digital therapeutics Market

The global digital therapeutics market is expected to grow from US$ 4,226.94 million in 2021 to US$ 18,061.79 million by 2028; it is estimated to grow at a CAGR of 23.1% from 2021 to 2028.

The increasing prevalence of chronic diseases, the growing need to reduce healthcare costs, and partnerships and collaborations by companies fuel the demand for digital therapeutics. However, the rise in concerns related to cyber threats and data security hampers the market growth.

Digital therapeutics is a subdivision of digital health, representing a collection of technologies, products, and services across the healthcare & wellness industries. It is an evidence-based therapeutic intervention for patients driven by software to prevent, manage, or treat a medical disorder or disease, such as congestive heart failure, obesity, dementia, type 2 diabetes, asthma, ADHD, hypertension, and anxiety. They are used to improve patient care and health outcomes, either independently or with medications and devices. Due to the digital nature of the methodology, data can be collected and analyzed as a progress report and a preventative measure. Digital therapeutics often employ strategies rooted in cognitive behavioral therapy. Digital therapeutic products are reviewed and approved by regulators to augment product claims on risk, efficacy, and intended use.

Digital therapeutics gained rapid acceptance from employers and insurance providers owing to its benefits. The market has a significant number of small players; however, large companies have begun investing in the market in the last few years. In June 2018, Cigna collaborated with Omada Health. Through this collaboration, eligible Cigna-administered health plan customers can access to Omada's digital intensive behavioral counseling platform as a fully covered preventive benefit in health improvement program portfolio without any cost. In 2019, Propeller Health, a leading digital therapeutics company, partnered with Orion Corporation to connect the latter's Easyhaler line of inhalers for asthma and COPD patients to Propeller's digital medicine platform. This platform covers more than 90% of inhalable medicines for asthma and COPD. The partnership expanded Propeller's presence in Europe. Digital Therapeutics Alliance (DTA), a nonprofit trade association of industry players and participants engaged in advancing digital therapeutics, has continued to operate in the US since 2017. The association actively drives the digital therapeutics industry's growth through collaborations and partnerships. In May 2018, DTA announced a partnership with USP, a nonprofit organization headquartered in Rockville, Maryland, to develop appropriate standards and guidelines for digital therapeutics. In October 2018, DTA expanded its European membership by joining S3 Connected Health, specializing in designing and developing digital therapeutics and health solutions.

Based on distribution channel, the digital therapeutics market is segmented into patients, providers, payers, and employers. The patients segment held the largest share of the market in 2021. However, the providers segment is anticipated to register the highest CAGR in the market during the forecast period.

A few of the primary and secondary sources referred to while preparing the report on the digital therapeutics market are the World Health Organization (WHO), the Centers for Disease Control and Prevention (CDC), the International Diabetes Federation (IDF), and the American Diabetes Association.