Press release
2025 Digital Therapeutics Market to be dominated by the Patients Segment with Distribution Channel Contributing a Share of 39.2%
Rising pressure on healthcare providers to reduce healthcare costs, the rising prevalence of chronic diseases and rising in the number of partnerships and collaborations in the market are the major factors anticipated to propel the growth for the digital therapeutics market. However, the increasing rate of cyber threat and the rise in data security issues is expected to act as major challenges hindering the market growth.The digital therapeutics market has been witnessing rapid acceptance by employers as well as insurance providers during the recent years, owing to the benefits being offered by it. In support, there have been various significant collaborations and partnerships in the market, which have fuelled the growth of digital therapeutics market. The market has been largely marked by the presence of small players, however, during recent years large companies have begun to take interest in this space. For instance, in June 2018, Cigna entered a collaboration with Omada Health, to add the latter’s suite of health improvement services. Moreover, in May 2018, DTA and USP, a nonprofit organization, headquartered in Rockville, MD, announced a collaboration to explore the development of appropriate standards and guidelines for digital therapeutics. In October 2018, DTA expanded its European membership by announcing that S3 Connected Health is joining the industry body. Therefore, the digital therapeutics market is anticipated to grow due to rising in the number of partnerships and collaborations in the forecast period.
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The global digital therapeutics market is expected to reach US$ 8,941.1 Mn by 2025 from US$ 1,993.2 Mn in 2017. The market is estimated to grow with a CAGR of 20.8% during the forecast period from 2018 to 2025.
North America is the largest geographic market and it is expected to be the largest revenue generator during the forecast period, whereas the market is expected to witness growth at a significant rate in Asia Pacific (APAC) region during the forecast period. Factors such as, increasing prevalence of the chronic diseases, acceptance of the digital health platforms, developments performed by the market players in the countries such as India, China, Australia and others are likely to propel growth of the market.
Digital therapeutics help in reducing the costs associated with chronic diseases, by helping an individual or an insurance provider to keep a track of one’s health status as well as track it with the help of digital means. As per American Diabetes Association, the estimated costs of diagnosed diabetes have risen to $327 billion in 2017, including $237 billion in direct medical costs and $90 billion in reduced productivity. This cost can be managed efficiently by including digital therapeutics that are offered by providers to help manage diabetes, can help patients get assistance with disease management and overcome the logistical challenges uncovered by the investigators.
Digital therapeutics market is highly competitive due to the presence of large numbers of players which is attributed to the easy market entry and high-profit margins in the market.
Prominent Players in Digital Therapeutics Market-
• Propeller Health
• CANARY HEALTH
• Noom, Inc.
• 2Morrow Inc.
• Livongo Health
• Proteus Digital Health
• WellDoc, Inc.
• Fitbit, Inc.
• Omada Health, Inc.
• MANGO HEALTH
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DIGITAL THERAPEUTICS – MARKET SEGMENTATION
By Application
• Diabetes
• Cardiovascular Diseases
• Central Nervous System (CNS) Disease
• Respiratory Diseases
• Smoking Cessation
• Musculoskeletal Diseases
• Other Applications
By Distribution Channel
• Patients
• Providers
• Payers
• Employers
By Geography
• North America
• U.S.
• Canada
• Mexico
• Europe
• France
• Germany
• UK
• Asia Pacific (APAC)
• China
• India
• Japan
• Middle East & Africa (MEA)
• Saudi Arabia
• South Africa
• UAE
• South America (SAM)
• Brazil
Strategic Insights
Product launch/update and partnerships were observed as the most adopted strategy in global digital therapeutics industry. Few of the product approvals and partnerships made by the players in the market are listed below:
2017: In November, Propeller Health and Express Scripts entered into a partnership to provide Propeller’s FDA-cleared digital solutions to Express Scripts to manage asthma or COPD.
2016: In November, Propeller Health received FDA approval for its Propeller platform for use with GSK’s Ellipta inhaler.
2018: In April, Canary Health entered into a partnership with NMRHCA to offer the Better Choices, Better Health (BCBH) digital therapeutics program in New Mexico.
2016: In June, Canary Health partnered with Medtronic to expand their diabetes care offerings with Canary Health's self-management suite for pre-diabetes, diabetes and related comorbidities.
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