Towards Healthcare
Digital Therapeutics Market Surges USD 90.83 Bn at 27.8% CAGR by 2034

Digital Therapeutics Market Growth, Trends, Opportunities and Segment Analysis

According to market projections, the digital therapeutics sector is expected to grow from USD 7.7 billion in 2024 to USD 90.83 billion by 2034, reflecting a CAGR of 27.8%. The market is growing due to the rising need for effective, remote healthcare solutions and management for chronic conditions. Increased smartphone usage and advancements in AI are boosting accessibility and personalized. Supportive regulations and healthcare digitization are driving the North America market expansion.

Category: Therapeutic Area Insight Code: 5664 Format: PDF / PPT / Excel

Rohan Patil

Principal Consultant

Aditi Shivarkar

Reviewed By

The global digital therapeutics market size is calculated at USD 7.7 billion in 2024, grow to USD 9.84 billion in 2025, and is projected to reach around USD 90.83 billion by 2034. The market is expanding at a CAGR of 27.8% between 2025 and 2034.

Digital Therapeutics Market Size 2024 - 2034

Key Takeaways

  • Digital therapeutics industry poised to reach USD 7.7 billion in 2024.
  • Forecasted to grow to USD 90.83 billion by 2034.
  • Expected to maintain a CAGR of 27.8% from 2025 to 2034.
  • North America dominated the digital therapeutics market share by 41% in 2024.
  • Asia-Pacific is anticipated to grow at the fastest rate in the market during the forecast period.
  • By application, the diabetes segment held the major market share in 2024.
  • By application, the obesity segment is projected to grow at the fastest rate between 2025 and 2034.
  • By end-use, the patient segment contributed the biggest market share in 2024.
  • By end-use, the provider's segment is predicted to grow at the fastest rate in the digital therapeutics market during the studied years.

Key Metrics and Overview

Metric     Details
Market Size in 2025 USD 9.84 Billion
Projected Market Size in 2034 USD 90.83 Billion
CAGR (2025 - 2034) 27.8%
Leading Region North America share by 41%
Market Segmentation By Application, By End Use, By Regions
Top Key Players OMADA HEALTH, INC., Welldoc, Inc., 2Morrow, Inc, Livongo Health, Inc. (Teladoc Health, Inc.), Propeller Health (ResMed), Fitbit LLC, Mango Health, CANARY HEALTH, Noom, Inc., Pear Therapeutics, Inc., Akili Interactive Labs, Inc., HYGIEIA, DarioHealth Corp., BigHealth, GAIA AG, Limbix Health, Inc.

How is Innovation Impacting the Digital Therapeutics Market?

Digital therapeutics are evidence-based software solutions that deliver clinically validated interventions to prevent, manage, or treat medical and behavioral health conditions, often through apps or digital devices. Innovation is significantly propelling the digital therapeutics market by integrating advanced technologies like artificial intelligence(AI) and machine learning (ML), which enhance personalized treatment plans and predictive analytics. These advancements enable real-time monitoring and engagement. Additionally, the incorporation of wearable devices and mobile health applications facilitates more accessibility and cost-effectiveness. Regulatory support and increased investment in digital health are further accelerating market growth.

For Instance,

  • As per the GSMA’s Mobile Economy 2024 report, approximately 5.6 billion people worldwide were mobile service subscribers in 2023. This number is projected to grow steadily, reaching around 6.3 billion unique mobile users by 2030, reflecting the ongoing global expansion of mobile connectivity. (Source - GSMAIntelligence)
  • In February 2025, Propeller Health introduced an advanced respiratory disease management platform that uses AI-powered predictive analytics to support patients with asthma and COPD. This next-generation solution aims to enhance disease monitoring and improve patient outcomes through smarter, data-driven care. (Source - Resmed)
  • In December 2023, Welldoc introduced an AI-powered personalized coaching feature within its BlueStar diabetes management app. This new addition is designed to boost user interaction and help improve blood sugar control, offering a more tailored and effective approach to diabetes care. (Source - Welldoc)

How AI is Fueling the Digital Therapeutics Market?

AI is fueling the market by enabling personalized, data-driven treatment plans that adapt to individual patient needs. It enhances real-time monitoring, predicts health risks, and supports early interventions, improving treatment outcomes. AI also streamlines data analysis for healthcare providers, boosts patient engagement through intelligent feedback, and increases the scalability and efficiency of digital therapies, making them more accessible and effective.

