Prescription Digital Therapeutics (PDT) Market Size, Share & Trends Analysis Report By Type (Medication Augmentation, Medication Replacement), By Application (Children, Adults), By Software, By Region, And By Segment Forecasts, 2024-2031

Report Id: 2604 Pages: 175 Last Updated: 26 July 2024 Format: PDF / PPT / Excel / Power BI
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The Prescription Digital Therapeutics (PDT) Market Size is valued at USD 4.41 billion in 2023 and is predicted to reach USD 21.18 billion by the year 2031 at a 22.41% CAGR during the forecast period for 2024-2031.

PDT

Software-based therapies are one type of prescription digital medicine that is used to treat a variety of ailments. To create digital prescription drugs, biology and technology are merged. Many algorithms, virtual reality, and artificial intelligence were used in the creation of these therapeutic tools. Digital therapies, sometimes known as prescription PDTs, are a relatively new class of drugs. For serious illnesses like conventional biologics or drugs, PDTs work as direct therapy. A significant aspect influencing the growth rate of prescription digital therapeutics (PDT) throughout the projected period is the rise in the prevalence of chronic illnesses.

The increasing cost of healthcare, which contributes to the development of the industry's infrastructure, is another important element impacting the prescription digital therapeutics (PDT) market growth rate. Additionally, by boosting funding, a number of government groups hope to strengthen the healthcare infrastructure, which would further alter the dynamics of the market.

Competitive Landscape

Some Major Key Players In The Prescription Digital Therapeutics (PDT) Market:

  • Akili Interactive
  • Better Therapeutics
  • Pear Therapeutics
  • ResMed
  • Biofourmis
  • Novartis
  • Medtronic
  • GAIA
  • Solera Network
  • BigHealth
  • Voluntis
  • Omada Health
  • Click Therapeutics
  • Natural cycles Nordic
  • Happify
  • Limbix Health
  • NuvoAir
  • Sensyne Health
  • Xealth
  • Other Market Players

Market Segmentation:

The prescription digital therapeutics (PDT) market is segmented based on type, application, and software. Based on type, the market is segmented into medication augmentation and medication replacement. By application, the market is segmented into children and adults. Based on software, the market is segmeneted into software for respiratory conditions, software for mental health, software for opioid use disorder, software for diabetes, and others. Based on services,  the market is segmeneted into  behavioral microservices, and medical microservices.

Based On The Type, The Medication Augmentation Segment Accounts For A Major Contributor To The Prescription Digital Therapeutics (PDT) Market.

The medication augmentation category is expected to hold a major global market share in 2023. PDTs have become more widely used and more successful as a result of developments in digital health technology and the growing popularity of mobile health applications. This is especially true when it comes to augmenting the efficacy of conventional drugs. Digital solutions that can offer behavioural interventions, individualized feedback, and real-time monitoring are integrated into this category to improve patient outcomes and adherence. Medication augmentation PDT development and implementation are also being accelerated by regulatory approvals and pharmaceutical firms' increasing investments in digital technologies.

The Adult Segment Is To Witness Growth At A Rapid Rate.

The rising incidence of severe diseases like diabetes, mental health issues, and cardiovascular ailments is driving the need for PDTs' cutting-edge therapy options. By providing individualized, evidence-based treatments that are easily accessible via digital platforms, these therapies improve patient adherence and results. Furthermore, PDTs are becoming more effective and personalized as a result of the use of cutting-edge technology like artificial intelligence and machine learning.

In The Region, The North American Prescription Digital Therapeutics (PDT) Market Holds A Significant Revenue Share.

