Digital Therapeutic (DTx) Market

Digital Therapeutic (DTx) Market by Application (Prediabetes, Nutrition, Care, Diabetes, CVD, CNS, CRD, MSD, GI, Substance Abuse, Rehabilitation), Sales Channel (B2C, Patient, Caregiver, B2B, Providers, Payer, Employer, Pharma) - Global forecasts to 2025

Report Code: HIT 4407 Mar, 2020, by marketsandmarkets.com

[166 Pages Report] 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). 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. On the other hand, a lack of awareness and access to digital therapeutics programs in developing countries, patient data privacy concerns, unstable payment models, and resistance from traditional healthcare providers are challenging the growth of this market to a certain extent.

Digital Therapeutics Market - Attractive Opportunities by 2021

B2B segment is expected to grow at the highest CAGR during the forecast period

Based on the sales channel, the digital therapeutics market is segmented into business-to-customer (B2C) and business-to-business (B2B). In 2019, the B2B segment accounted for the largest market share; it is also expected to grow at the highest CAGR of the digital therapeutics market. There is growing awareness among providers, payers, and employers about the benefits provided by digital therapeutics and the healthcare cost reductions achieved by their use. Additionally, there is a growing inclination of pharmaceutical companies to integrate digital therapeutics with their drug product to offer adherence services along with the product. These are some factors responsible for the high share of this market segment.

Caregivers segment is expected to dominate the market

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.

The treatment/care-related applications segment accounted for the largest share of the digital therapeutics market in 2019.

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.

Digital Therapeutics Market - Attractive Opportunities by 2021

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 players in the digital therapeutics market

The digital therapeutics market is fragmented in nature, with a large number of players, including tier 1 and mid-tier companies competing for market shares. The prominent players in the global digital therapeutics market include Noom (US), Livongo Health (US), Omada Health (US), WellDoc (US), Pear Therapeutics (US), Proteus Digital Health (US), Propeller Health (US), Akili Interactive Labs (US), Better Therapeutics (US), Happify (US), Kaia Health (Germany), Mango Health (US), Click Therapeutics (US), Canary Health (US), Wellthy Therapeutics (India), Cognoa (US), Ayogo Health (Canada), Mindstrong Health (US), 2Morrow (US), and Ginger (US).

Omada (US): Omada Health is a pioneer in the field of digital therapeutics. The company has attracted significant investments to enhance its solutions, particularly its digital prediabetes program ‘Prevent.’ In June 2019, the company secured USD 73 million from its investors for the development of digital care health programs focusing on preventable chronic conditions. To support its organic growth, the company focuses on R&D to continuously improve and upgrade its products. In this regard, in February 2016, Omada launched a new version of its Prevent program with additional features designed to meet the growing needs of its customers. In addition, the company is focusing on broadening its product offerings beyond diabetes—in January 2019, the company launched a mental health program, mHealth Platform, for anxiety and depression. The company is also working in partnership with many employers, payers, healthcare systems, and pharma companies.

Scope of the Report

Report Metric

Details

Market Size Available for Years

2018–2025

Base Year Considered

2019

Forecast Period

2020–2025

Forecast Units

Value (USD)

Segments Covered

Sales Channel, Application, and Region

Geographies Covered

North America (US and Canada), Europe (Germany, UK, France, Spain, Italy, and the RoE), Asia Pacific (Japan, China, India, and the RoAPAC), and the Rest of the World

Companies Covered

Noom (US), Livongo Health (US), Omada Health (US), WellDoc (US), Pear Therapeutics (US), Proteus Digital Health (US), Propeller Health (US), Akili Interactive Labs (US), Better Therapeutics (US), Happify (US), Kaia Health (Germany), Mango Health (US), Click Therapeutics (US), Canary Health (US), Wellthy Therapeutics (India), Cognoa (US), Ayogo Health (Canada), Mindstrong Health (US), 2Morrow (US), and Ginger (US)

The research report categorizes the digital therapeutics market into the following segments and subsegments:

Digital Therapeutics Market, by Sales Channel

  • B2C
    • Patients
    • Caregivers
  • B2B
    • Providers
    • Payers
    • Employers
    • Pharmaceutical Companies
    • Other Buyers