Market Dynamics

Driver

Rising Focus on Preventive Healthcare

The growing emphasis on preventive healthcare is driving the digital healthcare market by encouraging early diagnosis, real-time monitoring, and proactive health management. Digital tools such as mobile apps, wearables, and telehealth platforms enable individuals to track vital signs, manage lifestyle habits, and detect potential health issues before they become serious. This shift not only helps in improving patient outcomes but also reduces overall healthcare costs, making digital solutions essential for modern preventive-focused healthcare systems.

Restraint

Limitations Associated with Digital Therapeutics to Limit Its Adoption

Limitations such as regulatory challenges, limited clinical validation, data privacy concerns, and lack of reimbursement policies hinder the widespread adoption of digital therapeutics. These issues can affect users, slow down product approvals, and limit accessibility, especially in traditional healthcare providers, and patients may be hesitant to adopt digital interventions over conventional treatment, creating a barrier to market growth and acting as a restraint in the digital therapeutics sector.

Opportunity

Large Undiagnosed and Untreated Population

The large population of undiagnosed and untreated individuals presents a significant opportunity for the digital therapeutics market. With accessible, scalable, and cost-effective digital solutions, these tools can help reach underserved communities and individuals who lack access to traditional healthcare. By enabling early screening, continuous monitoring, and personalized interventions, digital therapeutics can bridge gaps in care, improve health outcomes, and expand market potential across both developed and developing regions.

For Instance,

  • As reported by the BMC Public Health Journal in 2023, a significant portion of older adults in India face hypertension-related healthcare gaps. The study found that 42.3% of this population had undiagnosed hypertension, while 6% remained untreated and 18.7% were undertreated. These figures highlight the pressing need for improved detection and management strategies, such as digital therapeutic solutions, to address these gaps in care. (Source - BMC)

Segmental Insights

The Diabetes Segment Major Shares

By application, the diabetes segment held the major digital therapeutics market share, due to the high global prevalence of diabetes and the increasing demand for continuous monitoring and management solutions. Digital tools like mobile apps, wearables, and connected glucose monitors offer real-time tracking, personalized feedback, and improved adherence to treatment plans. These technologies help patients manage their blood sugar levels more effectively, reduce complications, and lower healthcare costs, making them widely adopted in diabetes care.

For Instance,

  • A 2023 report from the Institute for Health Metrics and Evaluation revealed that more than 500 million people worldwide are affected by diabetes. This widespread condition impacts individuals of all ages and genders across every country, highlighting the global scale and urgency of addressing diabetes through effective management and care strategies. (Source - IHME)

The Obesity Segment: Fastest Growing

By application, the obesity segment is projected to grow at the fastest rate between 2025 and 2034, driven by the escalating global prevalence of obesity and the increasing adoption of digital health solutions. Advancements in technologies such as artificial intelligence and data analytics are enabling personalized interventions and enhancing the effectiveness of weight management programs. Additionally, the widespread use of smartphones and wearable devices facilitates continued monitoring and engagement, making digital therapeutics more accessible and appealing to individuals seeking to manage their weight effectively. These factors collectively contribute to the rapid expansion of the digital therapeutics market.

For Instance,

  • According to the World Health Organization’s 2024 estimates, the global number of obese individuals has doubled since 1990. Additionally, obesity among adolescents has surged at an even faster pace, increasing nearly fourfold, highlighting a significant and growing public health concern worldwide. (Source - World Health Organization)

The Patient Segment: Biggest Shares

By end-use, the patient segment contributed the biggest market share in 2024. The increasing prevalence of chronic conditions such as diabetes, hypertension, and mental health disorders prompts patients to seek accessible and personalized healthcare solutions. The widespread adoption of smartphones and internet services has facilitated the use of digital therapeutic applications, enabling real-time health monitoring and tailored treatment plans. Furthermore, the shift towards patient-centric care models and the emphasis on preventive healthcare have reinforced the adoption of digital therapeutics among patients.

The Provider's Segment: Fastest Growing

By end-use, the provider's segment is predicted to grow at the fastest rate in the digital therapeutics market during the studied years. Healthcare providers are increasingly integrating digital therapeutics solutions into their clinical workflows to enhance patient outcomes and streamline care delivery. The adoption of value-based care models emphasizes preventive and personalized treatments, aligning well with digital therapeutics capabilities. Additionally, advancements in technology and favorable reimbursement policies are encouraging providers to adopt these innovative solutions, further propelling the digital therapeutics market.

