Mental Health Software Devices Market

Market CAGR for mental health software and devices is driven by the expanding proportion of people experiencing mental health issues. Rising mental illness is anticipated to fuel demand for mental health software and device software. Distress or problems completing tasks at work, in the home, or social situations are the causes of these disorders. Mental health software and devices software creates new ways of thinking by highlighting false and true premises and correcting false perceptions.

For instance, the World Health Organisation, a US-based government institution, reported on global mental health in June 2022 that 970 million people had a mental condition worldwide in 2019. The mental health software and devices market will grow as mental illness becomes more prevalent.

The increasing recognition of mental health issues globally is a primary driver of the Global Mental Health Software and Devices Market Industry. Governments and organizations are prioritizing mental health, leading to enhanced funding and resources for mental health initiatives. This growing awareness is reflected in the rising demand for software and devices that facilitate mental health care. As of 2024, the market is valued at 6.88 USD Billion, indicating a robust interest in mental health solutions. The emphasis on mental well-being is likely to continue, fostering innovation and expansion within the industry.

The integration of mental health services into primary care settings is gaining traction, significantly influencing the Global Mental Health Software and Devices Market Industry. This approach facilitates early detection and treatment of mental health conditions, promoting a holistic view of health. As healthcare systems worldwide adopt this model, the demand for software and devices that support integrated care is likely to rise. This trend not only improves patient outcomes but also enhances the efficiency of healthcare delivery. The growing recognition of mental health's role in overall health is expected to drive further investment and innovation in this sector.

The demand for remote mental health services is escalating, particularly in light of the need for accessible care options. This trend is a crucial driver of the Global Mental Health Software and Devices Market Industry. Remote services, including teletherapy and mobile applications, provide individuals with convenient access to mental health support, especially in underserved areas. The market's growth reflects this shift, as more individuals seek flexible and immediate mental health solutions. The increasing reliance on digital platforms for mental health care is expected to continue, further propelling the industry's expansion.

Investment in mental health technologies is surging, driven by both public and private sectors. This trend is a significant catalyst for the Global Mental Health Software and Devices Market Industry. Governments are allocating more resources to mental health initiatives, while private investors recognize the profitability of mental health solutions. The anticipated compound annual growth rate (CAGR) of 16.2% from 2025 to 2035 highlights the growing confidence in the market's potential. This influx of capital is likely to spur innovation and the development of new software and devices, ultimately enhancing mental health care accessibility and quality.

Technological innovations are transforming the landscape of mental health care, significantly impacting the Global Mental Health Software and Devices Market Industry. The integration of artificial intelligence, machine learning, and telehealth capabilities enhances the effectiveness and accessibility of mental health solutions. These advancements enable personalized treatment plans and real-time monitoring of patients' mental health. As a result, the market is projected to grow substantially, with an anticipated value of 35.9 USD Billion by 2035. This growth underscores the potential of technology to improve mental health outcomes and expand the reach of mental health services.

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American mental health software and devices market area will dominate this market. This is brought on by substantial market participants, a strong infrastructure, and the growing weight of stress and despair. National Institute of Mental Health predicted that in January 2022, in the United States 2020, at least 21.0 million adults had at least one major depressive episode.

Further, the major countries studied in the market report are US, Canada, France, German, Italy, UK, Spain, Japan, China, Australia, India, South Korea, and Brazil.

Figure 2: MENTAL HEALTH SOFTWARE AND DEVICES MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe’s mental health software and devices market account for the second-largest market proportion because of the increased behavioral problem prevalence, easier access to mental health care, and government campaigns to raise behavioral health awareness. Adopting technology and IT solutions in healthcare throughout developed and developing regions in Europe is the main factor driving demand for mental health software. Further, the German mental health software and devices market held the major market share, and the UK mental health software and devices market was the rapidly growing market in the European region.

The Asia-Pacific Mental Health Software and Devices Market is expected to expand significantly from 2023 to 2032. Regional expansion is predicted to be fueled by rising older populations in China and Japan, increasing smartphone and internet usage, and combined factors. Moreover, China’s mental health software and devices market held the major market share, and the Indian mental health software and devices market was the rapidly growing market in the Asia-Pacific region.

Leading market players are largely investing in research and development to expand their product lines, which will help the mental health software and devices market, grow even more. The launch of new products, larger-scale mergers and acquisitions, contractual agreements, and collaboration with other organizations are significant market developments in which market participants engage to increase their global presence. The mental health software and devices industry must provide affordable products to expand and thrive in a more competitive and challenging market environment.

One of the major business strategies manufacturers use in global mental health software and devices industry to increase the market sector and benefit customers is local manufacturing to lower operational costs. In recent years, the mental health software and devices industry has stipulated some of the most important medicinal benefits.  Major players in the mental health software and devices industry, including Nextgen Healthcare (US), Credible Behavioral Health (US), Orion Health (New Zealand), Mckesson Corporation (US), and others, are funding operations for research and development to boost market demand.

Calm is a sleep, meditation, and relaxation program that helps users reduce anxiety and live more peacefully. The company's app offers original audio material, tales, and programs that address some of today's most pressing mental health issues, such as anxiety, stress, and sleeplessness, allowing users to overcome stress, live joyfully, and live a healthy life. In October 2022, Calm, the subscription-based mindfulness app, launched Calm Health, its first clinical mental health solution. Calm Health, available through payers, providers, and self-insured companies, contains condition-specific programs aimed to "bridge the gap between mental and physical healthcare."

American Well Corp is a telehealth company that allows its consumers to receive care digitally. Its platform, Amwell, enables care delivery across the entire healthcare continuum, from basic and emergency care in the home to high acuity specialty consults in the hospital, like telestroke and telepsychiatry. It offers health systems, health plans, governments, and innovator clients the resources they need to enable novel forms of treatment for their patients and members. In August 2021, American Well finalized the acquisition of SilverCloud Health and Conversa Health, a leading provider of digital mental health platforms.

The acquisition aims to improve and increase physical and virtual care integration, consequently increasing its market position.