Global Digital Therapeutics Market to Reach $835.8 Million by 2024

Digital therapeutics (DTx), an emerging trend in the rapidly growing mobile health (mHealth) space comprises software programs that blend medical intervention with digital platforms for treatment of medical disorder or conditions. Digital therapeutics enables improved health monitoring, prevention and management leading to improved health outcomes and reduced healthcare expenditure. With rising penetration of smartphones and internet usage, digital therapeutics can offer basic medical guidance, work in combination with drug regimens, use cognitive stimulation to induce behavioural changes, connect with wearables and medical equipment through the use of mobile apps. Amid the COVID-19 crisis, the global market for Digital Therapeutics is projected to reach US$835.8 Million by 2024, registering a compounded annual growth rate (CAGR) of 26.9% over the analysis period. United States represents the largest regional market for Digital Therapeutics, accounting for an estimated 65.1% share of the global total. The market is projected to reach US$708.8 Million by the close of the analysis period. United States is also forecast to emerge as the fastest growing regional market with a CAGR of 27.8% over the analysis period.

Rising incidences of chronic diseases, growing geriatric population, technological advancements, benefits of digital therapeutics, and pressing need to curb rising healthcare costs are key growth drivers spurring significant growth in global digital therapeutics market. Growth in the global market is set to be driven by strong adoption of digital platforms like smartphones, apps, electronic wearables, mobile internet; growing focus on value based care; and rising venture capital investments in digital health based business models. Proliferation of telemedicine platforms and digital healthcare tools such as mobile apps and wearables, has laid a strong foundation for evolution and growth of DTx. The momentum is likely to accelerate further with advent of next-generation technologies such as IoT and Artificial Intelligence (AI), as these `high-tech` modalities hold immense potential to augment roll out of DTx interventions as a complementary product or as a complete replacement to traditional therapeutics. The United States and Europe represent key markets, led supported by well-developed digital infrastructure that provides the foundation for DTx. In Asia-Pacific region, growth is driven by rising prevalence of chronic illnesses and growing geriatric population.

The market for preventive application is forecast to grow the fastest over the analysis period, due to rising government initiatives to enhance preventive healthcare. Government-sponsored programs are mainly intended to encourage healthy lifestyle through broad-based self-management and patient education campaigns. Despite holding immense potential, DTx market suffers from limitations such as resistance from conventional healthcare providers, low awareness levels, patient reluctance to adopt digital therapeutics, stringent regulatory scenario, and concerns over patient data privacy.