Europe Digital Therapeutics Market

Europe Digital Therapeutics Market Size (2024 to 2032)

The size of the Europe digital therapeutics market was valued at USD 869 million in 2023. This market is expected to grow at a CAGR of 21.4% from 2024 to 2032 and be worth USD 4,977 million by 2032 from USD 1,055 million in 2024. 

MARKET SCENARIO

One of the factors driving the market in Europe is the continuous advancements in mobile communication and artificial intelligence. Earlier, digital therapeutics was only limited to education institutions and technology firms, but because of its ability to improve health outcomes when paired with medications, big pharma became interested in the development of digital therapeutics. The maximum academic and industrial trials were done in psychiatric indications with sufficient research to support the effectiveness of digital cognitive behavior therapy in this field. In addition to this, the rollout of the 5G network and continuous increase in 5G population coverage will assist in the expansion of digital therapeutics across Europe. In 2022, Western Europe had the highest number of 5G SA launches, followed by Central Europe and Eastern Europe. Therefore, all the factors will significantly increase the share of the European digital therapeutics market.

All aspects of automated living, such as body sensors, apps, screens, and smart speakers for communication and environmental monitoring, when integrated with digital treatments for critical ailments, will further expand the market share in the region. In addition to this, the use of artificial intelligence for behavioral support, therapy, and encouragement in place of human interaction will increase the industry's growth and profitability.

Regulatory challenges are the prime factor that has restricted the European digital therapeutics market share from scaling up. Due to the lack of clarity and steadiness in digital therapeutics, it is a very fresh market that is still developing. Long-drawn regulations and regulatory procedures could hinder the development and deployment of digital therapeutic technologies, making it more difficult for them to enter new markets. Furthermore, data privacy and security are other major issues that are limiting the growth of the market in the region.

Non-reimbursement of digital therapeutics is one of the major challenges that is limiting the growth of the European digital therapeutics market. Insurance companies generally do not cover digital therapies, which prevents business expansion and makes patient access more difficult. As a result, businesses can use direct-to-consumer or subscription-based pricing schemes to overcome this problem.

Impact of COVID-19 on the Europe Digital Therapeutics Market:

COVID-19 had a positive impact, which boosted the value of Europe's digital therapeutics market. It has significantly increased the adoption of digital therapeutics in Europe. Furthermore, the pandemic also resulted in a greater focus on digital treatment that targets mental health concerns.

SEGMENTAL ANALYSIS

Europe Digital Therapeutics Market Analysis By Product

• Software
• Device
• Others

The software segment is anticipated to have the biggest share of Europe's digital therapeutics market. This growth in the segment is due to the rising awareness among the general public and companies in the region.

Europe Digital Therapeutics Market Analysis By Sales Channel

• B2C
• Patients
• Caregivers
• B2B
• Providers
• Payers
• Employers
• Pharmaceutical Companies
• Other Buyers

The B2C segment is the dominant segment under this category. Because of increasing chronic diseases and the COVID-19 pandemic, the digital therapeutics market is gaining traction in the region.

Europe Digital Therapeutics Market Analysis By Application

• Preventive Applications
• Prediabetes
• Obesity
• Nutrition
• Lifestyle Management
• Other Preventive Applications
• Treatment/Care-related Applications
• Diabetes
• CNS Disorders
• Chronic Respiratory Disorders
• Musculoskeletal Disorders
• Cardiovascular Diseases
• Smoking Cessation
• Medication Adherence
• Gastrointestinal Disorders
• Substance Use & Addiction Management
• Rehabilitation & Patient Care
• Other Treatment/Care-related Applications

The diabetes segment is expected to register a higher CAGR during the forecast period owing to the high incidence of diabetes cases. Also, rising obesity in Europe is further driving this segment of Europe's digital therapeutics market.

GEOGRAPHICAL ANALYSIS

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe

The UK is gaining traction over its share with the rapidly growing adoption of advanced technologies. 

Germany is growing at a higher rate in the entire region as it is one of the few countries that have formulated an act to govern the digital therapeutic, its requirements, and its qualities.

France is to grow at an exponential rate during the forecast period. Government authorities are in the process of creating a legal identity and structure for digital therapeutics. 

Italy is anticipated to grow further during the forecast period. A bill for special regulation for DTx market entry and evaluation has been introduced. 

Spain is estimated to have a steady growth rate in the coming years. Though reimbursement of digital therapeutics has been included, there are still issues related to budget allocation and spending on this.

KEY MARKET PLAYERS

Fitbit, Inc. (Twine Health, Inc.), Medtronic Plc., Novartis International AG (Pear Therapeutics, Inc.), Resmed, Inc. (Propeller Health), Voluntis, Inc., Ada Health GmbH, Cognifit ltd, Caterna Vision GmbH, Sonormed GmbH, and Kaia Health are some of the key companies operating in the European digital therapeutics market.

KEY MARKET DEVELOPMENTS

• In June 2022, the Digital Therapeutics Alliance partnered with Healthware to expand its digital therapeutics market into Europe. Their objective was to assemble a group of European professionals in order to provide a standardized framework that would create a place where a treatment can be swiftly expanded from regional to national to regional application throughout European nations.