Telepsychiatry Market Expected to Reach $41.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Telepsychiatry Market," The telepsychiatry market was valued at $6.5 billion in 2021 and is estimated to reach $41.8 billion by 2031, growing at a CAGR of 20.3% from 2022 to 2031.

Telepsychiatry can involve interaction through electronic media between a psychiatrist and the patient. Moreover, it encompasses psychiatrists supporting primary care providers with mental healthcare consultation and expertise. Mental healthcare can be delivered in live, interactive communication. Furthermore, it can involve recording medical information (images and videos) and sending this to a distant site for later review.

The increase in focus on healthcare risk management, the rise in population, and the adoption of telemedicine drive the growth of the Telepsychiatry Industry. Furthermore, an increase in the prevalence of mental diseases such as anxiety and depression boosts the growth of the Telepsychiatry Market Size. For instance, according to the report of the World Health Organization (WHO), in September 2021, depression is a common illness worldwide, with an estimated 3.8% of the population affected, including 5.0% among adults and 5.7% among adults older than 60 years. From the same source, approximately 280 million people in the world have depression.

Furthermore, the Telepsychiatry Market Trends that drive the growth of the Telepsychiatry Market Size include R&D for the development of advanced and user-friendly telepsychiatry services, an increase in product approvals, and new products launched in the market. For instance, in August 2021, TeleSpecialists, LLC, a national leader in hospital-based telemedicine and quality management services, announced the launch of their TelePsychiatry service in several Florida hospitals, with plans to expand in the near future. In addition, the integration of various tools backed by artificial intelligence (AI) and big data in the current healthcare setting for telehealth services and utilizing it for getting better outputs contribute to the growth of the Telepsychiatry Industry.

The telepsychiatry market is segmented on the basis of product, age group, end user, and region.

On the basis of product, the market is divided into in-home solutions, forensic solutions, routine solutions, and crisis solutions. The in-home solutions segment dominated the market in 2021, and this trend is expected to continue during the forecast period, owing to advancements in telepsychiatry services and the rise in the prevalence of mental diseases.

Based on age group, the market is categorized into an adult, pediatric & adolescent, and geriatric. The adult segment dominated the Telepsychiatry Market Share in 2021, and this trend is expected to continue during the Telepsychiatry Market Analysis period, owing to increasing work-related pressure and advancements in telepsychiatry services.

Depending on the end-user, the market is classified into community mental health centers, specialty care settings, home care, and others. The community mental health center companies segment dominated the market in 2021, and this trend is expected to continue during the Telepsychiatry Market Forecast period, owing to an increase in healthcare expenditure and a rise in the number of community mental health centers.

Region-wise, the market is classified into North America, Europe, Asia-Pacific, and LAMEA. North America accounted for a majority of the global telepsychiatry market share in 2021 and is anticipated to remain dominant during the forecast period. This is attributed to increasing in the number of key players and growing healthcare expenditure. Asia-Pacific is anticipated to witness lucrative growth, owing to the rise in the prevalence of job-related stress, a high population base, and the presence of key players in the region.

Key findings of the study

• On the basis of product, the In-home solutions segment was the highest contributor to the market in 2021.
• Based on age group, the adult segment was the highest contributor to the market in 2021.
• Depending on the end user, the community mental health centers segment was the highest contributor to the market in 2021.
• Region wise, North America garnered the largest revenue share in 2021, whereas Asia-Pacific is anticipated to grow at the highest CAGR during the forecast period.