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Forecast Period
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2024-2028
|
|
Market Size (2022)
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USD 1.45 Billion
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CAGR (2023-2028)
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21.15%
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Fastest Growing Segment
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B2B
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Largest Market
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West Region
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Market Overview
United States Digital Therapeutics Market
has valued at USD 1.45 Billion in 2022 and is anticipated to project
steady growth in the forecast period with a CAGR of 21.15%
through 2028. Digital Therapeutics, often abbreviated as DTx, refers to
software-driven evidence-based therapeutic interventions to prevent, manage, or
treat a medical disorder or disease. These innovative interventions are
designed to mirror effective treatment options, often complementing
medications, devices, or other therapy forms. By leveraging cutting-edge
technology, DTx products facilitate therapeutic changes in patient behavior,
empowering individuals to take an active role in their own health outcomes.
This emerging field of digital therapeutics provides clinicians with a diverse
range of improved treatment options, enabling personalized care and addressing
a broad spectrum of conditions. With the potential to revolutionize healthcare
delivery, digital therapeutics hold promise in transforming the way we prevent
and manage diseases, ultimately enhancing patient well-being and overall
healthcare outcomes.
Key Market Drivers
Rising Prevalence of Chronic
Diseases
The
rising prevalence of chronic diseases in the United States is expected to
significantly boost the demand for digital therapeutics. More people than ever
are falling victim to long-term health problems such as diabetes, heart
disease, and various forms of cancer. Many of these conditions require ongoing,
often complex management, which can be difficult and expensive to maintain.
Digital therapeutics, or software-generated therapies, offer a promising
solution to this issue. They provide easy-to-use, cost-effective treatment
options that can be accessed from the comfort of one's own home. These digital
solutions allow patients to manage their conditions with greater independence
and flexibility, reducing the need for frequent hospital visits. Furthermore,
digital therapeutics offer personalized therapy, giving patients the
opportunity to tailor their treatment to their specific needs. This level of
personalization has been shown to increase patient engagement and adherence to
treatment, which in turn improves outcomes. Consequently, as the prevalence of
chronic diseases continues to rise, so too will the demand for digital
therapeutics. This innovative field holds great potential for transforming the
way we approach chronic disease management in the United States.
Increased Use of Smartphones &
Internet Penetration
The
rise in smartphone usage and internet penetration is expected to significantly
bolster the demand for digital therapeutics in the United States. Digital
therapeutics, a new health discipline that makes use of digital and online
health technologies to treat various medical and psychological conditions, are
being increasingly embraced due to their convenience and accessibility.
Smartphones, being ubiquitous devices, play a crucial role in this surge by
providing a platform for these therapies. They enable patients to access
therapeutic interventions on demand, bypassing the need to travel for
treatments or face-to-face medical consultations. Furthermore, the rapid
increase in internet penetration facilitates not only the ease of use of
digital therapeutics but also their development. The availability of high-speed
internet has made it possible to deploy sophisticated applications that can
monitor patient health in real-time, provide personalized therapies, and
instantly connect patients with healthcare professionals. Thus, as smartphones
become more prevalent and internet access becomes more widespread, the adoption
and demand for digital therapeutics in the U.S are expected to grow
correspondingly.
Growing Need for
Cost-Effective Healthcare Delivery Due to Increasing Healthcare Costs
The
escalating cost of healthcare in the United States is a concerning issue. As
expenses continue to spiral upwards, there is a growing need for cost-effective
healthcare delivery methods, which is anticipated to fuel the demand for
digital therapeutics. Digital therapeutics - a new class of healthcare products
that are used to treat medical conditions in a cost-effective manner - are
gaining increasing popularity. These health solutions leverage digital tools
and technologies to prevent, manage, or treat a broad spectrum of physical,
mental, and behavioral conditions. The cost-effectiveness of these solutions,
coupled with their ability to enhance access to care, makes them particularly
appealing. The potential of digital therapeutics to reduce the cost of
healthcare delivery is impressive. For instance, they can reduce the need for
in-person consultations and substitute them with digital consultations, which
are less time-consuming and more cost-effective. Furthermore, digital
therapeutics can provide real-time monitoring and feedback, thereby enabling
early intervention and potentially reducing the need for costly treatments or
hospitalizations. As healthcare costs continue to rise, the demand for such
innovative, cost-saving solutions is expected to surge in the United States.
Adoption of Telehealth &
Remote Patient Monitoring Systems
The
digital therapeutics sector in the United States is poised for robust growth, due
to large part to the increase in adoption of Telehealth and Remote Patient
Monitoring (RPM) systems. As healthcare providers and patients become more
comfortable with these technologies, the demand for digital therapeutics is
expected to rise. Telehealth and RPM systems enable remote consultations,
continuous patient monitoring, and personalized care plans. This not only
offers convenience but also empowers patients to take an active role in their
healthcare journey. Moreover, these technologies show promise in dealing with
chronic conditions, mental health issues, and overall wellness management,
areas where traditional care delivery models often struggle. Furthermore, amid
the COVID-19 pandemic, these digital platforms have proven invaluable in
providing care while minimizing exposure risk. Therefore, as healthcare
continues to digitize, digital therapeutics, with its potential to transform
care delivery and patient experience, is anticipated to see a surge in demand
in the United States.