Digital Therapeutics Market, by Application

  • Preventive Applications
    • Prediabetes
    • Obesity
    • Nutrition
    • Lifestyle Management
    • Other Preventive Applications
  • Treatment/Care-related Applications
    • Diabetes
    • CNS Disorders
    • Chronic Respiratory Disorders
    • Musculoskeletal Disorders
    • Cardiovascular Diseases
    • Smoking Cessation
    • Medication Adherence
    • Gastrointestinal Disorders
    • Substance Use & Addiction Management
    • Rehabilitation & Patient Care
    • Other Treatment/Care-related Applications

Digital Therapeutics Market, by Region

  • North America
    • US
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
    • Rest of Europe (RoE)
  • APAC
    • Japan
    • China
    • India
    • Rest of the APAC
  • Rest of the World (RoW)

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?

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

TABLE OF CONTENTS

1 INTRODUCTION
    1.1 OBJECTIVES OF THE STUDY
    1.2 MARKET DEFINITION
           1.2.1 MARKETS COVERED
           1.2.2 YEARS CONSIDERED FOR THE STUDY
    1.3 CURRENCY
    1.4 LIMITATIONS
    1.5 STAKEHOLDERS
    1.6 LIMITATIONS

2 RESEARCH METHODOLOGY
    2.1 RESEARCH DATA
           2.1.1 SECONDARY DATA
                    2.1.1.1 Key data from secondary sources
           2.1.2 PRIMARY DATA
                    2.1.2.1 Key data from primary sources
                    2.1.2.2 Key industry insights
    2.2 MARKET SIZE ESTIMATION
           2.2.1 BOTTOM-UP APPROACH
                    2.2.1.1 Approach one: revenue mapping-based estimation
                    2.2.1.2 Approach two: buyer adoption-based estimation
           2.2.2 TOP DOWN APPROACH: PENETRATION RATE BASED MARKET SIZE ESTIMATION
           2.2.3 GROWTH FORECAST
    2.3 MARKET BREAKDOWN AND DATA TRIANGULATION
    2.4 MARKET PLAYER RANKING
    2.5 ASSUMPTIONS FOR THE STUDY

3 EXECUTIVE SUMMARY

4 PREMIUM INSIGHTS
    4.1 DIGITAL THERAPEUTICS MARKET OVERVIEW
    4.2 DIGITAL THERAPEUTICS MARKET, BY SALES CHANNEL, 2020–2025
    4.3 B2B SALES CHANNEL MARKET SHARE, BY BUYER & REGION (2019)
    4.4 DIGITAL THERAPEUTICS MARKET: GEOGRAPHIC GROWTH OPPORTUNITIES

5 MARKET OVERVIEW
    5.1 INTRODUCTION
    5.2 MARKET DYNAMICS
           5.2.1 DRIVERS
                    5.2.1.1 Increasing incidence of preventable chronic diseases
                    5.2.1.2 Rising focus on preventive healthcare
                    5.2.1.3 Need to control healthcare costs
                    5.2.1.4 Significant increase in venture capital investments
                    5.2.1.5 Benefits of digital therapeutics
                               5.2.1.5.1 Ability to induce behavioral change
                               5.2.1.5.2 Improved drug adherence
                               5.2.1.5.3 Patient convenience and user-friendliness
           5.2.2 RESTRAINTS
                    5.2.2.1 Patient data privacy concerns
           5.2.3 OPPORTUNITIES
                    5.2.3.1 Emerging markets
                    5.2.3.2 Large undiagnosed and untreated population
                    5.2.3.3 Unexplored therapeutic applications
           5.2.4 CHALLENGES
                    5.2.4.1 Unstable payment models
                    5.2.4.2 Reluctance among patients to adopt digital therapeutics
                    5.2.4.3 Lack of awareness and access to digital therapeutics programs in developing countries
                    5.2.4.4 Resistance from traditional healthcare providers

