Digital Therapeutics Market Report 2025

The digital therapeutics market size has grown exponentially in recent years. It will grow from $8.73 billion in 2024 to $10.99 billion in 2025 at a compound annual growth rate (CAGR) of 25.9%. The growth in the historic period can be attributed to aging population and chronic diseases, digital health adoption, healthcare costs and efficiency, remote patient monitoring, and pandemic-induced demand.

The digital therapeutics market size is expected to see exponential growth in the next few years. It will grow to $30.04 billion in 2029 at a compound annual growth rate (CAGR) of 28.6%. The growth in the forecast period can be attributed to increasing adoption of personalized medicine, health data interoperability, value-based care models, increasing mental health and well-being focus, healthcare access and equity, growing cybersecurity and data protection, growing demand for population health management. Major trends in the forecast period include expansion of iot devices and sensors, artificial intelligence in healthcare, wearable health technology, technological advancements, and product innovations.

The anticipated surge in the use of smartphones and tablets, complemented by the widespread adoption of healthcare apps, is expected to drive the growth of the digital therapeutics market in the foreseeable future. The prevalence of smartphones and tablet-based healthcare apps brings about numerous advantages, including a reduction in medication errors, facilitating preventive care, and improving staffing accuracy. According to the State of Mobile Internet Connectivity Report 2023 by Groupe Speciale Mobile Association (GSMA), a UK-based non-profit organization, the year 2022 saw more than half of the world's population (54%) owning smartphones. This widespread use of smartphones is a significant driver for the digital therapeutics market, fostering a conducive environment for the growth of innovative therapeutic interventions.

The growing incidence of chronic diseases is poised to be a key driver propelling the expansion of the digital therapeutics market. Chronic diseases, characterized by long-lasting conditions requiring extended medical attention, significantly impact individuals' daily lives. Digital therapeutics, as software-based interventions, offer evidence-based therapeutic solutions to enhance the management of chronic diseases, providing patients with additional treatment options. Notably, data from the Centers for Disease Control and Prevention in July 2022 highlighted that six out of ten adults in the US are affected by chronic diseases, with four out of ten adults experiencing more than two chronic conditions such as heart disease, diabetes, and chronic lung diseases. This prevalence of chronic diseases contributes substantially to the growth trajectory of the digital therapeutics market.

An emerging trend in the digital therapeutics market is technological innovation, with major industry players focusing on developing advanced solutions to strengthen their market presence. Boehringer Ingelheim, a leading pharmaceutical company based in Germany, and Click Pharmaceuticals, a US-based prescription digital therapeutics business, have entered into a collaboration to develop and commercialize a digital medication for schizophrenia patients. This collaboration, valued at over $500 million, underscores the commitment to leveraging technological advancements. The proposed treatment, CT-155, will be a mobile app developed on Click's technology platform, showcasing the integration of innovative digital solutions in the field of therapeutics. This strategic partnership reflects the industry's dedication to advancing and integrating technology to enhance treatment options and patient outcomes in the digital therapeutics market.

Major players in the digital therapeutics market are actively developing innovative ordering, dispensing, and fulfillment platforms to cater to patients dealing with chronic diseases. An exemplar in this regard is DTx Connect, a platform designed to deliver therapeutic interventions directly to patients through software, addressing a spectrum of diseases and disorders including mental health issues and diabetes. In July 2022, AmerisourceBergen, a pharmaceutical solutions organization based in the US, introduced DTx Connect, a fully integrated platform for ordering, dispensing, and fulfillment. Key features of the DTx Connect platform include seamless integration with electronic medical records (EMR), enabling physicians to access and prescribe both prescription and non-prescription digital therapeutics through their e-prescribing workflow. The platform also facilitates the monitoring of patient fulfillment, streamlining the process for healthcare providers.

In July 2023, Big Health acquired Limbix for an undisclosed amount, aiming to expand its existing product portfolio. Big Health's product range includes Sleepio for insomnia and Daylight for anxiety, and with the acquisition of Limbix, it incorporates SparkRx and another teenage medication in development for anxiety. Limbix, a US-based provider of digital therapeutics, adds valuable assets to Big Health's offerings, enhancing its capabilities in providing a comprehensive suite of digital therapeutic solutions. This acquisition reflects the dynamic landscape of the digital therapeutics market, characterized by strategic moves to broaden product portfolios and meet the diverse needs of patients dealing with various health conditions.

Major companies operating in the digital therapeutics market include Omada Health Inc., WellDoc Inc., 2Morrow Inc., Propeller Health, Pear Therapeutics, Canary Health Inc., Noom Health Inc., Akili Interactive Labs, Better Therapeutics, Happify Health, Kaia Health, Medtronic plc, Teladoc Health Inc., Fitbit Health Solutions, EMulate Therapeutics, BigHealth, DarioHealth, IQVIA, JOGO Health, SilverCloud Health, Biofourmis Inc., Prosoma, Virta Health Corp., One Drop Inc., Lark Health, Riva, Xealth, CogniFit Ltd.

Digital therapeutics (DTx) represent products that deliver evidence-based therapeutic treatments to patients through sophisticated software applications. These applications aim to prevent, manage, or treat various medical ailments or diseases.

The primary categories of digital therapeutics products encompass devices and software. Digital therapeutics devices offer interventions for the prevention, management, or treatment of diseases or medical disorders. This may involve sensors utilized to monitor medication usage and location data. The sales channels for digital therapeutics include both business-to-business (B2B) and business-to-consumer (B2C). Digital therapeutics find applications in both preventive and treatment or care-related contexts.

The digital therapeutics market research report is one of a series of new reports that provides digital therapeutics market statistics, including digital therapeutics industry global market size, regional shares, competitors with a digital therapeutics market share, detailed digital therapeutics market segments, market trends and opportunities, and any further data you may need to thrive in the digital therapeutics industry. This digital therapeutics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

North America was the largest region in the digital therapeutics market in 2024. The Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital therapeutic market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the digital therapeutics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The digital therapeutics market consists of sales of products to treat a disease, manage a condition, and improve a health function. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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