Mental Health Technology Market Size, Share, Trends, Growth and Forecast 2032

Mental Health Technology Industry Prospective:

The global mental health technology market size was worth around USD 7.13 billion in 2023 and is predicted to grow to around USD 32.97 billion by 2032, with a compound annual growth rate (CAGR) of roughly 18.70% between 2024 and 2032.

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Mental Health Technology Market: Overview

Mental health technology refers to modern digital solutions leveraged to improve mental care and well-being. The industry includes a wide range of technologies, from wearables to more advanced forms such as digital therapeutics and virtual reality (VR), that not only detect specific mental health-related conditions but also treat several illnesses.

According to market analysis, the demand for mental health technology has escalated in the last few years driven by several factors. For instance, the growing acknowledgment related to mental health conditions and diluting social awkwardness related to subjects concerning mental illnesses has assisted in the greater adoption of technologies designed specifically to treat these conditions.

Furthermore, the use of mental health technology can aid in addressing and managing the challenges currently associated with mental well-being, such as lack of proper care, especially in remote areas. These engineering solutions can also improve the overall quality of healthcare, further contributing to the industry’s final growth rate.

During the forecast period, the ongoing innovations in terms of mental health technologies, along with consumer awareness, are expected to create growth opportunities for market players. However, the high cost of digital solutions, along with the lack of acceptance of mental health disorders among a wide range of populations, will act as growth barriers.

Key Insights:

• As per the analysis shared by our research analyst, the global mental health technology market is estimated to grow annually at a CAGR of around 18.70% over the forecast period (2024-2032)
• In terms of revenue, the global mental health technology market size was valued at around USD 7.13 billion in 2023 and is projected to reach USD 32.97 billion by 2032.
• The mental health technology market is projected to grow at a significant rate due to the growing number of patients with mental health conditions.
• Based on technology, the mobile apps segment is growing at a high rate and will continue to dominate the global market, as per industry projections.
• Based on application, the therapy & treatment segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Mental Health Technology Market: Growth Drivers

Growing number of patients with mental health conditions to drive market demand rate

The global mental health technology is expected to grow due to the rising number of patients suffering from several types of mental health conditions. The surge in the patient count is a result of multiple factors working in tandem. For instance, the rising acceptance of mental disorders as health-related conditions has assisted in diluting the taboo around diseases such as depression, anxiety, and other serious conditions.

Furthermore, regional governments have initiated new programs and schemes to generate more awareness and conversations around mental illnesses, further encouraging patients to come forward and seek help from professionals. In November 2024, the Indian government announced the launch of a new mental health strategy for higher education institutions (HEIs) across the country. The initiative will involve novel collaborations with more than 200 reputed institutes in India, including state universities while engaging over 300 participants to improve mental health systems in the economy.

In addition to this, the changing lifestyle of the general population, poor eating habits, and rising stress levels among people of all age groups are contributing to an increased rate of mental health patients. Some of the most common mental diseases include anxiety disorders, depression, mood disorders, bipolar disorder, schizophrenia, and obsessive-compulsive disorder. Some of the mental illnesses are genetic, while some are exogenous.

Rising investments in telehealth to promote market expansion during the projection period

COVID-19 accelerated the adoption and advancements in telehealth and telemedicine. These healthcare segments are related to using novel technologies to improve medical care access to patients. Some of the major characteristics of telehealth include providing remote medical care and mental health-related guidance and treatment. The continuous proliferation of the telehealth sector is expected to create more revenue in the global mental health technology market during the forecast period.

In December 2023, US representatives announced the introduction of a new bill called the  Home-Based Tele-mental Health Care Act of 2023, which aims to improve access to at-home digital substance use and mental health services in the rural communities of the country.

Mental Health Technology Market: Restraints

High expenses associated with the technology limit the industry’s growth rate

The global industry for mental health technology is projected to be restricted due to the high expenses associated with the use of the technology. For instance, wearables such as Muse and Spire, which are known to detect several types of mental health disorders, are expensive to develop and apply in the real world. The average cost of a Spire wearable can range between USD 150 and USD 200, depending on the product model. In addition, mental healthcare infrastructure in several countries, including emerging nations, is relatively poor, further restricting the overall market expansion rate.

