Digital Therapeutic Devices Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Digital Therapeutic Devices Market is segmented by Product (Software and Services and Devices), Application (Preventive (Pre-diabetes, Obesity, Smoking Cessation, and Others), Treatment/Care (Cardiovascular Diseases, Central Nervous System Disease, Diabetes, Musculoskeletal Diseases, Respiratory Diseases, and Others)), and Geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America).

Market Snapshot

Digital Therapeutics Devices Market Graph
Study Period: 2018-2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 24.2 %

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Market Overview

The digital therapeutic devices market is projected to register a CAGR of 24.20% during the forecast period, with a revenue of approximately USD 3.3 billion in 2020 to reach USD 12.11 billion by 2026.

The outbreak of COVID-19 has also prompted healthcare professionals to seek alternatives to traditional systems and procedures. This leads to the rapid adoption of digital medical care across the industry from providers to consumers. As non-essential requirements are given low priority during the pandemic, patients turn to digital therapeutic solutions. This increase in the acceptance of digital therapeutic applications across a wide range of medical fields, such as mental health, substance abuse disorders, opioid-induced disorders, cardiovascular diseases, metabolic disorders, and inflammatory diseases, among others, is boosting the market growth.

There has been a rise in the use of technology for therapeutics toward medical conditions. Consumers in developed markets are increasingly aware of the advanced products for the treatment of medical conditions. According to the Organization for Economic Co-operation and Development, healthcare spending increased from USD 1,119.0 per capita in 2017, to USD 1,144.9 per capita in 2018 and to USD 1,153.6 per capita in 2019. The preference is also, therefore, shifted toward the advanced services in the medical field, including the growing demand for innovations in therapeutic devices.

Along with this factor, the increased focus toward preventive healthcare by the governments of different countries is also one of the major driving factors. The governments are taking initiatives and launching programs for a higher adoption rate of these devices, shifting from traditional healthcare practices. Moreover, the growing prevalence of chronic diseases like diabetes and cardiovascular diseases across the globe is boosting the market growth.

The companies are also increasingly rising on venture investments in this domain, which drives this market.

Factors, such as patient’s data privacy concerns associated with digital therapeutic devices, hinder the growth of this market. When the information is transferred to the connected devices and sensors, it reaches into the Internet of Things territory. Since healthcare involves huge data related to patients and companies, cybersecurity is a major issue with increasing levels of connectivity between hospital chains, providers, and payers. As the information is continuously being monitored by doctors, such as the use of Bluetooth-enabled blood pressure cuffs and weight scales, privacy concerns further rise. Other factors hindering the growth of this market include the high cost of manufacturing and installation and resistance of the public to traditional healthcare providers. All these factors impede the growth of the digital therapeutic devices market.

Scope of the Report

According to the scope of the report, digital therapeutic devices are therapeutic interventions driven by high-quality software programs to prevent, manage, or treat a medical disorder or disease. They are different from digital medicines or smart pills, which combine a prescription medication with an ingestible sensor that is designed to communicate with a software application to track compliance. The digital therapeutic devices market is segmented by product (software and services and devices), application (preventive (pre-diabetes, obesity, smoking cessation, and others), treatment/care (cardiovascular diseases, central nervous system disease, diabetes, musculoskeletal diseases, respiratory diseases, and others)), and geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The market report also covers the estimated market sizes and trends for 17 different countries across major regions globally. The report offers the value (in USD million) for the above segments.

By Product Type
Software and Services
Devices
By Application
Preventive
Pre-diabetes
Obesity
Smoking Cessation
Others
Treatment/Care
Cardiovascular Diseases
Diabetes
Neurological Disorders
Respiratory Diseases
Others
By Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle-East and Africa
GCC
South Africa
Rest of Middle-East and Africa
South America
Brazil
Argentina
Rest of South America

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Key Market Trends

Treatment/Care Segment is Expected to Witness a High Growth Over the Forecast Period

During the pandemic, there has been a growing need for patients to take control of their own situation and respond in real-time, while their doctor still needs to monitor their case remotely. Therefore, digital therapeutic devices increased in demand. The outbreak of COVID-19 has increased patient reliability in digital applications to play an active and informed role in their health care. Digital treatment solutions have helped reunite patients with doctors. Therefore, it can be concluded that digital health tools prove to be very useful for patients with chronic illnesses and medical professionals.

One of the key factors contributing to the growth of this category is the increase in medical and health care costs, mainly due to chronic conditions. The rising cost of health care, the increase in chronic illness, and the ability of digital therapies to provide affordable solutions are some of the factors driving the market for medical/related care applications.

