Where is the Digital Therapeutics (DTx) market headed?
by Tarek Milla, March 2, 2023
Recently, it has become evident that Digital Therapeutics (DTx) are occupying a prominent place in the Digital Health environment, given that they present effective solutions, based on scientific evidence, for the effective management of diseases and the active participation of patients in their diseases. We noted this situation in our article, “Digital Therapeutics (DTx): What role do they play and what are the current market projections?”. Using these digital therapeutics, a medical condition or illness can be prevented, managed, or treated, with the goal of improving patient health outcomes. For that reason, both healthcare professionals and the industry have a growing desire to implement them, exponentially increasing their potential for growth.
As a result, it is anticipated that the Digital Therapeutics sector will experience strong growth from 2020 to 2025. According to the report by Insider Intelligence, it is estimated that the Digital Therapeutics market will reach USD 56 billion globally by 2025, with a CAGR (compound annual growth rate) of 44%. The increase in prevalence of chronic diseases like diabetes and hypertension, among others, as well as the increased awareness on the part of governmental agencies, are key factors in the significant growth of this market.
In Europe alone, more than 50 million people suffer from chronic conditions, resulting in a cost of approximately 600 billion euros annually, according to the report, “Digital Therapeutics Is Now the Fastest-Growing Segment in Healthtech”. This report notes that there have been 394 studies of interventions using DTx tools since 2010, and 88% of these were in the past five years, a period in which the number of DTx trials multiplied by four.
Because of all this, and taking into account the ongoing digitalization efforts and the transformation of the health sector, Digital Therapeutics companies have attracted significant attention from both interested industry parties as well as investors. On a global level, USD 1.5 billion were invested in 2022, compared to USD 300 million in 2017, demonstrating the rapid growth within Digital Health, according to the abovementioned report. In addition, the report confirms that the investment of capital in European DTx companies reached USD 645 million between 2020 and 2022, which is a level nine times greater than in 2016.
Digital Therapeutics are beginning to play a more important role in the health sector, thanks to technological advances like Artificial Intelligence (AI) and mobile technology, among others. The current growth of this kind of therapy, as well as their development over the recent years, is anticipated to provide benefits to both patient health and quality of life, while at the same time becoming a valuable support for healthcare professionals, optimizing their workload and enabling them to be more efficient in the care they provide.
Being aware of all this, at Persei vivarium we continue advancing in this new segment of Digital Health, converting ourselves into an expert and trusted company in the design of DTx to complement therapies or to add an innovative service in the portfolio of companies in this industry.