Digital Therapeutics Market Size, Share, Forecast, & Trends Analysis by Application (Mental health, Diabetes, Respiratory, Neurology, Addiction, Rehabilitation, Oncology, Sleep Disorder) Type (Disease Prevention, Management) End User-Global Forecast to 2031

The Digital Therapeutics Market was valued at $6.46 billion in 2023. This market is expected to reach $56.34 billion by 2031 from an estimated $8.26 billion in 2024, at a CAGR of 31.5% during the forecast period of 2024-2031

Digital Therapeutics Market Size & Forecast

The increasing prevalence of therapeutics, rising focus on preventive healthcare and self-testing, rising investment in digital therapeutics, and increasing internet users are driving the growth of this market. Furthermore, the untapped market in emerging economies and the growing pipeline of digital therapeutics are expected to generate growth opportunities for the stakeholders in this market.

Key Findings

• By Type: The Disease Management and Treatment DTx Segment Dominates the Digital Therapeutics Market in 2024
• By Application: The Mental Health Segment to Dominate the Digital Therapeutics Market in 2024
• By End User: The Providers Segment is Expected to Dominate the Digital Therapeutics Market in 2024
• By Geography: North America to Dominate the Digital Therapeutics Market in 2024

Digital Therapeutics Market Driver

The Rising Prevalence of Chronic Diseases is Driving the Growth of this Market

The global prevalence of chronic diseases and conditions, such as diabetes, arthritis, and heart disease, is steadily rising. According to the WHO, in 2020, chronic diseases affected an estimated 57% of the global population, and each year, 41 million people die from these conditions, accounting for 71% of all global deaths. The growth of the aging population and changes in social behaviors are major contributors to the increasing number of individuals suffering from chronic diseases. For example, the International Diabetes Federation reported that, in 2019, 19.3% of people aged 65 and above were affected by diabetes. In North America and the Caribbean, the prevalence of diabetes in this age group rose from 26.3% in 2017 to 27.0% in 2019, with projections indicating it will reach 27.3% by 2030. Similarly, in Europe, diabetes prevalence among people aged 65 and above increased from 20.4% in 2017 to 24.2% in 2019, with an expected increase to 24.7% by 2030. As a result, the growing prevalence of chronic diseases is driving the adoption of digital therapeutic solutions for continuous health monitoring and management.

The global population aged 65 years or older is projected to more than double, increasing from 761 million in 2021 to 1.6 billion by 2050 (Source: United Nations). Developing regions such as Asia, Latin America, and Africa are expected to have the highest proportions of individuals aged 65 and above, followed by Europe and North America. The geriatric population is particularly vulnerable to a range of chronic diseases. As a result, the growing aging population, combined with the rising prevalence of chronic conditions, is driving the growth of the digital therapeutics market.

Increasing Focus on Preventive Healthcare and Self-testing is Driving the Market

Preventive care plays a crucial role in preventing illness, enabling early disease diagnosis, and promoting a healthy lifestyle. By focusing on prevention, it reduces the likelihood of disabilities, diseases, and premature death. However, many patients worldwide lack access to preventive care due to factors such as the shortage of primary care providers, high costs, geographical barriers, and limited awareness.

Digital therapeutics support disease prevention by offering clinically validated preventive care interventions. As the focus on preventive healthcare grows, major market players and governments worldwide are ramping up investments, policies, and initiatives to promote this approach. For example, in March 2021, the European Commission launched the EU4Health program for 2021–2027, with an investment of USD 6.03 billion (EUR 5.1 billion) aimed at disease prevention, health promotion, digital transformation of the healthcare system, and the integration of digital services and tools, among other key areas of intervention.

Digital therapeutics, which utilize software solutions and connected devices, are increasingly being adopted for self-testing. The rising focus on self-testing for improved disease management is contributing to the growing adoption of digital therapeutics, thereby driving the market's growth.

Digital Therapeutics Market Opportunities

Untapped Markets in Emerging Economies are an Opportunity for the Digital Therapeutics Market

Emerging economies worldwide are driving the demand for healthcare services and treatments, fueled by rapid urbanization, improvements in healthcare infrastructure, rising healthcare expenditures, increased healthcare insurance coverage, higher disposable incomes, and the growing prevalence of both non-communicable and infectious diseases.

According to the World Bank, the total population of emerging countries is projected to reach approximately 3.4 billion by 2050. Additionally, the International Diabetes Federation reports that the global number of people with diabetes aged 20–79 rose from 425 million in 2017 to 537 million in 2021, with estimates suggesting this number will reach 643 million by 2030. These factors are expected to significantly drive the demand for digital therapeutics in the coming years.

Growing urbanization and rising GDP per capita in emerging economies such as South Africa, India, Brazil, China, Bangladesh, and Thailand are driving the demand for healthcare services and treatments. Urbanization typically correlates with higher wages, an improved quality of life, and better access to healthcare services. As urbanization accelerates in these regions, it is expected to spur the development of healthcare systems, expand access to healthcare, and facilitate the widespread adoption of digital therapeutics in urban areas.

