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Behavioral & Mental Health Software Market Size By Component (Software {Cloud-based, Web-based}, Services), By Application (Clinical {Electronic Health Record (EHR), Health Management, Telehealth, E-prescribing, Clinical Decision Support}, Financial, Administrative) By End-use (Hospitals, Community Clinics, Private Practices), Industry Analysis Report, Regional Outlook, Application Potential, Covid-19 Impact Analysis, Competitive Market Share & Forecast, 2022 – 2030

  • Report ID: GMI4074
  • Published Date: May 2022
  • Report Format: PDF

Industry Overview

Behavioral & Mental Health Software Market size accounted for USD 4,504.1 million in 2021 and is estimated to grow at a CAGR of 17.3% between 2022 and 2030 owing to the increasing focus of medical professionals on offering quality care to patients suffering from mental illness. Furthermore, market players are focusing new service and launches as well as partnerships to propel the overall market growth.
 

Behavioral & Mental Health Software Market

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For instance, in February 2021, Battery Ventures, a global investment firm, launched a new technology platform to help behavioral health and human services providers. This platform aimed to improve operational efficiencies. Such initiatives taken by the market players is anticipated to accelerate the market size.
 

Behavioral & mental health software can be used by any counsellors and mental health specialists to understand the behavioral and mental patterns of the patient and help them to suggest personalized treatment plan. Further, the behavioral & mental health software is used to record and manage the cognitive and behavioral data of patients.
 

The software also accomplishes billing, appointments, and bed management, which helps the organization run smoothly. Moreover, the Behavioral & mental health software is generally designed to manage clinical, administrative, and financial tasks associated with the practices of clinics and hospitals.
 

Furthermore, owing to the COVID-19 pandemic, the cases of stress, depression, paranoia, and anxiety among others has increased. Thus, there was a rapid rise in the incidence of mental health conditions. Therefore, as a result of growing number of mental illness cases, the usage and demand for behavioral & mental health software increased significantly during the COVID-19 outbreak. Moreover, collaboration to launch new services to cater the growing demand during the pandemic has also boosted the market statistics.
 

For instance, in July 2020, The UNC School of Medicine (SOM) and UNC Health launched the Heroes Health Initiative to support the mental health of first responders and healthcare workers during the COVID-19 outbreak. Thus, such collaboration among the market players along with growing cases of mental disorders has significantly contributed to the behavioral & mental health software market share in 2020.
 

Increasing mental illness will drive the market statistics

Most of the behavioral & mental health software is used to provide cognitive behavior therapy (CBT) which is an efficient treatment for various psychological issues such as anxiety disorder and mood disorders, among others. Thus, increasing number of psychological issues along with rising behavioral mental health spending across the globe is anticipated to foster the market share.
 

For instance, according to the STAT report, in 2020, there were about 3,153 total cases of major depressive disorder per 100,000 people and 4,802 total cases of anxiety disorders per 100,000 worldwide. Similarly, as per the Castlight Workforce Health Index, from 2019 to 2020, spend on behavioral health services grew 18.7%. Thus, increasing prevalence of mental illness such as anxiety and depression and growing spending on behavioral health will spur the behavioral & mental health software market revenue.
 

Data security concern may slow the market demand

Data privacy invasion is one of the biggest threats of behavioral & mental health software industry. The providers are restricted to share the details of patients to any outsiders owing to confidentiality. Therefore, the U.S. Congress created the HIPAA rule to protect the patients medical histories and other health information. However, there is increase in the cases of data infringement across globe that may hinder the market growth during the analysis period.
 

For instance, according to the HIPAA Journal report, in 2021, there were 714 healthcare data breaches in U.S. Among those breaches, 500 or more records have already been reported to the HHS Office for Civil Rights. Thus, raising data breaches and data infringement may slow down the market growth of behavioral & mental health software.
 

Several advantages associated with mental health software will drive the segmental expansion

Behavioral & Mental Health Software Market Share, By Component

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Based on component, The software segment accounted for 55.1% market proportion in 2021 and is anticipated to dominate the market throughout the forecast period. Growing adoption of technological solution for management of clinical, financial, and administrative functions of psychiatry practices is expected to boost the behavioral & mental health software market growth.
 

Moreover, electronic health record (EHR) systems are integrated with billing and claims functionality that can manage complicated billing procedures. Furthermore, the mental health software offers revenue cycle management to simplify the claims process across the clinics and hospital setting.
 

Clinical segment is expected to show significant CAGR during the analysis period

By application, Clinical segment is expected to register 17.8% CAGR to surpass USD 10.2 billion by 2030 owing to the increasing government initiatives to offer cost effective and quality care to the patients along with clinical services such as clinical decision support (CDS), care plans/health management and telehealth. Furthermore, increasing adoption of EHR in medical facilities will further boost the market forecasts.
 

For instance, according to Definitive Healthcare data from 2020, more than 89% of all hospitals in U.S. have implemented inpatient or ambulatory EHR systems to smooth and efficient workflow. Thus, increasing adoption rate of EHR in developed economies will boost the overall market outlook.
 

Growing number of counsellors offering the services in private will accelerate the segmental demand

Based on end-use, the private practices segment accounted for USD 2 billion in 2021. Increasing prevalence of post-traumatic stress disorder among population along with growing number of counsellors offering the services in private will accelerate the segmental landscape. For instance, as per the Recovery Village Drug and Alcohol Rehab report estimates, nearly 70% of adults in the U.S. have experienced a traumatic event and up to 20% of those individuals develop post-traumatic stress disorder (PTSD) accounting for more than 10 million adults in the U.S.
 

Similarly, according to the American Psychiatrists Association report, nearly 41,660 mental health counsellors in U.S. were offering the services in private. Thus, increasing mental illness disorder including PTSD and growing number of counsellors is expected to augment the behavioral & mental health software market outlook.
 

Advanced healthcare infrastructure in North America region will drive the regional market forecasts

Behavioral & Mental Health Software Market Size, By Region

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North America behavioral & mental health software market is anticipated to progress with a 16.8% CAGR over the forecast timeframe. Growing incidence of mental health disorder, advanced healthcare infrastructure coupled with increasing healthcare spending across the region are few factors that are fostering the regional behavioral & mental health software industry statistics over the coming years.
 

Additionally, rising adoption of behavioral & mental health software in the management of various psychological disorders will boost the market size. Moreover, presence of prominent players such as Teladoc Health Inc, American Well, NextGen Healthcare and AdvancedMD, Inc., among others in the region is further expected to accelerate the North American market statistics.
 

Adoption of growth strategies among key market players will help in sustaining the market competition

Some of the prominent players operating in the behavioral & mental health industry include AdvancedMD, Advanced Data Systems Corporation, Meditab, CureMD Healthcare, Netsmart Technologies, Inc, NXGN Management, LLC, Teladoc Health Inc, Qualifacts Systems, Inc., TherapyNotes, LLC., and Ontrak Inc, among others.
 

The fragmented nature of the market leads to lowered profitability and limited product visibility. Hence, several multinational providers are observed to focus on inorganic growth strategies through acquisitions and mergers to strengthen their regional penetration.
 

Recent industry developments:

  • In December 2021,?Qualifacts and Credible acquired InSync Healthcare Solutions, a leading provider of EHR and practice management software, revenue cycle management services for behavioral, medical and rehabilitative professionals.??This acquisition allowed both organizations to deliver innovation, technology, customer support, and complementary solutions to enhance behavioral health and human services market.
     
  • In August 2021, American Well completed the acquisition of SilverCloud Health and Conversa Health, a leading provider of digital mental health platform. The acquisition aimed to enhance and strengthen the cohesion between physical and virtual care, thereby strengthening its market position.
     

The Behavioral & mental health software market report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2022 to 2030, for the following segments:

By Component

  • Software
    • Web-based
    • Cloud-based
  • Services

By Application

  • Clinical
    • Electronic Health Record (EHR)
    • Health Management
    • Telehealth
    • e-prescribing
    • Clinical decision support
    • Others
  • Financial
  • Administrative

By End-use

  • Hospitals
  • Community clinics
  • Private practices
  • Others

The above information is provided for the following regions and countries:

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
  • Asia Pacific
    • Japan
    • China
    • India
    • Australia
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • Saudi Arabia

 

Authors: Sumant Ugalmugle, Rupali Swain

Frequently Asked Questions (FAQ) :

The global behavioral & mental health software market share crossed USD 4,504.1 million in 2021 and is poised to record a 17.3% CAGR between 2022 and 2030 driven by the growing focus of medical professionals on providing quality care to patients suffering from mental illness.

The software component segment held close to 55.1% of the behavioral & mental health software market share in 2021 and will witness expansion with the rising need for technological solutions in the management of clinical, financial, and administrative functions of psychiatry practices.

The behavioral & mental health software industry size from the clinical application segment is anticipated to be pegged at over USD 10.2 billion by 2030 due to the surging number of government initiatives to offer cost-effective and quality care to the patients.

The behavioral & mental health software industry in North America is pegged to strike a 16.8% CAGR through 2030 owing to the higher incidence of mental health disorders, escalating healthcare spending, and the presence of advanced healthcare infrastructure across the region.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 12
  • Tables & Figures: 272
  • Countries covered: 15
  • Pages: 120

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