Digital Therapeutics is Estimated to Witness High Growth Owing to Opportunity to Improve Patient Outcomes
Digital therapeutics deliver evidence-based therapeutic interventions to patients that are driven by high quality software programs to prevent, manage, or treat a medical disorder or disease. They incorporate advanced digital and wireless technologies into treatment regimens to change patient behaviors and treat chronic and lifestyle-induced diseases. Digital therapeutics help augment clinicians’ capabilities and help patients access treatments, driving better health outcomes. The global digital therapeutics market is estimated to be valued at US$ 6.6 Bn in 2023 and is expected to exhibit a CAGR of 20% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity to improve patient outcomes is driving the high growth of the digital therapeutics market. Digital therapeutics offer personalized care for patients to better manage their conditions and make superior treatment choices. They empower patients to take control of their healthcare and well-being outside of traditional clinical settings. By providing round-the-clock access to clinically supported therapies and continuous monitoring, digital therapeutics are proving effective in improving health outcomes for various chronic diseases. They enhance patient adherence and compliance to treatment protocols. This leads to better management of diseases like diabetes, cardiovascular conditions, and mental health issues. The ability of digital therapeutics to optimize patient outcomes through personalized care plans and remote monitoring is expected to boost the market significantly over the forecast period.
Porter’s Analysis
Threat of new entrants: Low economies of scale in production and high costs associated with research and development acts as a barrier.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and focus on pricing.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative solution providers and focus on innovation.
Threat of new substitutes: Threat of new substitutes is high due to rising demand for affordable solutions and focus on new technologies like AI, VR and personalized care.
Competitive rivalry: Intense due to prominence of global and regional players focusing on product innovation and mergers and acquisitions.
SWOT Analysis
Strength: Growing awareness about preventive healthcare, rising internet and smartphone penetration facilitating easy access.
Weakness: Limited clinical evidence, dependence on internet connectivity, data privacy and security concerns.
Opportunity: Untapped growth prospects in emerging markets, rising need to reduce healthcare costs, further scope of applications in chronic disease management.
Threats: Stringent regulations, reimbursement issues, technological disruptions.
Key Takeaways
The global Digital Therapeutics Market is expected to witness high growth between 2023-2030.
North America dominated the market in 2024 due to presence of major players, favourable regulatory environment and investments to modernize healthcare infrastructure. The Asia Pacific region is projected to grow at the fastest rate during the forecast period2023-2030 led by rising healthcare expenditure, expanding medical tourism industry and growing adoption of advanced technologies in countries like China and India.
Key players operating in the Digital Therapeutics market are Happify, Inc., 2Morrow, Inc., Akili Interactive Labs, Inc., Click Therapeutics, Inc., and Fitbit, Inc. (Twine Health, Inc.). These players are focusing on strategic collaborations and new product launches to strengthen their market position. For instance, in 2023 Akili Interactive Labs partnered with Merck to develop new digital therapeutics for cognitive impairments.