For Instance,

  • In July 2023, ResMed acquired Somnoware, a top provider of digital diagnostic software focused on sleep and respiratory health. This move enhanced ResMed’s software offerings, improving the efficiency of patient diagnosis and ongoing care. By integrating Somnoware’s tools, ResMed aims to strengthen its sleep management solutions and better support sleep labs and healthcare providers. (Source - Resmed)

Regional Insights

How is North America Powering the Digital Therapeutics Market?

Digital Therapeutics Market Share, By Region, 2024 (%)

North America dominated the market share by 41% in 2024 due to its advanced healthcare infrastructure, high adoption of digital health technologies, and supportive regulatory frameworks. The presence of key industry players such as Pear Therapeutics and Omada Health further boosted innovation and accessibility. Additionally, favorable reimbursement policies and growing awareness among patients and providers contributed to the region's leadership. These combined factors have made North America a hub for the development and integration of digital therapeutic solutions.

For Instance,

  • In January 2024, Omada Health joined forces with Amazon Health Services to promote its cardiometabolic programs through Amazon’s Health Condition Programs, aiming to boost awareness and expand reach. (Source - omada)

The U.S. Digital Therapeutics Market Trends 

The U.S. market is expanding rapidly due to the growing burden of chronic diseases like diabetes and heart conditions, which demand scalable and effective treatment options. Technological advancements, including AI and wearable integration, have enhanced treatment personalization and engagement. Supportive FDA regulations and increased investments from tech firms and healthcare partnerships are further driving growth. These combined factors position the U.S. as a global leader in digital therapeutic adoption and innovation.

For Instance,

  • In February 2024, Better Therapeutics, Inc. received FDA Breakthrough Device Designation for its cognitive behavioral therapy (CBT) digital platform aimed at treating metabolic dysfunction-associated steatohepatitis (MASH), formerly known as NASH. This designation highlights the platform's potential to offer more effective treatment than existing options for a serious liver condition, reinforcing its significance in advancing digital therapies for cardiometabolic diseases. (Source - PHARMABIZ)

 The Canada Digital Therapeutics Market Trends

The Canadian market is growing steadily due to the rising incidence of chronic conditions such as diabetes, cardiovascular diseases, and mental health disorders. Increased adoption of smartphones and digital devices has made these therapies more accessible. Integration with wearables and IoT technology enables real-time monitoring and personalized care. Additionally, expanding use in behavioral and mental health, along with a growing focus on preventive and patient-centric healthcare, is fueling further adoption and market expansion across the country.

How is Asia-Pacific approaching the Digital Therapeutics Market in 2024?

Asia-Pacific is anticipated to grow at the fastest rate in the market during the forecast period, due to the increasing prevalence of chronic diseases, rising smartphone usage, and advancements in mobile health technologies. Government support for digital health initiatives, such as India’s National Digital Health Mission, further boosts adoption. Additionally, the region's aging population and a surge in health tech startups and collaborations are driving demand for innovative, accessible, and personalized therapeutic solutions, making Asia-Pacific a key growth region in the global digital health landscape.

The China Digital Therapeutics Market Trends

China's market is expanding rapidly, driven by a high prevalence of chronic diseases like diabetes and cardiovascular conditions.  Government initiatives, such as the Healthy China 2030 plan, promote digital health integration.  Advancements in mobile health, AI technologies, and widespread smartphone usage enhance accessibility and personalization of care.  Additionally, increased investments and collaborations between tech firms and healthcare providers are accelerating the development and adoption of digital therapeutic solutions across the country.

For Instance,

  • In February 2023, China-based NERVTEX, known for its digital therapeutic innovations targeting neurological disorders, gained approval from the China National Medical Products Administration for its AI-powered software. This advanced tool is designed to assess and analyze movement-related disorders, marking a significant step forward in the application of artificial intelligence in neurological care. (Source - mobihealthnews)

The India Digital Therapeutics Market Trends

India’s market is rapidly expanding due to the increasing prevalence of chronic diseases such as diabetes, cardiovascular conditions, and mental health disorders. Government programs like the Ayushman Bharat Digital Mission are enhancing the country’s digital health infrastructure, promoting easier integration of digital therapies. Additionally, widespread smartphone penetration and technological advancements in mobile health are making these solutions more accessible. Together, these factors are driving strong growth and wider adoption of digital therapeutics across India.

