Digital Therapeutics Market - By Component, By Application, By Sales Channel, By Region - Global Forecast to 2032

Digital Therapeutics Market Size

The global digital therapeutics market was valued at USD 8.9 billion in 2023 and is expected to grow at a CAGR of 31.5% from 2024 to 2032. This growth trajectory is largely driven by advancements in healthcare technology and the increasing adoption of digital health solutions. DTx solutions deliver medical interventions directly to patients through clinically proven software, helping treat and manage various chronic diseases.

In September 2024, a new report, "Going Digital for Non-communicable Diseases: The Case for Action," by the WHO and the International Telecommunication Union (ITU) suggests that investing an additional $0.24 per patient per year in digital health tools like mobile messaging, telemedicine, and chatbots could save over 2 million lives from non-communicable diseases over the next decade. This investment is also projected to prevent approximately 7 million acute health events and hospitalizations, easing the burden on global healthcare systems.
 

The surging demand for effective digital solutions in chronic disease management, as well as for preventive and wellness therapies, contributes to market growth. Furthermore, the rise in health-conscious consumers and the increased focus on personalized treatment options are anticipated to continue fueling demand for digital therapeutics, shaping the market outlook.
 

The growth of the DTx market is driven by the rising prevalence of chronic diseases, such as diabetes and cardiovascular disorders, as well as an increased emphasis on preventive healthcare solutions. WHO reports that cardiovascular diseases (CVDs) are the leading cause of death worldwide, claiming approximately 17.9 million lives annually.
 

Digital therapeutics provide cost-effective, scalable, and convenient methods for managing chronic conditions, which has led to increased adoption among patients and healthcare providers. However, challenges related to patient privacy, data security, and regulatory approvals present some obstacles to market expansion. As these platforms store and process sensitive patient information, they must comply with rigorous data protection standards, which can increase development costs and limit product deployment. Despite these challenges, ongoing advancements in regulatory frameworks and increasing investments in cybersecurity are expected to mitigate these restraints, further supporting market growth.
 

Digital Therapeutics Market Trends

The market is set to experience considerable growth through 2032 as healthcare providers and patients prefer non-invasive, digitally-driven health interventions. A notable trend is the increasing acceptance of DTx products among healthcare providers for remote patient monitoring, particularly chronic disease management. The integration of artificial intelligence and machine learning into DTx applications is also expanding, enhancing data analysis capabilities and enabling more personalized treatment plans.
 

Quoting an instance, in July 2024, South Korean regenerative medicine company PharmaResearch Co. announced its acquisition of TuringBio, an AI-driven digital healthcare solutions provider. Through this acquisition, PharmaResearch seeks to strengthen its talent pool in digital therapeutics (DTx) and incorporate AI technology into its medical and aesthetic divisions, further expanding its expertise and capabilities.
 

Furthermore, DTx companies are increasingly forming partnerships with pharmaceutical firms to combine therapeutic interventions with medication, improving patient outcomes and adherence. These collaborations are expected to drive the adoption of digital therapeutics as a mainstream approach to treatment.
 

Digital Therapeutics Market Analysis

Based on component, the market is categorized into software and device. The software segment is anticipated to expand at a CAGR of 31.7% over 2024-2032. Software-based solutions deliver therapies for various health conditions directly to users via mobile applications, providing convenience and ease of access. These platforms enable personalized care, remote monitoring, and real-time feedback, aligning well with the current trends in personalized and patient-centric healthcare. The segment growth is also fueled by improvements in data collection, allowing for sophisticated analytics that support tailored treatment plans. As healthcare providers increasingly rely on software solutions for patient engagement and adherence monitoring, this segment will likely remain a core growth area in digital therapeutics.
 

Based on application, the digital therapeutics market is classified into obesity, diabetes, cardiovascular, hypertension, mental & behavioral health, and insomnia. The diabetes segment is anticipated to exhibit a CAGR of over 31% through 2032, driven by the global rise in diabetes prevalence and the need for continuous disease management. Digital therapeutics provide diabetic patients with real-time monitoring, medication reminders, and lifestyle coaching, which help improve patient outcomes. Additionally, integrating glucose monitoring with AI-driven insights allows for optimized treatment plans, enhancing patient adherence and control over blood glucose levels. As diabetes management remains a critical area of focus in the healthcare industry, DTx solutions tailored for diabetes are likely to experience sustained demand and technological innovation over the next decade.
 

Based on sales channel, the digital therapeutics market is segmented as business-to-consumers (B2C) and business-to-business (B2B). The B2B segment was worth over USD 6.1 billion in 2023. Through partnerships with healthcare providers, payers, and employers, B2B channels enable the widespread adoption of digital therapeutics in clinical and corporate wellness programs. As digital health becomes integral to corporate wellness and employee healthcare, B2B solutions offer scalable, comprehensive services to a larger audience. In addition, reimbursement policies for digital health services in many countries further support the adoption of B2B DTx solutions. Consequently, B2B channels are anticipated to remain a pivotal part of the market, driving revenue growth and expanding the reach of digital therapeutics.
 

North America held a dominant share of the DTx market in 2023, with projections indicating a 30.7% CAGR from 2023 to 2032. The region’s market growth is attributed to its advanced healthcare infrastructure, high smartphone penetration, and favorable regulatory policies supporting digital health innovations. The U.S., in particular, has witnessed significant investment in digital therapeutics from both the public and private sectors, encouraging the development and adoption of DTx solutions. Additionally, North American healthcare providers increasingly incorporate digital therapeutics into patient care plans to improve outcomes and reduce healthcare costs. With continuous technological upgrades and a supportive regulatory environment, North America is expected to maintain its leading position in the market.
 

Digital Therapeutics Market Share

These companies focus on delivering targeted solutions for chronic disease management, mental health, and addiction recovery through innovative software platforms. Strategic partnerships, R&D investments, and collaborations with healthcare providers are common strategies among industry leaders to expand their market presence.
 

Digital Therapeutics Market Companies

The digital therapeutics industry is highly competitive, with prominent players including

• LifeScan, Inc.
• Voluntis
• Omada Health Inc.
• My Sugr (Roche)
• Propeller Health (ResMed)
• Teladoc Health
• Otsuka Holdings Co., Ltd
• Virta Health Corp.
• DarioHealth
• Pear Therapeutics, Inc.

Digital Therapeutics Industry News

In April 2024, Click Therapeutics and Otsuka Pharmaceuticals announced that Rejoyn, a prescription digital therapeutic based on smartphones for major depressive disorder (MDD), received FDA clearance as a complement to clinician-guided care. Rejoyn offers a six-week remote treatment program designed to improve cognitive control over emotions through a blend of clinically validated cognitive-emotional training and targeted therapeutic exercises.
 

In July 2024, Otsuka Pharmaceutical Europe Ltd. and Otsuka Pharmaceuticals (U.K.) Ltd. (Otsuka) partnered with Oxford HIN to assess the deployment and integration of CARE for MDD, a new digital therapeutic (DTx) designed to aid in the treatment of major depressive disorder (MDD), commonly known as clinical depression.
 

Digital therapeutics market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments:

Click here to Buy Section of this Report

By Component

• Software
• Device

By Application

• Diabetes
• Obesity
• Cardiovascular
• Mental & Behavioral Health
• Hypertension
• Insomnia
• Others

By Sales Channel

• B2B
• B2C

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • Singapore
• Latin America
  • Brazil
  • Mexico 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • Israel