Digital Therapeutic Devices Market Size (2023 - 2030)

Global Digital Therapeutic Devices Market was estimated to be worth USD 2.16 Billion in 2022 and is projected to reach a value of USD 12.23 Billion by the end of 2030, growing at a fast CAGR of 24.2% during the outlook period 2023-2030.

Due to technological developments and a rising need for creative healthcare solutions, the market for Digital Therapeutic Devices has seen rapid expansion in recent years. Software-based tools or interventions known as digital therapeutics are used to diagnose, monitor, and treat medical conditions. These gadgets make use of technology like wearables, virtual reality, and mobile applications to monitor patient health or offer therapy practically and affordably. The increased incidence of chronic diseases is one of the major factors driving the market for Digital Therapeutic Devices. Diabetes, cardiovascular diseases, and respiratory ailments are becoming more prevalent, placing a heavy load on healthcare systems around the world. By offering individualized, remote monitoring and therapy options, Digital Therapeutic Devices present a promising alternative that enables patients to manage their ailments more successfully from the comfort of their homes. For the market to see continuous growth, there are still issues that must be resolved. The reimbursement landscape is one of the major obstacles. Although some insurance companies and healthcare systems have begun to pay for digital therapy devices, adoption is hampered by the large regional variations in reimbursement practices. As sensitive medical data is collected and transmitted by Digital Therapeutic Devices, issues over data privacy and security continue to exist. For effective data protection policies to be established and user trust to be increased, regulatory organizations and industry players must collaborate. The market for Digital Therapeutic Devices is expanding quickly as a result of several factors, including the increased incidence of chronic diseases, the growing use of smartphones and wearable technology, and the attention of healthcare providers and insurers. To fully realize the potential of these cutting-edge healthcare technologies, however, issues with reimbursement and data privacy must be resolved. 

Global Digital Therapeutic Devices Market Drivers:

The increasing prevalence of chronic diseases is boosting the market growth of these devices.

The global market for Digital Therapeutic Devices is being driven by the rising incidence of chronic diseases worldwide. Healthcare systems are suffering greatly as a result of the rising prevalence of diseases including diabetes, cardiovascular disorders, and respiratory issues. Digital therapeutic devices present a potential solution by providing remote monitoring and therapy options that enable patients to control their conditions more successfully from home. These devices detect vital signs, provide medicine reminders, and offer tailored coaching via wearable technology and smartphone apps. By enabling patients to take an active role in their healthcare management, Digital Therapeutic Devices have the potential to improve patient outcomes, reduce hospitalizations, and reduce healthcare expenditures. As a result, healthcare facilities and insurers are beginning to recognize the advantages.

Technological advancements and smartphone penetration is fuelling the demand for the Digital Therapeutic Devices market.

The rapid advancement of technology and the increasing use of smartphones are major drivers of the global market for Digital Therapeutic Devices. Digital therapeutics solutions have been more widely adopted thanks to the rising popularity of smartphones and the addition of health monitoring features to wearable technologies. People may easily access a wide range of health-related tools and apps that can assist them manage their medical difficulties nowadays. Utilizing cutting-edge technology, digital treatment devices offer specific applications that give individualized therapy, cognitive behavioral therapy, and support for behavior adjustment. These devices can keep an eye on important metrics, provide patients with quick feedback, and deliver interventions straight to their wearables or cell phones. Digital therapeutic devices are being adopted and the industry is growing due to the comfort and ease of use they offer consumers looking for affordable and accessible healthcare options.

Global Digital Therapeutic Devices Market Challenges:

The complicated and erratic reimbursement environment is one of the biggest obstacles facing the global market for digital healthcare devices. Although the effectiveness and potential cost savings of these devices are widely acknowledged, different areas and healthcare systems have varying reimbursement rules. The broad use of digital therapy devices is severely constrained by the absence of regulated reimbursement procedures and standards. Healthcare providers and insurers frequently struggle to choose the best reimbursement models, which creates uncertainty and restrains market expansion. To realize the full potential of digital medicinal devices and guarantee their accessibility to patients in need, it will be essential to address these funding constraints and develop clear rules and policies.

