Online Therapy Services Market Size, Share, Trends, Growth 2032

Online Therapy Services Industry Prospective:

The global online therapy services market size was worth around USD 9.7 billion in 2023 and is predicted to grow to around USD 69.7 billion by 2032 with a compound annual growth rate (CAGR) of roughly 24.5% between 2024 and 2032.     

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Online Therapy Services Market: Overview

Online therapy, sometimes referred to as teletherapy or telehealth counseling, is the provision of mental health services via online chat, video conferencing, and phone conversations. With the convenience and privacy of their own homes, people may now communicate with certified therapists due to this novel technique. A proactive step in resolving mental health issues and enhancing general quality of life is to seek treatment.

Online therapy is a practical and efficient way for people to get expert treatment, regardless of whether they are dealing with depression, anxiety, relationship problems, or are just looking for personal development. The online therapy services market revenue growth is attributed to the increasing penetration of smartphones, rising issues of depression and anxiety, growing consumer awareness, technological advancements, growing collaboration and rising investments.

Key Insights

• As per the analysis shared by our research analyst, the global Online Therapy Services market is estimated to grow annually at a CAGR of around 24.5% over the forecast period (2024-2032).
• In terms of revenue, the global Online Therapy Services market size was valued at around USD 9.7 billion in 2023 and is projected to reach USD 69.7 billion, by 2032.
• The growing smartphone penetration across the globe is expected to propel the market growth.
• Based on the type, the psychodynamic therapy segment is expected to dominate the online therapy services industry over the projected period.
• Based on the application, the residential use segment is expected to grow at the highest CAGR during the forecast period.
• Based on the end user, the clinics segment is expected to dominate the market during the forecast period.
• Based on region, North America is expected to dominate the online therapy services industry over the forecast period.

Online Therapy Services Market: Growth Drivers

Growing adoption of smartphones drives market growth

The market for online therapy services is anticipated to develop in the future due to rising smartphone penetration. The main factors contributing to the increase in smartphone usage are the affordability of devices, the wide range of high-quality options available, and the widespread access to the internet. By utilizing wearable technology and digital apps such as coaching programs, connected monitors, and mood trackers, individuals can successfully handle their anxiety, build resilience, and enhance their happiness through text messaging or smartphones. Mobile health apps can be utilized alongside existing therapies, such as counseling, or independently as a more casual approach for patients to proactively manage their health in the context of blended healthcare. This trend is expected to contribute to the growth of the online therapy services market.

For instance, as of September 2022, 71.8 million mobile connections (4.2 million more than the UK population) were active in the UK at the beginning of 2022, according to "UK mobile phone statistics 2022" by Uswitch Limited, a UK-based switching website and pricing comparison service. This represents a 3.8% increase from 2021 (roughly 2.6 million). This is most likely since many people will have several connections associated with them (home and business phones, for example). By 2025, there will be 68.3 million people living in the UK, of which 95% (or about 65 million) will own a smartphone. Thus, the market for online therapy services is expanding as a result of the growing use of smartphones.

Online Therapy Services Market: Restraints

Limited awareness of mental health in developing nations hampers market growth

Although technology has made great strides in bridging many barriers, knowledge and resource disparities still stand in the way of online therapy services reaching and having an impact on developing countries. In many developing nations, the benefits of online mental health resources are not as widely understood.

Additionally, online mental health tools and their advantages are not as well recognized in many developing countries due to a variety of issues like low smartphone ownership, poor internet penetration, and a lack of digital literacy among particular population groups. Thus, throughout the forecast period, these issues might hinder market growth.

Online Therapy Services Market: Opportunities

Rising collaboration offers a lucrative opportunity for market growth

The rising collaboration in the online therapy services industry is expected to provide an attractive opportunity for the market of online therapy services over the analysis period. For instance, in January 2023, with its globally inspired noodle bowls, best-in-class service, and values-centric culture, Noodles & Company, a national fast-casual chain known for spreading Uncommon Goodness, announced a partnership with BetterHelp, the largest therapy platform in the world, to offer guests who have never used BetterHelp up to $1 million in free online therapy.

From January 4-31, 2023, visitors to any of Noodles & Company's more than 450 restaurants or their website can take advantage of a complimentary one-month trial of BetterHelp online treatment services.

