Digital Therapeutics Market Set to Soar by 2031
Global, Monday, 10 March 2025.
Projected to reach $27.3 billion by 2031, the digital therapeutics market is poised for rapid growth, fueled by advancements in software and behavioral science.
Unprecedented Market Growth
The digital therapeutics landscape is experiencing remarkable expansion, with the market value reaching US$ 5.7 billion in 2023 [1]. This sector is demonstrating explosive growth potential, with projections showing an impressive compound annual growth rate (CAGR) of 21.6% from 2024 through 2031 [1]. Alternative market analyses suggest even more ambitious growth trajectories, with some forecasts predicting the market could reach US$ 121.7 billion by 2035, at a CAGR of 28.30% [2].
Recent Innovations and FDA Approvals
The market’s momentum is evidenced by significant recent developments in the field. In March 2024, a notable milestone was achieved when Otsuka Precision Health and Click Therapeutics received FDA clearance for Rejoyn, their prescription digital therapeutic designed to treat major depressive disorder symptoms [1]. Additionally, January 2024 saw the FDA approval of IBM Watson Health’s AI-powered digital biomarker platform, marking another crucial advancement in the integration of artificial intelligence with therapeutic solutions [3].
Economic Impact and Healthcare Integration
The economic implications of digital therapeutics are substantial, with AI-enhanced solutions projected to generate significant healthcare cost savings. According to Accenture’s analysis, AI applications in healthcare could result in savings of up to $150 billion for the U.S. healthcare system by 2026 [4]. However, implementation faces certain challenges, as indicated by recent surveys showing 60% of Americans express discomfort with AI in healthcare decision-making [4].
Market Leaders and Future Outlook
Key industry players shaping the digital therapeutics landscape include Teladoc Health, Omada Health, and Welldoc’s BlueStar [1]. The sector’s growth is particularly robust in North America, which currently holds a 35% market share [3]. Looking ahead, the integration of AI and machine learning capabilities, combined with increasing adoption of wearable technology, positions the digital therapeutics market for continued expansion through 2031 [1][2].