Digital Therapeutics Market Report, By Product (Device, Software, & Service), By Application (Preventive Applications, Treatment/Care-related Applications, Diabetes, CNS Disorders, Chronic Respiratory Disorders, Musculoskeletal Disorders, Cardiovascular Diseases, Smoking Cessation, Others), and Regions 2024-2032

Market Brief:

"The digital therapeutics market size reached US$ 5.0 Billion in 2023. Looking forward, Reports and Insights expects the market to reach US$ 20.3 Billion by 2032, exhibiting a growth rate (CAGR) of 16.8% during 2024-2032."

Digital therapeutics harness the power of digital technologies, such as mobile apps, wearable sensors, Artificial Intelligence (AI), and cloud computing, to deliver evidence-based interventions that improve patient outcomes. Digital therapeutics continues to gain traction globally, and technological advances and innovations are expected to continue to bring about substantial changes across the global market and competitive arena.

The report provides a comprehensive analysis of the global digital therapeutics market, including growth drivers, challenges, opportunities, and key players shaping the industry. Actionable insights are supported by extensive SWOT analysis, Porter’s five forces analysis, and PEST analysis.

Revenues are provided in detail for previous years in order to showcase the evidence upon which our estimations and forecasts are based. Revenue growth rates and differences, as well as comparisons and relatable data are provided to further support all findings. Data points are provided for each year – from historical to end of forecast period – and this format is followed for each segment region and respective countries, as well as sub-segments and others.

Vital details of major companies in the market are provided in the company profile section of the report. Cover includes financials, recent developments, strategies, product launches, agreements, expansion, mergers & acquisitions, and others.  Drivers, restraints, opportunities, trends, supporting information, data, and statistics and actionable insights are covered and provided extensively across the report in a simple, yet dynamic way to ensure ease of reading and understanding, as well as presenting and maximizing leverage and use.

Digital Therapeutics Market Report Overview:

The global digital therapeutics market research report is segmented on the basis of product type, application, sales channel, and regions and countries. Regional segmentation includes North America (United States and Canada); Europe (Germany, United Kingdom, France, Italy, Spain, Russia, Poland, BENELUX, NORDIC, and Rest of Europe); Asia Pacific (China, India, Japan, South Korea, ASEAN, Australia & New Zealand, & Rest of Asia Pacific); Latin America (Brazil, Mexico, Argentina, & Rest of Latin America); Middle East & Africa (Saudi Arabia, South Africa, United Arab Emirates, Egypt, Israel, and Rest of MEA).

Digital Therapeutics and Market Analysis & Insights

Digital therapeutics encompass a wide range of software applications that leverage technologies like AI, machine learning, and big data analytics to prevent, manage, or treat medical conditions. Market revenue growth is driven by factors such as the increased prevalence of chronic diseases and rising healthcare costs. Digital therapeutics offer personalized interventions, remote monitoring capabilities, and cost-effective alternatives to traditional healthcare services.

Some more detailed insights on the market are provided below:

Some key factors contributing to revenue growth of the global digital therapeutics market include increasing demand for effective chronic disease management solutions, leveraging technological advancements, and creating a favorable environment for adoption and investment.

Significantly high demand from industries such as healthcare, pharmaceuticals, and technology sectors is also supporting market revenue growth to a major extent. Partnerships and collaborations have played a crucial role in gaining a competitive advantage and expanding market share.

Prevalence of Chronic Diseases: Rising prevalence of chronic diseases, such as diabetes, cardiovascular disorders, and mental health conditions, and others is driving demand for digital therapeutics. These solutions offer personalized interventions and remote monitoring capabilities, enabling effective management of chronic conditions and reducing healthcare costs.

Rise in Healthcare Costs: Digital therapeutics provide cost-effective alternatives to traditional healthcare services. By leveraging technology, these interventions help prevent, manage, or treat chronic conditions, thereby reducing the need for costly hospital visits, medical procedures, and medications. They also enable remote monitoring and personalized care, leading to early detection of health issues and timely interventions.

Acceptance and Adoption of Digital Health Solutions: There has been a significant increase in acceptance and adoption rates of digital health solutions by healthcare providers and patients. This trend is driven by advancements in digital technologies, including artificial intelligence, machine learning, and big data analytics, which enable the delivery of personalized and interactive interventions. Digital therapeutics offer convenience, accessibility, and cost-effectiveness, leading to their widespread adoption and driving revenue growth.

