Global Digital Behavioural Health Market Outlook (2024 – 2030)

The Global Digital Behavioural Health Market witnessed a valuation of USD 137.94 Billion and is anticipated to achieve USD 820.01 Billion by the conclusion of 2030. The market is poised for a noteworthy growth trajectory with a projected CAGR of 29% during the forecast period from 2024 to 2030.

Industry Overview

Individuals are increasingly seeking therapy as stress, anxiety, and depression continue to rise in prevalence. Consequently, healthcare establishments are employing sophisticated systems to monitor behavioral and mental health, including diverse software solutions. According to data from the World Health Organization (WHO) in 2019, depression stands as the most prevalent mental illness globally and ranks among the leading causes of disability worldwide. The statistics indicate that depression currently affects 264 million individuals worldwide.

Moreover, the concerted efforts of healthcare professionals in delivering superior patient care, initiatives for behavioral health improvements, augmented governmental support for advancing behavioral healthcare services, the introduction of new products and services, and collaborations among market entities are fueling substantial progress within the overall market landscape. An example is the collaborative venture between Ehave Inc. and Cognitive Apps Software Solutions Inc., established in January 2021 to introduce its AI-based Workforce Mental Health Analytical Platform across G20 nations. Consequently, market expansion is expected to gain momentum throughout the forecast span.

Industry Response to Covid-19

The ongoing COVID–19 pandemic has elicited reports of heightened tension, anxiety, despair, frustration, and apprehension among populations, potentially contributing to a surge in mental health concerns. This anticipated increase in individuals grappling with mental health conditions is expected to drive the growth of online platforms tailored for treatment and diagnosis within the behavioral/mental health software sector. An illustrative initiative is the collaboration between the University of North Carolina (UNC) and Google Cloud, resulting in the development of Heroes Health, a mental health application designed for first responders and healthcare professionals, launched in July 2020.

The escalating stress scenarios necessitating mental health management, government funding and incentives encouraging Electronic Health Record (EHR) utilization in behavioral health facilities, and progressive healthcare reforms serve as pivotal drivers propelling market expansion over the forecast horizon. Additionally, the COVID-19 crisis has underscored the importance of mental health EHR systems in crisis management. For instance, in March 2020, Credible Mental Health partnered with Change Healthcare to provide a complimentary EHR software solution to behavioral health organizations grappling with the challenges posed by the COVID-19 situation. These factors collectively forecast a robust growth trajectory for the sector in the forecast period.

Market Drivers

Rising Adoption of Behavioral Health Software

The burgeoning adoption of behavioral health software is a key impetus propelling growth in the digital behavioral health market. Governments are increasingly concerned about the soaring healthcare costs associated with treating mental illnesses or behavioral health challenges. Depression, a prevalent mental disorder impacting over 264 million individuals globally, underscores this concern. In 2020, the global expenditure on treating mental disorders reached USD 2.5 trillion, a figure projected to escalate to USD 6 trillion by 2030 (Source: Lancet Commission). Furthermore, major mental illnesses are anticipated to result in a USD 193.2 billion loss in earnings annually in the United States (Source: National Alliance of Mental Illness). In Canada, mental health issues incur an annual cost exceeding USD 42.4 billion (CAD 51 billion) (Source: Centre for Addiction and Mental Health).

The primary contributors to high treatment costs are the necessity for and proliferation of unnecessary documentation (leading to clinician productivity loss) and inefficient revenue cycle management within behavioral health establishments. Addressing these challenges has spurred heightened interest in and adoption of behavioral health software solutions. These solutions aim to reduce prescription errors and paperwork, enhance productivity through swift access to patient data, optimize workflow efficiency, and curtail healthcare expenditures. These benefits have catalyzed the adoption of mental health software, particularly among prominent hospitals and community clinics.

