Digital Therapeutics Market: Current Analysis and Forecast (2021-2027)
$3500 – $6860
Emphasis on Application [Treatment/Care Related Applications (Diabetes, Central Nervous System Disorders, Smoking Cessation, Chronic Respiratory Diseases, Musculoskeletal Disorders, Cardiovascular Disorders, Gastrointestinal Diseases, Rehabilitation & Patient Care, Other Treatment/Care Applications); Preventive Applications (Prediabetes, Obesity, Nutrition, Lifestyle Management, Other Applications)]; Sales Channels [B2B (Payers, Employers, Providers, Pharmaceutical Companies, Others); B2C (Caregivers, Patients)]; and Region & Country.
Digital therapeutics is a branch of digital health delivering the evidence-based therapeutic intervention to patients via high-quality Applications and Software to treat, prevent or manage a wide range of physical, mental, and behavioral health conditions. It utilizes digital health technologies and represents a distinct category of evidence-based products within the broader digital health landscape. Digital therapeutics focuses on those conditions which are poorly addressed by the healthcare system today, including various chronic diseases and neurological disorders. They support patient’s healthcare journey and provide patient’s health data to clinicians and caregivers enabling them to personalize their treatment and meet all the patient’s needs to avoid any complications. In addition to this, it also enables patients to take control of their care alongside the physicians and caregivers.
The rising worldwide demand for digital therapeutics is because of the changing traditional medical protocols and upsurge in venture capital investments. For instance, over the decade, a large share of the overall venture capital investments has been acquired by private digital health companies, moving from just 2% of all venture investment in 2011 to 9% in 2020. Furthermore, the increased focus on preventive healthcare coupled with the surge in chronic disease incidences is driving the growth of digital therapeutics across the world. For instance, according to the centers for disease control and prevention, 6 out of 10 people have a chronic disease and 4 out 10 adults have two or more. In addition to this, according to WHO, 41 million people die every year because of non-communicable diseases accounting for 71% of all deaths all over the world.
The worldwide adoption of virtual and home care health technologies owing to the number of canceled appointments and deferred care amidst the novel coronavirus outbreak has further augmented the worldwide demand for digital therapeutics. For instance, according to the study conducted by American Hospital Association, 4 in 10 adults in the United States deferred their medical treatments and routine checkup due to the COVID-19 pandemic.
Another factor contributing to the growth of the global digital therapeutics market is advancement in medical technology and the need to control the surging cost of medical treatments. From drugs to surgeries, to other medical procedures, nothing costs less than a few lakhs. For instance, In India, the average cost for cancer treatment is 10 lakhs. In addition to this, 1-3.5 lakhs is the average cost for angioplasty procedures in India. These factors are driving the worldwide demand for cost-effective healthcare solutions propelling the growth of the digital therapeutics market globally.
However, some of the restraints in the market include lack of awareness and limited accessibility to digital therapeutics applications/software in developing countries, patient data security and privacy concerns, unstable payment portals, and resistance from conventional healthcare systems are impeding the growth of this market all over the world.
Current and Projected Digital Therapeutics Users, Worldwide, 2020-2025 (in millions)
Fitbit Inc., Medtronic, Omada health, Livongo health, Proteus digital health, pear therapeutics, Propeller health, Virta health, 2morrow, and Kaia health are some of the prominent players operating in the global digital therapeutics market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with innovative products.
Insights Presented in the Report
“Amongst Application, Treatment/care-related applications hold the major share”
Based on applications, the market is divided into treatment/care-related applications and preventive applications. The treatment/care-related applications are further segmented based on the type of disease treated which includes diabetes, central nervous system disorders, smoking cessation, chronic respiratory diseases, musculoskeletal disorders, cardiovascular disorders, gastrointestinal diseases, rehabilitation & patient care, and other applications. In contrast, preventive applications are used for managing conditions like prediabetes, obesity, nutrition, lifestyle management, and other applications.
The treatment/care-related applications segment holds the largest share in the market owing to the rise in incidences of chronic diseases worldwide and the ability of these applications to provide cost-effective health solutions. However, the preventive applications segment is anticipated to grow substantially in the projected timeframe due to government initiatives for preventive healthcare and the rise in awareness to adopt a healthy lifestyle.
“Amongst treatment/care-related applications, Diabetes segment is anticipated to grow at the highest CAGR during the analyzed period”
Based on treatment/care-related applications market is further sub-segmented into diabetes, central nervous system disorders, smoking cessation, chronic respiratory diseases, musculoskeletal disorders, cardiovascular disorders, gastrointestinal diseases, rehabilitation & patient care, and other applications. The diabetes segment held the largest market share of digital therapeutics owing to the growing prevalence of the diabetic population all over the world. For instance, according to a report published in the Journal of American Medical Association, Diabetes affects over 9% of Americans with medical expenses totaling over $100 billion per year. In addition to this, as per World Health Organization, nearly 422 million people across the globe have diabetes, particularly in low and middle-income countries.
“Amongst preventive applications, Obesity segment holds the major share”
The preventive applications segment is further sub-segmented into prediabetes, Obesity, nutrition, lifestyle management, and other preventive applications owing to the increasing burden of chronic diseases and increased focus on preventive healthcare solutions across the world. The obesity segment is anticipated to dominate the market during the forecast period. This is attributable to the growing prevalence of obese and overweight populations across the globe. For instance, according to the data released by the Centers for Disease Control and Prevention(CDC), obesity rates in the United States reached 42.4% for the first time.
“Amongst sales channels, Business-to-business (B2B) segment holds the major share”
Based on sales channels, the digital therapeutics market is divided into business-to-business (B2B) and business-to-customer (B2C). The B2B segment is further sub-segmented into payers, employers, providers, pharmaceutical companies, and others. The B2C segment is also further sub-segmented into caregivers and patients. The B2B segment holds a major share in the market and is expected to grow at the highest CAGR of the digital therapeutics market owing to the rising awareness of the benefits offered by digital therapeutics among payers, employers, providers, and various pharmaceutical companies all over the world.
“Amongst business-to-business, Payers segment is anticipated to grow at the highest CAGR during the analyzed period”
The business-to-business segment is sub-segmented into payer, employers, providers, pharmaceutical companies, and others. The growth of this segment is because of the rising adoption of digital therapeutics in this segment, especially among payers and employers. Apart from this, many pharmaceutical companies are inclining towards digital therapeutics to transform the way they develop or market their products. Owing to this, several mergers and acquisitions are happening among true digital therapeutics companies and pharmaceutical companies. For example, Roche, a Swiss multinational healthcare company has recently purchased mySugr, which seeks to treat diabetes.
“Amongst business-to-customer (B2C), Caregivers segment holds the major share”
Amongst different types of buyers, the B2C segment is further divided into caregivers and patients. The caregivers’ segment dominates the market and is expected to grow at the highest CAGR of the digital therapeutics market owing to several benefits offered to the caregivers by digital therapeutics such as real-time monitoring of their patients and reduced need for frequent intervention of physician in managing people with chronic conditions. Furthermore, the surge in demand for personalized treatments that helps them find the right solutions and the availability of numerous applications offering personalized remote healthcare will further drive the growth of this segment among patients. For example, Talkspace makes therapy available to everyone, no matter who they are or where they live. Patients take an assessment and are matched with one of more than 2,000 licensed therapists enabling them to talk to their therapist via text or chat or set up a video call for longer conversations. Talkspace therapists tailor their approach to each patient and provide personalized care for a variety of mental health conditions.
“North America signifies one of the largest markets of digital therapeutics market”
For a better understanding of the market dynamics of the digital therapeutics market, a detailed analysis was conducted for different regions across the globe including North America (United States, Canada, and the Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of APAC), Rest of World. North America dominated the market and generated revenue of USD XX billion in 2020 owing to the government support for advanced research and development in the field of digital therapeutics and increasing awareness regarding the benefits offered by them. Furthermore, The surging demand for digital therapeutics is due to the growing geriatric population and rise in chronic disease incidences across the region. For instance, 133 million Americans i.e., 45% of the population have at least one chronic disease. In addition to this, Chronic diseases are responsible for seven out of every 10 deaths in the U.S., killing more than 1.7 million Americans every year. However, Asia-pacific regions are identified as emerging markets offering significant growth opportunities for key players owing to the increase in demand for better disease management systems.
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- The study includes market sizing and forecasting analysis validated by authenticated key industry experts
- The report presents a quick review of overall industry performance at one glance
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
- The study comprehensively covers the market across different segments
- Deep dive regional level analysis of the industry
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|1.2||Objective of the Study|
|1.5||Currency Used in Report|
|1.6||Scope of the Digital Therapeutics Market Study|
|2.1||Research Methodology for the Digital Therapeutics Market|
|2.1.1||Main Objective of the Digital Therapeutics Market|
|8.1||Treatment/Care Related Applications|
|8.1.2||Central Nervous System Disorders|
|8.1.4||Chronic Respiratory Diseases|
|8.1.8||Rehabilitation & Patient Care|
|8.1.9||Other Treatment/Care Applications|
|10.1||North America Digital Therapeutics Market|
|10.1.3||Rest of North America|
|10.2||Europe Digital Therapeutics Market|
|10.2.6||Rest of Europe|
|10.3||Asia Pacific Digital Therapeutics Market|
|10.3.4||Rest of Asia Pacific|
|10.4||Rest of World Digital Therapeutics Market|
|15.1||Demand Side Analysis|
|15.2||Supply Side Analysis|
|15.2.1||Top Product Launches|
|15.2.2||Top Business Partnerships|
|15.2.3||Top Business Expansions, Investments and Divestitures|
|15.2.4||Top Merger and Acquisitions|
|17.1||Porter’s Five Forces Analysis|
|17.1.1||Bargaining power of Supplier|
|17.1.2||Bargaining power of Buyer|
|17.1.4||Availability of Substitute|
|17.1.5||Threat of new Entrants|
|17.2.1||Company Shares, By Revenue|
|18.9||Proteus Digital Health|
Analyzing the historical market, estimation of the current market, and forecasting the future market of the global digital therapeutics market were the three major steps undertaken to create and analyze the demand of digital therapeutics for different applications across major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the digital therapeutics sector. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detailed secondary study was conducted to obtain the historical market size of the digital therapeutics market through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the digital therapeutics market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments for major regions. Major segments included in the report are sales channels and application. Further country-level analyses were conducted to evaluate the overall demand of digital therapeutics in every region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of digital therapeutics. Further, we conducted factor analysis using dependent and independent variables such as increasing chronic disease incidence and growing geriatric population. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the digital therapeutics industry across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the digital therapeutics market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e. top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of value (USD) and the adoption rate of digital therapeutics across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the digital therapeutics market in terms of services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the digital therapeutics market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of applications and sales channels of the digital therapeutics market.
Main Objective of the Digital Therapeutics Market Study
The current & future market trends of digital therapeutics were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of digital therapeutics in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of applications and sales channels
- Define and analysis of the regulatory framework for the digital therapeutics industry
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry Analyze the current and forecast market size of the digital therapeutics market for the major region
- Major regions studied in the report include North America (the United States and Canada), Europe (Germany, France, Italy, Spain, and United Kingdom), Asia-Pacific (China, Japan and India), and the Rest of the World
- Company profiles of the digital therapeutics market and the growth strategies adopted by the market players to sustain in the fast-growing market
- Deep dive regional level analysis of the industry