Global Digital Therapeutic Devices Market Opportunities:

In the global market for Digital Therapeutic Devices, entering new markets presents a significant opportunity. Due to rising healthcare costs, an increase in the prevalence of chronic diseases, and improved healthcare infrastructure, emerging economies, particularly in areas like Asia-Pacific and Latin America, offer tremendous development potential. These markets provide chances for producers and suppliers of Digital Therapeutic Devices to present their cutting-edge products, meet unmet medical demands, and capitalize on a rising consumer base. Strategically focusing on emerging markets enables businesses to take advantage of unrealized potential and promote market growth. 

COVID-19 Impact on Global Digital Therapeutic Devices Market:

The global deployment of Digital Therapeutic Devices has been boosted by the COVID-19 pandemic. Traditional healthcare delivery was disrupted by lockdowns and social segregation policies, which raised the demand for remote and digital healthcare solutions. Digital therapy devices have become competitive substitutes by providing choices for tailored therapy, remote monitoring, and virtual consultations. The epidemic has increased the acceptance of digital health interventions among patients and healthcare professionals and emphasized their significance. The global market for Digital Therapeutic Devices has benefited from this increased use, which is fuelling market expansion and growing the user base. The global market for Digital Therapeutic Devices has faced difficulties as a result of the COVID-19 pandemic. Significant disruptions to the healthcare sector forced it to focus its attention and resources on meeting the urgent requirements of COVID-19 patients. The development and commercialization of Digital Therapeutic Devices were delayed as a result of this change in priorities and allocation of resources. The epidemic also brought economic uncertainty, which affected healthcare spending plans and payment guidelines. The purchasing power and willingness to invest in Digital Therapeutic Devices were impacted by limited financial resources and changing priorities, which presented difficulties for the market's expansion. The market for Digital Therapeutic Devices has been negatively impacted by the healthcare ecosystem changes brought on by the pandemic.

Global Digital Therapeutic Devices Market Recent Developments:

• In February 2022, The FDA has given Breakthrough Device Designation to DynamiCare Health's DCH-001, a digital therapy created to address tobacco use disorder in pregnant women. If accepted, it would mark the first prescription smoking cessation therapy that is both safe and successful during pregnancy. DCH-001 was created based on the motivating incentives strategy that Stephen T. Higgins, Ph.D., of the University of Vermont, pioneered. In comparison to women receiving conventional treatment, pregnant women utilizing DCH-001 were 2.8 times more likely to give up smoking by the end of their pregnancies.

• In May 2021, for diabetics residing outside of the United States, Eli Lilly and Company has integrated connected insulin pen solutions with DexCom, Glooko, myDiabby Healthcare, and Roche through strategic alliances. The partnership will employ data and technology to enhance diabetes treatment and streamline care. The diabetes management systems from these companies are compatible with Lilly's Tempo Pen and the upcoming Tempo Smart Button. The incorporation of these technologies will assist diabetics and healthcare workers.

DIGITAL THERAPEUTIC DEVICES MARKET REPORT COVERAGE:

Global Digital Therapeutic Devices Market Segmentation: By Device Type

• Handheld Devices

• Portable Devices

• Wearable Devices

Based on the kind of device, the global market for Digital Therapeutic Devices can be divided into three categories: handheld devices, portable devices, and wearable devices. Compact devices that may be used easily and conveniently in one hand are referred to as handheld devices. Portable technology offers flexibility and mobility for usage while on the go. Wearable technology is clothing that allows for continuous monitoring and data collecting. Examples include smartwatches and fitness trackers. The market for Digital Therapeutic Devices is rising significantly as a result of the arising use of digital health solutions and the rising incidence of chronic diseases. Technology advances, heightened public awareness of the advantages of digital therapies, and the expanding demand for remote monitoring and self-management of medical issues are some of the reasons driving the market. Due to its popularity and extensive use in health and wellness applications, wearable technology now has the biggest market share. However, due to their ease and the growing number of healthcare applications, handheld and portable devices are gaining popularity. Globally, the market for Digital Therapeutic Devices is anticipated to expand rapidly as more consumers and healthcare professionals become aware of the benefits of digital interventions for maintaining and enhancing health outcomes.

