Home Healthcare IT Digital Therapeutics (DTx) Market Size, Trends and Industry Growth Report 2032

Digital Therapeutics (DTx) Market

Digital Therapeutics (DTx) Market Size, Share & Trends Analysis Report By Applications (Preventive Applications, Treatment/Care-related Applications), By Sales Channel (B2B, B2C) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRHI617DR
Study Period 2020-2032 CAGR 26.1%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD XX Billion
Forecast Year 2032 Forecast Year Market Size USD XX Billion
Largest Market North America Fastest Growing Market Asia-Pacific
The sample report only takes 30 secs to download, no need to wait longer.

Market Overview

The global digital therapeutics (DTx) market size was estimated to be valued at USD 6.05 billion in 2023. It is estimated to reach USD 48.77 billion by 2032, growing at a CAGR of 26.10% during the forecast period (2024–2032). The global digital therapeutics (DTx) market growth is driven by the surging prevalence of chronic illnesses and behavioral conditions, as DTx can improve patient outcomes, reduce healthcare costs, and enhance quality of life. Moreover, the growing adoption of telehealth can enhance the adoption of digital therapeutics (DTx) as it can be integrated into routine patient care. 

Highlights

  • Treatment/care-related applications dominate the application segment
  • B2B dominates the sales channel segment
  • North America is the largest shareholder in the market

Digital therapeutics (DTx) encompasses a novel class of health interventions that employ digital and software-based solutions to proactively prevent, effectively manage, or treat a medical condition or disease. These interventions are created to enhance or substitute conventional medical treatments by utilizing technology to provide evidence-based therapeutic interventions. DTx can improve patient engagement, adherence, and outcomes by providing tailored feedback, coaching, and support.

Examples of digital therapeutics encompass mobile applications designed to control chronic illnesses like diabetes, mental health applications aimed at treating disorders such as depression or anxiety, and virtual reality programs intended for pain management. Digital therapeutics is an emerging discipline that combines healthcare and technology with the potential to improve the accessibility and effectiveness of healthcare interventions.

Market Dynamics

Global Digital Therapeutics (DTx) Market Drivers:

Increasing Burden of Chronic and Behavioral Conditions

Chronic and behavioral problems, such as diabetes, obesity, cardiovascular diseases, respiratory diseases, mental health disorders, and substance abuse, are significant contributors to illness and death on a global scale. The World Health Organization (WHO) reports that chronic diseases are responsible for the deaths of 41 million individuals annually, accounting for 74% of all global fatalities. Moreover, the total economic burden of chronic diseases worldwide is projected to amount to USD 47 trillion by 2030, accounting for 75% of the global gross domestic product (GDP).

DTx can provide efficient and flexible approaches to tackle the increasing challenges of chronic and behavioral illnesses. These solutions involve customized approaches guided by data and supported by evidence. By implementing DTx, patient outcomes can be improved, healthcare costs can be reduced, and overall quality of life can be enhanced. For instance, Digital Therapeutics (DTx) can assist individuals diagnosed with diabetes monitor their blood glucose levels, regulate their dietary intake and physical activity, and adhere to their prescribed drug regimen. DTx can additionally assist individuals with mental health difficulties in managing stress, anxiety, sadness, and other emotional concerns by employing cognitive behavioral therapy (CBT), mindfulness techniques, and gamification.

Growing Acceptance of Telehealth

The extensive use of telehealth services has established a favorable setting for digital therapeutics. Telehealth systems facilitate the delivery and integration of digital therapeutic into regular patient care. Based on a McKinsey analysis conducted in February 2022, using research collected in the prior year, 55% of patients reported significantly greater satisfaction with teleconsultations and telehealth treatment than in-person treatment. 

Furthermore, according to the survey above, 36% of clinicians said telehealth services were more convenient than in-person options. Telehealth has had substantial acclaim among millennials, and the expanding magnitude of this demographic has a positive influence on telehealth services. A survey done by GlobalMed found that around 74% of millennials favored teleconsultations over in-person sessions because of the convenience and immediacy they provide. Hence, the growing adoption of telehealth services is driving the digital therapeutics (DTx) market growth.

Global Digital Therapeutics (DTx) Market Restraint:

Reluctance among Patients and Providers to Adopt DTx

A significant obstacle encountered by the DTx market is the reluctance exhibited by patients and providers to adopt DTx solutions, mostly owing to factors such as limited awareness and information, absence of trust and confidence, concerns regarding privacy and security, and behavioral and cultural obstacles. Many patients and healthcare providers need to gain knowledge regarding the advantages and possibilities of DTx products or harbor doubts regarding their effectiveness and safety. 