The North American prescription digital therapeutics (PDT) market is expected to report the maximum market revenue share in the near future because medical care has risen in quality. It is possible to generate fresh ideas for expanding the business in this location due to the abundance of resources. Due to its ability to create and autonomously execute the newest ideas, the region is dominant due to technical advancement. The area's large company base and advancing technological capabilities are further factors driving this sector's expansion. In addition, Asia Pacific is estimated to extend in the global prescription digital therapeutics (PDT) market. This is because the cost of healthcare is growing, and the frequency of chronic illnesses is rising as well, which will accelerate the market's growth rate in this area. Additionally, during the projected period in this region, growing investment in the development of cutting-edge technologies and an increase in the number of new markets would present favourable chances for the expansion of prescription digital therapeutics (PDT).

Recent Developments:

  • In Jan 2023, Pear Therapeutics and BrightView Health extended their pilot program to offer prescription digital therapies for the management of substance use disorders. This initiative was created to offer eligible persons who were experiencing substance use disorder (SUD) and opioid use disorder (OUD) the opportunity to obtain reSET® and reSET-O®.

Prescription Digital Therapeutics (PDT) Market Report Scope

Report Attribute Specifications
Market Size Value In 2023 USD 4.41 Bn
Revenue Forecast In 2031 USD 21.18 Bn
Growth Rate CAGR CAGR of 22.41% from 2024 to 2031
Quantitative Units Representation of revenue in US$ Bn and CAGR from 2024 to 2031
Historic Year 2019 to 2023
Forecast Year 2024-2031
Report Coverage The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends
Segments Covered By Type, Application, Software and Services
Regional Scope North America; Europe; Asia Pacific; Latin America; Middle East & Africa
Country Scope U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea
Competitive Landscape Akili Interactive, Better Therapeutics, Pear Therapeutics, ResMed, Biofourmis, Novartis, Medtronic, GAIA, Solera Network, BigHealth, Voluntis, Omada Health, Click Therapeutics, Naturalcycles Nordic, Happify, Limbix Health, NuvoAir, Sensyne Health, and Xealth.
Customization Scope Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape.
Pricing And Available Payment Methods Explore pricing alternatives that are customized to your particular study requirements.

Segmentation of Prescription Digital Therapeutics (PDT) Market -

Prescription Digital Therapeutics (PDT) Market By Type-

  • Medication Augmentation
  • Medication Replacement

 PDT

Prescription Digital Therapeutics (PDT) Market By Application-

  • Children
  • Adults

Prescription Digital Therapeutics (PDT) Market By Software

  • Software for Respiratory Conditions
  • Software for Mental Health
  • Software for Opioid Use Disorder
  • Software for Diabetes
  • Others

Prescription Digital Therapeutics (PDT) Market By Services

  • Behavioral Microservices
  • Medical Microservices

Prescription Digital Therapeutics (PDT) Market By Region-

North America-

  • The US
  • Canada
  • Mexico

Europe-

  • Germany
  • The UK
  • France
  • Italy
  • Spain
  • Rest of Europe

Asia-Pacific-

  • China
  • Japan
  • India
  • South Korea
  • South East Asia
  • Rest of Asia Pacific

Latin America-

  • Brazil
  • Argentina
  • Rest of Latin America

 Middle East & Africa-

  • GCC Countries
  • South Africa
  • Rest of the Middle East and Africa

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Research Design and Approach

This study employed a multi-step, mixed-method research approach that integrates:

  • Secondary research
  • Primary research
  • Data triangulation
  • Hybrid top-down and bottom-up modelling
  • Forecasting and scenario analysis

This approach ensures a balanced and validated understanding of both macro- and micro-level market factors influencing the market.

Secondary Research

Secondary research for this study involved the collection, review, and analysis of publicly available and paid data sources to build the initial fact base, understand historical market behaviour, identify data gaps, and refine the hypotheses for primary research.

Sources Consulted

Secondary data for the market study was gathered from multiple credible sources, including:

  • Government databases, regulatory bodies, and public institutions
  • International organizations (WHO, OECD, IMF, World Bank, etc.)
  • Commercial and paid databases
  • Industry associations, trade publications, and technical journals
  • Company annual reports, investor presentations, press releases, and SEC filings
  • Academic research papers, patents, and scientific literature
  • Previous market research publications and syndicated reports

These sources were used to compile historical data, market volumes/prices, industry trends, technological developments, and competitive insights.

