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Digital therapeutics deliver therapeutic interventions directly to patients through software applications that are prescribed by healthcare providers to prevent, manage, or treat a broad spectrum of physical, mental, and behavioral conditions. They blend clinically validated therapies with ubiquitous technology such as smartphones, sensors, and software to treat complex diseases. Digital therapeutics help address chronic conditions requiring considerable medical expertise, resources, and costs for managing medications and visits to healthcare facilities.
The global Digital Therapeutics Market is estimated to be valued at US$ 6.6 Billion in 2024 and is expected to exhibit a CAGR of 20% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the digital therapeutics market is the growing adoption of cloud-based platforms. Cloud computing allows digital therapeutics companies to focus on developing better therapeutic applications by handling infrastructure issues through the cloud. It provides scalability, data storage, automatic software updates, and reduces infrastructure costs for digital therapeutics companies. This has boosted the demand for cloud-based digital therapeutics. Growing investments are encouraging digital therapeutics companies to adopt cloud-based platforms, which is expected to drive the market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: Low as it requires high capital investments for R&D and obtaining regulatory approvals.
Bargaining power of buyers: Moderate as the industry comprises of several established players however personalized therapies provide strong value to patients.
Bargaining power of suppliers: Low as raw materials required are easily available.
Threat of new substitutes: Moderate as alternative treatment options like traditional drugs and therapies exist.
Competitive rivalry: High as major players are expanding their virtual care platforms and digital therapeutic offerings through acquisitions and partnerships.
Key Takeaways
The global digital therapeutics market is expected to witness high growth.
Regional analysis: North America dominates the market currently due to favorable regulatory environment and increasing adoption of digital health solutions. However, Asia Pacific is expected to grow at the fastest pace owing to rising healthcare expenditure and focus on preventive care 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.). Key players are focusing on new product launches and strategic collaborations with providers to expand their virtual care offerings. Happify recently partnered with Oscar Health to provide their digital solution for members with chronic conditions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
