Digital Therapeutics Global Market to Reach $13.9 Billion by 2027 at a 28.1% CAGR

2022-12-06

DUBLIN, Dec. 6, 2022 /PRNewswire/ -- The "Digital Therapeutics: A New Age Medicine" report has been added to

ResearchAndMarkets.com's offering.

Digital therapeutics (DTx) is considered a subset of digital health. These are evidence-based, innovative interventions in which the therapeutic activity is based on algorithms and software. These interventions can be a standalone treatment or used in combination with the current medications.

Digital therapeutics are highly customizable tools and hence the growing demand for personalized and preventive treatment will be a driving factor for the market. The tool allows better involvement of the patient in the management of the disease. Thus, this technology provides an opportunity to cater to the chronic diseases segment.

Chronic diseases create a significant burden on the healthcare system in terms of morbidity and finances. Since the majority are lifestyle-related disorders, modifications in lifestyle will help to prevent or reduce the burden of the diseases. An example of this is prediabetes prevention, where DTx tools will help to prevent or delay the diagnosis of the disease. DTx also provides digital cognitive behavioral therapies (CBT), which are required for psychiatric indications such as post-traumatic stress disorder (PTSD), attention-deficit/hyperactivity disorder (ADHD), and depression. Due to the pandemic, the prevalence of these psychiatric disorders has also increased. Thus, the increasing prevalence of chronic

conditions and the increasing burden of the healthcare system will lead to increased adoption of digital solutions. Compared to traditional drug development, the cost of developing digital therapeutics is relatively low.

The other factors contributing to the growth of the market include increasing investment in digital health and digital therapeutics, growing research activities, and the increasing use of smartphones, mhealth apps, and wearables. It is observed that initially only academic and tech companies were involved in the development and research of digital therapeutics. But the increasing investments in this space have attracted a number of pharma and other players in the market. The market has a number of small players and start-up companies and is expected to witness the entry of other players in the future, as many companies have ongoing pivotal trials in their portfolio.

Since this market is in its nascent stage, there is a lack of regulatory and reimbursement guidelines. Hence, developing proper regulatory and reimbursement frameworks will attract more users to the market.

Market Dynamics

Market Drivers

Increasing Incidence of Chronic Diseases

Increasing Investments

Increasing Preventive Healthcare

Cost-Effective

Rising Use of Mhealth Apps and Wearables

Market Restraints

Physician Adoption

Data Privacy and Security Concerns

Regulatory Approval

Reimbursement