions, the demand for digital therapeutics is increasing.

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

Regional Insights

North America held the dominant share of more than 41.0% in the digital therapeutics market in 2020. This growth is attributed to the presence of key players, rising government initiatives, well-developed healthcare infrastructure, and rising prevalence of chronic health issues.

In April 2020, the U.S. FDA released guidelines to expand the availability of digital health therapeutic devices for psychiatric conditions. With this, the FDA intended to support individuals that were following home quarantine orders or practicing social distancing, without the need for in-clinic visits during the COVID-19 public health emergency. This would also ease burdens on healthcare facilities and reduce the risk of exposure to the virus.

In Asia Pacific, the market is expected to register the fastest growth rate over the forecast period, owing to two major factors: a large and comparatively younger population base that converts into a vast target base and rapid urbanization and digitization. In addition, constant reforms in countries to address the lack of proper infrastructure and maintain sustainable growth through financial inclusion are expected to benefit the market. As per India Cellular and Electronics Association 2020 report, 97.0% of the internet users across the country access the internet through mobile devices due to factors such as reduced smartphone prices, increased affordability of mobile data, rise in the number of rural users, and various Government initiatives.

Key Companies & Market Share Insights

Digital therapeutics is currently in a niche stage with homogeneous characteristics. The key players are focused on providing optimum customer value on a dynamic level. For instance, in April 2020, based on the FDA’s loosening of regulations amidst COVID-19, Pear Therapeutics launched Pear-004, a digital therapeutic solution for schizophrenic individuals. Some of the prominent players in the digital therapeutics market include:

• Omada Health, Inc.

• WellDoc, Inc.

• 2Morrow, Inc.

• Livongo Health

• Propeller Health

• Pear Therapeutics

• Twine Health, Inc.

• Canary Health, Inc.

• Noom Health, Inc.

• Mango Health, Inc.

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 2016 to 2028. For the purpose of this report, Grand View Research has segmented the global digital therapeutics market report on the basis of application, end-use, and region:

• Application Outlook (Revenue, USD Million, 2016 - 2028)

  • Diabetes

  • Obesity

  • CVD

  • CNS Disease

  • Respiratory Diseases

  • Smoking Cessation

  • Others

• End-use Outlook (Revenue, USD Million, 2016 - 2028)

  • Patients

  • Providers

  • Payers

  • Employers

  • Others

•  Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • 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