Furthermore, patients and healthcare professionals express concern regarding the privacy and security of personal and medical information gathered and exchanged by digital therapeutics (DTx) devices. There are also concerns about the ethical and legal consequences of utilizing DTx products. Moreover, the adoption and acceptance of DTx products are impeded by many behavioral and cultural obstacles patients and providers encounter, including limited proficiency in digital technology, reluctance to embrace change, and a preference for face-to-face engagement.

Global Digital Therapeutics (DTx) Market Opportunities:

Growing Partnership and Collaboration among DTx Stakeholders

The DTx market is experiencing an increasing trend of partnership and collaboration among stakeholders, including DTx developers, pharmaceutical companies, medical device manufacturers, healthcare providers, payers, and regulators. This is done to utilize their individual strengths and capabilities and generate synergies and value for the end-users. The collaboration and alliance among the stakeholders involved in Digital Therapeutics (DTx) can facilitate the creation and implementation of cutting-edge and comprehensive solutions that can effectively tackle the existing deficiencies and shortcomings in the healthcare system while improving the overall patient experience and contentment.

In July 2023, Lupin Digital Health, based in Mumbai, and the American College of Cardiology (ACC) announced a unique partnership to provide in-home cardiovascular care in India using Digital Therapeutics (DTx). This collaboration aims to expedite the implementation and acceptance of Digital Therapeutics (DTx) in the cardiology field in India. Lupin Digital Health's DTx platform, Lyfe, seeks to empower patients and healthcare providers with tools to manage heart illnesses effectively from the comfort of their homes. It intends to promote patient well-being post-hospital discharge and minimize readmission needs. These aspects offer opportunities for market growth.

Regional Analysis

Based on region, the global digital therapeutics (DTx) market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global digital therapeutics (DTx) market shareholder and is expected to expand substantially during the forecast period. The region's leading position and growth can be attributed to the significant incidence of chronic and behavioral problems, including diabetes, obesity, cardiovascular diseases, respiratory diseases, and mental health disorders, among the population. This prevalence generates a substantial demand for digital therapeutics (DTx) products. For example, in North America, 60% of individuals in the United States and 44% of adults in Canada are afflicted with at least one chronic illness, such as stroke, diabetes, heart disease, or cancer. The rising prevalence of chronic illnesses and the increasing number of elderly individuals who are susceptible to illness have led to a surge in the need for digital therapies (DTx). Moreover, chronic pain has a significant impact on an estimated USD 261 billion to USD 300 billion in annual direct healthcare expenses.

 Furthermore, the population residing in the North American region demonstrates a notable degree of technological expertise and enhancement, leading to a rise in the utilization of telehealth services in the region. According to the 2019 Definitive Healthcare data, around 33 percent of hospitals that admit patients and 45 percent of clinics that treat patients outside of a hospital setting offer telehealth services. As a result, a strong interest in available healthcare options and the COVID-19 pandemic have led to a rapid and extensive implementation of telehealth services in the industry. As of 2020, almost 75 percent of hospitals in the United States had implemented telehealth and telemedicine systems, indicating a substantial 42 percent increase compared to their usage in 2019. Hence, these factors collectively contribute to the regional market's growth.

The Asia-Pacific region is projected to experience the most rapid development rate in the global Digital Therapeutics (DTx) market throughout the forecast period. The growing need for affordable and easily obtainable healthcare solutions is fueling the utilization and acceptance of DTx products and the advancement and enhancement of such goods. In addition, enhancing healthcare infrastructure and digital infrastructure facilitates the incorporation and acceptance of DTx products in the healthcare system while ensuring the availability and ease of access to high-quality healthcare for patients. 

Furthermore, there is a rise in innovative start-ups that are bringing unique products to the market. For instance, in June 2023, TatvaCare, a start-up based in Ahmedabad, developed a digital therapeutics (DTx) platform called MyTatva. This platform focuses on utilizing advanced technologies to manage chronic disease conditions and enhance the quality of life for patients with chronic obstructive pulmonary disease and asthma. TatvaCare will initiate clinical trials at multiple centers around India to evaluate the application. These elements contribute to the growth of the regional market.