Mental Health Technology Market: Opportunities

Current technological innovation and strategic collaborations to generate expansion possibilities

The global mental health technology market is projected to generate growth opportunities due to the current technological innovations being registered worldwide. In January 2024, Europe witnessed the launch of the Virtual Brain Twin for Personalized Treatment of Psychiatric Disorders project, which is being coordinated by EBRAINS AISBL, a Europe-based non-profit organization focusing on neuroscience technologies and brain research. The project has delivered a new approach to mental care.

According to official reports, the initiative will focus on developing virtual brain twins for patients requiring psychiatric care using mathematical analysis, neuronal microcircuit simulation, and highly advanced Artificial Intelligence (AI) tools. The developments in the ambitious project are funded with EUR 10 million.

In June 2024, Feel Therapeutics, a leading provider of digital precision medicine for behavioral and mental health, announced the launch of the Feel Monitor. The wearable device is powered by AI and is expected to set new standards for digital mental care. The Feel monitor is designed following US Food & Drugs Administration (FDA) guidelines for medical devices. The novel offering is built using sophisticated sensor technology, including Photoplethysmography and Electrodermal Activity sensors.

Mental Health Technology Market: Challenges

Privacy concerns related to digital technologies to challenge market expansion rate

The global mental health technology industry is projected to be challenged by the growing concerns over patient privacy and data theft. Digital tools such as mental health platforms and wearables are vulnerable to cyber-crimes.

Furthermore, the presence of strict regional guidelines safeguarding patient information can put more pressure on the companies to develop more secure platforms, which can be difficult to achieve. The lack of standard quality control measures globally, along with ethical doubts, may further prevent the industry’s growth rate.

Mental Health Technology Market: Report Scope

Mental Health Technology Market: Segmentation

The global mental health technology market is segmented based on technology, target audience, application, and region.

Based on technology, the global market segments are wearable technology, mobile apps, platforms & telemedicine. In 2023, the highest demand was listed in the mobile apps segment. These platforms are designed to help mental health patients manage illnesses. Furthermore, mobile apps are more affordable and also offer convenience in terms of use. The growing use of smartphones and faster internet connectivity, along with higher patient awareness, will fuel segmental demand in the future. According to market research, over 100 million people in the US are using mental health applications.

Based on target audience, global mental health technology is divided into employers, healthcare providers, and individual customers.

Based on application, the global market divisions are self-management & well-being, therapy & treatment, and mental health assessment & diagnosis. In 2023, the highest growth was listed in the therapy & treatment segment. The growing number of patients with mental health conditions worldwide is driving segmental revenue. Furthermore, the development of new technologies aimed at improving mental condition diagnosis and treatment will be critical to shaping the industry’s revenue in the coming years. According to the World Health Organization (WHO), more than 300 million people worldwide are diagnosed with depression.

Mental Health Technology Market: Regional Analysis

North America to deliver significant revenue during the projection period

The global mental health technology market will be led by North America during the forecast period. The increasing number of mental health patients across North American countries is fueling the regional revenue. According to the National Institutes of Health (NIH), around 5.7 million people in the US are currently diagnosed with bipolar disorder.

Similarly, statistics for other forms of mental health conditions have also registered higher patient counts in the last few years. In addition to this, the social acceptance of mental health conditions in North America is growing rapidly, further encouraging more people with mental illnesses to seek medical help.

In December 2024, the Canadian government announced an investment of CAD 500 million toward the Youth Mental Health Fund, thus expecting to transform mental healthcare in the country. The regional market will be further influenced by the positive adoption of modern technologies specially designed to improve access to medical care, including mental conditions. In May 2024, Ontrak Inc, a Miami-based leading provider of technology-powered healthcare, announced the launch of Mental Health Digital Twin (MHDT) technology, a novel breakthrough in mental healthcare.

Mental Health Technology Market: Competitive Analysis

The global mental health technology market is led by players like:

• Iris Telehealth
• Modern Health
• Talkspace
• Nue Life Health
• SonderMind
• Meru Health
• Lyra Health
• Cerebral
• Kintsugi
• Eleanor Health
• Workit Health
• Spring Health
• Unmind
• Headspace
• Brightline

The global mental health technology market is segmented as follows:

By Technology

• Wearable Technology
• Mobile Apps
• Platforms for Telemedicine

By Target Audience

• Employers
• Healthcare Providers
• Individual Customers

By Application

• Self Management & Wellbeing
• Therapy & Treatment
• Mental Health Assessment & Diagnosis

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa