by The global 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:
The U.S. digital therapeutics market involves the development and use of evidence-based therapeutic interventions driven by high-quality software programs to prevent, manage, or treat a medical disorder or disease. Digital therapeutics can be used independently or in conjunction with medications, devices, or other therapies to optimize patient care and health outcomes. Key advantages of digital therapeutics include their ability to deliver around-the-clock treatment with remote diagnostic monitoring capabilities. This allows for continuous care and reduced dependency on physicians and hospitals. Growing prevalence of chronic diseases, rising healthcare costs, and increasing penetration of smartphones and other connectivity devices are some primary factors driving demand for digital therapeutics in the U.S.
Market key trends:
Integration with Wearable Devices – Many digital therapeutic solutions are being integrated with wearable devices like smartphones, smartwatches, and wireless sensors to enable remote patient monitoring. This allows continuous collection of vital signs and behavioral data to track progress and ensure compliance with treatment plans. Technologies like AI and machine learning further help providers recognize patterns in large patient datasets obtained through wearables.
Focus on Behavioral Health – As mental health issues become more commonplace, especially amid the pandemic, the market is witnessing growing demand for digital therapeutics targeting conditions like substance abuse disorders, depression, and mindfulness. Cognitive behavioral therapy based apps and programs are being developed to improve access to treatments. They provide personalized support through interactive activities that encourage positive behavioral changes.
Evidence-based Validation – Significant research is being conducted to validate the efficacy and outcomes of various digital therapeutic solutions through rigorous clinical trials. Positive evidence helps gain insurance coverage and improves provider recommendations. It also attracts further funding into development and deployment of more such tools that can produce cost-effective results at scale. Collaboration with hospitals, physicians, and top research institutes accelerates this clinical validation process.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the U.S. digital therapeutics market requires high R&D investments and regulatory approvals.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of alternatives and buyer awareness.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitute suppliers.
Threat of new substitutes: The threat of new substitutes is high with emergence of novel technologies like AI and VR based solutions.
Competitive rivalry: The competitive rivalry is high owing to presence of established players.
Key Takeaways
The Global U.S. Digital Therapeutics Market Size is expected to witness high growth, exhibiting CAGR of 33.% over the forecast period, due to increasing prevalence of chronic diseases. The U.S. digital therapeutics market size for 2023 is US$ 2.80 Bn.
Regional analysis: The U.S. region dominates the global digital therapeutics market. Increasing adoption of healthcare IT solutions drives the market in the region.
Key players: 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. 2Morrow Inc. specializes in digital therapeutics for diabetes and ResMed pioneers solutions for sleep and respiratory care.
The U.S. digital therapeutics market is witnessing advancements like use of virtual reality and artificial intelligence. Teladoc Health provides virtual care solutions while Cognoa develops AI based therapies for pediatric conditions. The market is expected to grow exponentially during the forecast period supported by favorable regulations and adoption of virtual care.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
