Digital Therapeutics Market Trends Report & Size Analysis 2028

Digital Therapeutics Market Size and Forecast to 2028 - COVID-19 Impact and Global Analysis by Application [(Diabetes, Cardiovascular Diseases, Central Nervous System (CNS) Disease, Respiratory Diseases, Smoking Cessation, Musculoskeletal Diseases, and Others] and Distribution Channel (Patients, Providers, Payers, and Employers)

Publication Month : Feb 2022

  • Report Code : TIPHC00002236
  • Category : Healthcare IT
  • Status : Published
  • No. of Pages : 181
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[Research Report] The digital therapeutics market size was valued at US$ 4,226.94 million in 2021 and is projected to reach US$ 18,061.79 million by 2028; it is estimated to register a CAGR of 23.1% from 2022 to 2028.

Analyst’s ViewPoint

The market is likely to be driven by rising smartphone prevalence in developed and emerging nations, the cost-effectiveness of digital health technology for providers and patients, and rising demand for integrated healthcare systems and patient-centric treatment. According to Kepios, there will be 4.27 billion internet users worldwide in April 2021, accounting for more than 60% of the global population. As this number increases, awareness about smart health tracking is expected to improve. Consumers in developed economies are becoming more aware of innovative medical items for treatment of medical disorders. According to the Organisation for Economic Cooperation and Development, healthcare spending as a proportion of GDP climbed significantly in 2020, as the economic condition in several OECD nations worsened and health spending increased. As a result, the preference has shifted towards advanced medical services, including the increased demand for advanced therapeutic devices. Product acceptance is another aspect driving market expansion.

Market Overview

Digital therapeutics provide evidence-based therapeutic intrusions to patients that focus on the treatment of diseases with programs, and management using high-quality software. Digital therapeutics have made progress in the last few years, harnessing technology the supplement or potentially replace traditional clinical therapy. They are used independently or in concert with devices, medications, or other therapies for the optimization of patient care and health outcomes. The key factors contributing to the growth of the digital therapeutics market is the rising prevalence of chronic diseases, concerns regarding the need to reduce healthcare costs, and partnerships and collaborations by companies. However, the growth of the market is hindered by the cyber threat and rise in data security, which limits its potential applications in the medical field.

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Digital Therapeutics Market: Strategic Insights

digital-therapeutics-market
Market Size Value inUS$ 4,226.94 million in 2021
Market Size Value byUS$ 18,061.79 million by 2028
Growth rateCAGR of 23.1% from 2022 to 2028
Forecast Period2022-2028
Base Year2021
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Market Driver

Rising Prevalence of Chronic Diseases to Drive the Digital Therapeutics Market Growth

Chronic diseases, including heart disease, stroke, diabetes, and obesity, account for most of the healthcare costs of any country. According to a report by the World Health Organization (WHO), 463 million adults in the world had diabetes in 2020, and the number is expected to rise to 629 million by 2045. Asia Pacific, Europe, and the Middle East and Africa report a high prevalence of diabetes. The disease is mainly characterized by the inadequate regulation of blood glucose levels due to the body’s inability to produce or effectively utilize the hormone insulin, and has no specialized cure. According to the IDF Diabetes Atlas 2021, published by the International Diabetes Federation, North America reported ~51 million people living with diabetes by 2021, and the number is expected to reach 63 million by 2045. In addition, Southeast Asia records ~16.8% of the global population of diabetic people. By 2035, ~130 million adults in the US population are projected to suffer from some form of CVDs.

The obesity rates are increasing rapidly in developed and developing economies in the world due to sedentary and unhealthy lifestyles. As per data published by the Organization for Economic Co-operation (OECD) in 2017, ~19.5% of the adult population was obese in OECD area. This rate is less than 6% in Korea and Japan, and more than 30% in Hungary, New Zealand, Mexico, and the US. Moreover, the prevalence has increased rapidly in Australia, Canada, Chile, South Africa, and the UK in the last decade, with ~25% or more adults being obese. Obesity levels are anticipated to reach ~47%, ~39%, and ~35% in the US, Mexico, and England, respectively, by 2030.

In order to enhance chronic disease management and offer more treatment options to patients, digital therapeutics help to deliver evidence-based therapeutic solutions. It enable patients to better control their care and provides potential solutions for chronic diseases management, such as diabetes. Hence, the rise in the prevalence of chronic diseases is driving the digital therapeutics market.

 

Segmental Analysis

Application-Based Insights

Based on application, the digital therapeutics market is segmented into respiratory diseases, central nervous system diseases, smoking cessation, musculoskeletal disease, cardiovascular diseases, diabetes, and other applications. In 2021, the diabetes segment held the largest digital therapeutics market share and the same segment is anticipated to register the highest CAGR of in the market during the forecast period due to increasing incidences of diabetes across the globe, high prevalence of obesity in developing countries, and significant risks and economic costs associated with obesity-related diseases.