6 DIGITAL THERAPEUTICS MARKET, BY SALES CHANNEL
    6.1 INTRODUCTION
    6.2 B2B
           6.2.1 PAYERS
                    6.2.1.1 Payers hold the highest share of the market, by B2B sales
           6.2.2 EMPLOYERS
                    6.2.2.1 Importance of employee health management is propelling the adoption of digital therapeutics among employers
           6.2.3 PHARMACEUTICAL COMPANIES
                    6.2.3.1 Cross-industry collaboration between digital therapeutics start-ups and pharmaceutical companies will drive market growth
           6.2.4 PROVIDERS
                    6.2.4.1 Potential for better patient management and cost-reductions are driving demand for digital therapeutics among providers
           6.2.5 OTHER BUYERS
    6.3 B2C
           6.3.1 CAREGIVERS
                    6.3.1.1 Ease of managing health conditions has driven demand for solutions among caregivers
           6.3.2 PATIENTS
                    6.3.2.1 Awareness about preventive health among patients will drive the growth of this segment

7 DIGITAL THERAPEUTICS MARKET, BY APPLICATION
    7.1 INTRODUCTION
    7.2 TREATMENT/CARE-RELATED APPLICATIONS
           7.2.1 DIABETES
                    7.2.1.1 Growing prevalence of diabetes drives market growth
           7.2.2 CENTRAL NERVOUS SYSTEM DISORDERS
                    7.2.2.1 Potential benefits of digital therapeutics in CNS disorder management have driven the development of solutions
           7.2.3 SMOKING CESSATION
                    7.2.3.1 Focus on providing clinically validated, effective mobile applications to help quit smoking drives market growth
           7.2.4 CHRONIC RESPIRATORY DISEASES
                    7.2.4.1 Growing prevalence of COPD and asthma is responsible for market growth in this segment
           7.2.5 MUSCULOSKELETAL DISORDERS
                    7.2.5.1 Potential of digital therapeutics in better pain management to drive the adoption of these solutions among end users
           7.2.6 CARDIOVASCULAR DISEASES
                    7.2.6.1 Increasing care cost of CVD to drive the need for digital therapeutics solutions
           7.2.7 MEDICATION ADHERENCE
                    7.2.7.1 Need to drive medication adherence rates have propelled the demand for effective solutions
           7.2.8 GASTROINTESTINAL DISORDERS
                    7.2.8.1 Availability of mobile applications for the management of GI conditions to drive the market growth
           7.2.9 REHABILITATION & PATIENT CARE
                    7.2.9.1 Benefits of digital therapeutics have induced startups to develop platforms for patient care
           7.2.10 SUBSTANCE USE DISORDERS & ADDICTION MANAGEMENT
                    7.2.10.1 Potential to improve the efficiency of behavioral interventions are encouraging market growth
           7.2.11 OTHER TREATMENT/CARE-RELATED APPLICATIONS
    7.3 PREVENTIVE APPLICATIONS
           7.3.1 PREDIABETES
                    7.3.1.1 Influx of startups to provide effective prevention against prediabetes drives the growth of this segment
           7.3.2 OBESITY
                    7.3.2.1 Availability of cost-effective solutions for obesity management propels the growth of this segment
           7.3.3 NUTRITION
                    7.3.3.1 Importance of nutrition in preventing a wide range of ailments has driven demand for digital therapeutic solutions
           7.3.4 LIFESTYLE MANAGEMENT
                    7.3.4.1 Ability of digital therapeutics solutions to induce positive behavioral changes has contributed to rise in demand
           7.3.5 OTHER PREVENTIVE APPLICATIONS

