Telepsychiatry Market

Telepsychiatry Market Research, 2031

The global telepsychiatry market was valued at $6.5 billion in 2021 and is projected to reach $41.8 billion by 2031, growing at a CAGR of 20.3% from 2022 to 2031. The use of video-based telepsychiatry helps meet patients' needs for convenient, affordable, and readily-accessible mental health services. With a robust evidence base that shows telepsychiatry leading to improved outcomes and higher patient satisfaction ratings, policymakers, payers, and providers are increasingly considering ways to implement and use telepsychiatry.

The sudden outbreak of COVID-19 has brought the whole world to a standstill. As hospitals are getting filled with COVID-19-positive patients, the burden on healthcare staff is increasing. In addition, the postponement and cancellation of elective surgeries and appointments have decreased patient volume in hospitals and clinics. This poses an urgent need for physicians to adopt telehealth to connect to their patients. With social distancing being the new normal, the demand for teleconsultations and digital health services is at its peak. Telehealth has emerged as a powerful weapon in the war against the COVID-19 pandemic. The majority of virtual visit service providers are showcasing a tremendous increase in the number of users and subscribers. For example, Teladoc Health Inc. reported a 60% increase in the number of virtual consultations and reached 2 million in just three months from January to March 2020 compared to the fourth quarter of 2019. Apart from this, many government organizations are embracing telehealth through new policies and reimbursement guidelines. In March 2020, the Federal Communications Commission in the U.S. established programs to help healthcare institutions deploy telemedicine technology. Similarly, in March 2020, the Ministry of Health and Family Welfare (MoHFW) issued telemedicine practice guidelines in India. Strong government support is anticipated to narrow the barriers to the adoption of this type of treatment, thereby opening new growth opportunities in post-pandemic situations for the market.

The increase in awareness about psychiatric disorders and advancements in telepsychiatry drive the growth of the Telepsychiatry Industry. The rise in awareness about various mental disorders such as depression and anxiety drives the demand for psychiatric treatment. The surge in telecommunication networks along with government support is likely to augment the Telepsychiatry Industry growth, offering expansion opportunities for market competitors. For instance, in April 2020, MyDoc partnered with First Medicine Corporation, a technology-driven healthcare company, to provide free access to the telemedicine solution in the U.S. for 3 months. This partnership is expected to enable the company to expand its geographic outreach and strengthen its market positioning.

Furthermore, the rise of the internet age brought with it profound changes in the practice of telemedicine. The proliferation of smart devices, and the ability of high-quality video transmission, opened up the possibility of delivering remote healthcare to patients in their homes, workplaces, or assisted living facilities as an alternative to in-person visits for both primary and specialty care. Major factors driving the growth of the telemedicine market include an increase in the prevalence of chronic disease and a growth in the need for patient management, which is expected to positively influence the market revenue. Moreover, rising telecommunications network and reduction in healthcare cost is anticipated to drive the Telepsychiatry Market Growth.

In addition, growth in the number of hospitals, a surge in access to healthcare facilities globally, and increased healthcare expenditure drive the growth of the market. For instance, according to the American Medical Association (AMA), health spending in the U.S. increased by 9.7% in 2020 to $4.1 trillion or $12,530 per capita. Moreover, rise in the government initiatives to provide improved healthcare facilities propels the growth of the telepsychiatry market. Furthermore, growth in the private hospital sector, telemedicine tools, and artificial intelligence-integrated software is anticipated to provide a boost to the market.  

The telepsychiatry market is segmented on the basis of product, age group, end user, and region. By product, the market is fragmented into in-home solutions, forensic solutions, routine solutions, and crisis solutions. As per age group, the market is categorized into adult, pediatric & adolescent, and geriatric. Depending on end-user, the market is classified into community mental health centers, specialty care settings, and others. Region-wise, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and the rest of Europe), Asia-Pacific (Japan, China, Australia, India, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, Saudi Arabia, South Africa, and rest of LAMEA).

The telepsychiatry market is segmented into Product Type, Age group, and End User. 

Depending on product type, the in-home solutions segment dominated the Telepsychiatry Market Share in 2021, and this trend is expected to continue during the forecast period, owing to advancements in telepsychiatry services and a rise in the prevalence of mental diseases. However, the routine solutions segment is expected to witness considerable growth during the forecast period, due to the prevalence of depression and a rise in work-related stress.  

As per age group, the adult segment dominated the Telepsychiatry Market Share in 2021, and this trend is expected to continue during the Telepsychiatry Market Forecastperiod, owing to an increase in work-related pressure and advancements in telepsychiatry services. However, the geriatric segment is expected to witness considerable growth during the forecast period, due to an increase in the number of the elderly population and a rise in healthcare expenditures.  

According to end, user, the community mental health centers segment dominated the Telepsychiatry Market Size in 2021, and this trend is expected to continue during the forecast period, owing to an increase in healthcare expenditure and a rise in the number of community mental health centers. However, the homecare segment is expected to witness considerable growth during the forecast period, due to an increase in the number of telepsychiatry software and a rise in the number of private healthcare organizations which invest in telepsychiatry services.   

Region-wise, North America garnered the major share in the telepsychiatry market in 2021 and is expected to dominate the global Telepsychiatry Market Size during the forecast period, owing to the rise in incidences of mental diseases, well-developed healthcare infrastructure, and the presence of key players. However, Asia-Pacific is expected to register significant growth, owing to a rise in incidences of psychological diseases, improvement in healthcare infrastructure, and the presence of a high population base.

The key players operating in the global telepsychiatry market are Acadia Healthcare, Ascension, Behavioral Health Services Incorporated, Bright Harbor Healthcare, Centene Corporation, Elevance Health, Oracle Corporation, Pyramid Healthcare, Inc., Strategic Behavioral Health, LLC, and Welligent Inc.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the telepsychiatry market analysis from 2021 to 2031 to identify the prevailing Telepsychiatry Market Opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the telepsychiatry market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global telepsychiatry market trends, key players, market segments, application areas, and market growth strategies.

 Telepsychiatry Market Report Highlights