U.S. Digital Therapeutics Market Size, Share & Trends Analysis Report By Application (Diabetes, CVD, Obesity, Smoking Cessation, CNS Diseases), By End Use (Patients, Providers), And Segment Forecasts, 2020 - 2027

Report Overview

The U.S. digital therapeutics market size was valued at USD 1.05 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 22.2% from 2020 to 2027. Digital Therapeutics (DTx) deliver a wide range of services, encouraging users to adopt healthy habits and efficiently track and manage their health conditions which is increasing the demand. Continuously changing digital landscape and outbreak COVID 19 pandemic has led to an increase in the adoption. Furthermore, increased use of the internet and smartphones is one of the major factors driving the market growth.

Technological advancements aiming to provide transformational healthcare solutions are further anticipated to assist the market growth in the near future. In June 2020, ATAI Life sciences in an attempt to enter the market; launched IntroSpect Digital Therapeutics platform. The company will provide DTx and precision psychiatry solutions in a probe to combat the burgeoning mental health epidemic.

Increasing number of smartphone users in the U.S. is projected to drive market growth. The country has the highest smartphone and 4G adoption rates. Awareness regarding smart health tracking is also expected to increase due to rapidly rising smart healthcare devices. Digital therapeutics can offer on-demand care to patients, with the ability to diagnose and treat patients earlier. Moreover, biopharmaceutical companies are collaborating with digital therapeutic provides to give patients a better quality of care, thereby propelling the growth of the market.

Despite the advantages of DTx services and a large smartphone user base in the U.S., it never experienced mass consumer adoption before the COVID-19 outbreak. The pandemic created a major growth opportunity for this technology. The Centers for Medicare & Medicaid Services (CMS) and the Food and Drug Administration (FDA) have already mentioned the vital nature of virtual care service in the overall COVID-19 response strategy. Social distancing and self-isolation have resulted in increased anxiety and stress. According to Mental Health America, there was nearly a 19% increase in clinical anxiety in the first week of February 2020, and around a 12% increase in the first two weeks of March.

DTx therapies can help manage these conditions and provide evidence-based solutions. Companies such as BigHealth, Happify, Palo Alto Health Science, and Pear Therapeutics are constantly trying to increase their consumer base and reach out to more patients during this pandemic.

Application Insights

Diabetes dominated the application segment with a revenue share of over 24% in 2019. Diabetes prevalence is growing rapidly and is linked to blindness, heart attack, kidney failure, stroke, and gangrene in severe cases. Digital therapeutics are being used for the management & prevention of diseases by helping patients change their behavior through constant monitoring, improving their health in the long run. On the basis of application, the U.S. digital therapeutics market is segmented into diabetes, obesity, CVD, respiratory diseases, smoking cessation, CNS diseases, and others.

CNS disease segment is expected to showcase the fastest CAGR over the forecast period owing to the increasing incidence of neurological diseases in the country. Alzheimer’s disease, expressive aphasia, degenerative diseases, Huntington’s disease, multiple sclerosis, and Parkinson’s disease are some of the most common neurological diseases that affect a growing proportion of the U.S. Several digital therapeutics companies have been catering to the specific needs of Central Nervous System (CNS) disease patients to reduce anxiety and keep track of daily activities.

The demand has been increased after the nationwide lockdown due to covid-19. According to the KFF tracking poll in March 2020, around 47% of Americans staying at home have reported negative mental health effects. Out of them, over 21% have reported a major negative impact on their mental health. The FDA has released new guidelines for the computerized behavioral therapy and other DTx solutions during this public health emergency which is expected to fuel the growth.

End-use Insights

Patients segment dominated the end-use segment with a share of around 33% in 2019. The increased adoption of these tools can be attributed to their added benefits, one of which is effective health management at an affordable cost. In addition, the presence of advanced healthcare IT solutions and supportive government programs in the country are factors expected to further boost the adoption of digital therapeutics by patients. On the basis of end-use, the market is segmented into patients, providers, payers, employers, and others.

Employer segment is expected to be the fastest-growing sub-segment over the forecast period. Employers are focusing on the management of employee healthcare costs, which is expected to drive segment growth. Moreover, growing awareness through employee healthcare programs is expected to propel the adoption of digital therapeutics for maintaining employee wellbeing. The availability of various mHealth apps, such as Vida Health, used by payers, providers, and employers to monitor chronic conditions such as prediabetes, obesity, hypertension, and mental health issues, is another factor expected to propel market growth.

Key Companies & Market Share Insights

The players are taking strategic initiatives such as product launch, merger and acquisitions, pending FDA approval in order to gain more market share. For instance, in March 2020 USFDA approved Somryst by Pear Therapeutics for chronic insomnia, which includes algorithm-driven sleep restriction, recommendations, and consolidation. In November 2019, Blue Cross Blue Shield of Minnesota announced to provide reimbursement for Omada’s diabetes prevention program to its self-insured payers. In January 2019, Proteus Digital health launched digital oncology medicines to improve the outcomes and treatments of cancer patients, enhancing the company’s market growth. Some of the prominent players in the U.S. digital therapeutics market include:

• Proteus Digital Health, Inc.

• Omada Health, Inc.

• Livongo Health, Inc.

• 2Morrow, Inc.

• Propeller Health

• Fitbit, Inc.

• Canary Health

• Mango Health

• WellDoc, Inc.

• Noom, Inc.

• Pear Therapeutics

• Click Therapeutics, Inc.

• Akili Interactive Labs, Inc.

• Better Therapeutics, LLC

U.S. Digital Therapeutics Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the U.S. digital therapeutics market report on the basis of application and end use.

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Diabetes

  • Obesity

  • CVD

  • Respiratory Diseases

  • Smoking Cessation

  • CNS Disease

  • Others

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Patients

  • Providers

  • Payers

  • Employers

  • Others