Telepsychiatry Market Size, Share, Trends, Growth 2030

Telepsychiatry Industry Prospective:

The global telepsychiatry market size was worth around USD 6,302.78 million in 2022 and is predicted to grow to around USD 40,801.56 million by 2030 with a compound annual growth rate (CAGR) of roughly 26.30% between 2023 and 2030.

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Telepsychiatry Market: Overview

Telepsychiatry is a segment of broader telemedicine. It leverages the benefits of incorporating telecommunication technology in providing psychiatric care to medical patients. It helps in remotely managing the mental health of people undertaking novel solutions to handle conditions such as anxiety disorders, depression, eating disorders, post-traumatic stress syndrome (PTSD), and other related issues. Telepsychiatry is considered a viable substitute for face-to-face consultations for short-term care. The concept gained higher momentum and acceptance during COVID-19 as many people and service providers resorted to the use of digital media including video conferencing or phone calls to handle patients. It is one of the most effective ways to improve access to primary mental health care and has registered extensive support from regional government bodies aiming to improve infrastructure in the country to facilitate telepsychiatry.

Although telemedicine, in general, can show promising results, it continues to be impacted by several limitations that currently exist on a global scale such as the lack of access to digital systems including the Internet and achieving the same level of efficiency that in-person care provides. During the forecast period, the industry for telepsychiatry is expected to continue to grow steadily.

Key Insights:

• As per the analysis shared by our research analyst, the global telepsychiatry market is estimated to grow annually at a CAGR of around 26.30% over the forecast period (2023-2030)
• In terms of revenue, the global telepsychiatry market size was valued at around USD 6,302.78 million in 2022 and is projected to reach USD 40,801.56 million, by 2030.
• The market is projected to grow at a significant rate due to the rising social acceptance of mental health disorders
• Based on end-user segmentation, home care was predicted to show maximum market share in the year 2022
• Based on age group segmentation, adult was the leading segment in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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Telepsychiatry Market: Growth Drivers

Rising social acceptance of mental health disorders to propel market demand

The global telepsychiatry market is expected to be driven by the growing social acceptance of mental health disorders. Until a few years ago, several taboos were associated with mental conditions which restricted the number of people that undertook the required medical care to treat these conditions. However, in recent times, the increasing number of public awareness projects initiated by international and regional healthcare organizations along with governments has helped more people accept the importance of undergoing treatment when dealing with emotional well-being.

The World Health Organization (WHO) has established the Special Initiative for the Mental Health covering a period between 2019 to 2023. Through the initiative, the agency plans to improve access to mental health services in low-income countries such as Argentina, Nepal, and Ghana. Telepsychiatry is one of the best possible ways to promote the use of required medical care thus providing support to patients for their emotional and mental well-being since it does not require setting up large-scale centers and can be achieved with minimum investment.

Rising number of patients with mental health disorders to promote service adoption

There are several factors that can trigger or act as the cause of specific mental conditions. These factors include long-term or severe stress, social isolation, childhood trauma or abuse, poverty, social discrimination, and experiencing some form of stigma. Studies indicate that most mental conditions are a result of several environmental and genetic factors. As per statistics reported by WHO, more than 280 million people across the globe suffer from depression. The surging statistics are an indication of growth potential for the global telepsychiatry industry.

Telepsychiatry Market: Restraints

Lack of access to digital systems and high cost of treatment to restrict market growth

The success of telepsychiatry depends on the number of people who have access to modern digital telecommunication systems including phones, tablets, and laptops. Although the number of Internet users has improved over the years, a large part of the population lacks access to these technologies, especially in low-income countries or regions suffering from socio-political duress.

In addition to this, telepsychiatry can be expensive as consultation fees are generally high and can add to the cost burden if the patient does not have access to medical insurance. As per research, an average telemedicine appointment may cost between USD 40 to USD 90 per session.

Telepsychiatry Market: Opportunities

Increasing launch of new and sophisticated digital solutions may deliver high-growth opportunities

The global telepsychiatry market players can expect several growth opportunities as the number of new solution providers continues to add to the market with innovative features. The trend is likely to create a new set of consumer base by eliminating the current drawbacks of the existing solutions.

