The study involved four major activities in estimating the current size of the global digital therapeutics market. Exhaustive secondary research was conducted to collect information on the market, its peer markets, and its parent market. The next step was to validate these findings, assumptions, and sizing values with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size.
What the Market Looks Like?
According to the new market research report by MarketsandMarkets, the global digital therapeutics market is projected to reach USD 6.9 billion by 2025 from USD 2.1 billion in 2020, at a CAGR of 26.7% during the forecast period (2020–2025). North America accounted for the largest share of the digital therapeutics market in 2019.
The growth of the digital therapeutics market is primarily driven by factors such as government initiatives for preventive healthcare, technological advancements in mobile healthcare, a significant increase in venture capital investments, and the benefits of digital therapeutics, such as the ability to induce behavioral change (an important challenge in healthcare), user-friendliness, patient convenience, and improved drug compliance.
What are Key Trends in the Market?
The growth of the Digital Therapeutic (DTx) Market is primarily influenced by the following factors:
- Increasing incidence of preventable chronic diseases
- Rising focus on preventive healthcare
- Need to control healthcare costs
- Significant increase in venture capital investments
Based on the type of buyer, the B2C sales channel market is further segmented into patients and caregivers. The caregivers segment is expected to dominate the market and register the highest CAGR during the forecast period. The high growth of this segment is attributed to company initiatives for the development of products specifically for caregivers and the fact that digital therapeutics help caregivers in better managing their patients.
Based on the application, the digital therapeutics market is segmented into preventive and treatment/care-related applications. One of the key factors driving the growth of this segment is the rise in treatment and healthcare costs, especially due to chronic conditions. Rising healthcare costs, the growing prevalence of chronic diseases, and the ability of digital therapeutics to provide cost-effective solutions are some factors responsible for driving the market for treatment/care-related digital therapeutics applications.
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North America accounted for the largest share of the digital therapeutics market in 2019.
The global digital therapeutics market is segmented into North America, Europe, the Asia Pacific, and the RoW. In 2019, North America (US and Canada) held the largest share of the market, followed by Europe. The major factors supporting market growth include the increasing investments in digital therapeutics, the influx of new start-ups, improvements in the reimbursement structure for digital therapeutics, and government initiatives to support technological advancements.
Key Questions Addressed by the Report
Where will these developments take the industry in the mid to long-term?
What types of annual and multi-year partnerships are companies in the digital therapeutics market exploring?
Who are the key players in the market, and how intense is the competition?
What are the recent contracts and agreements that key players have signed?
What are the recent trends affecting digital therapeutics market players?
