As Type 2 diabetes continues to affect millions of people worldwide, the race to provide better management tools has intensified. While medications remain an essential part of treatment, digital therapeutics, software-based interventions designed to prevent or manage chronic conditions, are increasingly shaping the future of diabetes care. Joe Kiani, Masimo and Willow Laboratories founder, is helping guide the development of personalized, data-driven platforms designed to support people to make better health decisions.
In recent years, the digital therapeutics market has grown from experimental pilots to full-scale offerings supported by clinical evidence, venture funding, and institutional partnerships. The competition has never been more active or promising. This momentum is accelerating innovation, pushing companies to deliver not just novel technology, but measurable outcomes that improve real-world care.
An Expanding Field with High Stakes
The global digital therapeutics market for diabetes is expected to surpass $15 billion in the coming years. With more than 98 million American adults at risk for developing Type 2 diabetes and many already living with the condition, demand for scalable, accessible solutions is climbing fast.
Unlike general wellness apps, digital therapeutics are held to higher standards. They require clinical validation and often undergo regulatory scrutiny. That added layer of credibility makes them more appealing to healthcare providers, insurers, and employers.
Personalization Is the New Baseline
Early diabetes apps offered food logs, step counters, and glucose trackers. While helpful, many fell short of delivering actionable insights. Today’s leaders are taking a different approach. Platforms that respond to a user’s real-time data to offer personalized guidance.
Willow Laboratories’ latest innovation, Nutu™, was built on this foundation. The platform uses wearable sensors and behavioral inputs to generate personalized recommendations, adjusting for how a specific user’s body reacts to meals, stress, and sleep. That precision stands out in a crowded market. Instead of broad advice to avoid sugar, users might learn that their glucose rises only after a specific type of meal or that poor sleep has a more significant effect on their levels than diet alone.
Behavior Change as a Differentiator
Successful diabetes management depends on consistency. The companies gaining traction in digital therapeutics are the ones helping users stick with healthy habits over time, not just tracking data but nudging behavior. Platforms that integrate behavioral science into their design, daily prompts, habit tracking, and stress support tend to outperform those that rely solely on self-monitoring. These features help users stay on track even when motivation dips or routines change. Nutu’s design emphasizes this approach, delivering gentle guidance and feedback throughout the day. It doesn’t aim for perfection, but it supports progress.
Joe Kiani, Masimo founder, says, “Some of the early [Nutu] users that have been giving us feedback are saying really positive things about what it’s done for them.” That emphasis on day-to-day empowerment helps Nutu stand out in a market where user engagement often fades after the initial novelty wears off.
Regulatory and Clinical Positioning
Companies that want to lead digital therapeutics must navigate complex regulatory and clinical landscapes. Many are seeking FDA approval or CE marking to increase credibility and unlock new distribution channels.
This process involves producing clinical data that demonstrates efficacy, often through trials or retrospective studies. Companies investing in these pathways are separating themselves from wellness apps and moving closer to becoming true extensions of medical care. It is building its infrastructure with these expectations in mind. Its technology is designed not only for user experience but for scientific and operational rigor, which positions it for long-term relevance.
Integration With Broader Care Ecosystems
To stay competitive, digital therapeutic platforms must also consider how they integrate with existing care systems. That includes electronic health records, clinical workflows, and insurance reimbursement. Partnerships with providers and insurers can lead to expanded access and a higher likelihood of consistent usage. Employers offering platforms as part of a wellness benefit also widen the user base while creating measurable value for stakeholders. It has begun exploring such partnerships to ensure that they don’t operate in isolation. The goal is not to replace care but to support it in the hours, days and weeks between clinical appointments.
The Role of User Experience
In a market filled with options, the user’s experience often determines success. Platforms that are clunky or overwhelming see high drop-off rates. Those who are intuitive, responsive, and respectful of user time tend to see higher engagement and better outcomes.
Nutu is designed to be frictionless. It doesn’t ask users to input unnecessary data or make drastic lifestyle changes all at once. Instead, it builds a profile over time and adjusts its recommendations accordingly. This kind of experience matters in digital therapeutics. People managing diabetes already face cognitive and emotional burdens. The right platform can lighten that load instead of adding to it.
A Fragmented but Fast-Moving Market
Despite the rapid growth of digital therapeutics, the landscape remains fragmented. Some companies focus on Type 2 diabetes prevention, others support those already on insulin therapy, and still others aim to reduce payer costs. Fragmentation presents both challenges and opportunities. New entrants must define their niche while demonstrating broader applicability. Those who solve a specific pain point can still carve out meaningful market share. Its focus on both personalization and long-term behavior support puts it in a strong position, particularly as more users seek holistic tools that address more than just glucose levels.
What Sets Winners Apart
In an increasingly saturated market, differentiation matters. Investors, clinicians and users alike are looking for platforms that combine clinical evidence, personalization, strong user experience, and measurable impact. That means it’s not enough to be “another diabetes app.” Digital therapeutics companies must be built on thoughtful infrastructure, guided by behavioral science, and flexible enough to adapt to real-world use. Platforms are setting that standard. They’re not just telling users what’s wrong, but they’re helping them understand what to do next and why it matters.
The digital therapeutics space is dynamic and competitive, but it’s also full of potential. As more users demand tools that are as nuanced as their health conditions, the market can reward platforms that listen, adapt and deliver results. Companies led by experienced innovators like Joe Kiani are working to ensure that technology serves people. The future of diabetes care won’t be built on general advice. It can be built on real-time insight, daily support, and scalable tools that help people take charge of their health in practical, lasting ways.