Healthcare US Digital Therapeutics Growth Opportunities

Transformational Growth in New Business Models After COVID-19

INDUSTRY
Healthcare

RELEASE DATE
23-Jul-2021
REGION
North America
DELIVERABLE TYPE
Market Research

RESEARCH CODE
K5CF-01-00-00-00
SKU
HC03434-NA-MT_25609
Yes
SHARE

US Digital Therapeutics Growth Opportunities
Published on: 23-Jul-2021 | SKU: HC03434-NA-MT_25609

Need more details?

$4,950.00

$3,712.50 save 25 %

DownloadLink
Need more details?

Patients with long-term chronic conditions and rare diseases are looking for safe, novel, and evidence-based digital treatments in their pursuit to reduce dosages and reverse triggers of adverse events. Payers and providers are looking for legitimate alternatives to expensive medication for their patient population. Life sciences (LS) companies are trying to enhance patients’ treatment experiences and find new biomarkers that aid drug discovery in the long run.

Digital therapeutics (DTx) companies are working with LS to diversify their pipelines by adding new indications addressing unmet needs. Most digital health technologies have long suffered for not being able to systematically prove clinical efficacy of their solutions via peer-reviewed reports. Thus, they have never secured the unique distinction of being a regulated and “prescription-grade” digital treatment plan that guarantees improved patient outcomes and comprehensive reimbursement at the same time.

Convergence of biopharma & healthtech, traditionally two different IT workflows, will play a major role in the shift toward integrated patient management. Patient-centric digital health vendors have strived for a business model that allows physicians to recommend their products, patients to use them for a defined period of time (without fail), caregivers to monitor outcomes 24/7, and payers to reimburse the cost of usage. DTx companies partnering with LS companies provide the best way of getting access to patients for scalability, apart from risk-sharing agreements.

DTx solutions are considered as legitimate alternatives to traditional pharmacotherapy. These solutions are comprehensively regulated and they are granted the prescription status by various national or state-level regulatory agencies (FDA, NHS, and CE) based on their reported evidence of improved clinical outcomes for a defined patient population.

Globally, the US also remains a key market for growth for two important reasons, which are a higher reimbursement rate (20% to 30% higher than rest of the world) per subscriber per month, and early adoption by payers, providers, and life sciences companies.

Payers remain the top end-users in terms of their contribution to the global DTx revenue. They estimate to reimburse 65% to 70% of the US market revenue via various value-based payment plans that patients will be either auto-eligible or subscribed to (due to reference from physicians or formulary decision makers).

Life sciences’ contribution to the US DTx market will grow the fastest (at CAGR of 52.6%) amongst all end-users. This is due to DTx’s ability to report real-world evidence at scale, an essential requirement for managing disease progression, identifying new bio markers, and recruiting patients optimally for driving favorable clinical trial outcomes.

Why Is It Increasingly Difficult to Grow?

The Strategic Imperative 8™

Strategic Imperatives

The Impact of the Top Three Strategic Imperatives on Digital Therapeutics

The State and Outlook of per Capita Healthcare Spending in US

With Rapid Global Adoption of DTx Solutions, Large-scale Commercialization is Expected Soon

Growth Opportunities Fuel the Growth Pipeline Engine™

Growth Environment

Growth Environment (continued)

Digital Therapeutics Scope of Analysis

Introduction of Digital Therapeutics Solutions

Introduction of Digital Therapeutics Solutions (continued)

Application and End-user Segmentation

Key Competitors in US Digital Therapeutics

Growth Drivers for US Digital Therapeutics Market

Growth Restraints for US Digital Therapeutics Market

Key Growth Metrics for US Digital Therapeutics Market

Regulatory Outlook of US Digital Therapeutics Market, 2020–2021

Types of Digital Therapeutics Solutions by Therapeutics Areas

Reimbursement Trends in US Digital Therapeutics Market, 2020–2021

Market Trends by Key Application Areas, Disease Management

Market Trends by Key Application Areas, Wellness and Behavior Management

Market Trends by Key Application Areas, Outcomes Analytics

Inconsistent Results Prioritize Pharmaceutical Investment in Digital Therapeutics

Forecast Assumptions, US Digital Therapeutics Market

Revenue Forecast, US Digital Therapeutics Market

Revenue Forecast by Applications, US Digital Therapeutics Market

Business Model Description

Business Model Description (continued)

Competitive Environment, US Digital Therapeutics Market

Competitive Profiles

Competitive Profiles (continued)

Competitive Profiles (continued)

Key Growth Metrics for US Provider Digital Therapeutics Market

Revenue Forecast, US Provider Digital Therapeutics Market

Revenue Forecast Analysis, US Provider Digital Therapeutics Market

Key Growth Metrics for US Payer Digital Therapeutics Market

Revenue Forecast, US Payer Digital Therapeutics Market

Revenue Forecast Analysis, US Payer Digital Therapeutics Market

Key Growth Metrics for US Life Sciences Digital Therapeutics Market

Revenue Forecast, US Life Sciences Digital Therapeutics Market

Revenue Forecast Analysis, US Life Sciences Digital Therapeutics Market

Growth Opportunity 1: Prescription-grade SaMD that Auto-upgrades Treatment Plans Based on Patient’s Bio-marker Reading for Dosage Optimization

Growth Opportunity 1: Prescription-grade SaMD that Auto-upgrades Treatment Plans Based on Patient’s Bio-marker Reading for Dosage Optimization (continued)

Growth Opportunity 2: DTx-related PaaS Capability that Specializes in Multiple Therapeutic Areas to Help IT Companies Build Capabilities at Scale

Growth Opportunity 2: DTx-related PaaS Capability that Specializes in Multiple Therapeutic Areas to Help IT Companies Build Capabilities at Scale (continued)

Growth Opportunity 3: DTx to Support Evidence-based Treatment and Medication Adherence for Patients, Providers, and Payers Alike

Growth Opportunity 3: DTx to Support Evidence-based Treatment and Medication Adherence for Patients, Providers, and Payers Alike (continued)

Your Next Steps

Why Frost, Why Now?

