The U.S. digital therapeutics market size was valued at $1.16 billion in 2019, and is expected to reach $5.08 billion by 2027 with a CAGR of 19.2% during the forecast period.
Digital therapeutics (DTx) is a sub division of digital health, and not all digital health solutions are digital therapeutics. The difference between digital health and digital therapeutics is based on clinical outcomes for patients. For instance, digital therapeutics does not include consumer health-oriented technologies such as step-counters and calorie-counters. It is a new class of healthcare products that uses digital technology to prevent, manage, or treat medical conditions. In addition, it utilizes digital health technologies to treat a psychological condition. Hence, the aforementioned factors boost growth of the U.S. digital therapeutics market.
The U.S. digital therapeutics market is expected to be positively impacted by the COVID-19 pandemic, owing to awareness regarding the importance of digital health, rise in prevalence of mental illness, and increase in rate of drug abuse in the country. Moreover, during this pandemic, people are required to stay at home, which leads to less physical activity, unhealthy lifestyle, mental stress, and prevalence of chronic diseases. Hence, there is a rise in demand of digital therapeutics (DTx) devices and software across the country.
The demand for U.S. digital therapeutics is on the rise,owing to increase in adoption of smartphones, tablets, and smart wearables, coupled with healthcare apps,surge in need to control healthcare costs, and rise in prevalence of chronic diseases. In addition, growth in adoption of advanced technologies and tech-driven healthcare products & applications further fuel growth of the market. However, lack of reimbursement policies for digital therapeutics and patient data privacy concerns restrain the market growth. On the contrary, favorable laws and regulations for digital health technology and increase in investments in digital therapeutics are expected to provide significant profitable opportunities for manufacturers in the U.S. digital therapeutics market.
Diabetes holds the dominant position in 2019 and would continue to maintain the lead over the forecast period.
Application segment review
On the basis of application, the U.S. digital therapeutics market is segmented into diabetes, obesity, cardiovascular disease, central nervous system disease, respiratory disease, smoking cessation, gastrointestinal disorder, and others. The diabetes segment was the major revenue contributor in 2019, and is anticipated to continue this trend during the forecast period, owing to high prevalence of diabetes. In addition, demand for cost-effective healthcare options and high prevalence rates for diabetes are observed in the U.S., which further boosts demand for digital therapeutics among diabetic patients in the country. However, the obesity segment is projected to exhibit highest growth during the forecast period. This is attributed to rise in number of overweight populations, which, in turn, increases the number of chronic diseases from obesity. In addition, better accessibility of digital therapeutics software application that helps patients to maintain proper diet as well as track health data and daily physical activities further drives growth of the U.S. digital therapeutics market. Moreover, the DTx software application provides regular online assistance from certified doctors, which is expected to help in reduction of prevalence of obesity in the future.
Software segment is projected as one of the most lucrative segments.
Product segment review
Depending on product, the U.S. digital therapeutics market is categorized into software and devices. The software segment is projected to exhibit highest growth during the forecast period. This is attributed to rise in demand for reducing healthcare costs across the world. This gives immense opportunities to developers to use existing software and develop new and advanced features to make them more effective and affordable. Thus, is anticipated to help propel the U.S. digital therapeutics market size in the future.
The report provides a comprehensive analysis of the key players operating in the U.S. digital therapeutics market,namely2MORROW, Inc., Fitbit, Inc. (Twine Health, Inc.), Livongo Health, Inc., Medtronic Plc., Omada Health, Inc., Pear Therapeutics, Inc., Proteus Digital Health, Inc., Resmed, Inc. (Propeller Health), Voluntis, Inc., and Welldoc, Inc. Moreover, other players in the value chain include (profiles not included in the report)Canary Health Inc., Mango Health Inc., Noom, Inc., and Dthera Sciences.
Key Benefits For Stakeholders
- This report provides a detailed quantitative analysis of the current U.S. digital therapeutics market trends and forecast estimations from 2020 to 2027, which assists to identify the prevailing market opportunities.
- An in-depth market analysis includes analysis of various regions, which is anticipated to provide a detailed understanding of the current trends to enable stakeholders formulate country-specific plans.
- A comprehensive analysis of factors that drive and restrain growth of the market is provided.
- Country-wise market conditions are comprehensively analyzed in this report.
- The projections in this report are made by analyzing the current trends and future market potential from 2020 to 2027, in terms of value.
- An extensive analysis of the market provides insights that are expected to allow companies to strategically plan their business moves.
- Key market players within the U.S. digital therapeutics market are profiled in this report and their strategies are analyzed thoroughly, which helps in understanding competitive outlook of the market.
U.S. Digital Therapeutics Market Report Highlights
By Sales Channel
Key Market Players
VOLUNTIS, INC., OMADA HEALTH, INC., FITBIT, INC. (TWINE HEALTH, INC.), MEDTRONIC PLC., PROTEUS DIGITAL HEALTH, INC., LIVONGO HEALTH, INC., RESMED, INC. (PROPELLER HEALTH), WELLDOC, INC., 2MORROW, INC., PEAR THERAPEUTICS, INC.
The U.S. digital therapeutics market is in its nascent stage, and has gained significant attention over the past few years. The market has piqued the interest of healthcare providers, patients, and practioners, owing to several benefits offered by these devices to reduce healthcare expenditure, improve patient & doctor communication, and manage patient health efficiently. Moreover, there have been remarkable advances in the development of novel digital therapeutics applications to provide advanced management options of chronic disease patients and maintain a healthy lifestyle.
The leading companies in the U.S. digital therapeutics market, significant advancements in the application of the digital therapeutic products with increase in clinically backed researches and more advanced hardware and software are projected to increase the usage rate of digital therapeutics in the U.S. Presently, rapid adoption of digital therapeutics is witnessed in the U.S. for use of novel apps for wellness management, such as fitness, diet & nutrition, diabetes, obesity, sleep apnea, respiratory disorder, and lifestyle & stress.