The global digital mental health market is projected to grow at a CAGR of 28.6% over the next six years. One of the key factors contributing to the growth of the global digital mental health industry is the implementation and acceptance of addressing core areas of human health and disease, both from a user traction perspective and in terms of evidence generation and investment.
Digital Mental Health Market
The possibility for digital transformation in mental health is one of the most significant of all of healthcare. This is partly due to the fact that most mental health services are limited to verbal exchanges that may easily be offered. More importantly, it is because in the words of The Lancet Commission on Global Mental Health and Sustainable Development ––“all countries are developing countries”. There exists a gap between what people need and what current systems can give in high-middle-income and low-income nations that can be bridged by a technological revolution in access, quality, and involvement. Digital mental health tools are crucial and are becoming integral part of modern health systems.
Due to significant access barriers of cost and stigma, as well as pharma companies’ struggles to generate effective medications, mental health has not been in a priority for a long time. There is a growing body of empirical evidence that poor mental health can both cause and induce the appearance of other illnesses. The necessity for healthcare stakeholders and consumers to focus on their mental health has been underlined by research at the intersection of inflammation, cognitive function, and numerous disorders. However, globally substantial worries about privacy, data security, and computer safety are impeding the full digitization of healthcare services. An increase in the frequency and complexity of cyberattacks is projected to hinder the worldwide mental health market in the coming years.
On the basis of Deployment, Tele psychiatry held the major share of the global digital mental health market. The quick and widespread adoption of tele psychiatry in the post-COVID-19 world could provide a viable solution to bridge the gap between the availability and need for mental health specialists and interventions. The mental health Chatbots and VR/AR based therapy is expected to grow at the significant rate during the forecast period (2021-2027). Also there is a rise in internet penetration and mobile use as a result of low-cost availability and increased end-user awareness about the advantages of using Chatbots. According to the GSMA, approximately 63 percent of the global population will be online in 2020. In addition, from 2.5 billion in 2016, the number of mobile users worldwide increased to 3.5 billion in 2020.
On the basis of Region, the North America market for digital mental health is expected to remain largest over the forecast period, Factors such as rise in usage of mobile apps to gather healthcare information, high adoption of social network embedded chatbots, and large investments by healthcare technology developers to boost the digital healthcare industry are driving the growth of the digital mental health market in North America. Partners interested in digital mental health enterprises include national health systems aiming to address public health requirements, corporations looking to boost their employees’ productivity and resilience, and insurance looking to cut costs. These developments tend to support more investment and put the region at the forefront of digital healthcare space.
- Telemedicine giant American Well acquired Aligned Telehealth in November 2019 to bolster its behavioural health and telepsychiatry capabilities reportedly making them the largest offering of this type in the US A JAMA review of telemedicine service growth in commercially insured populations in the US found that 53 of telemedicine consultations identified were tele mental health interactions
- In January 2020 Octopus Ventures estimated a fivefold increase in digital mental health solutions investment in the past 6 years bringing us to 580 USD Million in 2019 with total deal count also tripling in the same time frame