Digital Therapeutics - Worldwide

Worldwide

Highlights

Revenue in the Digital Therapeutics market is projected to reach US$4.68bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 16.62%, resulting in a projected market volume of US$10.09bn by 2029.
User penetration will be 1.67% in 2024 and is expected to hit 3.62% by 2029.
The average revenue per user (ARPU) is expected to amount to US$36.09.
In global comparison, most revenue will be generated United States (US$3.15k in 2024).

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Therapeutics market has been rapidly evolving, offering innovative solutions in various therapeutic areas such as Diabetes care, Mental & Behavioral health, Cardiovascular Health, and Musculoskeletal Health.

Customer preferences: Customers are increasingly seeking non-invasive and cost-effective digital solutions to manage their health conditions. The convenience of accessing therapy through mobile apps and online platforms is driving the demand for Digital Therapeutics products. Patients are also drawn to personalized treatment plans and real-time monitoring features offered by these digital tools.

Trends in the market: In the United States, the Digital Therapeutics market is witnessing significant growth, fueled by the rising prevalence of chronic diseases like diabetes and cardiovascular conditions. The emphasis on value-based care and the integration of digital health technologies into healthcare systems are further propelling the adoption of Digital Therapeutics in the country. Moreover, strategic partnerships between technology companies, pharmaceutical firms, and healthcare providers are driving innovation and expanding market reach.

Local special circumstances: In Europe, the Digital Therapeutics market is gaining traction due to the supportive regulatory environment and increasing investments in digital healthcare. Countries like Germany and the UK are at the forefront of incorporating Digital Therapeutics into their healthcare systems, offering reimbursement schemes for these innovative solutions. The presence of a tech-savvy population and a growing awareness of the benefits of digital health tools are also contributing to market growth in the region.

Underlying macroeconomic factors: The global Digital Therapeutics market is influenced by macroeconomic factors such as the increasing burden of chronic diseases, the shift towards value-based care, and the growing acceptance of telemedicine. As healthcare systems strive to improve patient outcomes and reduce healthcare costs, Digital Therapeutics are emerging as a promising solution to bridge the gap between traditional medical treatments and patient needs. The ongoing digital transformation in healthcare and the focus on preventive care are expected to drive further expansion of the Digital Therapeutics market worldwide.

Data coverage:

The data encompasses B2C enterprises. Figures are based on revenues and user data of relevant mobile applications and consumer electronics companies.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, population, internet penetration, smartphone penetration, consumer spending, and healthcare spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.