Enjoy complimentary customisation on priority with our Enterprise License!
The global behavioral health software market size is estimated to increase by USD 2.82 billion, at a CAGR of 15.7% between 2023 and 2028. The growth of the market depends on several factors, including increasing adoption of Electronic Health Records (EHRs), a growing number of behavioral health issues, and improving turnaround time efficiency. The market is at the initial growth stage and is expected to grow at a very high rate during the forecast period. Owing to significant growth opportunities, the presence of large Companies, the entry of new Companies, technological innovations, and partnerships, competition is moderate in the market. Established market Companies are expected to acquire or enter into partnerships with small Companies to expand their product portfolios, enter emerging markets, and increase their market shares.
View the Bestselling Sample Report
The market share growth by the software segment will be significant during the forecast period. The software segment dominated the market in 2022. Increasing mental illnesses such as depression, stress, anxiety, substance abuse, and addiction will drive the segment growth during the forecast period.
Get a glance at the market contribution of various segments View PDF Sample
The software segment was valued at USD 1.28 billion in 2018. The software allows custom design and treatment plans for a person suffering from mental illnesses based on clinical evidence and related patient records like EMRs. Growing adoption of telehealth and increasing smartphone penetration is further expected to propel the segment growth during the forecast period.
For more insights on the market share of various regions View PDF Sample now!
North America is projected to contribute 43% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is expected to grow, owing to the emerging technologies for behavioral health management, rising awareness regarding substance abuse, and rising spending on healthcare. For instance, in 2021, US healthcare spending increased by 9.6% as compared to 2020. This was primarily due to the high spending associated with treating behavioral health-related disorders. Rising investments in healthcare and the introduction of various government policies are increasing the adoption of digital health technologies, such as behavioral healthcare information software, which, in turn, is driving the growth of the market in focus.
In the realm of mental illness treatment and behavioral health reforms, streamlined paperwork and enhanced support services segments are crucial. Psychiatry hospitals and facilities rely on mental health software and management software for efficient operations and patient care. Integrated EHRs and real-time monitoring systems ensure comprehensive patient management and treatment monitoring. Addressing substance abuse situations requires modern technologies and diverse therapy modalities tailored to substance addiction disorders. Mental health solutions integrate tools for managing drug errors and improving patient outcomes. The emphasis on mental health software enhances diagnosis precision and treatment efficacy, supporting practitioners in delivering personalized care. Behavioral health reforms advocate for integrated approaches to tackle complex mental health challenges, leveraging technology to streamline processes and improve access to care across psychiatry hospitals and facilities.
The market experiences notable growth due to the increasing adoption of EHRs, which serve as digital repositories for patients' medical information. EHRs and EMRs store patient data electronically, streamlining hospital workflows and granting automated access to information across connected devices. Physicians leverage EHRs to access comprehensive medical histories, diagnoses, medications, treatment plans, and test results. This integration reduces medical errors and enhances record accuracy and clarity.
Moreover, many hospitals prioritize EHR implementation to mitigate data replication risks and update databases automatically. Government organizations worldwide, including India's recent digital health mission launch, promote EHR use, fostering market growth. The rising utilization of EHRs is poised to propel market expansion, especially in the global sector.
The emergence of virtual behavioral/mental health services is the key trend in the market. Telepsychiatry or telemental health services refer to the usage of telecommunications or videoconferencing technology for the remote delivery of psychological support and services or psychiatric assessment and care. These services can be delivered through telephone or the Internet using email, online chats, or videoconferencing. These services help improve access to care for individuals that have mental health issues, especially those living in remote locations or underserved areas.
Moreover, tele-mental health services benefit patients who cannot leave their homes due to illness, emergencies, or mobility problems. They also enable providers of mental health services to support their patients or clients between scheduled visits. The market is an emerging competitive market marked by the presence of both established and new players. Established Companies operating in the market have expanded their offerings and now provide telehealth services in addition to inpatient and residential treatment services. These Companies have adopted both organic and inorganic growth strategies, including launching new products and services and acquisitions to improve their market shares.
Concerns about the security of patient data and cyberattacks is the major challenge impeding market growth. Cybersecurity is a significant threat to the healthcare industry. The advent of new technologies has intensified the threat of cyberattacks. This is a major challenge for all technology-driven industries, especially the healthcare industry, as it involves the personal and sensitive data of patients. Several healthcare organizations are reluctant to adopt digital technologies owing to concerns about such threats. The interconnected nature of modern healthcare systems creates security risks, and the availability of a large volume of data makes the healthcare industry a target for cybercriminals and hackers.
However, healthcare data can be gathered for personal use or sold to third parties. In 2021 there was a significant increase in healthcare data breaches, with incidents that took down networks for weeks at a time and potentially led to disruptions of care throughout countries such as the US. More than 40 million patient records were compromised by incidents reported to the federal government in 2021. Such issues are expected to hinder the growth of the market in focus during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Netsmart Technologies Inc. - The company offers behavioral health software which provides an enterprise system to automate financial, clinical, and management processes.
The market growth and forecasting report also includes detailed analyses of the competitive landscape and information about 15 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
You may also interested in below market reports:
The market is expanding with increased EHR adoption among behavioral health organizations and medical professionals. This sector benefits from EMR and EHR technology tailored to hospitals and private practices, offering integrated and standalone software solutions. Subscription models and varied ownership options cater to different organizational needs, supporting clinical functionality such as clinical decision support and care plans. Administrative tools like client scheduling and revenue cycle management streamline operations, while tele mental health and virtual care solutions enhance accessibility through telemedicine and mobile mental health apps. The market's growth is driven by evolving reimbursement policies under Medicare, responding to smartphone and internet penetration among the geriatric population seeking improved real-time monitoring and E Prescribing capabilities in behavioral health settings.
Further, the market is evolving to meet the complex needs of healthcare providers in hospitals, community clinics, and behavioral health practices. Integrated software solutions offer robust administrative functionality including document or image management, case management, and business intelligence for optimized operations. These systems also support financial functionality such as managed care, accounts payable, and payroll management, crucial for managing reimbursements under Medicare policies. Clinical functions like real-time monitoring systems and EHR systems enhance patient care and reduce medication errors, while mobile versions cater to on-the-go healthcare delivery. Subscription-based models offered by EHR providers ensure scalable solutions that adapt to varying reimbursement scenarios. As the market expands, emphasis on clinical, administrative, and financial functions underscores the importance of tailored software solutions in improving patient outcomes and operational efficiency in behavioral health settings.
Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.7% |
Market growth 2024-2028 |
USD 2.82 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.76 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 43% |
Key countries |
US, UK, Germany, China, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accumedic Computer Systems Inc., Advanced Data Systems Corp., ALLSCRIPTS HEALTHCARE SOLUTIONS INC., Core Solutions Inc., Credible Behavioral Health Inc., Epic Systems Corp., EverCommerce Inc., Global Payments Inc., Holmusk USA Inc., Kareo Inc., Meditab Software Inc., Netsmart Technologies Inc., Ontrak Inc., Oracle Corp., Raintree Systems Inc., The Echo Group, Valant, VSS Medical Technologies Inc., WellSky Corp., and WRS Health |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.