List of Exhibits

List of Exhibits (continued)

Legal Disclaimer


Have questions about this research or need deeper insights?
Speak directly with our analytics experts for tailored recommendations.

Recent related Digital Health research

06 Oct 2026   |   Global   |   Technology Research

Trends in Laboratory Automation, Global, 2021–2025

This research study provides a comprehensive assessment of the recent trends, technological advancements, and strategic developments shaping the global laboratory automation industry. The analysis traces the evolution of laboratory automation from task-specific automation systems to integrated, inte...

21 Sep 2026   |   Europe   |   Market Research

HLTH Europe 2026: Five Key Takeaways and Growth Opportunities

HLTH Europe 2026, held in Amsterdam, brought together more than 5,000 stakeholders spanning providers, payers, health systems, technology vendors, start-ups, investors, and policymakers, providing a comprehensive view of the evolving European digital health landscape. Across conference sessions and ...

21 Sep 2026   |   Global   |   Frost Radar

Frost Radar: Smart Nutraceuticals for Brain Health, 2026

This Frost Radar evaluates the evolving smart nutraceuticals landscape as consumer awareness of cognitive health, lifestyle-related stress, and healthy aging creates demand for scientifically validated, natural, and multifunctional brain health solutions. The market remains fragmented, with differen...

18 Sep 2026   |   Global   |   Technology Research

Innovations and Growth Opportunities in AI-Enabled Discovery and Diagnostics, Precision Therapeutics, and Next-Generation Vaccine Platforms

This edition of the Life Science, Health & Wellness Technology Opportunity Engine (TOE) provides a comprehensive overview of breakthrough innovations transforming AI-enabled discovery, precision diagnostics, cell engineering, targeted therapeutics, vaccines, and skin health across oncology, metaboli...

07 Sep 2026   |   Global   |   Technology Research

Synthetic Antibodies and AI-Optimized Immunotherapies

Artificial intelligence is becoming increasingly relevant to antibody discovery and immunotherapy development, supporting target identification, de novo antibody design, antibody engineering, clinical intelligence, and bioprocessing. Advances in generative AI, protein language models, diffusion mode...

 

Purchase includes:
  • Report download
  • Growth Dialog™ with our experts

Growth Dialog™

A tailored session with you where we identify the:
  • Strategic Imperatives
  • Growth Opportunities
  • Best Practices
  • Companies to Action

Impacting your company's future growth potential.

Patients with long-term chronic conditions and rare diseases are looking for safe, novel, and evidence-based digital treatments in their pursuit to reduce dosages and reverse triggers of adverse events. Payers and providers are looking for legitimate alternatives to expensive medication for their patient population. Life sciences (LS) companies are trying to enhance patients treatment experiences and find new biomarkers that aid drug discovery in the long run. Digital therapeutics (DTx) companies are working with LS to diversify their pipelines by adding new indications addressing unmet needs. Most digital health technologies have long suffered for not being able to systematically prove clinical efficacy of their solutions via peer-reviewed reports. Thus, they have never secured the unique distinction of being a regulated and “prescription-grade” digital treatment plan that guarantees improved patient outcomes and comprehensive reimbursement at the same time. Convergence of biopharma & healthtech, traditionally two different IT workflows, will play a major role in the shift toward integrated patient management. Patient-centric digital health vendors have strived for a business model that allows physicians to recommend their products, patients to use them for a defined period of time (without fail), caregivers to monitor outcomes 24/7, and payers to reimburse the cost of usage. DTx companies partnering with LS companies provide the best way of getting access to patients for scalability, apart from risk-sharing agreements. DTx solutions are considered as legitimate alternatives to traditional pharmacotherapy. These solutions are comprehensively regulated and they are granted the prescription status by various national or state-level regulatory agencies (FDA, NHS, and CE) based on their reported evidence of improved clinical outcomes for a defined patient population. Globally, the US also remains a key market for growth for two important reasons, which are a higher reimbursement rate (20% to 30% higher than rest of the world) per subscriber per month, and early adoption by payers, providers, and life sciences companies. Payers remain the top end-users in terms of their contribution to the global DTx revenue. They estimate to reimburse 65% to 70% of the US market revenue via various value-based payment plans that patients will be either auto-eligible or subscribed to (due to reference from physicians or formulary decision makers). Life sciences contribution to the US DTx market will grow the fastest (at CAGR of 52.6%) amongst all end-users. This is due to DTxs ability to report real-world evidence at scale, an essential requirement for managing disease progression, identifying new bio markers, and recruiting patients optimally for driving favorable clinical trial outcomes.
More Information
Deliverable Type Market Research
No Index No
Podcast No
Author Koustav Chatterjee
Industries Healthcare
WIP Number K5CF-01-00-00-00
Is Prebook No
GPS Codes 9564-B1,9600-B1,9612-B1

US Digital Therapeutics Growth Opportunities

$4,950.00

Special Price $3,712.50 save 25 %

In stock
SKU
HC03434-NA-MT_25609