The global Digital Therapeutics (DTx) market size was estimated at USD 5.47 billion in 2023 and is projected to reach USD 28.68 billion in 2030 at a CAGR of 26.70% during the forecast period 2023-2030.
Digital therapy provides patients with evidence-based therapeutic interventions. It is provided with software and devices designed to manage or treat medical conditions. Digital therapy software can be used alone or in conjunction with another device, medication or treatment to achieve patient treatment and health outcomes. The design, clinical validation, usability and data security of digital therapies are based on state-of-the-art technology according to best practices. These products have been tested and approved by regulatory authorities before use. In addition, digital therapies provide patients, healthcare providers and payers with smart, easy-to-use tools to treat a variety of diseases through interventions such as high-quality, safe and effective evidence-based cards.
The increase in the use of smartphones and tablets and health applications, the need to control healthcare costs, significant benefits to the entire process of treatment and the increase in the incidence of chronic diseases are driving the growth of the global digital therapy market. The major factors driving the market growth are the increase in the incidence of preventable chronic diseases and the increase in public health funding. Emerging markets also offer companies significant growth opportunities in the coming years. Moreover, strong potential products coming to the market during the forecast period are also beneficial for market participants. Factors such as cost-effectiveness of digital health technologies for providers and patients and increasing need for integrated health systems and patient-centric care are expected to drive market growth during the forecast period.
However, lack of understanding of digital therapies in developing countries and patient privacy concerns are hindering market growth. Developers or manufacturers of digital therapies do not guarantee the security of patient data. Consumers fear that these programs will not be able to protect the confidentiality of their health information. Fear of patient privacy complicates the implementation of digital therapies. In addition, the fear of data compromise or technology being subjected to unwanted personal surveillance is hindering the growth of the digital therapy products market.
The digital therapeutics market has been positively impacted by the COVID-19 pandemic due to awareness of the importance of digital health, prevalence of mental illness and substance abuse worldwide. In addition, people had to stay at home during the pandemic, which led to reduced physical activity, unhealthy lifestyles and mental stress, which in turn increased the prevalence of chronic diseases. Therefore, the demand for DTx equipment and software is increasing worldwide. Recent relaxation of regulatory approvals for DTx-based therapies is further contributing to market growth. For example, the US FDA issued interim guidance on Pear Therapeutics' mental health products during the COVID-19 pandemic.
Digital Therapeutics (DTx) uses evidence-based, clinically-evaluated software and devices to deliver medical interventions directly to patients to treat, manage and prevent a wide range of diseases and disorders. These digital modalities help minimize gaps in healthcare delivery by delivering treatment through smartphones, mobile devices, and similar modalities. Digital software solutions support medication adherence through personalized care that drives long-term patient behavior change. Additionally, for patients with chronic conditions such as diabetes and chronic obstructive pulmonary disease, these software solutions play an important role in ensuring patient adherence to recommended doses. Therefore, the digital therapeutics market is projected to be driven by the great potential of digital therapeutics in the coming years.
North America to Dominate the Market