Report Scope

Report Metric Details
Segmentations
By Applications
  1. Preventive Applications
    1. Prediabetes
    2. Obesity
    3. Nutrition
    4. Lifestyle Management
    5. Other Preventive Applications
  2. Treatment/Care-related Applications
    1. Diabetes
    2. CNS Disorders
    3. Chronic Respiratory Disorders
    4. Musculoskeletal Disorders
    5. Cardiovascular Diseases
    6. Smoking Cessation
    7. Medication Adherence
    8. Gastrointestinal Disorders
    9. Substance Use and Addiction Management
    10. Rehabilitation and Patient Care
    11. Other Treatment/Care-related Applications
By Sales Channel
  1. B2B
  2. B2C
Company Profiles Noom Livongo Health Omada Health WellDoc Pear Therapeutics Proteus Digital Health Propeller Health Akili Interactive Labs Better Therapeutics Happify Kaia Health
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Segmental Analysis

The global digital therapeutics (DTx) market is segmented by sales channel and application.

Based on application, the global digital therapeutics (DTx) market is segmented into preventive and treatment/care-related applications. 

The treatment/care-related applications segment dominates the global market. The treatment/care-related application can be classified into particular segments such as diabetes, obesity, cardiovascular diseases, respiratory diseases, central nervous system (CNS) disorders, and other conditions. Over the past several years, the incidence of these diseases has been increasing due to various reasons, such as tobacco consumption, lack of exercise, excessive alcohol consumption, bad eating habits, and air pollution, among other causes. 

Additionally, the increasing number of elderly individuals is fueling this sector's expansion. The World Health Organization (WHO) estimates that one in six people will be 60 years of age or older by 2030. The number of people over 60 is predicted to increase from 1 billion in 2020 to 1.4 billion. People over 60 worldwide will double to about 2.1 billion by 2050.

Based on sales channels, the global digital therapeutics (DTx) market is divided into B2B and B2C channels. 

The B2B segment owns the highest market share. B2B is an acronym for "business-to-business." A B2B channel refers to the network and system through which businesses distribute and sell their products or services to other businesses. In a B2B channel, transactions occur exclusively between two businesses, as opposed to a business and an individual customer, referred to as B2C or business-to-consumer. Moreover, the B2B channel is essential for enterprises primarily offering digital therapeutics (DTx) to other businesses. This channel encompasses a range of intermediaries and entities, such as wholesalers, distributors, agents, and other partners, who assist the movement of digital therapeutics (DTx) from the manufacturer or supplier to the final business customer.

Market Size By Applications

Market Size By Applications
  • Preventive Applications
  • Treatment/Care-related Applications
  • Recent Developments

    • November 2023- Curavit Clinical Research, a virtual contract research organization (VCRO), introduced a Health Economics and Outcomes Research (HEOR) service specifically designed for clinical trials. Curavit stated that incorporating Health Economics and Outcomes Research (HEOR) into clinical trials will provide medication producers with valuable insights into their products' value and market potential.
    • December 2023- ObvioHealth, a virtual research company, unveiled its application programming interface (API) designed exclusively for clinical trials in digital therapeutics (DTx). The clinical trials landscape is currently undergoing a digital transformation, prompting organizations to consistently seek enhancements in patient experience and clinical data quality.

    Top Key Players

    Digital Therapeutics (DTx) Market Share of Key Players

    Digital Therapeutics (DTx) Market Share of Key Players
    Noom Livongo Health Omada Health WellDoc Pear Therapeutics Proteus Digital Health Propeller Health Akili Interactive Labs Better Therapeutics Happify Kaia Health Others

    Frequently Asked Questions (FAQs)

    What is the estimated growth rate (CAGR) of the Digital Therapeutics (DTx) Market?
    Digital Therapeutics (DTx) Market size will grow at approx. CAGR of 26.10% during the forecast period.(2024-2032))
    Some of the top prominent players in Digital Therapeutics (DTx) Market are, Noom (The U.S.), Livongo Health (The U.S.), Omada Health (The U.S.), WellDoc (The U.S.), Pear Therapeutics (The U.S.), Proteus Digital Health (The U.S.), Propeller Health (The U.S.), Akili Interactive Labs (The U.S.), Better Therapeutics (The U.S.), Happify (The U.S.), Kaia Health (Germany), etc.
    North America has established itself as the market leader with a significant market share.
    The region with the most rapid expansion in the global market is Asia Pacific.
    The global market report is segmented as follows: By Application, By Sales Channel and By Region


    We are featured on :