Digital Therapeutics (DTx) Market by Type (Devices, and Software & Services), by Platform Type (Desktop, Mobile, Tablet, and Other Platform Types), by Therapeutic Area (Mental Health, Cognitive Health, Physical Health, Preventive Health, Chronic Disease Management, and Others) by Regulatory Compliance (FDA-Approved, CE Marked, and Other Regulatory Compliance), by Revenue Model (Subscription-Based, Transaction-Based, Pay-Per-Use, and Other Revenue Model), and by Distribution Channel (Direct Sales, Pharmacies, Online Platforms, and Other Distribution Channel) – Global Opportunity Analysis and Industry Forecast – 2024-2030

Market Definition

The Digital therapeutics (DTx) Market size was valued at USD 4.87 billion in 2023 and is predicted to reach USD 25.98 billion by 2030 with a CAGR of 27.1% from 2024-2030. Digital therapeutics are evidence-based therapeutic interventions delivered through digital platforms, such as mobile applications or software programs, to prevent, manage, or treat medical conditions. These interventions leverage technology, including sensors and real-time data analysis, to offer personalized and often interactive solutions. The market includes a wide range of conditions, including mental health, chronic diseases, and other medical issues. Digital therapeutics incorporate real-time monitoring and feedback mechanisms, enabling continuous tracking of patient progress. This data-driven approach allows healthcare providers to make informed decisions, adjust interventions as needed, and engage in proactive management of various medical conditions.

Market Dynamics and Trends

The global surge in diabetes and cardiovascular conditions is increasing the demand for digital therapeutics solutions as it enables real-time tracking of crucial metrics such as blood glucose levels, physical activity, dietary habits, and medication adherence. This technology offers individuals with more proactive and timely adjustments for their insulin and medication dosage for diabetic patients globally.

According to a report by International Diabetes Federation, the global rate of diabetic patients is accounted for 537 million adults aged 20 to 79 in the year 2021. This rate is anticipated to reach 643 million by 2030 and a further rise to 783 million by 2045. These figures underscore the growing market potential and the need for digital therapeutics in the diabetes management sector.

Moreover, the rising advancements in technologies, including wearable devices, mobile health apps, and data analytics is increasing the development and adoption of innovative digital therapeutics. These technological advancements enable effective remote monitoring, personalized interventions, and data-driven insights for managing chronic disease such as parkinsons, cardiovascular and other conditions on a global scale.

For instance, in May 2023, AmerisourceBergen partnered with h2o Therapeutics to integrate digital therapeutic for parkinson's disease through its Parkinson's app called Parky. This includes integration of Parky within health systems to enhance patient engagement through its DTx Connect platform.

Thus, these advanced technological developments including mobile apps and advanced health analytics is significantly driving the growth of the market. However, the market growth is hindered by the impediments posed by rigorous regulatory requirements and diverse approval processes across different regions, which oppose the market entry and expansion for various companies.

On the contrary, the introduction of Artificial Intelligence (AI) and Machine Language (ML) technologies into digital therapeutics marks a transformative development towards the adoption of extensive datasets, personalizing interventions, and real-time delivery insights. These technological advancements are expected to create ample opportunity growth for the expansion of digital therapeutics market.

For instance, in November 2023, DEXIS launched an innovative AI-driven solutions for enhanced diagnostics and patient care. This integration of AI in dental imaging software aims to enhance diagnostic accuracy, treatment planning, and patient outcomes by providing clinicians with a more comprehensive view of the diagnosis and treatment plan. Thus, integration of these advanced technologies represents a significant potential for the future expansion of the market.

Market Segmentations and Scope of the Study

The digital therapeutics (DTx) market share is segmented on the basis of type, platform type, therapeutic area, regulatory compliance, revenue model, distribution channel and region.  On the basis of type, the market is segmented into devices and software & services. On the basis of platform type, the market is categorised into desktop, mobile, tablet, and other platform types. On the basis of therapeutic area, the market is bifurcated into mental health, cognitive health, physical health, preventive health, chronic disease management and others. On the basis of regulatory compliance, the market is bifurcated into FDA-approved, CE marked, and other regulatory compliance. On the basis of revenue model, the market is divided into subscription-based, transaction-based, pay-per-use, and other revenue model. On the basis of distribution channel, the market is classified into direct sales, pharmacies, online platforms, and other distribution channel. Geographic breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North-America holds the dominating share of digital therapeutics (DTx) market at present and is expected to continue its dominance during the forecast period. This is attributed to the factors such as the rising number of diabetic patients in the region which require DTx solutions to monitor their blood glucose levels, physical activity, and other relevant metrics in real-time.