Emerging Demand for Mental Health Support

Emerging regions such as Asia Pacific, Latin America, the Middle East, and Africa present significant growth avenues for participants in the behavioral health software industry, particularly those unable to meet the stringent requirements set by the United States federal government. In Australia, healthcare providers are encouraged to embrace Electronic Medical Record (EMR) and Electronic Health Record (EHR) technologies owing to governmental initiatives aimed at standardization, regulatory frameworks, and infrastructure development. Several measures have been undertaken by the Australian government to promote IT utilization in healthcare, aiming to minimize errors and enhance efficiency. For instance, the state of South Australia launched the "reconnect. sa" campaign in March 2013, aimed at interlinking all EHR systems within the state as part of the National E-Health Strategy. The Australian government allocated USD 485.1 million in the 2015-16 Federal Budget to enhance eHealth governance processes (Source: Australian Digital Health Agency). Such initiatives in Australia have been instrumental in augmenting the adoption of EMRs and EHRs.

Market Restraints

Data Privacy Concerns

Privacy concerns regarding data represent a significant market restraint, particularly within the mental health sector. Behavioral health practitioners are bound by stringent regulations preventing the disclosure of information concerning patients grappling with mental illnesses or substance misuse to unauthorized individuals not involved in the patient's treatment. The integration of data using behavioral IT solutions renders patient data accessible to any healthcare practitioner unrelated to the specific case. In the United States, the HIPAA Journal reported 365 healthcare data breaches in 2018, marking a 68% increase from the total breaches documented in 2012. HIPAA-covered entities and business associates paid approximately USD 28.7 million for HIPAA violations in 2018, according to the HIPAA Journal.

Financial Constraints in Emerging Economies

Healthcare institutions, particularly in emerging economies, face formidable challenges in navigating budgetary constraints. However, the voluminous data maintained has elevated IT infrastructure to a foundational element within healthcare organizations. Behavioral health software solutions presently constitute somewhat costly investments. Maintenance and software update expenses for these systems can occasionally surpass the initial purchase price. Support and maintenance services, encompassing software updates to align with evolving user requirements, represent recurrent expenditures that may account for over 30% of the total cost of ownership. This renders it challenging for behavioral health organizations to justify expenditure, particularly when prioritizing the establishment of EHRs and upgrading Revenue Cycle Management (RCM) systems, at least in the near term.

In the Global Digital Behavioral Health Market - By Components

• Services for Assistance
• Programs
• Integrated Programs
• Independent Programs

The sector of behavioral health software is categorized into programs and services for assistance based on its components. It is expected that the services for assistance segment will dominate the behavioral health software market in 2021. The continual requirement for services such as software updates and maintenance serves as a major driver for its growth.

Global Digital Behavioral Health Market - By End-Users

• Community Clinics
• Hospitals
• Private Practices

The behavioral health software industry has been segmented into community clinics, hospitals, and private practices based on end-users. The community clinics segment is forecasted to hold the largest share in 2021. The utilization of behavioral health software in this sector is expected to be fueled by expanding governmental measures to support these establishments and the growing preference of patients for community clinics.

Global Digital Behavioral Health Market - By Geographical Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

North America holds the largest revenue share in the surveyed market and is projected to maintain this position throughout the forecast period. The adoption of software related to behavioral/mental health is on the rise as the burden of sadness and stress stemming from professional or personal life increases. As per Mental Health America 2020, more than 45 million individuals in the United States are affected by a mental health condition, which accounts for 18.57 percent of the population. Additionally, the number of young individuals experiencing major depressive episodes (MDE) increased by 99,000 compared to the previous year's figures.

Moreover, market participants are consistently introducing new products and employing various growth strategies to fortify their position in the field. TELUS Health launched Espri, a new mental health application, in October 2020 to cater to the growing mental health needs of Canadian first responders and healthcare personnel.

Global Digital Behavioral Health Market - By Companies

1. Cerner Corporation
2. Core Solutions, Inc.
3. Epic Systems Corporation
4. Mindlinc
5. Netsmart Technologies, Inc.
6. NextGen Healthcare Information Systems LLC
7. Qualifacts Systems, Inc.
8. Valant, Inc.
9. Welligent Inc.

RECENT NOTABLE EVENTS IN THE GLOBAL DIGITAL BEHAVIORAL HEALTH MARKET:

• Business Expansion: In February 2021, CloudMD Software & Services Inc., a Canadian health technology company, expanded its mental health services into the United States with the launch of its innovative software "Snapclarity."
• Product Development: In February 2021, Battery Ventures created a cloud-based software platform for mental health institutions and special education groups to help enhance operational efficiency in the behavioral health and human services sector.