Digital Therapeutics Market

Digital Therapeutics Market Outlook (2024 to 2034)

The global digital therapeutics market size is forecast to expand at a CAGR of 22%, which will push the market value from US$ 8 billion in 2024 to US$ 58.7 billion by the end of 2034.

Digital therapeutics refers to the software and equipment that digitally store evidence-based therapeutic actions for illness prevention and management. Software and gadgets help treat a variety of mental health, diabetic, respiratory, and cardiovascular diseases. The rising global prevalence of chronic diseases such as diabetes, mental illness, cancer, and heart failure is driving up the demand for digital therapeutics and related technologies.

• The market for digital therapeutics in Mexico is projected to reach a value of US$ 2.8 billion by 2034-end.

Market players are focusing on research and development operations in order to produce innovative and advanced therapies for treating a variety of diseases. Digital therapeutics helps provide personalized prescriptions, regulate lifestyles and diets, track daily activities, and treat physical, mental, and behavioral health disorders.

New and technologically advanced therapies provide data-driven insights, reduce human error, boost customer satisfaction, and deliver a high-quality user experience, resulting in increased market demand for such treatment options. The digital therapeutics landscape is experiencing steady market growth with the rising need for diabetes diagnostics and management.

Report Attributes	Details
Digital Therapeutics Market Size (2024E)	US$ 8 Billion
Projected Market Value (2034F)	US$ 58.7 Billion
Global Market Growth Rate (2024 to 2034)	22% CAGR
China Market Value (2034F)	US$ 6.4 Billion
Canada Market Growth Rate (2024 to 2034)	22.5% CAGR
North America Market Share (2024E)	23.9%
East Asia Market Value (2034F)	US$ 13.6 Billion
Key Companies Profiled	Omada Health Inc WellDoc Inc 2Morrow Inc Fitbit Inc Noom Inc. Fitbit Inc. Canary Health Mango Health

What are the Key Market Drivers for Digital Therapeutics?

“Increasing Number of Chronic Diseases Driving Health Consciousness”

One of the key market drivers for digital therapeutics is the growing prevalence of chronic diseases. Rapid urbanization has led to the prevalence of sedentary lifestyles. This is directly affecting the health of most populations. The United States healthcare system spends billions of dollars annually on providing care to patients suffering from chronic health conditions such as diabetes, high blood pressure, congestive heart failure, and chronic obstructive pulmonary disease.

• According to the Centers for Disease Control and Prevention, six out of every ten Americans have at least one chronic health condition, and four out of every ten Americans have at least two chronic conditions. As a result, they account for US$ 3.7 trillion in annual health care costs in the United States.

Healthcare organizations utilize evidence-based digital therapeutics to reduce the mounting costs associated with the care of an increasing number of patients with chronic health conditions.

In collaboration with iRhythm, Verily (subsidiary of Alphabet Inc.) developed a study watch with an irregular pulse monitor for continuous monitoring, big data analytics, and cloud-based machine learning to create innovative solutions for screening and monitoring atrial fibrillation (AFib).

What are the Obstacles Impeding Faster Market Expansion?

“Internet Hacking and Phishing Significant Threat to Market”

In relation to digital health matters, the appropriate legal basis for the processing of data is still unclear. Digital health transformation is a complex, expensive, and lengthy endeavor in which all parties' interests need to be reconciled. For digital therapeutics to be widely adopted, cybersecurity and data privacy must be considered. The fact that digital therapeutics solutions and services are delivered over the internet has increased the risk of unauthorized access and manipulation of the underlying data, compromising both patient health and trust in the products and services.

Country Wise Insights

Fact.MR, a market research and competitive intelligence provider, through its recently published industry analysis, asserts that North America is projected to hold 24.3% of the global market by 2034. Digital therapeutic providers have expanded their footprint to diverse regions such as Southeast Asia, Central and South America, and Australia. This expansion allows market players to effectively meet the rising global demand while diversifying their source of supply and reducing dependence on a single source.

What’s Driving Popularity of Digital Therapeutics in the United States?

“High Popularity of Access to Treatment from Comfort of Home”

Attribute	United States
Market Value (2024E)	US$ 900 Million
Growth Rate (2024 to 2034)	22.5% CAGR
Projected Value (2034F)	US$ 6.5 Billion

Digital therapeutics is a new health discipline that makes use of digital and online health technologies to treat various medical and psychological conditions and are increasingly being embraced in the United States due to its convenience and accessibility factor.

Increasing popularity of digital therapeutics in the United States is due to the rising prevalence of chronic diseases such as diabetes, heart disease, and various forms of cancer. Digital therapeutics offer easy-to-use, cost-effective treatment options that can be accessed from the comfort of one's own home. It allows for personalized therapy, allowing patients to tailor their treatment to their specific needs. This level of personalization has been shown to increase patient engagement and adherence to treatment, which, in turn, improves outcomes.