As per report published by International Diabetes Federation, the number of adults with diabetes in North America is expected to reach 57 million by 2030 and 63 million by 2045 as compared with 51 million patients in 2021. This further underscore the critical need for innovative interventions and DTx solutions to address the growing prevalence of diabetes in the region.

Also, the presence of prominent key players in the digital therapeutic market such as AmerisourceBergen Corporation, Omada Health Inc., and Fitbit Health Solutions are adopting various market strategies such as product launch to boost the overall market growth in the region.

For example, in July 2022, AmerisourceBergen Corporation launched DTx Connect, a fully integrated ordering, dispensing, and fulfillment platform that aims to facilitate patient access to physician-ordered digital therapeutics (DTx) and diagnostics. The platform integrates with electronic medical records (EMR), enabling physicians to have easy access to prescription and non-prescription software.

On the other hand, Asia-Pacific is expected to show a steady rise in the digital therapeutic (DTx) market due to growing integration of AI and ML technologies which facilitates more accurate and efficient diagnostic processes, marking a significant growth towards enhanced healthcare in the region.

For instance, in February 2023, NERVTEX, a Chinese company focused on developing digital therapeutics (DTx) for brain disorders successfully obtained approval from the China National Medical Products Administration for its innovative AI-powered movement disorder analysis software. This regulatory endorsement marks a significant advancement in the integration of advanced technologies, particularly artificial intelligence, into healthcare solutions.

Also, the escalating prevalence of respiratory disorders such as chronic obstructive pulmonary disease (COPD), asthma, cystic fibrosis, emphysema, and lung cancer in countries such as China, India and Japan are significantly fueling the expansion of the market.

According to the World Health Organization (WHO), China has almost 100 million people living with chronic obstructive pulmonary disease (COPD) which accounts for almost 25% of all COPD cases globally. This rising prevalence of respiratory issues, such as COPD underscores the growing need for the digital therapeutics (DTx) to offer efficient monitoring and personalized interventions among individuals with respiratory health challenges.

Competitive landscape

The digital therapeutics (DTx) market comprises various market key players such as Omada Health Inc., Welldoc, Inc., Fitbit Health Solutions, Canary Health, Lupin, Noom, CureApp, Inc., Propeller Health, Brain+ A/S, Pear Therapeutics, Inc., and others. These market players are adopting various strategies such as partnership and product launches to maintain their dominance in the global digital therapeutics (DTx) market.

For instance, in January 2024, Omada Health Inc. partnered with Amazon to offer virtual care benefits to customers. This partnership leverages Amazon's broad reach to provide virtual care services, potentially impacting the rising prevalence of chronic diseases. Further, this approach integrates human support with technology, offering personalized care and remote monitoring devices to catalyze behavioral changes and enhance health outcomes.

For instance, in May 2023, Noom Inc. launched a groundbreaking program called Noom Med, designed to combat obesity through a comprehensive approach that integrates telehealth services and personalized psychological tools . It offers a unique blend of telehealth services and personalized psychological tools to provide individualized care plans for patients, focusing on long-term weight loss and overall health improvement.

Also, in January 2023 Lupin Digital Health, a subsidiary of Lupin Limited, introduced LYFE, a digital therapeutics solution aimed at providing comprehensive heart care. It is India's first evidence-based holistic heart care program designed to reduce the risk of heart attacks and enhance the quality of life for cardiac patient.

Key Benefits

• The report provides quantitative analysis and estimations of the digital therapeutics (DTx) market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the digital therapeutics (DTx) market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the digital therapeutics (DTx) market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Key Market Segments

By Type

• Devices

• Software & Services 

By Platform Type

• Desktop

• Mobile

• Tablet

• Other Platform Types

By Therapeutic Area

• Mental Health

• Cognitive Health

• Physical Health

• Preventive Health

• Chronic Disease Management

• Others

By Regulatory Compliance

• FDA-Approved

• CE Marked

• Other Regulatory Compliance

By Revenue Model

• Subscription-Based

• Transaction-Based

• Pay-Per-Use

• Other Revenue Model

By Distribution Channel

• Direct Sales

• Pharmacies

• Online Platforms

• Other Distribution Channel

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

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