Executive Summary

Digital therapeutics (DTx) were gaining popularity as tools to help slash the US’ $3 trillion annual spending on chronic disease, and the pandemic has vaulted digital therapies into the spotlight. Now, the Teladoc-Livongo megamerger is heating up competition in the DTx space as players race to capture a slice of a market slated to reach $56 billion by 2025.

Here are the three key questions this report will answer:

• What’s the state of the digital therapeutics market, and how has the Teladoc-Livongo megamerger shaken it up?
• How can pharma companies, payers, and telehealth vendors benefit from partnering with or acquiring a digital therapeutics firm?
• What are the top digital therapeutics startups shaking up the industry today, and what does the future look like for this space?

WHAT’S IN THIS REPORT? In this report, Insider Intelligence unpacks the state of the digital therapeutics (DTx) market. We explore the impact the $18.5 billion Teladoc-Livongo merger has had on competition in the virtual care space, and how the pandemic has catapulted the global DTx market to reach $56 billion over the next five years. We outline the top DTx startups that are ripe for tie-ups, and provide examples of how payers, pharma, and telehealth vendors should benefit from partnering with or acquiring a DTx firm. Finally, we highlight the barriers that are holding back wide-scale adoption of digital therapeutics.