U.S. Digital Therapeutics Market (By Application: Diabetes, Obesity, CNS Diseases, Others; By End Use: Patients, Providers, Payers, Employers, Others) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030

The U.S. digital therapeutics market was surpassed at USD 1.50 billion in 2021 and is expected to hit around USD 10.7 billion by 2030, growing at a CAGR of 24.4% from 2022 to 2030.

Growing healthcare consumerism, the availability & development of DTx products, and the rising number of market players are driving the regional market.

SparkRx by Limbix Health, for example, is a digital therapeutic that is indicated for the treatment of adolescent depression. It is available without a prescription since the COVID-19 pandemic, under the FDA’s emergency guidance for digital health devices used in the treatment of psychiatric disorders. The COVID-19 pandemic has expedited the adoption of DTx, especially concerning mental illness and chronic ailments like diabetes and CVS. The U.S. FDA released new guidelines for computerized behavioral therapy and other DTx solutions during this public health emergency.

The organization has waived off guidelines that include 510(k) premarket notifications, registration & listing requirements, and Unique Device Identification (UDI) requirements for DTx therapeutic devices with low risk. For instance, Pear therapeutics launched Pear-004 for psychosis and self-management training post the introduction of the new guidelines. The product needs to be used under a doctor’s supervision.

The need for cost-effective healthcare is increasing globally due to rising healthcare expenditure. Digital health technology is being encouraged and preferred to avoid unnecessary costs and promote cheaper, alternative means of healthcare delivery, thus propelling the market. Moreover, the rising demand for remote monitoring services due to the increasing incidences of chronic diseases worldwide is one of the factors propelling the market growth. Digital therapeutic applications allow patients to manage and treat diseases without constant medical intervention, thereby drastically reducing the healthcare expenditure.

Scope of The Report

Application Insights

Diabetes dominated the application segment in 2021 with more than 27% of the revenue share. Diabetes prevalence is growing rapidly and is linked to blindness, heart attack, kidney failure, stroke, and gangrene in severe cases. Digital therapeutics are being used for the management & prevention of diseases by helping patients change their behavior through constant monitoring, thus improving their health in the long run.

Based on application, the U.S. digital therapeutics market is segmented into diabetes, obesity, CVD, respiratory diseases, smoking cessation, CNS diseases, and others. The CNS diseases segment is expected to show significant growth during the forecast period, owing to the increasing incidence of neurological diseases in the U.S. Alzheimer’s disease, expressive aphasia, degenerative diseases, Huntington’s disease, multiple sclerosis, and Parkinson’s disease are some of the most common neurological diseases that affect a growing proportion of the U.S. population.

Several digital therapeutics companies have been catering to the specific needs of Central Nervous System (CNS) disease patients to reduce anxiety and keep track of their daily activities. The demand has increased after the nationwide lockdown brought on by the COVID-19 pandemic.

According to a KFF tracking poll, around 47% of Americans staying at home have reported negative mental health effects as of March 2020. Out of them, over 21% have reported a major negative impact on their mental health. The FDA has released new guidelines for the computerized behavioral therapy and other DTx solutions during this public health emergency, which is expected to fuel the growth.

End-use Insights

The patient end-user segment dominated the overall market with more than 32% of the revenue share in 2021. The increased adoption of these tools can be attributed to their added benefits, one of which is effective health management at an affordable cost. In addition, the presence of advanced healthcare IT solutions and supportive government programs in the country are factors expected to further boost the adoption of digital therapeutics by patients.

Based on end-use, the market is segmented into patients, providers, payers, employers, & other end-users. The employer segment is expected to show notable growth during the forecast period. Employers are focusing on the management of employee healthcare costs, which is expected to drive segment growth. Moreover, growing awareness through employee healthcare programs is expected to propel the adoption of digital therapeutics for maintaining employee wellbeing.

The availability of various mHealth apps, such as Vida Health, used by payers, providers, and employers to monitor chronic conditions such as prediabetes, obesity, hypertension, & mental health issues, is another factor expected to propel market growth.

Key Players

• Omada Health Inc.
• Teladoc Health, Inc.
• 2Morrow Inc.
• Propeller Health (ResMed)
• Fitbit Health Solutions
• Canary Health
• WellDoc, Inc.
• Noom, Inc.
• Pear Therapeutics, Inc.
• Click Therapeutics, Inc.
• Akili Interactive Labs, Inc.
• Better Therapeutics, Inc.

Market Segmentation

• By Application Outlook

• Diabetes
• Obesity
• CVD
• Respiratory Diseases
• Smoking Cessation
• CNS Disease
• Others
• By End-use Outlook
• Patients
• Providers
• Payers
• Employers
• Others