Diabetes is a life-threatening chronic disease with no specialized cure. It is mainly caused by the body’s inability to produce or effectively utilize the hormone insulin. This inability prevents the body from adequately regulating blood glucose levels. There are two types of diabetes namely diabetes type-I also known as diabetes insipidus and diabetes type-II also termed as diabetes mellitus. Incidences and prevalence of diabetes is steadily increasing across the globe. Type 2 diabetes is the most prevalent form of diabetes and has increased alongside cultural and societal changes. In high-income countries up to 91% of adults with the disease have type 2 diabetes. According to International Diabetes Federation (IDF) Atlas 2021, approximately 537 million people are living with diabetes and it is expected to reach 643 million by 2030 across the globe.

Distribution Channel-Based Insights

In terms of distribution channel, the digital therapeutics market is categorized into patients, providers, payers, and employers. The patients segment held the largest digital therapeutics market share in 2021. However, the provider segment is anticipated to register the highest CAGR during the forecast period.

Digital Therapeutics Market, by Application – 2021 and 2028

Regional Analysis

North America held the largest market share for the digital therapeutics market in 2021 and expected to retain its market position during the forecast period. The factors enabling the North American market growth include the increasing need to reduce healthcare cost, stringent healthcare regulations, growing competition in the healthcare industry, and rapid technological innovations. Moreover, the presence of large healthcare businesses and the growing usage of Digital Therapeutics is propelling the market's expansion in this region. In North America, the US records the maximum digital therapeutics market share. Digital healthcare is booming in US and a number of factors such as ageing population, rising prevalence of chronic diseases, regulatory changes and shift towards value based care is supporting this growing penetration of digital health in the day to day lives.

 

Propeller Health, Canary Health Inc., NOOM INC., 2Morrow Inc, Teladoc Health, Welldoc Inc, FITBIT Inc, OMADA Health, Mango Health, Pear Therapeutics Inc, and Happify Health are among the leading players operating in the global digital therapeutics market growth. Several other essential market players were analyzed for a holistic view of the market and its ecosystem. The report provides detailed market insights, which help the key players strategize their market growth. A few developments are mentioned below:

  • In November 2021, Pear Therapeutics, Inc. announced that it had received Breakthrough Device Designation from the U.S. Food and Drug Administration (FDA) for its reSET-A PDT product candidate designed for the treatment of alcohol use disorder (AUD). reSET-A potentially expands Pear’s addiction franchise, including FDA-authorized products to treat substance use disorder (SUD) and opioid use disorder (OUD).
  • In September 2020, Welldoc announced the receipt of its ninth 510(k) clearance from the Food and Drug Administration (FDA) for its award-winning diabetes platform, BlueStar. The new approval expands insulin dosing support to most types of insulin, including Bolus and Premixed Insulin titration for type 2 diabetes.
  • In May 2021, Teladoc Health, Inc. announced the launch of myStrength Complete, an integrated mental health service providing personalized, targeted care to consumers in a single, comprehensive experience.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Application, and Distribution Channel

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, RoAPAC, RoE, RoMEA, RoSCAM, Saudi Arabia, South Africa, South Korea, Spain, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


Which segment is dominating the digital therapeutics market?

The global digital therapeutics market, based on application, is segmented into diabetes, cardiovascular diseases, central nervous system (CNS) disease, respiratory diseases, smoking cessation, musculoskeletal diseases, and others. The diabetes segment held the largest share of the market in 2021 and the same segment registered the highest CAGR during the forecast period.

What are the driving factors for the digital therapeutics market across the country?

Factors such as the rising prevalence of chronic diseases and the growing need to reduce healthcare costs are driving the digital therapeutics market. However, cyber threats and risks related to data security are hampering the market growth.

What is the digital therapeutics market?

Digital therapeutics provide evidence-based therapeutic intrusions to patients that focus on the treatment of diseases with the programs by using the high-quality software. Digital therapeutics have made progress in the last few years, harnessing technology for the supplement or potentially replacing traditional clinical therapy. They are used independently or with devices and medications for the optimization of patient care and health outcomes.

Who are the major players in the digital therapeutics market?

The digital therapeutics market majorly consists of the players such as Propeller Health; Canary Health, Inc.; NOOM, INC.; 2Morrow, Inc.; Teladoc Health; Welldoc, Inc.; FITBIT, Inc.; OMADA Health; Mango Health; Pear Therapeutics, Inc.; and Happify Health.

The List of Companies - Digital Therapeutics Market

  1. Propeller Health
  2. Canary Health
  3. NOOM, INC.
  4. 2MORROW, INC.
  5. Teladoc Health
  6. Welldoc, Inc.
  7. FITBIT, INC.
  8. OMADA Health
  9. Mango Health
  10. Pear Therapeutics, Inc.
  11. HAPPIFY Health.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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