Which Strategies are Fueling Market Expansion in China?

“Growing Awareness of Cost-Effective and At-Home Healthcare”

Attribute	China
Market Value (2024E)	US$ 900 Million
Growth Rate (2024 to 2034)	22% CAGR
Projected Value (2034F)	US$ 6.4 Billion

Active formation of alliances and collaborations by leading market players is expected to drive the digital therapeutics industry growth in China. This is due to technological improvements, government backing, and the growing prevalence of chronic diseases in the country. Digital therapeutics providers are focusing on addressing the challenges presented by China's aging population and healthcare demands. Evidence-based software-delivered therapeutic interventions are playing a critical role in overcoming these challenges in this huge country.

Digital therapeutics market trends in China have influenced the focus on addressing challenges such as limited healthcare awareness among patients, geographical gaps in healthcare providers, immense pressures in market access, and difficulties in extending at-home patient management. Addressing these challenges and positioning for long-term support of clinical evidence is enabling the successful integration of digital therapeutics into China’s healthcare system to improve patient outcomes.

The market is also leveraging the rapid digital growth in areas such as e-commerce. While such rapid digital therapeutics market growth is exciting in the country, business models that offer returns are less understood. China's digital health evolution will be beneficial for market players in the long run.

Category-wise Insights

Digital therapeutics has a varied application for several ailments such as diabetes, obesity, CVD, respiratory diseases, smoking cessation, and CNS diseases. Out of these, digital therapeutics application in diabetes currently holds leading market share of 28% in 2024.

Which End User Accounts for a Leading Digital Therapeutics Market Share?

“Increasing Number of Patients Accessing Digital Therapeutic Solutions”

Attribute	Patients
Segment Value (2024E)	US$ 3.6 Billion
Growth Rate (2024 to 2034)	21.2% CAGR
Projected Value (2034F)	US$ 24.7 Billion

Adoption of digital therapeutic solutions by patients themselves is leading to an increase in the market share of this segment. Patients are the primary users of therapeutic healthcare applications and programs, and their rapid adoption of digital therapeutics has led to this segment holding the leading market share. Convenience and accessibility of digital therapeutics, along with its ability to provide personalized and data-based therapeutic interventions makes this model more appealing to patients.

Why is Digital Therapeutics So Popular for Diabetes Care?

“Evidence-Based Therapeutic Treatments for Diabetes Driving Sales”

Attribute	Diabetes
Segment Value (2024E)	US$ 2.3 Billion
Growth Rate (2024 to 2034)	21.1% CAGR
Projected Value (2034F)	US$ 15.3 Billion

Digital therapeutics provides patients with personalized therapeutic interventions with high-quality software programs to prevent, manage, or treat diabetes. The rise in the incidence of chronic ailments, especially diabetes, cardiac conditions, and obesity, is contributing to the growth of the segment in the digital therapeutics market. Another factor is the widespread awareness about the benefits of digital healthcare, especially in the wake of the pandemic. Understanding that managing or reversing diabetes through digital therapeutics is a better option has led to its increased adoption.

Digital diabetes management systems help patients improve self-management and control their condition. Lowering and keeping blood sugar low is one of the key challenges in the treatment of diabetes and increases the acceptance of these systems. Digital engagement plays an important role in providing adequate care for patients with type 1 and type 2 diabetes. A significant rise in the use of handheld and wearable devices for health monitoring is also fueling the sales of digital therapeutics for diabetes management.

Competitive Landscape

Key players in the digital therapeutics industry are Omada Health Inc, WellDoc Inc, 2Morrow Inc, Fitbit Inc, Noom Inc., Fitbit Inc., Canary Health, and Mango Health. Providers of digital therapeutics are increasingly innovating new methods to offer better and cost-effective healthcare services digitally by merging with other renowned producers.

• In 2023, Noom launched Noom Med, which is a new initiative that provides telehealth services and tailored psychological resources to assist individuals struggling with obesity in joining weight loss programs.
• In 2022, Fitbit Health Solutions announced a collaboration with Pretaa. This partnership aims to enhance the recovery process for Americans and their families dealing with substance abuse by integrating health and activity data into Pretaa’s app designed for substance abuse recovery.

Key Segments of Digital Therapeutics Market Research

• By Application :

  • Diabetes
  • Obesity
  • CVD
  • Respiratory Diseases
  • Smoking Cessation
  • CNS Diseases

• By End User :

  • Patients
  • Providers
  • Payers
  • Employers

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa