Mental Health Software Market

Mental Health Software Market Outlook (2024 to 2034)

The global mental health software market is estimated at US$ 5.48 billion in 2024 and is projected to reach a size of US$ 29.45 billion by 2034-end, advancing swiftly at a CAGR of 18.8% between 2024 and 2034.

Mental health software is created to manage mental health, behavioral health treatment, or addiction treatment practices effectively. Managing and maintaining electronic or digital records, cases and treatments, general practice, medicine, and patient administration are all made easier with the use of this program.

A number of these solutions' characteristics are drawing the interest of different healthcare organizations and promoting the use of software as a medical device, which in turn is fostering the expansion of the global mental health software market share.

Growing awareness of mental health as a serious health problem and the advantages of using mental health apps to improve treatment outcomes and lifestyle are key drivers driving mental health software market trends. For the most part, mental fitness apps assist in facilitating and promoting well-being, which in turn helps fuel productivity.

The market as a whole is expanding quickly due to factors like partnerships among market participants, behavioral health modifications, increased government support for the improvement of behavioral healthcare services, new product and service launches, and the focus of healthcare professionals on providing patients with high-quality care.

• For example, Ehave Inc. and Cognitive Apps Software Solutions Inc. teamed up in January 2021 to market Ehave's AI-based Workforce Mental Health Analytical Platform in G20 nations.

Report Attributes	Details
Mental Health Software Market Size (2024E)	US$ 5.48 Billion
Forecasted Market Value (2034F)	US$ 29.45 Billion
Global Market Growth Rate (2024–2034)	18.8% CAGR
North America Market Share (2034F)	29.1%
East Asia Market Growth Rate (2024 to 2034)	18.9% CAGR
On-premise Segment Market Share (2024E)	23.7%
Tablets/Smartphones Segment Market Share (2024E)	82.4%
Key Companies Profiled	BestNotes Welligent, Inc. TELUS Health Accumedic Computer Systems Inc. Credible, a part of Qualifacts Systems, LLC.

Why is There a Surge in Global Demand for Mental Health Software?

“Widespread Adoption of Mental Health Apps Due to Studies Demonstrating Their Advantages”

Adopting mental health applications is supported by a shift in trends away from traditional care approaches and toward patient-centric and personalized therapy. Apps that help manage stress and encourage a better lifestyle, such as those that manage stress, anxiety, and depression, or those that facilitate meditation, help preserve a person's general health.

Demand for mental health apps has been fueled by studies and research that demonstrate the advantages of these apps, which have increased their penetration and adoption.

• For instance, in March 2021, a study that was published in the Journal of the National Centre for Biotechnology Information assessed how well an app worked to promote stress management and overall well-being. It showed promising outcomes and was successful in lowering the respondents' stress levels.

“Heightened Awareness of Mental Well-Being among Geriatric Population”

Globally, mental health is a major concern. As a result of the increasing prevalence of various mental health disorders in recent years and the increased awareness of these diseases by governmental organizations, mental health has been included in the United States' list of 17 Sustainable Development Goals (SDGs).

In addition, the disease's position has drawn a lot of attention, particularly about treating the older population. This is mostly due to the aging population that has been growing over the past few years and the increased awareness of mental health and well-being within these age groups.

• According to WHO estimates, between 2015 and 2050, the percentage of people worldwide who are 60 years of age or older is predicted to double, from 12% to 22%.

• According to the statistics, 6.6% of all disabilities among these population groups were related to mental or neurological illnesses, which affected over 20% of these people. Furthermore, the two most prevalent mental and neurological ailments, dementia and depression, respectively, afflicted 5% and 7% of these populations.

Which Factors are Restraining Demand Growth for Mental Health Software?

“Patient Privacy and Security Concerns”

Data privacy violations are one of the biggest threats to the behavioral and mental health software industry. Physicians are not permitted to share any patient information with outside parties due to confidentiality clauses. Thus, the United States Congress created the HIPPA regulation to protect patient medical records and other health information. However, an increase in data infringement cases around the globe may hinder market growth over the next 10 years.

“High Initial Investments and Costs Associated with Product Customization”

Purchasing mental health software can have a substantial up-front cost, particularly for all-inclusive systems with cutting-edge features like client administration, teletherapy, and secure communication tools. This initial expenditure may be too costly for smaller practices with tighter finances.

Modifying the software to meet the unique processes or specifications of a smaller practice may result in extra expenses. Their needs might not be fully satisfied by off-the-shelf products, requiring modifications that raise the total cost.

Country-wise Insights

The market for mental health software in China has expanded due to increasing policies and activities for treating mental health issues. The rising prevalence of stress and depression and the strong healthcare infrastructure in the United States are driving the product demand in the nation.

What is Fueling Mental Health Software Market Growth in China?

“Increasing Stress Levels and Government Initiatives for Addressing Mental Health Issues”

Attribute	China
Market Value (2024E)	US$ 1.18 Billion
Growth Rate (2024 to 2034)	18.7% CAGR
Projected Value (2034F)	US$ 6.6 Billion

The Chinese government is keen on enhancing mental health care. An attempt has been made, for example, to integrate mental health treatments within primary healthcare networks.

In China, societal pressures, work-related stress, and rapid urbanization have all led to an increase in mental health problems. Digital mental health solutions are becoming more popular as a result of the need for easily available and convenient mental health support.

Demand for smartphones and associated products has been growing significantly in the country. In addition, several countries in East Asia are implementing mobile and digital health technology to control the delivery of healthcare and guarantee better results. Therefore, these efforts are expected to increase the uptake of mental health apps in the near future.

Why is the United States Emerging as a Lucrative Market for Mental Health Software Providers?

“Elevated Awareness of Mental Health Issues and High Smartphone Adoption Rates”

Attribute	United States
Market Value (2024E)	US$ 1.12 Billion
Growth Rate (2024 to 2034)	18.8% CAGR
Projected Value (2034F)	US$ 6.3 Billion

As mental health problems are becoming more widely acknowledged in the United States, there is a rising need for mental health services. A greater number of people are seeking therapy, counseling, and other forms of mental health support as a result of this increasing knowledge.

The United States has led the world in technical innovation. With the creation of several platforms and apps that provide treatment, counseling, telepsychiatry, self-help tools, and mental health assessments, this innovation also extends to mental health software. Another element driving expansion is the rate at which software connected to behavioral and mental health is adopted by the populace.

• The smartphone adoption rate in North America was over 80% in 2020 and is predicted to reach 85% by 2025, according to GSMA's 'The Mobile Economy Report 2021'.

This rise is being driven by notable reasons like the increasing use of smartphones, advancements in coverage networks, and the increasing prevalence of the internet and social media.

Category-wise Insights

Subscription-based deployment has contributed to the expansion of the mental health software market size because it is flexible and accessible and has reduced initial hurdles to entry. This allows it to meet the needs of different mental health practices and promotes a wider acceptance of technology in the sector. The availability of mental health software has changed dramatically as a result of smartphones and tablets, giving users more convenient, individualized, and accessible services.

Why are Subscription-based Deployment Models More Popular?

“Predictable Costs of Monthly Subscription and Reduced Initial Expenditure”

Attribute	Subscription
Segment Value (2024E)	US$ 4.18 Billion
Growth Rate (2024 to 2034)	19.2% CAGR
Projected Value (2034F)	US$ 22.3 Billion

A regular, predictable fee is normally charged monthly or annually in subscription arrangements. Because they are aware of the recurrent expenditures and are less likely to be caught off guard by unforeseen software usage fees, mental health clinics can budget more skillfully.

Subscription-based models frequently call for a smaller initial expenditure as opposed to a significant upfront expense. This reduces the financial burden of adopting mental health software for facilities with limited resources or smaller practices.

Which Mode of Access Leads the Global Market for Mental Health Software?

“Portability and Convenience of Remote Therapy”

Attribute	Tablets/Smartphones
Segment Value (2024E)	US$ 4.51 Billion
Growth Rate (2024 to 2034)	18.5% CAGR
Projected Value (2034F)	US$ 24.21 Billion

Users may carry their mental health support tools with them at all times due to the portability of tablets and smartphones, which promotes regular participation in therapy sessions, mindfulness exercises, mood monitoring, and other self-help activities.

By enabling teletherapy and remote counseling sessions, these gadgets help clients and therapists communicate in real-time. Confidential and convenient sessions can be had using video conferences, messaging, and encrypted platforms. This is especially useful for people who live in remote places or have limited mobility.

Competitive Landscape

There is intense competition among the current competitors due to the growing need for mental health apps and technological advancements. Growing awareness and adoption of digital and mobile health technology are expected to drive the entry of newer companies into the market for mental health apps.

To provide mental health support to people worldwide, Headspace Health, an English-American internet company that specializes in meditation, announced in September 2022 that it has agreed to purchase Shine App, a mental health and well-being platform.

Segmentation of Mental Health Software Market Research

• By Deployment:

  • On-premise
  • Subscription

• By Mode of Access:

  • Desktops/Laptops
  • Tablets/Smartphones

• By Function:

  • Telehealth
  • Payroll
  • Revenue Cycle Management
  • Ledgers

• By Application:

  • Commercial
  • Residential

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa