Mental Health Market

Mental Health Market Size and Share:

The global mental health market size reached USD 448.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 573.8 Billion by 2033, exhibiting a growth rate (CAGR) of 2.76% during 2025-2033. North America currently dominates the market, holding a market share of over 56.4% in 2024. The market is experiencing steady growth driven by the rising demand for mental health services and solutions, ongoing advancements in telehealth and digital mental health platforms, beneficial government programs and policies, and growing business attention to workers' mental health.

The mental health market is driven by several factors, including increasing awareness of mental health issues, the rising prevalence of conditions like depression, anxiety, and stress disorders, and the growing acceptance of seeking professional help. Technological advancements, such as telemedicine and mental health apps, have made services more accessible, especially in remote areas. Government initiatives and policies favoring mental health care and rising funding for research and treatment further boost market growth. The impact of the COVID-19 pandemic has heightened the demand for mental health services, as people face heightened stress and isolation. Additionally, employers are prioritizing employee well-being, and promoting workplace mental health programs.

In the United States, the mental health market is driven by rising awareness of mental health issues and an increasing prevalence of conditions, such as anxiety, depression, and PTSD. The increasing integration of mental health into primary care and expanding telehealth services have improved accessibility. Government policies, including the Mental Health Parity and Addiction Equity Act, and increased funding for mental health initiatives are acting as key drivers. The COVID-19 pandemic has significantly heightened the demand for mental health services, emphasizing the need for accessible and affordable care. Additionally, employers are investing in workplace mental health programs, and private sector innovations, including digital therapy apps and AI-driven tools, are meeting consumer demands for convenience and personalization. For instance, in May 2024, a leading worldwide workplace mental health platform Modern Health unveiled its newest collection of routes, which is centered on physical well-being. Modern Health is paving the way for its future as the exclusive platform to promote physical and mental health across all care modalities in a ground-breaking step for the organization.

Mental Health Market Trends:

Increasing Mental Health Awareness

The gradual shift in societal attitudes toward mental health has played a pivotal role in shaping the mental health market. According to the World Health Organisation, 970 million people worldwide suffered from a mental illness in 2019, with anxiety and depression being the most prevalent. As public awareness grows, there has been a substantial reduction in the stigma historically associated with mental health issues. This culture change has given people the confidence to ask for support and assistance for their mental health without worrying about being judged. The destigmatization of mental health represents a significant driver for the market, as more people are recognizing the importance of addressing mental health concerns. This heightened awareness has led to a higher demand for mental health services and solutions, ranging from counseling and therapy to digital mental health apps and telehealth platforms. Furthermore, it has led to significant investments in mental health infrastructure and resources by governments, organizations, and healthcare providers to fulfill this growing need. The lives of those who seek assistance have generally improved as a result of increasing public awareness of mental health difficulties, and the market for mental health services has flourished due to a greater emphasis on easily available and efficient treatments.

Rapid Expansion of Telehealth and Digital Platforms

The field of mental healthcare has entered a revolutionary period in recent years due to the development of telemedicine and the rise of digital mental health platforms. These technological advances represent major drivers of the mental health market by significantly enhancing access to care and support. By eliminating geographic restrictions, telehealth has made it possible for people to communicate with mental health specialists at a distance. This has been especially helpful in underserved or rural areas where access to in-person care may be limited. Digital mental health platforms, including mobile apps and online therapy services, offer convenience and privacy, appealing to a wide spectrum of users. The market has grown because of remote mental health services' increased price, accessibility, and convenience. People can now get help whenever they want, which lowers obstacles to access and raises demand for mental health services in general. Additionally, the recent coronavirus (COVID-19) epidemic has accelerated the use of these technologies and cemented their place as important forces behind the changing mental health environment. For instance, according to a National Institutes of Health research, telehealth claims in the US increased by 4,347% from March 2019 to March 2020. In April 2020, telemedicine accounted for over half of all Medicare primary care visits, a 350% increase over pre-pandemic visit rates.

Rising Focus of Corporates on Mental Well-being

One of the most important drivers in the mental health market is raising awareness about the mental well-being of employees within organizations. Businesses now realize that mental health affects their productivity, job satisfaction, and the bottom line of their company. They are making huge investments into mental health programs and services. The employers now realize that a healthy workforce is also a mentally healthy workforce: it remains more engaged and resilient. With the growing interest from corporations to be proactive and work on supporting employees' mental health, initiatives are being developed as employee assistance programs (EAPs), mental health training, and flexible work arrangements to foster better working environments, reduced absenteeism, decreased turnover, and reduced healthcare expenses. This burgeoning corporate focus is a major catalyst for the growth of the mental health market. It fuels the demand for preventive and therapeutic mental health services within organizations. Beyond that, it contributes to the societal shift in terms of acknowledging and addressing mental health concerns, fostering a more supportive and empathetic work culture. According to statistics from the World Economic Forum's 2023 The Future of Jobs Report, enhancing employee well-being gave businesses a competitive edge in terms of attracting and keeping talent. As per their survey, supporting employee health would help the talent pipeline, according to about 18% of organisations. 14.7% of organisations viewed increasing overtime and working hours as a talent-positive measure. Another 24.4% of businesses claimed that acquiring talent will be aided by clearly communicating the mission and impact of the company.