The growing burden of chronic disorders increases the segment growth. According to the International Diabetes Federation (IDF), in 2020, approximately 463 million adults (between the ages of 20-79 years) were living with diabetes globally, and this will rise to 700 million. The proportion of people with type 2 diabetes is increasing in most countries, and 79% of adults with diabetes were living in low- and middle-income countries, where 1 in 5 people above the age of 65 years have diabetes.

diabetes

North America is Expected to Dominate the Market During the Forecast Period

North America is expected to dominate the market, owing to the early adoption of new technologies and rising investment through funding in this region. The funding is associated with a rising investment from the government, venture capitalists, mergers, and acquisitions.

In April 2020, the United States Food and Drug Administration (US FDA) issued guidelines to increase the availability of digital medical devices for mental health. With this in mind, the FDA aimed to subsidize people who followed home segregation guidelines or practiced social isolation without needing a clinic visit during the COVID-19 public health emergency. This will also reduce the burden on health care facilities and reduce the risk of exposure to the virus. Such initiatives by the government boost the market growth in the region.

MedRhythms, a Portland, Maine-based digital therapeutics company in June 2020, received FDA clearance for its patented digital therapeutic to treat chronic stroke walking deficits.

Furthermore, an increase in the geriatric population, a rise in incidences of chronic diseases, the surge in demand for wireless and portable systems, and the availability of a sophisticated reimbursement structure that aims to reduce expenditure are few more factors boosting regional growth.

Digital Therapeutics Devices Market by Region

Competitive Landscape

The digital therapeutic devices market is competitive, with quite a number of major players. The rising number of market players is intensifying the competition. The companies are also working in partnership with many employers, payers, healthcare systems, and pharma companies. Some of the major players are Philips NV, Omada Health Inc., WellDoc Inc., LIVONGO HEALTH, Pear Therapeutics, Noom Health Inc., etc. In 2019, Omada Health secured USD 73 million from its investors for the development of digital care health programs focusing on preventable chronic conditions.

Recent Developments

  • In February 2021, Philips announced the acquisition of BioTelemetry, Inc., a leading US-based provider of remote cardiac diagnostics and monitoring.
  • In January 2021, Hydrus 7 Lab announced a strategic partnership with European Digital Health company, Epillo.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Rising Burden of Chronic Diseases

      2. 4.2.2 Rise in Technological Adavancements

      3. 4.2.3 Increasing Focus Toward Preventive Healthcare by Government and Rise in Venture Capital Investments

    3. 4.3 Market Restraints

      1. 4.3.1 High Cost of Manufacturing and Installation

      2. 4.3.2 Data Privacy Concerns and Resistance from Traditional Healthcare Providers

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Software and Services

      2. 5.1.2 Devices

    2. 5.2 By Application

      1. 5.2.1 Preventive

        1. 5.2.1.1 Pre-diabetes

        2. 5.2.1.2 Obesity

        3. 5.2.1.3 Smoking Cessation

        4. 5.2.1.4 Others

      2. 5.2.2 Treatment/Care

        1. 5.2.2.1 Cardiovascular Diseases

        2. 5.2.2.2 Diabetes

        3. 5.2.2.3 Neurological Disorders

        4. 5.2.2.4 Respiratory Diseases

        5. 5.2.2.5 Others

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Italy

        5. 5.3.2.5 Spain

        6. 5.3.2.6 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 Australia

        5. 5.3.3.5 South Korea

        6. 5.3.3.6 Rest of Asia-Pacific

      4. 5.3.4 Middle-East and Africa

        1. 5.3.4.1 GCC

        2. 5.3.4.2 South Africa

        3. 5.3.4.3 Rest of Middle-East and Africa

      5. 5.3.5 South America

        1. 5.3.5.1 Brazil

        2. 5.3.5.2 Argentina

        3. 5.3.5.3 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Koninklijke Philips NV (BioTelemetry Inc.)

      2. 6.1.2 Canary Health

      3. 6.1.3 Livongo Health

      4. 6.1.4 Omada Health Inc.

      5. 6.1.5 WellDoc Inc.

      6. 6.1.6 Pear Therapeutics

      7. 6.1.7 Noom Health Inc.

      8. 6.1.8 Propeller Health

      9. 6.1.9 Mango Health Inc.

      10. 6.1.10 Twine Health Inc.

    2. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
**Competitive Landscape Covers - Business Overview, Financials, Products and Strategies, and Recent Developments

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Frequently Asked Questions

The Digital Therapeutic Devices Market market is studied from 2018 - 2026.

The Digital Therapeutic Devices Market is growing at a CAGR of 24.2% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Koninklijke Philips N.V.,(BioTelemetry, Inc.), CANARY HEALTH, Livongo Health, Pear Therapeutics, Omada Health, Inc. are the major companies operating in Digital Therapeutic Devices Market.

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