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The global behavioral health software market size is estimated to increase by USD 2.07 billion growing at a Compound annual growth rate (CAGR) of 13.5% between 2022 and 2027. 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.
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This market research report extensively covers market segmentation by component (software and support services), end-user (providers, payers, and patients), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
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.
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The software segment was valued at USD 1.17 billion in 2017 and continued to grow until 2021. 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.
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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.
The Global Behavioral Health Care Software and Services Market is witnessing significant growth driven by various factors, including government funding and behavioral health reforms in the United States. With the increasing adoption of mental health software and EHRs in psychiatry hospitals and facilities, providers are better equipped to address mental health services amidst provider shortages. Management software and integrated EHRs streamline the treatment of mental well-being issues, while tele-mental health and real-time monitoring systems enhance access and monitoring. Modern technologies offer diverse therapy modalities, combating substance abuse situations and substance addiction disorders. With organizations like the Lancet Commission and WHO highlighting the global cost of mental illness treatment, there's a growing emphasis on addressing economic costs. Telepsychiatry and tele-mental health initiatives are gaining traction, not only in the US but also internationally, including Canada's Centre for Addiction and Mental Health, reducing paperwork, managing revenue cycles, and mitigating drug errors for comprehensive mental health solutions.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
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. 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.
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.
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 is experiencing significant growth, driven by factors such as government funding and behavioral health reforms in the United States. Mental health software and EHR adoption are crucial in psychiatry hospitals and facilities, addressing provider shortages and streamlining management with integrated EHRs and real-time monitoring systems. Modern technologies offer diverse therapy modalities, tackling substance abuse situations and substance addiction disorders. With increased attention from organizations like the Lancet Commission and World Health Organization (WHO), there's a growing awareness of the global cost of mental illness treatment and economic impacts. Integrated software solutions enhance workflow efficiency, reduce paperwork, and manage revenue cycles effectively, benefitting community clinics and healthcare providers worldwide. Additionally, the rise of mobile apps and internet access facilitates clinical and administrative functions, simplifying tasks such as claim filings and documentation.
The market forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Behavioral Health Software Market Scope |
|
Market Report Coverage |
Details |
Page number |
146 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.5% |
Market growth 2023-2027 |
USD 2.07 billion |
Market structure |
Fragmented |
YoY growth (%) |
12.5 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 43% |
Key countries |
US, China, Japan, UK, and Germany |
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 growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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