Technological Advancements: Rapid advancements in digital technologies have significantly contributed to growth of the digital therapeutics market. The development of mobile apps, wearables, virtual reality, and online platforms has expanded the scope and capabilities of digital therapeutics. These technological advancements enable more effective and personalized interventions, enhanced patient engagement, and improved health outcomes.

Supportive Regulatory Environment: The implementation of favorable regulatory frameworks is another factor driving revenue growth of the digital therapeutics market. Regulatory bodies are recognizing the potential benefits of digital therapeutics in healthcare and are working towards creating guidelines and standards for their development, safety, and effectiveness. The clear regulatory pathways provide assurance to market players and investors, and this is driving investment on innovation and supporting revenue growth of the market.

What Factors Are Restraining Growth of Digital Therapeutics Market? 

Regulatory and Reimbursement Challenges: The global digital therapeutics market faces significant challenges in terms of regulatory and reimbursement policies and norms. As digital therapeutics are relatively new, regulatory bodies are currently in process of establishing proper frameworks to govern their development, safety, and effectiveness. Obtaining regulatory approvals can be a lengthy and complex process, requiring substantial clinical evidence to demonstrate efficacy and safety. Also, reimbursement presents a challenge as traditional reimbursement models may not adequately cover digital therapeutics. Limited understanding of the value and cost-effectiveness of these interventions among payers and insurance companies hinders reimbursement decisions.

Limited Awareness and Understanding: Despite the growing acceptance and adoption of digital health solutions, there is still limited awareness and understanding of digital therapeutics among healthcare providers, patients, and other stakeholders. This lack of awareness can hinder the widespread adoption and utilization of digital therapeutics, thereby restraining market revenue growth. Educating healthcare professionals and patients about the benefits and effectiveness of digital therapeutics is crucial to overcome this challenge.

Data Privacy and Security Concerns: Digital therapeutics rely majorly on the collection and analysis of personal health data. Hence, data privacy and security concerns can act as a barrier to adoption and restrain revenue growth of the market. Patients and healthcare providers are increasingly concerned about the safety and integrity of sensitive health information and the potential misuse. Addressing these concerns through robust data protection measures, compliance with privacy regulations, and transparent data handling practices is essential to build trust and facilitate market growth.

Limited Interoperability and Integration: Interoperability and integration are key challenges in the digital therapeutics market. Seamless integration of digital therapeutics platforms with electronic health records (EHRs), health monitoring devices, and other healthcare systems is essential for efficient data exchange and collaboration among healthcare providers. However, the lack of standardized interoperability protocols and integration capabilities hinders the smooth flow of patient data and limits the potential of digital therapeutics. Overcoming interoperability challenges and facilitating seamless integration will be crucial for driving revenue growth in the market.

Resistance to Change and Adoption: Resistance to change and adoption of newer and lesser-known technologies can restrain revenue growth of the digital therapeutics market to a major extent. Healthcare systems, healthcare professionals, and patients may be hesitant to adopt digital therapeutics due to concerns about disruption, lack of familiarity, or lack of proof about their effectiveness. Overcoming resistance to change and fostering a culture of innovation and acceptance of digital health solutions are essential trends for driving revenue growth of the market. Building evidence-based clinical validation, demonstrating positive patient outcomes, and showcasing the value proposition of digital therapeutics can help overcome these barriers and drive market growth.

What are the Opportunities for Leading Digital Therapeutics Providers?

Manufacturers in the global digital therapeutics market can focus on leveraging available opportunities by investing in research and development, establishing strategic collaborations, conducting clinical trials to demonstrate efficacy and safety, and tailoring their offerings to meet the specific needs of different patient populations and healthcare systems. Through these strategies, manufacturers can position themselves for sustainable revenue growth in the evolving landscape.

Manufacturers can explore opportunities arising from growing demand for personalized healthcare solutions and develop and offer tailored interventions and treatment plans based on individual patient characteristics, preferences, and health goals. Leveraging advanced technologies such as artificial intelligence and data analytics can more effectively aid in addressing specific medical conditions and needs, thus leading to improved patient outcomes and satisfaction.

Collaboration with Healthcare Providers and Pharma Companies: Collaboration with healthcare providers and pharmaceutical companies provides manufacturers with significant opportunities in the digital therapeutics market. By partnering with healthcare providers, manufacturers can integrate their digital therapeutics solutions into existing healthcare workflows and treatment plans, ensuring seamless and coordinated care for patients. Collaborating with pharmaceutical companies allows manufacturers to combine their digital therapeutics with pharmaceutical products, creating comprehensive treatment solutions and leveraging the pharmaceutical companies' expertise in drug development and market access.

