Global Digital Therapeutic Devices Market - Segmented by Product Type, Application, End-Users and Geography - Growth, Trends and Forecasts (2018 - 2023)
The global digital therapeutic devices market is expected to register a CAGR of around 14.2% during the forecast period, 2018 to 2023. North America is expected to dominate this market due to rise in the early adoption of new technologies and increased fund investments. Further, Asia-Pacific is expected to grow at a higher rate as compared to other regions.
Rise in Technological Advancements
There has been a rise in the use of technology for therapeutics toward medical conditions. The consumers in developed markets are increasingly aware of the advanced products for treatment of medical conditions. Particularly, due to rise in disposable incomes, which enables them to adopt these products. The preference is also, therefore, shifted toward the advanced services in the medical field including the growing demand for innovations in therapeutic devices. Example, C2 CryoBalloon Ablation System developed by C2 Therapeutics uses cryosurgical tool in general surgery, mild devices developed by Vertos Medical is a safe, minimally invasive treatments for lumbar spinal stenosis, which does not require anesthesia, implants or stiches.
Along with this factor, the increased focus toward preventive healthcare by the government is also one of the major driving factors. The government is taking initiatives and launching programs for higher adoption rate of these devices, shifting from traditional healthcare practices. The companies are also increasingly rising on venture investments in this domain, which drives this market, such as USD 20 million investment by Pear Therapeutics on substance abuse issues. The rising prevalence of chronic diseases, such as diabetes (1.6 million deaths in 2015) and cardiovascular diseases (an estimated 17.7 million deaths each year) drive the growth of the digital therapeutic devices market.
Concerns Related to Privacy of Patients’ Data
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.
North America to Dominate the Market
The digital therapeutics devices market is segmented by product type, application, end user, and geography. By geography, it is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America.
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 rising investment from government, venture capitalists, mergers, and acquisitions. Example: Recent approval of Abilify MyCite in the United States has attracted investments from several large healthcare companies, such as Novartis AG, Medtronic Inc., and Otsuka Pharmaceuticals, among others. In addition, Asia-Pacific is expected to show a high growth rate due to large population size, increasing penetration of smartphones, and rising government initiatives.
Key Developments in the Market