8 DIGITAL THERAPEUTICS MARKET, BY REGION
    8.1 INTRODUCTION
    8.2 NORTH AMERICA
           8.2.1 US
                    8.2.1.1 Major digital therapeutics start-ups are based out of the US, which has greatly supported access to solutions
           8.2.2 CANADA
                    8.2.2.1 Efforts are being taken by the Canadian government to support digital therapeutics
    8.3 EUROPE
           8.3.1 GERMANY
                    8.3.1.1 Germany accounted for the largest share of the digital therapeutics market in Europe
           8.3.2 UK
                    8.3.2.1 Well-established healthcare system and government support will propel the growth of the market
           8.3.3 FRANCE
                    8.3.3.1 Growing healthcare expenditure and favorable health insurance system to support market growth in France
           8.3.4 SPAIN
                    8.3.4.1 Initiatives by emerging digital therapeutics startups are supporting market growth
           8.3.5 ITALY
                    8.3.5.1 Need for alternative and effective treatment to drive the market growth in coming years
           8.3.6 REST OF EUROPE
    8.4 ASIA PACIFIC
           8.4.1 JAPAN
                    8.4.1.1 Rising diabetes incidence and collaborations between stakeholders are indicators of market growth in Japan
           8.4.2 CHINA
                    8.4.2.1 Growing geriatric population and incidence of chronic conditions will drive demand for digital therapeutics in China
           8.4.3 INDIA
                    8.4.3.1 Rising chronic disease incidence and the need for better disease management drive market growth
           8.4.4 REST OF APAC
    8.5 REST OF THE WORLD
           8.5.1 RISING BURDEN ON HEALTHCARE SYSTEMS DRIVES DEMAND FOR ALTERNATIVE, COST-EFFECTIVE THERAPIES IN THE ROW

9 COMPETITIVE LANDSCAPE
    9.1 OVERVIEW
    9.2 MARKET RANKING ANALYSIS, 2019
    9.3 COMPETITIVE LEADERSHIP MAPPING
           9.3.1 VISIONARY LEADERS
           9.3.2 DYNAMIC DIFFERENTIATORS
           9.3.3 INNOVATORS
           9.3.4 EMERGING COMPANIES
    9.4 COMPETITIVE SITUATION AND TRENDS
           9.4.1 PRODUCT LAUNCHES
           9.4.2 EXPANSIONS
           9.4.3 PARTNERSHIPS, AGREEMENTS & COLLABORATIONS

10 COMPANY PROFILES
     10.1 NOOM
             10.1.1 BUSINESS OVERVIEW
             10.1.2 PRODUCTS OFFERED
             10.1.3 RECENT DEVELOPMENTS
             10.1.4 MNM VIEW
     10.2 LIVONGO HEALTH
             10.2.1 BUSINESS OVERVIEW
             10.2.2 PRODUCTS OFFERED
             10.2.3 RECENT DEVELOPMENTS
             10.2.4 MNM VIEW
     10.3 OMADA HEALTH
             10.3.1 BUSINESS OVERVIEW
             10.3.2 PRODUCTS OFFERED
             10.3.3 RECENT DEVELOPMENTS
             10.3.4 MNM VIEW
     10.4 PROTEUS DIGITAL HEALTH
             10.4.1 BUSINESS OVERVIEW
             10.4.2 PRODUCTS OFFERED
             10.4.3 RECENT DEVELOPMENTS
     10.5 WELLDOC
             10.5.1 BUSINESS OVERVIEW
             10.5.2 PRODUCTS OFFERED
             10.5.3 RECENT DEVELOPMENTS
     10.6 GINGER
             10.6.1 BUSINESS OVERVIEW
             10.6.2 PRODUCTS OFFERED
     10.7 PROPELLER HEALTH
             10.7.1 BUSINESS OVERVIEW
             10.7.2 PRODUCTS OFFERED
     10.8 2MORROW
             10.8.1 BUSINESS OVERVIEW
             10.8.2 PRODUCTS OFFERED
             10.8.3 RECENT DEVELOPMENTS
     10.9 CANARY HEALTH
             10.9.1 BUSINESS OVERVIEW
             10.9.2 PRODUCTS OFFERED
             10.9.3 RECENT DEVELOPMENTS
     10.10 MANGO HEALTH INC.
             10.10.1 BUSINESS OVERVIEW
             10.10.2 PRODUCTS OFFERED
             10.10.3 RECENT DEVELOPMENTS
     10.11 CLICK THERAPEUTICS
             10.11.1 BUSINESS OVERVIEW
             10.11.2 PRODUCTS OFFERED
             10.11.3 RECENT DEVELOPMENTS
     10.12 PEAR THERAPEUTICS
             10.12.1 BUSINESS OVERVIEW
             10.12.2 PRODUCTS & SERVICES OFFERED
             10.12.3 RECENT DEVELOPMENTS
     10.13 AKILI INTERACTIVE LABS
             10.13.1 BUSINESS OVERVIEW
             10.13.2 PRODUCTS OFFERED
             10.13.3 RECENT DEVELOPMENTS
     10.14 WELLTHY THERAPEUTICS
             10.14.1 BUSINESS OVERVIEW
             10.14.2 PRODUCTS OFFERED
             10.14.3 RECENT DEVELOPMENTS
     10.15 COGNOA
             10.15.1 BUSINESS OVERVIEW
             10.15.2 PRODUCTS OFFERED
             10.15.3 RECENT DEVELOPMENTS
     10.16 HAPPIFY
             10.16.1 BUSINESS OVERVIEW
             10.16.2 PRODUCTS OFFERED
             10.16.3 RECENT DEVELOPMENTS
     10.17 KAIA HEALTH
             10.17.1 BUSINESS OVERVIEW
             10.17.2 PRODUCTS OFFERED
     10.18 AYOGO HEALTH
             10.18.1 BUSINESS OVERVIEW
             10.18.2 PRODUCTS OFFERED
             10.18.3 RECENT DEVELOPMENTS
     10.19 BETTER THERAPEUTICS
             10.19.1 BUSINESS OVERVIEW
             10.19.2 PRODUCTS OFFERED
     10.20 MINDSTRONG HEALTH
             10.20.1 BUSINESS OVERVIEW
             10.20.2 PRODUCTS OFFERED