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Key Market Challenges
Data Security Concerns
Data
security concerns are expected to dampen the demand for Digital Therapeutics in
the United States. Digital Therapeutics, although highly beneficial in
providing remote health services, are vulnerable to cyber-attacks and data
breaches. The health records and personal information of patients, stored on
digital platforms, pose an appealing target for cyber criminals. Data breaches
in the health sector can lead to the sensitive patient information falling into
the wrong hands, leading to potential misuse. The growing number of such cyber
incidents is causing apprehension among users and is likely to deter potential
adopters of digital therapeutics. Furthermore, the regulatory standards for
digital health products, including data security protocols, are still evolving
and lack comprehensive coverage. This lack of clarity fuels unease around the
use of digital therapeutics. Additionally, many digital therapeutics companies
are startups with limited resources to invest in robust security measures.
Considering these issues, unless significant measures are taken to address data
security, we can expect a decrease in the demand for Digital Therapeutics in
the United States.
Absence of Well-Defined
Reimbursement Policies
The
absence of well-defined reimbursement policies in the United States is a key
factor expected to hinder the growth of the digital therapeutics market.
Despite the proven efficacy of digital therapeutics in managing a range of
chronic diseases, the lack of standardized reimbursement policies may deter
patients and healthcare providers from adopting these innovative solutions.
This is mainly because such policies determine the extent to which the costs of
these digital healthcare solutions are covered by insurance. Without clarity
around reimbursement, the financial burden of accessing digital therapeutics
may fall on patients, making these solutions less appealing despite their
potential health benefits. Furthermore, healthcare providers may be reluctant
to recommend digital therapeutics to their patients, fearing that the
out-of-pocket costs could be prohibitive. This situation underscores the need
for comprehensive reimbursement policies that recognize the value of digital
therapeutics and encourage their use. Without such policies, the growth of the
digital therapeutics market in the United States may be substantially
curtailed.
Key Market Trends
Adoption of AI and Data
Analytics in Healthcare
The
adoption of AI and data analytics in the healthcare sector has been
transformative, and its impact is anticipated to significantly bolster the
demand for Digital Therapeutics (DTx) in the United States. AI's capabilities
of predictive analytics and pattern recognition, coupled with comprehensive
data analysis, allow for personalized and efficient healthcare solutions that
integrate seamlessly with patients' daily lives. This increases patient
engagement and adherence to treatment plans, which are key drivers for the
success of DTx. Moreover, with the rise in chronic diseases like diabetes and
mental health disorders, there's a pressing need for continual care and
management, areas where DTx excel. The benefits of remote monitoring and
intervention, facilitated by DTx, are even more prominent now, considering the
pandemic's emphasis on social distancing. Furthermore, the US healthcare
system's shift towards value-based care signifies those cost-effective
solutions like DTx, which demonstrate high efficacy without the high cost of
traditional treatment methods, are likely to experience increased demand. In
conclusion, the synergy of AI, data analytics, and evolving healthcare trends
in the United States augurs well for the growth of the DTx sector.
Increasing Incorporation of
Digital Health Technology in Mental Health
The
increasing incorporation of digital health technology in the realm of mental
health is poised to drive the demand for digital therapeutics in the United
States. The prevalence of mental health disorders has been on an upswing,
exacerbated by the COVID-19 pandemic that has necessitated the shift towards
remote therapeutic solutions. The digital therapeutics sector, leveraging
advancements in AI, big data, and telehealth, offers a bevy of innovative
solutions, including Cognitive Behavioral Therapy (CBT) apps, remote patient
monitoring, and personalized digital interventions. These technologies not only
democratize access to mental health resources for patients residing in remote
areas but also mitigate the stigma associated with seeking mental health treatment.
Furthermore, the emphasis on preventive healthcare, coupled with the increasing
recognition of mental health as an integral component of overall well-being,
has compelled insurance providers to incorporate digital therapeutics into
their reimbursement plans. This integration further incentivizes patients to
opt for digital solutions, thereby propelling the growth trajectory of digital
therapeutics. As the healthcare paradigm continues to evolve towards a
patient-centric model, the demand for customized, accessible, and
cost-effective mental health solutions is predicted to surge, solidifying the
digital therapeutics market's stronghold in the United States.
Segmental Insights
Product Insights
Based on the Product, in the United States, the
Digital Therapeutics Market is currently dominated by software products. These
innovative digital health solutions leverage cutting-edge technology to aid in
the prevention, management, and treatment of various medical conditions. By
harnessing the power of data analytics, artificial intelligence, and
personalized algorithms, these software-based solutions are revolutionizing the
healthcare sector. The widespread adoption of mobile devices and the increasing
demand for remote healthcare have acted as catalysts, accelerating the progress
and proliferation of digital therapeutics. With the convenience and
accessibility of mobile apps and telehealth platforms, patients can now receive
effective care and support from the comfort of their own homes.
Moreover, the continuous advancements in technology
and the integration of wearables and sensors are enabling real-time monitoring
and feedback, empowering individuals to take control of their health and
well-being. This transformative trend is expected to continue, with software
solutions leading the way in driving the digital therapeutics revolution and
transforming the way healthcare is delivered and experienced.
Sales Channel Insights
Based on the Sales Channel, the
Business-to-Business (B2B) sales channel currently dominates the United States
Digital Therapeutics Market. This trend is driven by the high demand from
healthcare providers for digital therapeutics solutions that leverage advanced
technologies to improve patient care, enhance treatment outcomes, and reduce
overall healthcare costs. These B2B solutions primarily target hospitals,
clinics, and other healthcare facilities, which heavily rely on this technology
for efficient and effective patient management. By integrating digital
therapeutics into their practices, healthcare providers can streamline patient
monitoring, personalize treatment plans, and empower patients to take an active
role in their own healthcare journey. This transformative approach not only
benefits healthcare providers but also leads to better patient engagement,
improved health outcomes, and a more sustainable healthcare system as a whole.
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Regional Insights
The West region, encompassing the thriving Silicon
Valley, stands at the forefront of the United States Digital Therapeutics
Market. This region's vibrant and dynamic ecosystem has attracted tech giants
and an abundance of startups, creating an unparalleled culture of innovation
and entrepreneurship. Within this unique environment, groundbreaking digital
solutions in the healthcare sector have flourished, reshaping the landscape of
medical treatments and patient care. Collaborative efforts between industry
leaders, startups, and healthcare professionals have led to the development of
cutting-edge technologies that are revolutionizing the way we approach
healthcare, improving outcomes, and enhancing the overall well-being of
individuals. These technologies include advanced telemedicine platforms that
enable remote consultations, personalized digital therapeutics tailored to
individual patients' needs, and data-driven solutions that provide valuable
insights for both patients and healthcare providers.
Moreover, the West region's commitment to fostering
innovation is evident in the numerous incubators, accelerators, and research
institutions that support the growth of digital therapeutics. This
collaborative ecosystem encourages cross-disciplinary collaborations, bringing
together experts in healthcare, technology, and data analytics to drive
innovation forward. It is within this thriving environment that partnerships
between healthcare providers and digital health startups flourish, laying the
foundation for transformative advancements in patient care and treatment
outcomes. With its rich history of technological innovation and entrepreneurial
spirit, the West region continues to pave the way for the future of digital
therapeutics in the United States. As this field continues to evolve and
expand, the region's commitment to fostering an ecosystem of innovation and
collaboration ensures that it remains at the forefront of this rapidly growing
industry, driving advancements that positively impact the lives of individuals
and communities alike.
Recent Developments
- In October 2021, Click Therapeutics,
Inc. secured USD 52 million in Series B funding from multiple investors.
- In March 2020, Somryst by Pear
Therapeutics received approval from the U.S. FDA for the treatment of chronic
insomnia. This includes algorithm-driven sleep restriction, recommendations,
and consolidation.
- In November 2019, Blue Cross Blue
Shield of Minnesota announced reimbursement coverage for Omada's diabetes
prevention program for its self-insured payers.
- In April 2022, Pear Therapeutics
received the FDA's Safer Technologies Program (STeP) Designation as a product
candidate for the treatment of acute and chronic pain.
Key Market Players
- Noom Inc.
- Omada Health Inc.
- WellDoc, Inc.
- Pear Therapeutics Inc.
- Proteus Digital Health Inc.
- Resmed, Inc. (Propeller Health)
- Akili Interactive Labs, Better
Therapeutics
- 2Morrow Inc.
- Ginger, Fitbit Inc. (Twin Health Inc.)
- Livongo Health, Inc.
|
By
Product
|
By
Sales Channel
|
By
Application
|
By
Region
|
|
|
|
- Preventive
Applications
- Treatment
Applications
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- North-east
- Mid-west
- West
- South
|
Report Scope:
In this report, the
United States Digital Therapeutics Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
·
United States Digital Therapeutics Market, By Type:
o Software
o Device
·
United States Digital Therapeutics Market, By Sales Channel:
o B2B
o B2C
·
United States Digital Therapeutics Market, By Application:
o Preventive Applications
o Treatment Applications
·
United States Digital Therapeutics Market, By Region:
o
Northeast
Region
o
Midwest
Region
o
West Region
o
South
Region
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the United States Digital Therapeutics
Market.
Available Customizations:
United
States Digital Therapeutics Market report with
the given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).
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