Online Therapy Services Market: Challenges

Lack of technical knowledge poses a major challenge to market growth

Online counseling involves the internet, a device, and the app used for the video conference, while in-person treatment merely requires someone to show up at the therapist's office. Some people, especially the elderly, may find online therapy more difficult to utilize if they are unfamiliar with the technology. Sometimes a malfunctioning piece of equipment might even interrupt or terminate a whole session. Thus, the lack of technical knowledge is expected to pose a major challenge for the online therapy services market during the analysis period.

Online Therapy Services Market: Segmentation

The global online therapy services industry is segmented based on the type, application, end user, and region.

Based on the type, the global online therapy services market is bifurcated into psychodynamic therapy, cognitive behavioral therapy and personal centered therapy. The psychodynamic therapy segment is expected to dominate the online therapy services industry over the projected period. The segment expansion is attributed to the increasing number of substance abuse disorders. According to the National Center for Drug Abuse Statistics, as of 2020, 37.309 million Americans aged 12 and older reported using illegal substances within the last 30 days.

• 13.5% of Americans aged 12 and older reported using drugs in the previous month, a 3.8% rise over the previous year (YoY).
• In the last year, 59.277 million individuals, or 21.4% of those over the age of 12, have abused prescription medications or used illicit narcotics.
• 50.0% of adults over the age of 12 have taken illegal substances at some point in their lives, or 138.543 million.

Thus, the aforementioned statistics are expected to drive the segment growth.

Based on the application, the global online therapy services industry is categorized into commercial and residential use. The residential use segment is expected to grow at the highest CAGR during the forecast period. By using online therapy services for residential purposes, people may get mental health help without having to go anywhere in person. Those with hectic schedules, those who reside in remote locations, or those who struggle with mobility can especially benefit from this.

Based on the end user, the global online therapy services market is categorized into clinics, hospitals, ambulatory centers, and others. The clinics segment is expected to dominate the market during the forecast period. Clinics may reach a wider audience by offering online therapy services in addition to their physical sites. People who live in distant locations or places with limited access to mental health resources can receive assistance from clinics. Thereby, driving the segment growth.

Online Therapy Services Market: Report Scope

Regional Analysis

North America is expected to dominate the market during the forecast period

North America is expected to dominate the online therapy services market over the forecast period. The regional expansion is attributed to the increasing prevalence of mental health disorders and the growing government initiatives. According to the National Institute of Mental Health:

• An estimated 57.8 million persons in the US who were 18 years of age or older had Any Mental Illness (AMI) in 2021. This figure accounted for 22.8% of all adult Americans.
• Women had a greater frequency of AMI (27.2%) than did men (18.1%).
• The frequency of AMI was highest in young people (18–25 years old) (33.7%), followed by adults (26–49 years old; 28.1%) and older individuals (15.0%).
• Adults reporting two or more racial identities had the highest frequency of AMI (34.9%), followed by those who identified as American Indian or Alaskan Native (AI/AN) (26.6%). Asian adults had the lowest frequency of AMI (16.4%).

Similarly, the Substance Abuse and Mental Health Services Administration (SAMHSA) and the Office of Minority Health (OMH) of the Department of Health and Human Services (HHS) have announced nearly $35 million in funding opportunities to support community mental health services and suicide prevention programs for America's youth and young adults. Funded $9.2 million by the American Rescue Plan. A new administration-wide initiative to address the mental health widespread in the country. Thus, the aforementioned statistics are estimated to propel the online therapy services market over the forecast period.

Online Therapy Services Market: Competitive Analysis

The global online therapy services market is dominated by players like:

• HopeQure
• SOC Telemed
• BetterHelp
• TalkSpace
• MDLive
• Calmerry
• 7 Cup
• Regain
• Breakthrough
• Doctor on Demand
• Amwell
• Pride Counseling
• Cerebral
• Teladoc Health
• Online-Therapy.com
• ThriveTalk
• Teen Counseling

The global online therapy services market is segmented as follows:

By Type

• Psychodynamic Therapy
• Cognitive Behavioral Therapy
• Personal Centered Therapy

By Application

• Commercial
• Residential Use

By End User

• Clinics
• Hospitals
• Ambulatory Centers
• Others

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