For instance, in January 2023, Teladoc Health, a multinational company operating in the telehealth and virtual healthcare segment, announced that it was launching a new integrated application that would provide its customers access to all its services in one application and a single account. Some of the features included in the app are chronic and mental condition management along with primary care. Such measures improve product cost efficiency as customers do not have to create separate accounts for different medical conditions.

In February 2023, the Indian government introduced the eSanjeevani OPD app specifically targeting the rural population of the country and boosting access to healthcare. In a breakthrough development, another company operating in the sector under the name Oraichain launched BlockAI.Care. The company is a prominent Artificial Intelligence (AI)-powered blockchain and Oracle ecosystem supplier and the application will perform by integrating several AI-powered models in one platform as it keeps track of a person's mental and physical well-being. Such strides are expected to open new avenues for a better growth rate.

Telepsychiatry Market: Challenges

Training medical professionals and achieving effectiveness using telepsychiatry may challenge the market growth trend

The key challenge existing in the global telepsychiatry industry is developing and providing an efficient training program to medical professionals handling sensitive mental health cases online or through digital mediums. In severe cases requiring long-term assistance, face-to-face conversations and appointments tend to be more effective since the patient can achieve a better sense of personal connection with the therapist. Achieving such a comfort level online can be difficult particularly if a patient is conversing with the therapist for the first time. Market players should focus more on achieving high efficiency if telepsychiatry applications have to thrive.

Telepsychiatry Market: Segmentation

The global telepsychiatry market is segmented based on end-user, age group, product type, and region.

Based on end-user, the global market is segmented into specialty care settings, community mental health centers, home care, and others. In 2022, the home care segment was the leading revenue generator. Patients are more comfortable talking to medical professionals about mental conditions in a known environment and home tends to offer the level of ease required for intense conversations. Additionally, the main aim of telepsychiatry is to promote remote access to mental health thus home care settings serve the purpose. In 2021, around 21.65% of the US population was undergoing mental health treatment in offline and online forms.

Based on product type, the global telepsychiatry industry divisions are crisis solutions, routine solutions, forensic solutions, and in-home solutions.

Based on age group, the global market is divided into geriatric, adult, and pediatric. In 2022, the adult segment was the highest revenue-generating. This is mainly due to the prevalence of a higher awareness rate especially in the current adult population. However, the geriatric age group that starts from the age of 65 years is also highly susceptible to mental health conditions caused by loneliness and other external factors. During the forecast period, all three segments are expected to grow significantly.

Telepsychiatry Market: Report Scope

Telepsychiatry Market: Regional Analysis

North America to garner the highest revenue during the anticipated period

The global telepsychiatry market will be dominated by North America during the forecast period. The US and Canada regions will be the leading regions in North America mainly due to the presence of several telepsychiatry solutions providers in these countries. As per Mental Health America, more than 50 million US citizens experience some form of mental illness. In addition to this, as per the American Psychiatric Association, the region is home to over 45000 registered psychiatrists operating in the country. The higher social acceptance of mental health and increasing government initiatives to promote further awareness will help the region gain significant momentum in the coming years.

In September 2023, the current U.S. Department of Health and Human Services (HHS) along with other national agencies such as the Administration for Children and Families (ACF) and Substance Abuse and Mental Health Services Administration (SAMHSA) announced a grant of USD 206 million that will be used toward youth mental health. The higher access to digital telecommunication systems across age groups aids regional market growth trends. In August 2023, e-commerce giant Amazon announced the launch of its digital clinic service under the name of Amazon Clinic throughout the country.

Telepsychiatry Market: Competitive Analysis

The global telepsychiatry market is led by players like:

• InTouch Health (now part of Teladoc)
• Teladoc Health
• BetterHelp
• American Well
• Breakthrough
• MDLIVE
• Talkspace
• Therapists.com
• Doctor On Demand
• iCouch
• e-Psychiatry
• Amwell
• Virtual Psych Center
• Ginger
• Regroup Therapy

The global telepsychiatry market is segmented as follows:

By End-User

• Specialty Care Settings
• Community Mental Health Centers
• Home Care
• Others

By Product Type

• Crisis Solutions
• Routine Solutions
• Forensic Solutions
• In-Home Solutions

By Age Group

• Geriatric
• Adult
• Pediatric

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