Digital Therapeutics Market - Databook 2025 to 2034

The global digital therapeutics market size accounted for USD 7.88 billion in 2024 and is predicted to touch around USD 56.76 billion by 2034, growing at a CAGR of 21.83% from 2025 to 2034.

Highlights of the Digital Therapeutics Market

• North America maintained a leading position in the market in 2024.
• Asia Pacific is set to experience the fastest rate of market growth from 2025 to 2034.
• By product, the devices segment captured a significant portion of the market in 2024, primarily driven by the rising integration of wearable technologies and connected health tools.
• By product, the software segment is projected to experience the highest growth rate in the market between 2025 and 2034.
• By application, the diabetes segment registered its dominance over the market in 2024.
• By application, the obesity segment is predicted to witness significant growth in the market.
• By sales channel, the business-to-business (B2B) segment accounted for a considerable share of the market in 2024, benefiting from institutional sales to providers, insurers, and employers.
• By sales channel, the business-to-consumer (B2C) segment is projected to expand rapidly in the market in the coming years, supported by increased consumer health awareness and direct app subscriptions.

Industry Valuation and Growth Rate Projection

Digital Therapeutics represent a transformative approach in healthcare, utilizing software-driven interventions to prevent, manage, or treat medical conditions. These evidence-based solutions often employ mobile applications, wearable devices, and interactive platforms to deliver personalized care. Unlike traditional treatments, digital therapeutics offer continuous monitoring and real-time feedback, improving patient engagement and adherence. By integrating behavioural science with advanced technology, digital therapeutics provide scalable and accessible healthcare solutions, particularly beneficial for chronic disease management and mental health support.

The digital therapeutics market is experiencing significant growth, driven by the increasing prevalence of chronic diseases such as diabetes, obesity, and mental health disorders. These solutions are being adopted across various sectors, including primary care, behavioral health, and chronic disease management programs. Healthcare providers are leveraging digital therapeutics to complement traditional therapies, while employers and insurers are incorporating them into wellness programs to improve outcomes and reduce costs. The integration of digital therapeutics into electronic health records and telehealth platforms further expands their reach and effectiveness, making them a vital component of modern healthcare delivery.

• Governments worldwide are emphasizing preventive care, promoting the adoption of digital therapeutics to mitigate the burden of chronic diseases.
• The proliferation of smartphones and wearable devices facilitates the widespread use of digital therapeutic applications, improving patient access and engagement.

Digital Therapeutics Market: Stats and Figures

• As of 2024, over 360 software-based digital therapies are commercially available, with 140 prescription digital therapeutics approved for at-home patient use and more than 220 therapies in digital care or clinical settings.
• A comprehensive survey identified 280 eligible digital therapeutic clinical trials, with 50.4% focusing on treating disease, 42.9% on disease management, and 6.8% on improving health functions.
• In 2024, the FDA approved six digital therapeutics for mental health treatment, with participants experiencing a 76% achievement in healthy sleep patterns, a 54% reduction in time to fall asleep, a 62% decrease in nighttime awakenings, and a 45% improvement in next-day functioning.
• China has approved 235 digital therapeutic applications, focusing primarily on neurological (45.96%) and ophthalmic (21.28%) conditions.

How AI has Benefited the Digital Therapeutics Market

• AI algorithms analyze extensive patient data to tailor treatment plans specific to individual needs, improving the effectiveness of digital therapeutics.
• AI-powered tools enable continuous monitoring of patient health metrics, providing real-time feedback and adjustments to therapy, which is crucial for managing chronic conditions.
• Machine learning models predict potential health risks by identifying patterns in patient data, allowing for early interventions and better disease management.
• AI-driven chatbots and virtual assistants offer immediate support for mental health conditions, delivering cognitive behavioral therapy techniques and monitoring patient progress.

Industry Leader Announcements

• In March 2025, ATA Action, the advocacy arm of the American Association, acquired the Digital Therapeutics Alliance. This strategic move aims to strengthen policy and advocacy efforts, assuring that telehealth and digital therapeutics remain integral components of the U.S. healthcare system. Kyle Zebely, Executive Director of ATA Action, emphasized, “Our goal is to create a unified choice to shape healthcare policies, assuring that telehealth and digital therapeutics remain integral components of the U.S. healthcare system.”
• In July 2024, Medicare proposed reimbursing doctors for using digital mental therapies, such as apps and software, to treat behavioral health conditions. This marks the firstly time Medicare has considered covering such therapies, potentially boosting the adoption of digital therapeutics like wellness apps and video games, which have struggled with inconsistent payment and coverage pathways.

Geographical Insights

North America

North America leads the digital therapeutics market, contributing 43.91% of the global revenue in 2024. This dominance is driven by the region’s advanced healthcare infrastructure, high adoption of digital health solutions, and supportive regulatory frameworks. The presence of numerous digital therapeutics providers further bolsters market growth in this region.

Asia Pacific

The Asia Pacific region is projected to experience the fastest growth in the digital therapeutics market. Factors such as increasing smartphone penetration, rising prevalence of chronic diseases, and growing awareness of digital health solutions contribute to this rapid expansion. Government initiatives promoting digital healthcare delivery and patient outcomes.

China

China stands out as a significant contributor to the Asia Pacific digital therapeutics market. The country’s large population, facing chronic conditions such as diabetes and hypertension, has created a substantial demand for effective and accessible healthcare solutions. The Chinese government’s active support and investment in digital health initiatives have further propelled the adoption of digital therapeutics, aiming to improve healthcare delivery and patient outcomes.

Recent Developments in the Digital Therapeutics Market:

• In a significant advancement for digital therapeutics, the U.S. Food and Drug Administration approved Rejoyn, the first app-based treatment for major depressive disorder. Rejoyn employs neuroplasticity principles through smartphone tasks to alleviate depression symptoms, offering a non-pharma, logical option for patients.
• Hinge Health, a digital physical therapy startup, went public on the New York Exchange, raising $437 million and achieving a valuation of approximately $3 billion. This IPO signifies renewed investor confidence in digital health ventures and underscores the growing importance of digital therapeutics in modern healthcare.

Competitive Landscape

The digital therapeutics market is moderately fragmented, characterized by a mix of established healthcare companies and innovative start-ups. This diversify fosters a competitive environment, encouraging continuous innovation and the development of advanced digital health solutions.

• Company Name: Omada Health Inc.
• Year of Incorporation: 2011
• Headquarters: San Francisco, USA

Omada Health offers digital care programs for chronic conditions such as diabetes, hypertension, and behavioural health. Omada’s programs are evidence-based based have demonstrated clinical effectiveness in improving health outcomes.

• Company Name: Teladoc Health Inc.
• Year of Incorporation: 2002
• Headquarters: Purchase, New York, USA

Teladoc Health is a global leader in virtual healthcare services, offering a wide range of solutions including telemedicine, mental health support, and chronic condition management. The company integrates digital therapeutics onto its platform to provide comprehensive, personalized care. The company’s focus on innovation has led to the development of AI-driven tools that improve patient engagement and outcomes.

• Company Name: Pear Therapeutics, Inc.
• Year of Incorporation: 2013
• Headquarters: Boston, Massachusetts, USA

Pear Therapeutics specializes in developing prescription digital therapeutics for treating diseases such as substance use disorder and insomnia. Their products are FDA authorized and designed to deliver evidence-based interventions through mobile applications.