US Digital Therapeutics Market Analysis

US Digital Therapeutics Market Analysis


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US Digital Therapeutics Market is at around $2.6 Bn in 2023 and is projected to reach $12.6 Bn in 2030, exhibiting a CAGR of 27.2% during the forecast period. The market is being driven by factors such as the rise in chronic diseases, technological advancements, and the adoption of telehealth. The market is dominated by key players like DarioHealth Corp., Banner Health, Omada Health Inc., WellDoc Inc., 2Morrow Inc., Livongo Health Inc., Propeller Health, Canary Health, Noom Inc., Akili Interactive Labs Inc., and HYGIEIA.

ID: IN10USDH006 CATEGORY: Digital Health GEOGRAPHY: US AUTHOR: Aneri Parekh

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US Digital Therapeutics Market Executive Summary

US Digital Therapeutics Market is at around $2.6 Bn in 2023 and is projected to reach $12.6 Bn in 2030, exhibiting a CAGR of 27.2% during the forecast period.

The US market for digital therapeutics is a developing field that focuses on creating and implementing software-based interventions to treat, manage, or prevent a range of medical diseases. These therapeutic solutions use digital technology like wearables, virtual reality, and smartphone apps to improve patient outcomes and offer useful substitutes or supplements to conventional pharmacological therapies.

The growing use of digital health solutions is fueling the US market for digital therapeutics, which is expanding quickly. The increasing incidence of chronic illnesses, technological developments, and an increasing emphasis on remote patient monitoring are important contributing causes. To improve the efficacy of digital therapies, industry participants are experimenting with new technologies in fields including data analytics, virtual care platforms, and mobile applications.

The market for digital therapeutics has shown incredible growth, with revenue reaching $6.2 Bn globally in 2023. The sector has undergone a dramatic shift due to the adoption of innovative technology and cost-effective production procedures, as seen by this exceptional expansion. As a result, digital treatments are now seen as essential to the healthcare system. The trajectory of this market highlights the potential for additional breakthroughs, and it is anticipated that continuous developments will support its continued expansion and revolutionary effect on patient care.

One of the biggest non-profit health systems in the United States, Banner Health, is strongly participating locally and nationally in the rapidly expanding digital medicines sector. The firm creates and executes its digital health programs for a range of ailments, mostly for usage inside the company's system, serving the patient population in the area. Using Propeller Health's inhaler sensors boosted medication adherence for patients with chronic diseases by 20%. Banner Health also improved A1C levels for patients with diabetes, utilizing Livongo's platform.

US digital therapeutics market

Market Dynamics

Market Growth Drivers:

Growing Chronic Illness: Digital treatments have been greatly aided by the growing incidence of chronic illnesses like diabetes, cardiovascular disease, and mental health issues. By providing individualized therapies and remote monitoring, these technologies enhance patient outcomes.

Technological Developments: The capabilities of digital treatments have been improved by ongoing technological developments, such as wearable technologies, smartphone apps, and sensors. Real-time data gathering, analysis, and communication between patients and healthcare providers are made possible by these technologies.

Adoption of Telehealth: Digital treatments are benefiting from the broad adoption of telehealth and remote patient monitoring. Digital platforms are being used greatly by patients and healthcare professionals for consultations and treatment planning.

Market Restraints:

Regulatory Challenges: The digital therapeutics market is vulnerable to regulatory scrutiny, and it can be difficult to navigate the complicated regulatory environment. The market's expansion may be hampered by changes in regulations or delays in approval processes.

Reimbursement Problems: One potential problem with digital therapies is the absence of clear reimbursement policies. Adoption may be sluggish if payers and healthcare providers are not fairly compensated for using digital therapies in their treatment regimens.

Data Security and Privacy Issues: The adoption of digital therapies may be constrained by worries about patient information security and privacy, given the sensitive nature of health data. There are strict laws in place, such as the Health Insurance Portability and Accountability Act (HIPAA), and violations may have legal repercussions.

Notable Recent Updates

  • January 2024, Omada Health, a virtual-first healthcare provider, announced a partnership with Amazon Health Services to improve awareness and discoverability of its cardiometabolic programs through Amazon's new Health Condition Programs

Healthcare Policies and Regulatory Landscape

The Food and Drug Administration (FDA) is the US regulatory agency responsible for overseeing digital therapies. Through review and approval, the FDA guarantees the efficacy and safety of novel treatments and medications. Pre-clinical, clinical, and FDA review are the three main phases of the development process for most new therapeutic medicines and biologics. License acquisition is a challenging procedure that involves several obstacles, such as tough regulations, expensive and protracted development periods, and challenging clinical trials. HIPAA, the Health Insurance Portability and Accountability Act, establishes the guidelines for protecting sensitive patient data. To maintain HIPAA compliance, anybody handling protected health information (PHI) needs to adhere to physical, network, and process security safeguards.

Competitive Landscape             

Key Players:

  • DarioHealth Corp.
  • Banner Health
  • Omada Health Inc.
  • WellDoc Inc.
  • 2Morrow Inc.
  • Livongo Health Inc.
  • Propeller Health
  • Canary Health
  • Noom Inc.
  • Akili Interactive Labs Inc.
  • HYGIEIA

1. Executive Summary
1.1 Digital Health Overview
1.2 Global Scenario
1.3 Country Overview
1.4 Healthcare Scenario in Country
1.5 Digital Health Policy in Country
1.6 Recent Developments in the Country

2. Market Size and Forecasting
2.1 Market Size (With Excel and Methodology)
2.2 Market Segmentation (Check all Segments in Segmentation Section)

