The global digital therapeutics market is projected to reach USD 6.9 billion by 2027 from USD 2.1 billion in 2020; at a CAGR of 26.7 % during the forecast period (2020–2027).The growth of the digital therapeutics market is primarily driven by factors such as government initiatives for preventive healthcare, technological advancements in mobile healthcare, a significant increase in venture capital investments, and the benefits of digital therapeutics, such as the ability to induce behavioural change (an important challenge in healthcare), user-friendliness, patient convenience, and improved drug compliance. On the other hand, a lack of awareness and access to digital therapeutics programs in developing countries, patient data privacy concerns, unstable payment models, and resistance from traditional healthcare providers are challenging the growth of this market to a certain extent.
The global digital therapeutics market is an ever growing and expanding market and encompasses a multitude of current medical devices and technologies. According to Market Research Future (MRFR), the global digital therapeutics market is poised for considerable growth over the forecast period. The market is in its early stage and has been expanding on account of realization of incorporating digital elements into traditional medical devices. Apart from that, various factors are responsible for increasing the traction of digital therapeutics products. Surging healthcare costs have had an imperative influence on the growth of the global digital therapeutics market. In recent years, healthcare costs have climbed to unsustainable levels, led by higher costs for drugs and services. That trajectory, fueled by a rise in global geriatric population has prompted government and private healthcare industry players to embrace advanced digital therapeutics.
The ubiquity of smartphones has brought about a seismic shift in the way consumers are accessing healthcare with the help of their smartphones which provides an excellent platform for delivering advanced digital therapeutics and augments the growth of the global digital therapeutics market. Moreover, digital therapeutics is being progressively leveraged to scale to a large patient population and to improve healthcare outcomes. Management of diabetes and other chronic diseases are areas where digital therapeutics has proved its mettle. Other use cases for digital therapeutics are cancer management, pain management, smoking cessation and tougher therapy areas like Parkinson’s and rise in prevalence of such diseases have amplified the growth of the global digital therapeutics market. Unmanageable doctor to patient ratio and the relative affordability of digital therapeutics has been contributing majorly to the growth of the global digital therapeutics market. On the contrary, digital therapeutics remains a largely unregulated space, and lack of awareness towards digital therapeutics is likely to impede the growth of the market over the forecast period.
The digital therapeutics market is fragmented in nature, with a large number of players, including tier 1 and mid-tier companies competing for market shares. The prominent players in the global digital therapeutics market include Noom (US), Livongo Health (US), Omada Health (US), WellDoc (US), Pear Therapeutics (US), Proteus Digital Health (US), Propeller Health (US), Akili Interactive Labs (US), Better Therapeutics (US), Happify (US), Kaia Health (Germany), Mango Health (US), Click Therapeutics (US), Canary Health (US), Wellthy Therapeutics (India), Cognoa (US), Ayogo Health (Canada), Mindstrong Health (US), 2Morrow (US), and Ginger (US).
The global digital therapeutics market is segmented into North America, Europe, the Asia Pacific, and the RoW. In 2019, North America (US and Canada) held the largest share of the market, followed by Europe. The major factors supporting market growth include the increasing investments in digital therapeutics, the influx of new start-ups, improvements in the reimbursement structure for digital therapeutics, and government initiatives to support technological advancements.
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 are expected to benefit the market.