Mental Health Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on disorder, service, and age group.

Analysis by Disorder:

• Schizophrenia
• Alcohol Use Disorders
• Bipolar Disorder
• Depression and Anxiety
• Post-traumatic Stress Disorder
• Substance Abuse Disorders
• Eating Disorders
• Others

Depression and anxiety leads the market with around 52.3% of market share in 2024. Depression and anxiety dominate the mental health market as the demand for accessible and effective interventions for these conditions underscores the market's significance, prompting continuous advancements in treatment modalities and support services. The demand for accessible and effective interventions for these conditions underscores the market's significance, prompting continuous advancements in treatment modalities and support services. Consequently, ongoing research and innovation and increased awareness are driving the development of new therapies and digital mental health solutions, ensuring that individuals facing depression and anxiety receive the care they need in a rapidly evolving mental health landscape.

Analysis by Service:

• Emergency Mental Health Services
• Outpatient Counselling
• Home-based Treatment Services
• Inpatient Hospital Treatment Services
• Others

Inpatient hospital treatment services lead the market with around 43.5% of market share in 2024. Inpatient hospital treatment services dominate the mental health market owing to their critical role in managing severe mental illnesses and crises. These services offer 24/7 care, ensuring a safe and controlled environment for comprehensive evaluation, stabilization, and treatment, with a rising focus on patient safety and recovery. Their multidisciplinary approach integrates psychiatric expertise and medical support to address complex mental health issues effectively.

Analysis by Age Group:

• Pediatric
• Adult
• Geriatric

Adult lead the market with around 53.5% of market share in 2024. The adult population dominates the mental health market due to the sheer number of individuals seeking care. Adult mental health services encompass a wide range of therapies, counseling, and psychiatric treatments tailored to the diverse needs of this age group. Services often address conditions such as depression, anxiety, and bipolar disorder, offering evidence-based interventions to promote mental wellness and recovery. The demand for adult mental health services is consistently high, supported by increasing awareness and the stresses of modern life.

Regional Analysis

• North America 
  • United States 
  • Canada 
• Asia Pacific 
  • China 
  • Japan 
  • India 
  • South Korea 
  • Australia 
  • Indonesia 
  • Others 
• Europe 
  • Germany 
  • France 
  • United Kingdom 
  • Italy 
  • Spain
  • Russia
  • Others 
• Latin America 
  • Brazil 
  • Mexico 
  • Others 
• Middle East and Africa

In 2024, North America accounted for the largest market share of over 56.4%. North America held the biggest market share as countries like the United States and Canada boast advanced healthcare infrastructures, extensive mental health awareness campaigns, and a significant demand for mental health services. The region's leadership in research and technology has also led to innovative treatment modalities and digital mental health solutions. With a strong emphasis on addressing mental health stigma, providing comprehensive care, and investing in mental health research, North America maintains its position as a global leader in shaping the mental health care landscape.

Key Regional Takeaways:

United States Mental Health Market Analysis

In 2024, the United States accounted for the largest market share of over 91.80% in North America. The primary drivers of the US mental health market are growing awareness of mental health issues, their increasing prevalence, and supportive legislation. According to Johns Hopkins Hospital, about one in four persons, or 26% of Americans aged 18 and over, experience a diagnosable mental illness in any given year. In addition, each year, 9.5% of American adults aged 18 and older may have a depressive illness, including major depression, bipolar disorder, or dysthymia. Nearly 80% of Fortune 500 companies have implemented employee assistance programs due to the growing attention on workplace mental health. Telehealth services for mental health expanded rapidly during the COVID-19 pandemic, increasing access to therapy. Further fueling the growth of the market is various governmental endeavors. For instance, in October 2024, the U.S. government announced additional spending of USD 70 million for enhancing student access to school-based mental health services nationwide. At this time of higher need, these programs remain an essential part of the U.S. Department of Education's (Department) School-Based Mental Health Services (SBMH) and Mental Health Service Professionals Demonstration (MHSP) grant programs.

Today, there are more than millions of active users in the United States of digital mental health solutions like the smartphone applications Calm and Talkspace, whose usage is accelerating. The access to care, especially in remote areas, has been increased through behavioral health centers and the collaboration that has been happening between the public and private sectors.

