According to a new report published by Allied Market Research, titled, “Digital Therapeutics Market by Application, Product Type, and Sales Channel: Opportunity Analysis and Industry Forecast, 2020–2027," The global digital therapeutics market size was valued at $2.88 billion in 2019, and is expected to reach $13.80 billion by 2027 with a CAGR of 20.5% during the forecast period. Digital therapeutics is a new category of applications that helps treat diseases by changing patient behavior and providing remote monitoring to improve long-term health outcomes. Digital therapeutics includes a wide range of product types such as mobile applications, wearable devices, and sensors. The diabetes segment accounted for one-fourth share of the global digital therapeutics market in 2019.
The rise in utilization of smart phones and tablets, coupled with the increase in incidences of chronic diseases boost the market growth. However, lack of awareness regarding healthcare associated with smart phone applications and concerns regarding security or privacy of patient data restricts the market growth. On the contrary, emerging markets offer lucrative opportunities for the key market players.
Based on application segment, obesity is expected to grow at a highest CAGR during the forecast period, owing to the increase in obese population worldwide. This increase in obese population leads to various obesity-related conditions such as heart disease, stroke, type 2 diabetes, and certain types of cancers, which are some of the leading causes of preventable, premature death. In addition, presence of large number of key market players offering digital therapeutics solutions for obesity further contributes to growth of the global digital therapeutics market.
By product type, the software segment holds a dominant portion in the market, accounting for about two-third share of the global digital therapeutics market in 2019. This is mainly due to the increased penetration of smart phones and other smart devices mostly in the developing economies. For instance, according to a survey report by Pew Research Center, the U.S. had a smartphone adoption rate of 81% in 2018. This further increase use of this healthcare application.
Asia-Pacific is expected to witness the highest growth rate for the digital therapeutics market throughout the forecast period. Increase in adoption of smartphones, growth in awareness of newer technologies, and rise in consumer preferences toward healthy lifestyles are prime factors that supplement the adoption of digital therapeutics. Moreover, continued growth in coverage of mobile cellular networks and increase in count of lifestyle diseases such as diabetes, obesity, and others further drive the growth of the Asia-Pacific digital therapeutics market. However, lower accuracy, weak reimbursement coverage, and low adoption of devices among aging population are the factors that hinder the digital therapeutics market growth.
The major companies profiled in this report include 2MORROW, Inc., Akili Interactive Labs, Inc., Click Therapeutics, Inc., Fitbit, Inc. (Twine Health, Inc.), Happify, Inc., Kaia Health, Livongo Health, Inc., Medtronic Plc., Omada Health, Inc., Pear Therapeutics, Inc., Proteus Digital Health, Inc., Resmed, Inc. (Propeller Health), Voluntis, Inc., Welldoc, Inc. Other players operating in the digital therapeutics market include GlaxoSmithKline, Mango Health Inc., Veeva Systems, Healthmine Inc., Blue Mesa, Virta Health Corp, Glooko Inc., and among others.
Key Findings Of The Study
- Software is expected to be one of the most lucrative segments, registering a CAGR of 21.0% during the forecast period.
- The business-to-consumers (B2C) segment accounted for maximum share in the global market in 2019, and is expected to grow at a CAGR of 21.3% during the forecast period.
- U.S. dominated the global digital therapeutics market, and is projected to retain this trend throughout the forecast period.
- India is expected to exhibit the highest growth in the Asia-Pacific digital therapeutics market, registering a CAGR of 26.1% during the forecast period.
- Saudi Arabia is expected to witness the highest growth in the LAMEA market, growing at a CAGR of 23.8% during the forecast period.
- North America was the highest contributor to the global digital therapeutics market in 2019.