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Digital therapeutics deliver therapeutic interventions that are driven by high-quality software applications to prevent, manage, or treat a medical disorder or disease. They are used independently or in combination with drugs, devices, or other therapies to optimize therapeutic outcomes. Digital therapeutics provides evidence-based therapeutic interventions to patients that are driven by software applications to prevent, manage, or treat a medical disorder or disease. They are used independently or along with medications, devices, or other therapies and integrated within a care delivery system.
The global Digital Therapeutics Market is estimated to be valued at US$ 6.6 Bn in 2023 and is expected to exhibit a CAGR of 20.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising prevalence of chronic diseases across the globe has positively impacted the digital therapeutics market growth over the past few years. According to the Centers for Disease Control and Prevention (CDC), in 2017, around 6 in 10 adults in the United States had at least one chronic disease, and 4 in 10 had two or more chronic diseases. Some of the major chronic conditions include heart disease, stroke, cancer, type 2 diabetes, obesity, and arthritis. Digital therapeutics can effectively assist in the management of chronic diseases by improving medication adherence, patient engagement, and treatment outcomes. Chronic disease management requires consistent medication and lifestyle changes, and digital therapeutics may aid patients in better self-management. This factor is expected to drive the demand for digital therapeutics over the forecast period.
Porter’s Analysis
Threat of new entrants: The digital therapeutics market exhibits moderate threat from new entrants due to high R&D and marketing costs involved in development of digital therapeutics products and services.
Bargaining power of buyers: Buyers have moderate bargaining power in this market owing to availability of various product alternatives from different manufacturers.
Bargaining power of suppliers: The suppliers have low bargaining power due to availability of substitute components from different suppliers.
Threat of new substitutes: Threat from substitutes is low as digital therapeutics offers personalized care and improved clinical outcomes compared to traditional therapy methods.
Competitive rivalry: The competitive rivalry is high among existing players due to similar product offerings and increasing consolidation activities through partnerships and collaborations.
Key Takeaways
The global digital therapeutics market is expected to witness high growth. The global Digital Therapeutics Market is estimated to be valued at US$ 6.6 Bn in 2023 and is expected to exhibit a CAGR of 20.5% over the forecast period 2023-2030.
The North America region dominates the global digital therapeutics market currently due to availability of advanced healthcare infrastructure and growing adoption of smartphone-based medical apps for self-diagnosis and treatment monitoring in the US and Canada. However, Asia Pacific region is anticipated to witness fastest growth during the forecast period owing to rising healthcare expenditure, increasing penetration of smartphones and growing millennial population in countries like China and India.
Key players
Key players operating in the digital therapeutics market are Happify, Inc., 2Morrow, Inc., Akili Interactive Labs, Inc., Click Therapeutics, Inc., and Fitbit, Inc. Happify provides digital therapeutics for mental health conditions like depression, anxiety, and insomnia. 2Morrow offers digital therapeutics for chronic musculoskeletal conditions. Akili Interactive Labs develops digital treatments for cognitive impairments.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
