by The U.S. Digital Therapeutics Market is estimated to be valued at Us$ 2.80 Bn in 2023 and is expected to exhibit a CAGR Of 33.% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Digital therapeutics or DTx are evidence-based therapeutic interventions driven by high-quality software programs to prevent, manage, or treat a medical disorder or disease. They are designed to deliver evidence-based therapeutic interventions to patients and are aimed at individuals with diagnosed medical conditions or diseases. These programs are utilized independently or in combination with medications, devices, or other therapies to optimize patient care and health outcomes.
Market Dynamics:
The growth of the U.S. digital therapeutics market can be attributed to two major drivers. Firstly, the rising prevalence of chronic diseases such as diabetes, hypertension, and cardiovascular diseases in the U.S. has increased the need for treatment and prevention approaches. Digital therapeutics provide a cost-effective and convenient approach to manage these conditions. For instance, diabetes patients can utilize digital programs and tools to monitor blood glucose levels, insulin dosages, and maintain a dietary log to control blood sugar levels effectively. Secondly, favorable regulations and reimbursement policies are promoting the adoption of digital therapeutics. In 2018, the U.S. FDA established a new category of Medical Devices called Software as a Medical Device (SaMD) for digitally delivered therapeutics. This enables DTx developers to obtain FDA clearance or approval in a similar way as traditional medical devices.
Segment Analysis
The U.S. Digital Therapeutics market is dominated by the chronic care segment which accounts for over 60% market share. Chronic care involves long term treatment of diseases/conditions like diabetes, hypertension, cardiovascular diseases etc. which require consistent monitoring and therapeutic interventions. Digital therapeutics help in effective remote patient monitoring and management through mobile/web applications which ensure medication adherence and therapeutic compliance for chronic care patients.
PEST Analysis
Political: The regulatory landscape for digital therapeutics in the U.S. is evolving with draft FDA guidelines to evaluate software functionality and validate clinical claims. This will provide clarity and promote innovation.
Economic: High healthcare costs in the U.S. is driving interest in cost-effective alternatives like digital therapies which are scalable and require low overhead. The ongoing pandemic has further accelerated digital health adoption.
Social: Growing connectivity and smartphone/internet penetration even in rural areas have made digital solutions more accessible. Younger population is increasingly open to technology-driven healthcare management tools.
Technological: Advancements in areas of mobile health, AI, blockchain, virtual/augmented reality are enabling development of more effective and engaging digital therapeutic applications. Data analytics capabilities are also improving outcomes.
Key Takeaways
The Global U.S. Digital Therapeutics Market Size is expected to witness high growth, exhibiting CAGR of 33.% over the forecast period 2023 to 2030, due to increasing prevalence of chronic diseases and growing utilization of digital health solutions in clinical workflows. The market size for 2023 is estimated at US$ 2.80 Bn.
The western region, led by states like California, holds the major share currently due to high technology adoption and pioneering regulatory environment supporting digital therapeutics. However, southern states are expected to witness fastest growth through the forecast period with proactive payer participation and pilot programs for chronic disease management.
Key players operating in the U.S. Digital Therapeutics market are 2Morrow Inc., ResMed, Pear Therapeutics, Omada Health Inc., Teladoc Health, Lark Technologies, Kaia Health, Fitbit, Cognoa Inc., and Akili Interactive Labs, among others. Leading vendors are focusing on partnerships with providers, payers and life sciences companies to demonstrate clinical and commercial value and expedite market access and reimbursement for their DTx programs.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