3. Market Dynamics
3.1 Market Drivers
3.2 Market Restraints

4. Competitive Landscape
4.1 Major Market Share

4.2 Key Company Profile (Check all Companies in the Summary Section)

4.2.1 Company
4.2.1.1 Overview
4.2.1.2 Product Applications and Services
4.2.1.3 Recent Developments
4.2.1.4 Partnerships Ecosystem
4.2.1.5 Financials (Based on Availability)

5. Reimbursement Scenario
5.1 Reimbursement Regulation
5.2 Reimbursement Process for Diagnosis
5.3 Reimbursement Process for Treatment

6. Methodology and Scope

US Digital Therapeutics Market Segmentation

By Solution

  • Software
  • Services

By Deployment

  • Cloud-based
  • On-premises

By Application

  • Therapy
  • Diabetes
  • Obesity
  • CNS
  • Respiratory
  • CVD

By End-use

  • Diagnostic Centres
  • Healthcare Players
  • Healthcare Research Centres
  • Hospitals & Clinics
  • Nursing Care Centres
  • Others

Insights10 will provide you with the reports within 10 key parameters which are:

  1. Market Overview
  2. Market Growth Drivers & Restraints
  3. Epidemiology of Disease Type
  4. Market Segmentation
  5. Market Share
  6. Competitive Landscape
  7. Key Company Profiles
  8. Healthcare Policies & Regulatory Framework
  9. Reimbursement Scenario
  10. Factors Driving Future Growth

Based on our many years of experience, we believe that these are the parameters that are critical to decision-making for business stakeholders. Our focused approach to developing reports focused on 10 key parameters, enabled us to arrive at the name “Insights10”.

 

Stage I: Market Data Collection

Primary Interviews: We have developed a network of experts, freelancers, and researchers across countries through which we engage with local experts to gather key data points and assumptions about each market. We also engage regularly with some of the best market research agencies such as Atheneum, GuidePoint, GLG, etc. to conduct surveys and interviews, and build intelligence. We have language translators as a part of our team, who between them can cover 30+ languages allowing us to extract better local insights.

Secondary Data Collection: We have developed strong expertise and experience in secondary data collection methods for developing unique data sets and research material. We gather data from multiple reliable sources to maintain a high level of accuracy and consistency. The market data is analyzed and forecasted using appropriate statistical and coherent models. The report offers an overall analysis of the market size, growth, and market share as well as a segment-level analysis of the specific market. Our report includes precise, to-the-point information related to the overall market, competition, growth drivers, challenges, regulatory updates, and competition.

Data Sources: We have access to multiple highly reliable free and subscription data sources. We have many years of experience to understand which sources are more dependable for what and which to prefer for the reliable and latest information. The key sources of information include the following, but are not limited to:

 

 

Stage II: Market Data Analysis and Statistical Model

Market Trends: We generally look at macro parameters and micro indicators. The macro parameters include changes in government policies, demand and supply of the market, government intervention programs, and major market share. The micro indicators are GDP growth, market size, market volume, etc. We also understand nuances specific to each country like the US, Canada, India, Germany, etc., and have worked across 60+ countries and hence not only understand global trends but how these differ by country, how payment models, market structure, cultural parameters, etc. differ in each country.

Market Sizing and Analysis: Our expert data analytics team has created various market forecast models by employing the top-down approach i.e. starting with the large overall market and segmenting different areas and the bottom-up approach i.e. starting with population and epidemiology and rolling up based on spend, etc., estimating the size of the market, and distributing among the geographic and/or product segments.

The top-down approach is mainly used for new product forecasting and the bottom-up approach is used for demand estimation of any product for different countries summed up to form the total market. We are able to round off insights and build stronger forecasts because we always do both these methods and triangulate the final numbers.

The study on the market covers the analysis of the leading geographies such as Asia-Pacific, Africa, Europe, Middle East, North America, and  Latin America for the period of 2022 to 2030. The qualitative analysis covers the industry landscape and trends, market opportunities, competitive landscape, and policy and regulatory scenario, and the quantitative analysis covers different market estimates and forecasts.

Data Triangulation & Validation:

Data triangulation of various sources and results of the research are carried out by benchmarking with reliable sources such as industry statistics, statistical databases, and company-level averages, etc.

We make sure to finalize the numbers in alignment with the market research. Firstly, our internal experts ensure thorough validation and checking to ensure accurate and precise analysis and then validation is also done using a multiple-data analysis model. Two-level validation is done and entails the finalization of the report scope and the way of representation pattern.

 

 

Stage III: Interpretation and Presentation

Analysis & Interpretation: The information gathered is then analyzed and synthesized. The second series of interviews are done if necessary to check and validate. The future opportunities are analyzed by understanding product commercialization and many other factors. It also comprises the analysis of data discrepancies observed across various data sources. Information procured from secondary and primary results is then, interpreted by considering the following parameters: (a partial list)

  • Establishing market drivers and trends
  • Analyzing the regulatory landscape to understand future growth
  • Market Segment based analysis to obtain revenue/volume
  • ​Analyzing current needs and determining penetration to estimate the market

Insights: Our reports deliver actionable insights backed with supporting facts and figures to assist you in achieving exemplary growth. Our in-depth analyses are interspersed with relevant insights and statistics to offer an executive-level view of a given market. The description helps in correlating many minor factors affecting the market and their impact on the different segments within the market.

Data curated from the analysis and interpretation are drawn to portray all in one consolidated report.

Presentation & Reporting: The market research report is presented in different forms such as charts by using a scientific approach for easy understanding. Historic, current, and future analysis is provided for each market in terms of both value and volume. The size of the market is interpreted in the US Dollar value and the respective unit, based on the product, for volume consumption.

The foreign exchange rates are calculated on the respective dates and for the respective regions covered in the study.

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Last updated on: 23 February 2024
Updated by: Anish Swaminathan

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