Expansion of Treatment Applications: Manufacturers have the opportunity to expand the treatment applications of digital therapeutics. While the market currently focuses on chronic diseases such as diabetes, cardiovascular disorders, and mental health conditions, there is potential for digital therapeutics to be applied to a broader range of medical conditions. Manufacturers can explore new therapeutic areas and develop innovative digital therapeutics solutions for conditions such as neurological disorders, respiratory diseases, gastrointestinal disorders, and substance use disorders, among others.

Integration with Remote Patient Monitoring and Wearable Devices: Integration of digital therapeutics with remote patient monitoring devices and wearable technologies presents manufacturers with opportunities for revenue growth. Remote patient monitoring devices can collect real-time patient data, which can be seamlessly integrated with digital therapeutics platforms. This integration enables continuous monitoring of patients' health parameters, treatment adherence, and progress, providing valuable insights for personalized interventions. By developing compatible digital therapeutics solutions and partnering with remote patient monitoring device manufacturers, manufacturers can tap into the expanding market of remote healthcare monitoring.

Expansion into Emerging Markets: Manufacturers can capitalize on the growth potential in emerging markets for digital therapeutics. Countries in Asia Pacific, Latin America, and Africa are witnessing increasing healthcare expenditures, rising smartphone penetration, and government initiatives to promote digital health. By expanding their presence in these markets, manufacturers can access a large population, cater to unmet healthcare needs, and establish partnerships with local healthcare providers and stakeholders.

Leading Digital Therapeutics key Players & Competitive Landscape:

• Omada Health
• Noom
• Livongo Health
• WellDoc
• Pear Therapeutics
• Proteus Digital Health
• Propeller Health
• Akili Interactive Labs
• Better Therapeutics
• Happify
• Kaia Health
• Mango Health
• Click Therapeutics
• Canary Health
• Wellthy Therapeutics
• Cognoa
• Ayogo Health
• Mindstrong Health
• 2Morrow
• Ginger
• BehaVR
• Mindable Health
• Virta Health
• Hinge Health
• Doktor.se
• Toshiba America Business Solutions Inc.

Competition is becoming intense in the digital therapeutics market, with major players focusing on innovation and market expansion. Companies are actively developing and commercializing digital therapeutics solutions across a wide range of therapeutic areas and collaborating with healthcare providers, pharmaceutical companies, and technology partners to accelerate market growth. Major companies are focusing on advancing digital therapeutics and improving patient outcomes through innovative solutions and strategic collaborations.

• In January 2023, Omada Health announced a strategic collaboration with Novo Nordisk, which is a leading global healthcare company. The partnership is aimed to integrate Omada's digital behavior change platform with Novo Nordisk's diabetes care solutions, providing a comprehensive approach to diabetes management.
• In October 2022, Noom launched its virtual diabetes prevention program, targeting individuals at risk of developing type 2 diabetes. The program combines personalized coaching, behavior change techniques, and data tracking to help participants make sustainable lifestyle changes and reduce their risk of developing diabetes.
• Livongo Health merged with Teladoc Health in October 2020 to form Livongo Health. The merger created a leading digital health company that offers a comprehensive suite of virtual care services, including digital therapeutics, remote monitoring, and telehealth consultations.
• In May 2022, WellDoc announced a partnership with Dexcom - a leader in continuous glucose monitoring (CGM) systems. The collaboration aimed to integrate WellDoc's BlueStar digital therapeutic for diabetes management with Dexcom's CGM technology, providing individuals with real-time insights and personalized recommendations for better diabetes control.
• In September 2021, Pear Therapeutics received FDA clearance for reSET-O, which is a prescription digital therapeutic designed to treat opioid use disorder. It became the first FDA-authorized digital therapeutic for this indication, providing a non-drug treatment option to support patients in their recovery from opioid addiction.
• In August 2021, Proteus Digital Health announced a partnership with Fairview Health Services and the University of Minnesota Health. The collaboration aimed to explore the use of Proteus' ingestible sensor technology to improve medication adherence and patient outcomes for individuals with chronic conditions.
• Propeller Health, now part of ResMed, has been actively engaged in developing connected inhaler sensors and digital platforms to support respiratory disease management. The company has collaborated with a number of pharmaceutical companies, including GlaxoSmithKline and Boehringer Ingelheim, to enhance inhaler adherence and provide personalized insights for asthma and COPD patients.

