The Digital Therapeutics Market Projected to Grow at a CAGR of 20.0% and Garner a Revenue of $12,695.60 Million in the 2021-2028 TimeframeDownload Sample Reports Overview
The global digital therapeutics market was valued at $3,003.40million in 2020 and is projected to reach $12,695.60million by 2028, registering a CAGR of 20.0%.
COVID-19 Impact on the Digital Therapeutics Market
During the prevalence of COVID-19 pandemic, the digital therapeutics market observed a positive growth. Due to high rate of corona virus transmission, and fear of infection, many heart patients avoided their regular doctor visits and health checkup. Also, due to growing number of infection cases, many private clinics and emergency wards were occupied by corona patients which further restricted normal patients with other disease to see any healthcare professional. Due to these factors, the patients have opted for digital form of therapeutics which has eased their life in pandemic. These factors are likely to drive the digital therapeutics market share growth in the pandemic time period.
Digital Therapeutics Market Analysis
Increasing prevalence of chronic diseases like obesity and diabetes, among people across the world is expected to drive the digital therapeutics growth in the forecast time period. As people across the globe are suffering from various diseases and rate of hospital visits have increased tremendously, they have now focused more on using digital healthcare tools for their regular health follow up. Also, digital therapeutics require less healthcare cost compared to traditional healthcare visits. These factors are further anticipated to boost the market growth in the future.
However, lack of awareness about the availability and usability of digital healthcare applications among people, especially in developing countries is likely to restrain the digital therapeutics market growth in the coming years. Also, lack of reimbursement facilities for digital therapeutics in developing countries like India is further anticipated to impede digital therapeutics market in the next few years.
Due to growing demand for advanced, more reliable, and evidence based treatment options for chronic diseases like obesity, many companies in the market have got opportunities to launch new applications devices for digital therapeutics in the market. For instance, according to a news published on Business Wire, on December 07, 2021, Limbix, a digital therapeutic company, raised $15million in Series A2 financing from investors, to develop treatment options for adolescent mental health disorders. Such factors are likely to boost the digital therapeutics market size growth in future.
Digital Therapeutics Market Segmentation
The digital therapeutics market is segmented based on application, product, and region.
The global digital therapeutics market by product is segmented into software and devices digital therapeutics market. Software digital therapeutics sub-segment is anticipated to have the fastest market growth and generate a revenue of $8,385.10 million in 2028. The sub-segment growth is attributed to the increasing cases of obesity and overweight cases among people, worldwide, due to lack of physical exercise. As the cases of obesity have increased, the demand for software which can properly guide and help patients to reduce their weight has increased. This factor is likely to flourish the market growth in the next few years.
The global digital therapeutics market by application is segmented into diabetes, obesity, cardiovascular disease, central nervous system, respiratory disease, smoking cessation, gastrointestinal disease, and others. The obesity sub-segment is predicted to have the fastest growing revenue in the global market and register a revenue of $2,404.00 million during the forecast period. The growth is attributed to increase in the number of obesity cases among the people across the world due to unhealthy food eating habits. Many companies have now focused on developing software for obese people to manage and reduce their weight. These factors are likely to flourish the market growth in the next few years.
The Asia-Pacific digital therapeutics market is expected to observe fastest growth and register a revenue of $2,069.40 million in the predicted time span. The regional growth is attributed to presence of well-established healthcare companies in the market and their constant effort to develop and launch new products. Also, growing prevalence of lifestyle related health issues such as obesity, mental health issues, and stress level among working professionals due to lack of exercise and workout has increased the prevalence of heart diseases. Such factors are estimated to increase the market growth of digital therapeutics market in the future.
Key Players in the Digital therapeutics Market
The companies involved in the digital therapeutics market are
- Livongo Health
- Omada Health
- Pear Therapeutics
- Proteus Digital Health
- Propeller Health
- Akili Interactive Labs
- Better Therapeutics
Porter’s Five Forces Analysis for the Digital Therapeutics Market
- Bargaining Power of Suppliers: The number of suppliers in the digital therapeutics market are increasing at a rapid pace due to which they have to optimize their product range in order to attract large number of consumers.
Thus, the bargaining power suppliers is moderate.
- Bargaining Power of Buyers: Buyers are high in number. Therefore, they have high choices in choosing the products that best fit their preference.
Thus, the bargaining power of the buyers is high.
- Threat of New Entrants: Since the market is growing rapidly, new companies entering the market have started launching new and advanced digital therapeutics products to attract the consumers and establish their market presence.
Thus, the threat of the new entrants is high.
- Threat of Substitutes: Although, there is no substitute for digital therapeutics in the market, patients still prefer the traditional way of treatment option. Due to this the threat for the market increases.
Thus, the threat of substitutes is high.
- Competitive Rivalry in the Market: The competitive rivalry is present among the market players as the digital therapeutics market is growing and there is a huge scope for high growth.
Therefore, competitive rivalry in the market is high.