Given the overall scenario, factors such as the increasing prevalence of chronic and infectious diseases, population growth, and rising urbanization are expected to drive the demand for digital therapeutics solutions in emerging countries. This, in turn, is creating substantial growth opportunities for companies operating in the market.

Digital Therapeutics Market Analysis: Top Market Opportunity:

The Disease Management and Treatment DTx Segment is Expected to Dominate the Digital Therapeutics Market in 2024

Based on type, the digital therapeutics market is segmented into disease management and treatment DTx and disease prevention DTx. In 2024, the disease management and treatment DTx segment is expected to account for the largest share of 76.5% of the digital therapeutics market.

The large market share of this segment is driven by the availability of cost-effective digital therapeutics solutions for disease management, the increasing need to reduce healthcare costs due to the rising economic burden of healthcare, and higher investments in digital therapeutics. For example, in December 2021, Limbix Health, Inc. secured USD 15 million in funding to develop mental health solutions for adolescents. Similarly, in May 2021, Noom Inc. (U.S.) raised USD 540 million to expand its behavior-change platform into virtual treatments for conditions such as high blood pressure, diabetes, stress, and sleep disorders.

Additionally, the growing global burden of chronic diseases is driving the demand for digital therapeutics (DTx) solutions for disease management and treatment. Digital therapeutics aim to improve care delivery, enhance patient outcomes, and boost patient engagement and empowerment. By leveraging technology, these solutions have the potential to transform healthcare by optimizing care processes, expanding access to treatment, and fostering patient-centered approaches to care.

Geographical Analysis

North America Dominates the Digital Therapeutics Market in 2024

In 2024, North America is estimated to account for the largest share of 43.6% of the digital therapeutics market.

The large share of the North American digital therapeutics market is driven by several factors, including the increasing prevalence of chronic diseases, a surge in the use of digital health products, and growing awareness among patients about digital therapeutics solutions. Additionally, the region is home to a high number of digital therapeutics companies, such as 2Morrow Inc., Welldoc, Inc., BigHealth, Teladoc Health, Inc., and DarioHealth Corp., all based in the U.S. The U.S. government has also been supportive of digital therapeutics, particularly during the COVID-19 pandemic. For example, in April 2020, the U.S. Food and Drug Administration (FDA) relaxed certain premarket requirements for smartphone apps and programs designed to support the treatment of conditions like anxiety, obsessive-compulsive disorder, insomnia, and depression. These factors have significantly contributed to North America's dominant position in the digital therapeutics market.

However, Asia-Pacific is slated to register the highest CAGR of 34.1% during the forecast period. The growth of digital health infrastructure in the APAC region is being driven by several factors, including a shortage of healthcare professionals, the need to reduce healthcare costs, the increasing prevalence of chronic diseases, and the growing consumer preference for mobile applications to manage digital health. These factors are collectively fueling the growth of the digital health market in the region.

Key Companies

The report includes a competitive landscape based on an extensive assessment of the key strategic developments that led market participants to adopt over the past years (2021–2024). The key players operating in the global digital therapeutics market are Noom, Inc. (U.S.), 2Morrow Inc. (U.S.), GAIA AG (Germany), ResMed Inc. (U.S.), Canary Health (U.S.), Welldoc, Inc. (U.S.), DarioHealth Corp. (U.S.), Akili, Inc. (U.S.), Biofourmis Inc. (U.S.), Big Health (U.S.), Teladoc Health, Inc. (U.S.), Limbix Health, Inc. (U.S.), Kaia Health Software Inc. (Germany), Glooko, Inc. (U.S.), and Virta Health Corp. (U.S.).

Digital Therapeutics Industry Overview: Latest Developments from Key Industry Players

• In June 2024, Teijin Pharma Limited (Japan) and CureApp, Inc. (U.S.) signed a joint marketing and sales agreement for the Prescription Digital Therapeutic App for Hypertension. Through the partnership, the companies aim to expand the use of CureApp HT, which supports lifestyle modifications for hypertension treatment.
• In May 2024, Otsuka Pharmaceutical Co., Ltd. (Japan) launched a subsidiary, Otsuka Precision Health, to commercialize its digital therapeutic Rejoyn and other digital therapeutics and connected health products.
• In April 2024, Otsuka Pharmaceutical Co., Ltd. (Japan) and Therapeutics, Inc. (U.S.) jointly developed the mobile app Rejoyn received FDA clearance for use as an adjunct to medication in the treatment of major depressive disorder.
• In January 2024, Big Health (U.S.) raised USD 75 million in a series C funding round to accelerate the company’s commercial reimbursement model and product platform, including six new digital therapeutics by 2024. The funding was provided by SoftBank Vision Fund (U.S.), with participation from ArrowMark Partners (U.S.) and existing investors Octopus Ventures (U.K.), Gilde Healthcare (Netherlands), Kaiser Permanente Ventures (KPV) (U.S.), and Morningside Ventures (U.S.).
• In January 2023, Kaia Healthcare Software Inc. (Germany) Kaia Back Pain got permanently listed on the DiGA platform, making it free for consumers with statutory health insurance.

Digital Therapeutics Market Research Summary

Key questions answered in the report: