DIGITAL THERAPEUTICS MARKET ANALYSIS

Market Challenges And Opportunities

Global Digital Therapeutics Market Drivers:

Rise in burden of chronic diseases to propel market growth

One of the key factors expected to augment the growth of the digital therapeutics market over the forecast period is the growing burden of chronic diseases worldwide. For instance, chronic diseases are highly prevalent and are expected to increase substantially in the coming years. According to the World Health Organization (WHO), noncommunicable diseases (NCDs) kill 41 million people each year, equivalent to 74% of all deaths worldwide. Research has shown that digital therapeutics solutions for the disease management can drive better outcomes for individuals living with chronic diseases. This in turn is driving the growth of the market.

The outbreak of COVID-19 to drive market growth

Another factor which is driving the growth of the global digital therapeutics market is the outbreak of COVID-19 (pandemic). For instance, as a result of the pandemic, the adoption of digital health is higher than ever before, making it an ideal time for implementing novel and convenient digital care options. In April 2020, the Food and Drug Administration FDA) issued guidelines to increase the availability of digital medical devices or digital therapeutics solutions for mental health and to reduce the burden on healthcare facilities and the risk of exposure to the virus. Such initiatives by the governments are expected to augment the market growth.

Global Digital Therapeutics Market Opportunities:

Growing adoption of patient-centric healthcare applications is expected to offer significant growth opportunities for players operating in the global digital therapeutics market. For instance, in May 2022, MyHealthcare launched a patient-centric digital health platform in collaboration with Sakra World Hospital to deliver 360-degree patient care outcomes. A new platform will empower people to manage their healthcare needs such as booking doctor appointments, preventive health check-ups, book diagnostics tests, manage family health, view e-prescriptions, view test results and other reports, and request for pathology tests or delivery of medicines at home.

Increasing adoption of digital healthcare solutions and technologies is expected to offer significant growth opportunities for players in the global digital therapeutics market. Digital health solutions or technologies present an opportunity for better, safer, and efficient healthcare delivery systems. In March 2021, Encora Therapeutics, a clinical-stage medical device developer, received the U.S. Food and Drug Administration’s (FDA’s) Breakthrough Device Designation for its patent-pending tremor reduction wearable. The device stimulates the wrist with vibrations. It is indicated to aid in the transient relief of hand tremors in adult essential tremor or Parkinson's patients.

Global Digital Therapeutics Market Restraints:

Lack of awareness about DTx to hamper market growth

One of the key factors expected to hamper growth of the global digital therapeutics market is the lack of awareness about digital therapeutics (DTx). Awareness of the benefits and opportunities of digital therapeutics solutions among patients and healthcare professionals and its acceptance are crucial elements for growth of the market. In most regions, healthcare professionals and patients are not aware of digital therapeutics solutions and technologies used to treat chronic illness. Thus, there is a need to improve the awareness related to digital therapeutic solutions as it can reduce the overall healthcare cost, benefiting low-income countries and their people.

Growing concerns about data privacy to hinder market growth

Another factor which is hampering growth of the global digital therapeutics market is the growing concerns about patient data privacy. Security and privacy risks are one of the major challenges for the market as the nature of data, and is vulnerable to cybersecurity attacks and data theft. Digital therapeutics solutions or technologies are also vulnerable to third-party interference, signal errors, and transmission outages. This may result in the loss of critical patient data, the alteration of critical clinical information, and interrupted communication, among others. This in turn is also expected to hamper the growth of the digital therapeutics market.