Digital Therapeutics: Market Overview & Perspective

With the increased adoption of smartphones and tablets, the demand for virtual health management through apps is on the rise. From a doctor’s virtual visit to prescription renewal, digitalization has taken steps all over the consumer’s health journey. Wireless tracking devices and wearables, fitness and weight loss apps, and telemedicine have taken the market by storm helping people to stay fit and healthy while raising awareness among people.

These days a lesser-known category of digital health i.e. digital therapeutics, Your Virtual Doctor for Digital Health, is emerging as an incredibly exciting category. With software taking deep dive in every single industry, healthcare is no different from them. Technology powered by evidence-based therapeutic interventions is used to prevent, manage, or treat a medical disorder or disease. In conjunction with medicines, devices, therapies, or even independently, Digital Therapeutics resulted in the optimization of patient care and health outcomes.

digital therapeutics

The Rise of digital Therapies: Leading from the front in producing outstanding health outcomes, reduced costs, focused preventive healthcare, and in some exceptional cases, a lifesaver has contributed significantly to the rise of Digital Therapies (DTx). Even in some cases, DTx can replace medications and other behavioral interventions. Take an example where a patient who is suffering from back pain can be prescribed specific exercises and physical therapies with specific programmed digital therapeutic alongside pain monitoring. Personalized patient care delivery management solutions are soaring to new horizons. This transformed personalized patient care allowed individuals to take control of their health and improve clinical outcomes is driving Digital Therapeutics rapid growth and its adoptions across equipment and programs.

Attractive Opportunities in DTx Market

With more and more consumers getting interested in newDTx, opportunities are growing in different segments

• B2B Segment: With growing awareness about the benefits of DTx and that too at a reduced cost, providers, payers, and employers are shifting towards it. Pharmaceutical companies these days are now integrating digital Therapeutics with their drug product to provide adherence services which have acted as a major push for this segment. Payers and employers are motivated for employee’s well-being programs powered by digital Therapeutics saving their cost of hospital visits and medications.

• Treatment Segment: With the constant rise in the treatment cost and healthcare cost, especially in chronic conditions, it is one of the sectors highly motivated for cost reduction. Patient’s treatment and care application using digital therapeutics to provide a cost-effective solution are one of the key factors driving the market in this segment.

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• B2C Segment: Caregivers is one of the categories of the B2C segment providing Personalized Patient Care to patients. Digital Therapeutics contributed significantly to this segment by developing specific products focusing on patient management and monitoring.

With the government taking initiatives to support technological advancement, major investments in DTx, and a large influx of start-ups in North America helped North America to attain the largest share of the Digital Therapeutics market in 2019. Fee key players in these fields are LivongoHealth, OmadaHealth, Kaia Health, WellthyTherapeutics, AyogoHealth, and Ginger.

Companies like these create amazing opportunities for care that's provided in the most convenient way possible, starting with nicely designed websites  that rank well and then either building out their services in-house or finding qualified development agencies that can help them outsource for efficiency. However, they are concerns that need to be addressed like privacy, data sharing, etc. In the real world, data is continuously collected at various points and must be stored and shared securely via applications. So, data prevention and addressing privacy concerns should be the top priority of the business. It might be early to say but Digital Therapeutics may prove to be the silver bullet that the healthcare industry has been looking for reduce costs and effective improved outcomes providing resources to improve and manage an individual’s health.