11 APPENDIX
DISCUSSION GUIDE
     11.1 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL
     11.2 AVAILABLE CUSTOMIZATIONS
     11.3 RELATED REPORTS
     11.4 AUTHOR DETAILS

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. After that, market breakdown and data triangulation procedures were used to estimate the market size of segments and subsegments.

Secondary Research

Secondary research was mainly used to identify and collect information for the extensive, technical, market-oriented, and commercial study of the digital therapeutics market. Secondary sources include directories; databases such as Bloomberg Businessweek, Factiva, and Wall Street Journal; white papers; and annual reports that were used to obtain key information about major players, market classification, and segmentation according to industry trends, regional/country-level markets, market developments, and technology perspectives.

Primary Research

In-depth interviews were conducted with various primary respondents, including key industry participants, subject-matter experts (SMEs), C-level executives of key market players, and industry consultants, among other experts, to obtain and verify the critical qualitative and quantitative information as well as assess the prospects of the market. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. The following is a breakdown of primary respondents:

Digital Therapeutics Market - Attractive Opportunities by 2021

To know about the assumptions considered for the study, download the pdf brochure

Market Size Estimation

Both top-down and bottom-up approaches were used to estimate and validate the total size of the digital therapeutics market. These methods were also used extensively to determine the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:

  • The key players in the industry and markets have been identified through extensive secondary research
  • The research methodology included the study of annual and quarterly financial reports and regulatory filings, data books of major market players, as well as interviews with industry experts for detailed market insights.
  • All percentage shares, splits, and breakdowns for the global digital therapeutics market were determined by using secondary sources and verified through primary sources
  • All key macroindicators affecting the revenue growth of market segments and subsegments have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get validated and verified quantitative and qualitative data
  • The gathered market data was consolidated and added with detailed inputs and analysis, and presented in this report

Data Triangulation

After arriving at the overall market size from the market size estimation process, the total market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments, data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides.

Report Objectives

  • To define, describe, and forecast the digital therapeutics market on the basis of sales channel, application, and region
  • To provide detailed information regarding the major factors influencing the market growth (such as drivers, restraints, opportunities, and challenges)
  • To analyze micromarkets with respect to individual growth trends, prospects, and contributions to the overall digital therapeutics market
  • To analyze the opportunities for stakeholders and provide details of the competitive landscape for market leaders
  • To forecast the size of market segments with respect to four main regions—North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW)
  • To profile key players and analyze their market shares and core competencies
  • To track and analyze competitive developments such as product launches, partnerships, agreements, expansions, and acquisitions in the digital therapeutics market

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for this report.

Company Information

  • Detailed analysis and profiling of additional market players (up to 5)
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