How is Europe Accelerating the Digital Therapeutics Market?

Europe stands out in the market due to its strong healthcare infrastructure, supportive government policies, and high digital health awareness among its population. The region benefits from the early adoption of innovative technologies and significant investments in digital health startups. Additionally, the increasing prevalence of chronic diseases and aging populations drives demand for effective digital therapies. Collaborations between healthcare providers, tech companies, and regulators further accelerate market growth and integration across European countries.

The UK Digital Therapeutics Market Trends

The UK market is growing rapidly due to the rising prevalence of chronic diseases like diabetes, obesity, and mental health issues. Government support, including recommendations from NICE for digital treatments, boosts adoption. Additionally, a shift towards preventive and value-based healthcare drives demand for effective digital solutions. Technological advancements, widespread smartphone use, and improved internet connectivity further enable market expansion, positioning the UK as a key player in the global digital therapeutics landscape.

The Germany Digital Therapeutics Market Trends

Germany’s market is growing rapidly due to strong regulatory support, including the Digital Healthcare Act, which allows doctors to prescribe digital health apps covered by public insurance. The increasing prevalence of chronic diseases like diabetes and cardiovascular conditions is driving demand for effective digital treatments. Additionally, Germany’s advanced healthcare infrastructure, widespread use of electronic health records, and telemedicine adoption make it easier to integrate digital therapeutics into patient care, fueling market expansion.

Top Companies in the Digital Therapeutics Market

Digital Therapeutics Market Companies

Latest Announcement by Industry Leaders

In April 2025, the American Telemedicine Association (ATA) announced that its advocacy arm, ATA Action, has acquired the Digital Therapeutics Alliance to strengthen support for software-driven healthcare tools. Together, they’re launching the Advancing Digital Health Coalition, aiming to make telehealth and digital therapeutics key parts of U.S. healthcare. Kyle Zebley, ATA Action's executive director, stated that their mission is to form a unified voice to shape policies that secure the future of digital care solutions. (Source - Healthcare IT News)

Recent Developments in the Digital Therapeutics Market

  • In March 2025, ATA Action merged with the Digital Therapeutics Alliance (DTA), an organization dedicated to advancing access to digital therapeutic solutions worldwide. This collaboration aims to boost advocacy for cutting-edge digital health innovations that are transforming the healthcare landscape and improving patient care. The partnership is expected to reinforce efforts to promote wider acceptance and integration of digital therapeutics into mainstream healthcare systems. (Source - americantelemed)
  • In October 2024, Click Therapeutics, Inc. introduced its Click SE initiative, unveiling Software-Enhanced Drug therapies—a new class of prescription digital therapeutics. This launch aligns with the FDA's increasing focus on Prescription Drug-Use Related Software (PDURS) guidance, marking a significant step in integrating software solutions with traditional treatments to improve patient outcomes and support evolving regulatory interests in digital health innovations. (Source - clicktherapeutics)
  • In August 2023, digital health leader Welldoc secured its 10th 510(k) clearance from the FDA for its BlueStar diabetes management platform. This milestone reinforces Welldoc’s strong position in the digital health space, highlighting its continued commitment to advancing technology-driven solutions for chronic disease care, particularly in diabetes management. (Source - welldoc)

Segments Covered in the Report

By Application

  • Diabetes
  • Obesity
  • CVD
  • Respiratory Diseases
  • Smoking Cessation
  • CNS Diseases
  • Others

By End Use

  • Patients
  • Providers
  • Payers
  • Employers
  • Others

By Regions

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Denmark
    • Sweden
    • Norway
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Australia
    • Thailand
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE
    • Kuwait
  • Last Updated: 30 May 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Rohan Patil is a market research expert with 5+ years of experience in healthcare, specializing in market dynamics, emerging trends, and technology-driven innovations to guide data-driven decisions for healthcare organizations.

Learn more about Rohan Patil

Aditi Shivarkar, with over 14 years of experience in consumer goods, leads research at Towards Consumer Goods, ensuring precise, actionable insights on trends, consumer preferences, and sustainable packaging for businesses.

Learn more about Aditi Shivarkar

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FAQ's

DTX is clinically validated and often requires regulatory approvals, while wellness apps typically focus on general health and well-being without medical claims or clinical validation.

India Brand Equity Foundation, Food and Drug Administration, U.S. Environmental Protection Agency, European Medicines Agency, and National Medical Products Administration.