The global digital therapeutics market is expected to reach USD 7.2 billion by 2026, to record a compounded annual growth rate (CAGR) of 25.89 per cent during the forecast period (2020–2026). The growth of this market is mainly augmented by factors, namely, government initiatives for preventive healthcare, technological improvements in mobile healthcare, a tremendous increase in venture capital investments, and the advantages of digital therapeutics, including the ability to induce behavioural change, user-friendliness, patient convenience, and improved drug compliance. Whereas, some major hurdles in the growth path of this market include a lack of awareness and access to digital therapeutics programs in developing countries, patient data confidentiality concerns, unreliable payment models, and resistance from traditional healthcare providers.
On the basis of sales channel, the global digital therapeutics market is categorized into business-to-customer (B2C) and business-to-business (B2B). As of 2019, the B2B sub-segment occupied the largest market share. This sub-segment is also likely to record the highest CAGR within the global digital therapeutics market. There is a growing awareness among providers, payers, and employers regarding the advantages as provided by the digital therapeutics and the healthcare cost reductions achieved by their use. In addition, there has been a rising penchant of pharmaceutical companies to incorporate digital therapeutics with their drug product to provide adherence services paired with the product. These factors are somewhat responsible for the high share of this market segment.
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Secondly, on the basis of type of buyer, the B2C sales channel market is further divided into patients and caregivers. The caregivers segment is expected to rule the market and witness the highest CAGR over the forecast period. The high growth of this segment can be attributed to company initiatives for the development of products particularly for caregivers and the fact that digital therapeutics help caregivers in better managing their patients.
With respect to application, the global digital therapeutics market is further divided into preventive and treatment/care-related applications. One of the important factors boosting the growth of this segment is the increase in treatment and healthcare costs, particularly owing to chronic conditions. Mounting healthcare costs, escalating prevalence of chronic diseases, and the capability of digital therapeutics to provide cost-effective solutions, are some of the factors attributed to drive the market for treatment/care-related digital therapeutics applications.
In 2019, North America (U.S. and Canada) occupied the largest share of the market, followed by Europe. The increasing investments in digital therapeutics, the inflow of new start-ups, improvements in the reimbursement structure for digital therapeutics, and government initiatives to support technological advancements have resulted in the growth of the global digital therapeutics market in this region.
Some of the prominent players in the global digital therapeutics market include: Omada Health (US), WellDoc (US), Livongo Health (US), Akili Interactive Labs (US), Pear Therapeutics (US), Proteus Digital Health (US), Propeller Health (US), Noom (US), Click Therapeutics (US), Cognoa (US), Kaia Health (Germany), Mango Health (US), Canary Health (US), Wellthy Therapeutics (India), Ayogo Health (Canada), Better Therapeutics (US), Happify (US), Mindstrong Health (US), 2Morrow (US), and Ginger (US).
Check the report description at: Global Digital Therapeutics Market Size, Trends & Analysis - Forecasts To 2026