The COVID-19 pandemic and its reverberation led to a paradigm shift in the healthcare industry. It acted as a catalyst of change and led to rapid transformation of the healthcare system and the industry. One among the many healthcare transformation evolved out of it is the transformation of the general healthcare services to the remote and digital monitoring and diagnosis services. Digital therapeutics or popularly known as DTx is one among the numerous digital health services which evolved out of it. Introduced somewhere around 2018, digital therapeutics was the then a contemporary experimental technology trying to make its way through the conventional medical infrastructure. However, due to the pandemic, the digital therapeutics domain received momentous attention from the industry stakeholders and investors, due to its potential advantages and usefulness. As a matter of fact, post pandemic, numerous countries came up with their own legislation, acts and proposals to manage, regularize and promote digital therapeutics in their country. Thereby indicating a heightened interest in the digital therapeutics’ domain.
The current landscape of Digital Therapeutics market
During our research we came across more than 150 players engaged in this domain. As per our proprietary analysis, we observed that majority of the players are based in North America, and specifically in US. This can be attributed to the fact that US has the third highest number of people living with multiple chronic conditions, coupled with evolving regulatory and healthcare settings, US has emerged as a prominent and lucrative market within the digital therapeutic domain. North America is followed by Europe, which is the second most prominent and lucrative market for the digital therapeutics’ developers.
Amidst growing competition, the availability of cutting-edge tools and technologies have emerged as a differentiating factor. Therefore, in order to be at the forefront of the evolving domain, numerous industry stakeholders have actively entered into strategic partnerships. This in turn has caused many big pharma companies to actively expand their service portfolios, either through strategic acquisitions or entering into alliances with other digital therapeutic developers. It is worth mentioning that in order to increase their regional presence, majority of the stakeholders have either engaged in commercialization agreements and pilot product offering agreements. In fact, in 2022, the majority of the partnerships inked are commercialization agreement. Examples of recently signed commercialization deals include are collaboration between Dayzz and Lucid, Happify Health and Elevance Health, MedRhytms and Biogen, Workit Health and HMA, Limbix and Bixink, Kaia Health and United Healthcare, Silver Cloud Health and Mayden and Happify Health and Zuellig Pharma.
The evolving landscape of Digital Therapeutics market
In addition to various initiatives taken by the industry stakeholders, government organizations too have actively undertaken various initiatives in the form of laws, regulations, legislations, and others. For example, in US, the US-FDA enacted Breakthrough Device Designation Program in order to expedite the approval of digital therapeutics. Likewise, in February 2022, a bill providing medicare coverage to the prescription digital therapeutics was introduced in the 117th congress of the US Senate. Similarly in Europe, NHS Digital of UK and DiGA of Germany are few of the numerous initiatives undertaken by the respective government for the regularization of digital therapeutics.
All of these aforementioned initiatives by the government organizations have acted as an impetus for the growth of the digital therapeutics market. Coupled with ease of use, personalized experience and convenience, the demand of the digital therapeutic products has gradually risen. Based on the above-mentioned facts and our proprietary market analysis, the digital therapeutics market is anticipated to grow at an annualized rate of more than 15% between 2022 and 2035. It is worth highlighting that currently, North America holds the largest market share among all the other regions, followed by Europe. Further, in the long run it is anticipated that the Asia is expected to hold the largest market share.