Secondary Research

Primary Research

Primary research was conducted to validate secondary data, understand real-time market dynamics, capture price points and adoption trends, and verify the assumptions used in the market modelling.

Stakeholders Interviewed

Primary interviews for this study involved:

  • Manufacturers and suppliers in the market value chain
  • Distributors, channel partners, and integrators
  • End-users / customers (e.g., hospitals, labs, enterprises, consumers, etc., depending on the market)
  • Industry experts, technology specialists, consultants, and regulatory professionals
  • Senior executives (CEOs, CTOs, VPs, Directors) and product managers

Interview Process

Interviews were conducted via:

  • Structured and semi-structured questionnaires
  • Telephonic and video interactions
  • Email correspondences
  • Expert consultation sessions

Primary insights were incorporated into demand modelling, pricing analysis, technology evaluation, and market share estimation.

Data Processing, Normalization, and Validation

All collected data were processed and normalized to ensure consistency and comparability across regions and time frames.

The data validation process included:

  • Standardization of units (currency conversions, volume units, inflation adjustments)
  • Cross-verification of data points across multiple secondary sources
  • Normalization of inconsistent datasets
  • Identification and resolution of data gaps
  • Outlier detection and removal through algorithmic and manual checks
  • Plausibility and coherence checks across segments and geographies

This ensured that the dataset used for modelling was clean, robust, and reliable.

Market Size Estimation and Data Triangulation

Bottom-Up Approach

The bottom-up approach involved aggregating segment-level data, such as:

  • Company revenues
  • Product-level sales
  • Installed base/usage volumes
  • Adoption and penetration rates
  • Pricing analysis

This method was primarily used when detailed micro-level market data were available.

Bottom Up Approach

Top-Down Approach

The top-down approach used macro-level indicators:

  • Parent market benchmarks
  • Global/regional industry trends
  • Economic indicators (GDP, demographics, spending patterns)
  • Penetration and usage ratios

This approach was used for segments where granular data were limited or inconsistent.

Hybrid Triangulation Approach

To ensure accuracy, a triangulated hybrid model was used. This included:

  • Reconciling top-down and bottom-up estimates
  • Cross-checking revenues, volumes, and pricing assumptions
  • Incorporating expert insights to validate segment splits and adoption rates

This multi-angle validation yielded the final market size.

Forecasting Framework and Scenario Modelling

Market forecasts were developed using a combination of time-series modelling, adoption curve analysis, and driver-based forecasting tools.

Forecasting Methods

  • Time-series modelling
  • S-curve and diffusion models (for emerging technologies)
  • Driver-based forecasting (GDP, disposable income, adoption rates, regulatory changes)
  • Price elasticity models
  • Market maturity and lifecycle-based projections

Scenario Analysis

Given inherent uncertainties, three scenarios were constructed:

  • Base-Case Scenario: Expected trajectory under current conditions
  • Optimistic Scenario: High adoption, favourable regulation, strong economic tailwinds
  • Conservative Scenario: Slow adoption, regulatory delays, economic constraints

Sensitivity testing was conducted on key variables, including pricing, demand elasticity, and regional adoption.

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Frequently Asked Questions

The Prescription Digital Therapeutics (PDT) Market Size is valued at USD 4.41 billion in 2023 and is predicted to reach USD 21.18 billion by the year

The Prescription Digital Therapeutics (PDT) Market is predicted to grow at a 22.41% CAGR during the forecast period for 2024-2031.

Akili Interactive, Better Therapeutics, Pear Therapeutics, ResMed, Biofourmis, Novartis, Medtronic, GAIA, Solera Network, BigHealth, Voluntis, Omada H
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