The digital therapeutics market is primarily driven by the need to reduce healthcare costs and grow access to therapeutic options. Digital therapeutics deliver medically approved, evidence-based treatments that are driven by software to prevent, manage, or treat a medical disorder or disease. They are used independently or in combination with medications, devices, or other therapies to optimize patient care and health outcomes. The global digital therapeutics market is estimated to be valued at US$ 6.6 billion in 2024 and is expected to exhibit a CAGR of 20% over the forecast period from 2023 to 2030.
Key Takeaways
Key players operating in the digital therapeutics market include Happify, Inc., 2Morrow, Inc., Akili Interactive Labs, Inc., Click Therapeutics, Inc., and Fitbit, Inc. (Twine Health, Inc.).
Key opportunities in the market:
The use of AI and machine learning presents significant opportunities for digital therapeutic manufacturers to develop more accurate personalized treatment plans. Growing adoption of smartphones and wearables also allows easier access to digital therapeutics.
Global market expansion:
Favorable regulations and reimbursement policies in many countries are encouraging large global companies to invest in digital therapeutic R&D and expand their geographic footprint. Increased collaboration between digital therapeutic players and pharma companies will further accelerate the global adoption of these innovative treatment options.
Market drivers
The growing focus on preventive healthcare to control healthcare expenditure is a major driver for the digital therapeutics market. Chronic diseases require long-term management which makes digital solutions an attractive option compared to traditional treatment models. Furthermore, the ability of digital therapeutics to deliver round-the-clock therapy and monitor health status remotely aids continuous care and management of chronic conditions. This further reduces healthcare costs in the long run.
PEST Analysis
Political: The digital therapeutics market is expected to see positive political environment due to growing healthcare costs and rising prevalence of chronic and lifestyle-induced diseases. Many governments are promoting digital therapeutics adoption to provide affordable and accessible treatment options to citizens.
Economic: The high costs of traditional healthcare and growing affluence is driving individuals to online treatment solutions offered by digital therapeutics. The economic benefits of these technologies in terms of cheaper solutions compared to in-person visits will support market growth.
Social: Growing popularity of self-monitoring and preventive healthcare approaches is boosting the social acceptance of digital therapeutics. The COVID-19 pandemic has further urged individuals to adopt remote healthcare solutions and telemedicine, benefiting the digital therapeutics market.
Technological: Advanced technologies like AI, machine learning, virtual reality, and digital platforms are augmenting digital therapeutic offerings. Connected devices and software are enabling effective remote monitoring and treatment of various physical and mental health conditions via digital means.
Geographical regions where market in terms of value is concentrated:
North America accounts for the largest share of the overall digital therapeutics market, owing to the rising prevalence of chronic diseases, fast adoption of advanced healthcare technologies, and government efforts to curtail healthcare spending in the region.
The fastest growing region for the digital therapeutics market:
The Asia Pacific region is expected to grow at the fastest pace during the forecast period due to increasing internet and smartphone penetration, rising health awareness, growing burden of chronic diseases, and improving healthcare infrastructure and facilities in developing Asian countries.