Europe Mental Health Market Analysis

The main factors driving the mental health market in Europe include public health policies, an increase in mental health cases, and the use of technology. In the WHO European region, more than 150 million people suffer from a mental illness in 2021, and only one in three individuals with depression receive the treatment they require. All countries of the European Union have enforced policies like the EU Mental Health Action Plan towards the improvement of service access for their citizens. Countries such as the UK and Germany are out in front among all other regions with digital means of therapy; these include an online therapy forum and AI-enhanced mental healthcare. Most nations of Europe come with universal health care, promising easy access to mental health. Increasing mental health programs sponsored by employers are a trend; a recent poll conducted in six European countries found that 38% of workers fall under the high-risk category of poor mental health. Telemedicine and internet counseling services rose exponentially following the awareness increase from the pandemic about the issues of mental health.

Asia Pacific Mental Health Market Analysis

The burden of untreated mental diseases, rising awareness, and population growth are driving the mental health industry in Asia-Pacific. According to a study in Nature, mental disorders accounted for 5.0% (4.0–6.1%) of all disability-adjusted life years (DALYs) across Asia in 2019, making them the sixth most common cause of disease burden. Among the mental disorders studied in Asia, the three main components of mental disorder DALYs were depressive disorders (37.1%), anxiety disorders (21.5%), and schizophrenia (13.8%). Governments are starting to set aside funds; nations like Australia and Japan have made significant investments in infrastructure and mental health awareness initiatives. With goals at the national and state levels aimed at more than millions of enhanced accesses to psychiatric services every year, India boasts programs in schools and workplaces where mental health will be introduced for corporate wellness expansions at an astounding rate. Still existing but reducing, cultural stigma is becoming lesser, making this the cause and effect for individuals to seek much-needed help now.

Latin America Mental Health Market Analysis

The major drivers behind the mental health industry in Latin America are surging stress levels, increasing rates of urbanisation, and actions to reduce stigmas of mental health conditions. A report by the National Institute of Health study found neuropsychiatric disorders account for 10.5% of global burden of disease in Latin America. Of all the psychiatric conditions, unipolar depression represents 35.7%, alcoholism 18.2%, schizophrenia 7.8%, bipolar affective disorder 6.6%, and substance abuse 5.6%. Efforts to introduce the treatment of psychiatric disorders as integral parts of the basic healthcare framework have led the countries like Brazil and Mexico to establish national programs for mental health. Improved accessibility can only come through joint partnerships with NGOs as well as local community initiatives. Moreover, the growing prevalence of a significant young population reporting issues with their mental health has brought the growing use of social media by young people into focus on the importance of dealing with mental health.

Middle East and Africa Mental Health Market Analysis

Sociopolitical unrest, urbanisation, and greater awareness are contributing to increased mental health problems across the Middle East and Africa. According to a study published in the International Review of Psychiatry, the 13.1% prevalence of any psychiatric condition in adults and the senior population further supports the need for mental health services across the region. The most prevalent diagnosis among these is major depressive disorder (6.78%), which is followed by obsessive-compulsive disorder (2.32%) and anxiety disorders (4.96%). 7.1% of people used drugs, and 5.4% had a substance use disorder. Governments are giving mental health its due importance. For instance, Saudi Arabia's National Centre for Mental Health Promotion aims to serve more than a million people per year. There is growing public health impact, as well as that of the non-governmental organisations, with an increased emphasis on treatment-seeking behavior and lowering stigma.

Competitive Landscape:

The key players in the market are actively engaging in several initiatives to address the evolving landscape of mental health care. They are investing heavily in research and development (R&D) to create innovative therapies and digital mental health solutions, making care more accessible. These companies are also focusing on expanding their service offerings to cater to a wider range of mental health conditions and demographics. Moreover, they are working to reduce stigma through public awareness campaigns, making it easier for individuals to seek help. These industry leaders are also enhancing their telehealth capabilities to provide remote support and counseling, ensuring that mental health services are readily available to those in need, particularly in light of recent global health challenges.

The global mental health market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Acadia Healthcare
• Ascension Seton
• Behavioral Health Network Inc.
• CareTech Holdings PLC
• North Range Behavioral Health
• Promises Behavioral Health
• Pyramid Healthcare
• Strategic Behavioral Health LLC
• Sevita (The MENTOR Network)
• Universal Health Services Inc.

Latest News and Developments:

• October 2024: Mental Health America, in a strategic collaboration with Otsuka America Pharmaceutical, Inc. (Otsuka), announced the launch of a new Equity Impact Zone (EIZ) grant program purpose to address the mental health equity gaps in the local New Jersey communities.
• January 2024: Acadia Healthcare entered into a joint venture with Ascension Seton to expand behavioral health services in Austin, Texas, and other nearby communities. The joint venture hospital will be nearby Ascension Seton hospitals and is planned to be a training site for students and communities.
• July 2023: Acadia Healthcare Company, Inc. announced a new joint venture partnership with Nebraska Methodist Health System, with plans to construct a cutting-edge, 96-bed behavioral health hospital in Council Bluffs, Iowa. This state-of-the-art facility will significantly expand access to behavioral health services in the region, addressing the growing demand for mental health care.

Mental Health Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, mental health market forecast, and dynamics of the market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global mental health market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the mental health industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.