Digital Therapeutics Regional Insights:

Overall, demand and consumption of digital therapeutics vary across regions and countries, driven by factors such as disease prevalence, healthcare expenditure, regulatory environments, and government support for digital health initiatives.

What are the factors driving the Digital Therapeutics demand in North America region?

North America is a key region in terms of demand and consumption of digital therapeutics. This is supported by a modernized healthcare infrastructure, technological advancements, and high acceptance of digital health solutions. The United States and Canada are the primary contributors to revenue growth of the market in this region. Other key factors driving revenue growth of the North America market include rising prevalence of chronic diseases such as diabetes, cardiovascular disorders, respiratory diseases, and mental health conditions. Also, increasing healthcare expenditure, development of more efficient and cost-effective alternatives to medicines and drugs, high preference for therapeutics, remote patient monitoring, personalized interventions, and self-management tools, and reduced need for expensive hospital visits and medical procedures are factors supporting market growth. In addition, favorable regulatory environment and FDA approvals for novel therapeutics and establishment of frameworks for digital therapeutics to further commercialize digital therapeutic products are boosting growth of the market in the region.

Why is Europe a prominent market for Digital Therapeutics?

Europe is experiencing a rising demand for digital therapeutics, driven by factors such as increasing healthcare investments, supportive regulatory frameworks, and a focus on digital health. Key countries leading the market in Europe include Germany, France, and the United Kingdom. Factors such as growing focus on digital health and investment in such novel health initiatives to enhance healthcare delivery and outcomes, preference for personalized interventions, remote monitoring, and patient engagement tools, coupled with aging population rising chronic disease burden are contributing to revenue growth of the Europe digital therapeutics market.

What are the factors driving the growth in Digital Therapeutics market in Asia Pacific region?

Asia Pacific holds potential for substantial growth opportunities for digital therapeutics providers, driven by factors such as a large population, increasing healthcare expenditure, and rising focus on digital health initiatives. Key countries in this region contributing to growth of the market in the region include China, Japan, and India. Also, factors such as modernization of healthcare infrastructure, promotion, adoption, and integration of digital health solutions into existing healthcare systems and practices are contributing to market revenue growth.

In addition, increasing disease burden, exploration into more cost-effective and scalable approaches to disease treatment and management, and favorable government support are supporting revenue growth of the market in the region.

Research Scope

Report Metric	Report Details
Market size available for the years	2021-2032
Base year	2023
Forecast Period	2024-2032
Compound Annual Growth Rate (CAGR)	16.8%
Segment covered	By Product, By Application, By Sales Channel, and Region
Regions Covered	North America:  The U.S. & Canada Latin America: Brazil, Mexico, Argentina, & Rest of Latin America Asia Pacific: China, India, Japan, Australia & New Zealand, ASEAN, & Rest of Asia Pacific Europe: Germany, The U.K., France, Spain, Italy, Russia, Poland, BENELUX, NORDIC, & Rest of Europe The Middle East & Africa:  Saudi Arabia, United Arab Emirates, South Africa, Egypt, Israel, and Rest of MEA
Fastest Growing Country in Europe	Germany
Largest Market	North America
Key Players	Omada Health, Noom, Livongo Health, WellDoc, Pear Therapeutics, Proteus Digital Health, Propeller Health, Akili Interactive Labs, Better Therapeutics, Happify, Kaia Health, Mango Health, Click Therapeutics, Canary Health, Wellthy Therapeutics, Cognoa, Ayogo Health, Mindstrong Health, 2Morrow, Ginger, BehaVR, Mindable Health, Virta Health, Hinge Health, Doktor.se, Toshiba America Business Solutions Inc., and amongst others.

Report Segmentation:

The global digital therapeutics market report is segmented and sub-segmented as shown below:

By Product:

• Device
• Software
• Services

By Application:

• Preventive Applications
• Prediabetes
• Obesity
• Nutrition
• Lifestyle Management
• Other Preventive Applications
• Treatment/Care-related Applications
• Diabetes
• CNS Disorders
• Mental Health Disorder
• Other CNS Disorder
• Chronic Respiratory Disorders
• Musculoskeletal Disorders
• Cardiovascular Diseases
• Smoking Cessation
• Medication Adherence
• Gastrointestinal Disorders
• Substance Use & Addiction Management
• Rehabilitation & Patient Care
• Other Treatment/Care-related Applications

By Sales Channel:

• Patient
• Caregiver
• Providers
• Payer
• Employer
• Pharma

By Region:

• North America 
• Asia-Pacific 
• Europe 
• Latin America 
• Middle East 
• Africa