Global Digital Therapeutic Devices Market Segmentation: By Application

• Preventive:

•  Pre-diabetes

• Obesity

• Smoking Cessation

• Others

• Treatment/Care:

• Cardiovascular Diseases

• Diabetes

• Neurological Disorders

• Respiratory Diseases

• Others

The prevention and treatment/care segments of the market for Digital Therapeutic Devices can be separated based on application. Applications for pre-diabetes, obesity, stopping smoking, and other factors that increase a person's chance of developing chronic diseases are covered in the preventive area. This area is being driven by the increasing focus on preventative healthcare and interventions for behavior modification. Applications for cardiovascular diseases, diabetes, neurological disorders, respiratory diseases, and other problems are included under the treatment/care section, which focuses on sickness management and therapeutic interventions. The industry is being driven by the rising incidence of chronic disorders globally. Due to the significant market share that the treatment/care category presently holds due to the high demand for digital therapeutics solutions in disease management. But because people are becoming more aware of preventative measures and lifestyle changes, the preventive category is anticipated to have a significant increase. The market share varies by region, with developed economies exhibiting a higher adoption rate for treatment/care applications and emerging economies increasingly emphasizing preventative initiatives. 

Global Digital Therapeutic Devices Market Segmentation: By End-User

• Self/Home Healthcare

• Hospitals & Clinics

• Academic & Research Institutes

Based on end users, the global market for Digital Therapeutic Devices may be divided into three groups: self/home healthcare, hospitals & clinics, and academic & research institutes. When a person uses digital therapy equipment to monitor and manage their health conditions at home, it is referred to as self- or home healthcare. Healthcare facilities that integrate digital therapy devices into their patient care protocols are referred to as hospitals and clinics. Academic and research institutions concentrate on using these tools for study and arising knowledge of digital therapies. The market for Digital Therapeutic Devices is rising significantly as a result of more people using digital health solutions and chronic diseases becoming more common. The market is expanding as a result of factors such as the rising demand for remote patient monitoring, the affordability of digital therapies, and technological improvements. As medical professionals include Digital Therapeutic Devices in their treatment programs, hospitals and clinics now possess the highest market share. However, the self/home healthcare market is expanding as a result of the accessibility and convenience it provides. The development of new technologies and the expansion of the uses of digital treatment devices are significantly influenced by academic and research institutions.

Global Digital Therapeutic Devices Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

North America, Europe, Asia Pacific, South America, and the Middle East & Africa are the regions into which the global market for Digital Therapeutic Devices can be divided. With a substantial market share, North America now rules the industry. A high adoption rate of digital health technology, the existence of important companies, an advanced healthcare infrastructure, and advantageous reimbursement policies all contribute to this. Due to government measures supporting digital healthcare and rising investments in digital therapies, Europe currently maintains the second-largest market share. Growing healthcare costs, an aging population, and an increase in the prevalence of chronic diseases in nations like China and India are all contributing to the region's enormous rise. With growing awareness of digital health solutions and initiatives to increase access to healthcare, the Middle East, Africa, and South America are also seeing market expansion. Although North America and Europe now hold the majority of the market share, the Asia Pacific area offers significant market potential opportunities because of favorable demographic and economic variables. 

Global Digital Therapeutic Devices Market Key Players:

1. 2Morrow, Inc.

2. BigHealth

3. Canary Health

4. Koninklijke Philips NV (BioTelemetry Inc.)

5. Livongo Health

6. Mango Health Inc.

7. Noom Health Inc.

8. Omada Health Inc.

9. Pear Therapeutics

10. Propeller Health