DUBLIN, Oct. 14, 2021 /PRNewswire/ -- The "Digital Therapeutic Devices Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The Global Digital Therapeutic Devices Market is projected to register a CAGR of 24.2% during the forecast period, with a revenue of approximately USD 3,301.02 million in 2020 to reach USD 12,116.69 million by 2026.
Impact of COVID-19
The outbreak of COVID-19 has also prompted healthcare professionals to seek alternatives to traditional systems and procedures. This leads to the rapid adoption of digital medical care across the industry from providers to consumers. As non-essential requirements are given low priority during the pandemic, patients turn to digital therapeutic solutions. This increase in the acceptance of digital therapeutic applications across a wide range of medical fields such as mental health, substance abuse disorders, opioid-induced disorders, cardiovascular diseases, metabolic disorders, inflammatory diseases among others is boosting the market growth.
There has been a rise in the use of technology for therapeutics toward medical conditions. Consumers in developed markets are increasingly aware of the advanced products for the treatment of medical conditions. Particularly, due to the rise in disposable incomes, which enables them to adopt these products. According to the Organization for Economic Co-operation and Development, healthcare spending increased from USD 1,119 per capita in 2017, to USD 1,144.9 per capita in 2018 and to USD 1,153.6 per capita in 2019. The preference is also, therefore, shifted toward the advanced services in the medical field including the growing demand for innovations in therapeutic devices.
Along with this factor, the increased focus toward preventive healthcare by the governments of different countries is also one of the major driving factors. The governments are taking initiatives and launching programs for higher adoption rate of these devices, shifting from traditional healthcare practices. Moreover the growing prevalence of chronic diseases like diabetes and cardiovascular diseases across the globe is boosting the market growth.
The companies are also increasingly rising on venture investments in this domain, which drives this market, such as In June 2019, Omada Health is a pioneer in the field of digital therapeutics. secured USD 73 million from its investors for the development of digital care health programs focusing on preventable chronic conditions.
Factors, such as patient's data privacy concerns associated with digital therapeutic devices, hinder the growth of this market. When the information is transferred to the connected devices and sensors, it reaches into the Internet of Things territory. Since healthcare involves huge data related to patients and companies, cybersecurity is a major issue with increasing levels of connectivity between hospital chains, providers, and payers. As the information is continuously being monitored by doctors, such as the use of Bluetooth-enabled blood pressure cuffs and weight scales, the privacy concerns further rise.
Other factors hindering the growth of this market include high cost of manufacturing and installation and resistance of public to traditional healthcare providers. All these factors impede the growth of the digital therapeutics devices market.
Treatment/Care Segment Expected to Witness High Growth
During the pandemic, there has been a growing need for patients to take control of their own situation and respond in real-time, while their doctor still needs to monitor their case remotely. therefore the digital therapeutic devices increased in demand. The outbreak of COVID-19 has increased patient reliability in digital applications to play an active and informed role in their health care. Digital treatment solutions have helped reunite patients with doctors. Therefore, it can be concluded that digital health tools prove to be very useful for patients with chronic illness and medical professionals.
One of the key factors contributing to the growth of this category is the increase in medical and health care costs, mainly due to chronic conditions. The rising cost of health care, the increase in chronic illness, and the ability of digital therapies to provide affordable solutions are some of the factors driving the market for medical/related care applications.
The growing burden of chronic disorders increases the segment growth. According to the International Diabetes Federation (IDF), 2020, approximately 463 million adults (between the ages of 20-79 years) were living with diabetes globally and this will rise to 700 million. The proportion of people with type 2 diabetes is increasing in most countries, and 79% of adults with diabetes were living in low- and middle-income countries, where 1 in 5 people above the age of 65 years have diabetes
North America Expected to Dominate the Market
North America is expected to dominate the market, owing to the early adoption of new technologies and rising investment through funding in this region. The funding is associated with a rising investment from the government, venture capitalists, mergers, and acquisitions.
In April 2020, the United States Food and Drug Administration (US FDA) issued guidelines to increase the availability of digital medical devices for mental health. With this in mind, the FDA aimed to subsidize people who followed home segregation guidelines or who practiced social isolation, without the need for a clinic visit during the COVID-19 public health emergency. This will also reduce the burden on health care facilities and reduce the risk of exposure to the virus. Such initiatives by the government boost the market growth in the region.
MedRhythms, a Portland, Maine-based digital therapeutics company in June 2020, received FDA clearance for its patented digital therapeutic to treat chronic stroke walking deficits.
Furthermore, increase in the geriatric population, a rise in incidences of chronic diseases, the surge in demand for wireless & portable systems, and the availability of a sophisticated reimbursement structure that aims in reducing expenditure are few more factors boosting the regional growth.
The market is competitive with quite a number of major players. The rising number of market players is intensifying the competition. The companies are also working in partnership with many employers, payers, healthcare systems, and pharma companies.
Some of the major players are Philips N.V., Omada Health, Inc., WellDoc, Inc., LIVONGO HEALTH, Pear Therapeutics, Noom Health, Inc., etc. In 2019, Omada Health secured USD 73 million from its investors for the development of digital care health programs focusing on preventable chronic conditions.
Key Topics Covered
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Burden of Chronic Diseases
4.2.2 Rise in Technological Advancements
4.2.3 Increasing Focus Toward Preventive Healthcare by Government and Rise in Venture Capital Investments
4.3 Market Restraints
4.3.1 High Cost of Manufacturing and Installation
4.3.2 Data Privacy Concerns and Resistance from Traditional Healthcare Providers
4.4 Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Software and Services
5.2 By Application
126.96.36.199 Smoking Cessation
188.8.131.52 Cardiovascular Diseases
184.108.40.206 Neurological Disorders
220.127.116.11 Respiratory Diseases
5.3.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 South Korea
184.108.40.206 Rest of Asia-Pacific
5.3.4 Middle East and Africa
220.127.116.11 South Africa
18.104.22.168 Rest of Middle East and Africa
5.3.5 South America
22.214.171.124 Rest of South America
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Koninklijke Philips N.V. (BioTelemetry Inc.)
6.1.2 Canary Health
6.1.3 Livongo Health
6.1.4 Omada Health, Inc.
6.1.5 WellDoc, Inc.
6.1.6 Pear Therapeutics
6.1.7 Noom Health, Inc.
6.1.8 Propeller Health
6.1.9 Mango Health, Inc.
6.1.10 Twine Health, Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/2ebsrv
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