A new report from Juniper
Research has found that the market for digital therapeutics
(software that augments or replaces traditional therapies), will expand
rapidly over the next 5 years; reaching over $32 billion in revenues in
2024, up from an estimated $2.2 billion in 2019.
The report, Digital
Therapeutics & Wellness: Disruption, Innovation Opportunities &
Forecasts 2019-2024, found that the biggest application for digital
therapeutics will be diabetes and weight loss; generating over $19
billion in 2024. This sector, led by companies like Omada, Virta Health
and Welldoc, has taken an early lead, as lifestyle changes have a more
demonstrable impact on diabetes than other conditions.
However, Juniper expects higher growth to occur in ‘other conditions’,
such as chronic obstructive pulmonary disorder treatment, VR for PTSD,
and computer games to help with developmental disorders.
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Universal Interest, but not Universal Payment
While healthcare insurers are leading the way in distributing digital
therapeutics, the report notes a strong interest amongst employers. With
reimbursement still largely unresolved, Juniper expects that the
majority of revenue will arise from direct payments from employers until
2021, and public health interest to be confined to a handful of markets.
Wellness Apps on the Up
Wellness apps, which frequently claim less quantified health benefits
but are otherwise similar to digital therapeutics, are also on the rise.
Juniper expects over 870 million consumer wellness apps to be in use by
2024; generating over $5 billion in revenue. In contrast, employer
wellness apps will be worth $20 billion in the same period.
“While our research shows that employee schemes typically have a
lower revenue per user than consumer payers, they will pay for longer,”
remarked research author James Moar. “They also do not compete
directly with free wellness apps, a constant problem for the B2C
wellness industry, which has also constrained B2C digital therapeutics.”
Juniper Research provides research and analytical services to the global
hi-tech communications sector; providing consultancy, analyst reports
and industry commentary.