U.S. Digital Therapeutics Market to Surge to $17.48 Billion by 2033
United States, Thursday, 8 May 2025.
The digital therapeutics market in the U.S. is projected to grow significantly, reaching $17.48 billion by 2033, driven by advancements in AI, wearables, and chronic disease management.
Exponential Market Growth
The U.S. digital therapeutics sector has achieved remarkable momentum, with revenue surpassing $3.72 billion in 2025 [1]. Market projections indicate a compound annual growth rate (CAGR) of 21.38% through 2033, highlighting the sector’s robust expansion trajectory [1]. This growth is particularly evident in the chronic disease management segment, where digital therapeutics have demonstrated significant impact - notably with 62% of U.S. endocrinologists now regularly prescribing FDA-cleared digital therapeutics alongside traditional medications [2].
Healthcare Integration and Insurance Coverage
Insurance coverage for digital therapeutics has seen substantial expansion, with 43% of UnitedHealth Group’s commercial members now having access to at least one covered digital therapeutic, marking a significant increase from 18% just two years ago [2]. The corporate sector has also embraced these solutions, with 58% of Fortune 500 companies now incorporating digital therapeutic programs into their standard wellness packages [2]. This integration is supported by compelling efficacy data, such as Propeller Health’s documented 29-percentage-point improvement in inhaler adherence, resulting in a 54% reduction in rescue-inhaler usage [2].
Technological Advancement and Market Innovation
The market’s evolution is being driven by sophisticated AI technologies and sensor-rich wearables, with 1.39 billion medically capable wearables active worldwide in 2024 [2]. The hardware ecosystem continues to diversify beyond traditional wrist-worn devices, now including FDA-listed shirts with embedded biopotential electrodes [2]. Recent developments include the introduction of LillyDirect in January 2024, a comprehensive digital healthcare platform targeting diabetes, migraine, and obesity treatments [3].
Future Outlook and Challenges
Despite the promising growth trajectory, the sector faces several key challenges, including coverage gaps, provider skepticism, and data privacy concerns [4]. However, the regulatory landscape is evolving favorably, with the FDA having granted 19 new De Novo or 510(k) clearances for software as medical devices in 2024 alone [2]. The behavioral health segment represents the most lucrative opportunity, commanding 41% of digital therapeutics funding rounds in 2023, supported by clinical evidence showing a 45% reduction in generalized anxiety at six months compared to usual care [2].