Digital Therapeutics Market is Estimated to Witness High Growth Owing to Opportunity in Remote Patient Monitoring
Digital therapeutics are evidence-based therapeutic interventions driven by high-quality software programs to prevent, manage, or treat a medical disorder or disease. These products incorporate advanced digital and mobile technologies to optimize disease management and treatment. Digital therapeutics provide tailored therapeutic interventions to patients through evidence-based techniques such as behavioural therapy, skills training, and more, improving clinical outcomes and reducing healthcare costs.
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 20.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Remote patient monitoring enables healthcare providers to remotely track patients’ vital signs and symptoms using digital devices and sensors. This opportunity is estimated to drive significant growth in the digital therapeutics market over the forecast period. Remote patient monitoring allows healthcare providers to ensure treatment compliance, identify risk factors or worsening conditions, and provide timely interventions to patients at home. It avoids unnecessary visits to clinics or hospitals and reduces healthcare costs. With the increasing prevalence of chronic diseases and technological advancements, remote patient monitoring through digital therapeutics is expected to witness high demand in the coming years.
Porter’s Analysis
Threat of new entrants: The digital therapeutics market has moderate threat from new entrants due to requirement of large investments and presence of established key players.
Bargaining power of buyers: Buyers have low bargaining power due to specialized products and services offered by digital therapeutics.
Bargaining power of suppliers: Digital therapeutics requires software and services from various suppliers. This gives moderate power to suppliers.
Threat of new substitutes: Low threat as digital therapeutics offers solutions that cannot be easily substituted.
Competitive rivalry: High as major players compete on basis of innovations, targeted solutions and services.
SWOT Analysis
Strength: Personalized treatment solutions, affordable care, improved accessibility and user engagement are key strengths.
Weakness: Data privacy and security concerns, lack of awareness and high upfront costs are weaknesses.
Opportunity: Growing geriatric population, rise in chronic diseases, and government support present opportunities.
Threats: Resistance from healthcare providers, interoperability issues and regulatory challenges are threats.
Key Takeaways
The global digital therapeutics market is expected to witness high growth at a CAGR of 20.5% during the forecast period of 2023-2030. 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 20.5% over the forecast period 2023-2030.
Regional analysis indicates North America holds the largest share currently. Factors such as advanced healthcare infrastructure, growing awareness about digital therapeutics and presence of major players is driving growth. However, Asia Pacific region is expected to grow at fastest pace with 25% CAGR during the forecast period. Increasing healthcare expenditures, large patient population and growing acceptance of new technologies are factors influencing growth.
Key players operating in the digital therapeutics market include Happify, Inc., 2Morrow, Inc., Akili Interactive Labs, Inc., Click Therapeutics, Inc., and Fitbit, Inc. Major players are focused on developing innovative solutions to expand their presence. For instance, Akili Interactive Labs has developed a digital therapy to improve cognitive function in children with ADHD.
