US - Behavioral Health Market by End-user, Type and Age Group - Forecast and Analysis 2023-2027

US Behavioral Health Market Forecast 2023-2027

The US behavioral health market size is estimated to grow by USD 8.26 billion at a CAGR of 4.09% between 2022 and 2027. The Market is experiencing growth propelled by rapid urbanization and technological advancements, leading to an increased prevalence of addictions and behavioral disorders. These disorders encompass a wide range, including substance use disorders like drug and alcohol abuse, as well as behavioral addictions such as gaming, pornography, and work addiction. These unhealthy habits often lead to social dysfunction and negatively impact individuals' lives. With the rise in internet usage and the availability of smartphones, societal impairments due to excessive screen time are becoming more prevalent. As a result, there's a growing demand for mental health support and telehealth-based treatments, offered by companies like Acadia Healthcare, Ginger, and Talkspace, Inc. The market is also witnessing increased healthcare IT adoption and the utilization of digital tools to enhance patient care and support mental care professionals in providing effective treatment.

What will be the size of the US Behavioral Health Market During the Forecast Period?

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Market Segmentation by End-user, Type and Age Group Analysis

Technavio has segmented the market into End-user, Type, and Age Group

• The end-user segment includes inpatient hospital treatment services, outpatient counseling, home-based treatment services, and emergency mental health services
• The type segment includes substance abuse disorders, alcohol use disorders, eating disorders, ADHD, and others
• The age group segment includes adult, geriatric, pediatric

It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.

End-user Analysis

Inpatient hospital treatment services

The market share growth by the inpatient hospital treatment services segment will be significant during the forecast period. Inpatient behavioral treatment involves the use of medications and regular check-ups to diagnose the symptoms of issues or addiction. Inpatient behavioral treatment involves shorter stays when compared with residential or home-based treatment services. The high number of hospital admissions due to substance abuse will drive the growth of the segment.

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The inpatient hospital treatment services segment was valued at USD 12.18 billion in 2017. Moreover, the high prevalence of these conditions such as anxiety, depression, substance use disorder, attention-deficit/hyperactivity disorder (ADHD), bipolar disorder, and more in the US is expected to fuel the growth of the inpatient hospital treatment segment. Hence, the rising number of cases of severe issues in the US is expected to drive the growth of the market during the forecast period.

Type Segment Analysis 

Substance abuse disorders

Substance abuse disorders affect the person's brain and behavior, which shows having no control over consuming substances such as drugs or medications. This type of disorder requires individualized treatments that can address the symptoms by referring to the root cause of the disorder. The rising consumption of drugs is further expected to fuel the demand for treatments for substance abuse disorders. Furthermore, the number of patients seeking assistance for substance use disorder treatment is increasing due to the growing prevalence of these issues, which will drive the growth of the substance abuse disorders treatment segment, which will thereby boost the growth of the market during the forecast period.

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Key US Behavioral Health Market Players 

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. The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

2Morrow Inc: The company offers behavioral health solution such as digital health and wellbeing programs to employers, states and health plans.

• Acadia Healthcare Co. Inc.
• AHS Management Co. Inc.
• American Addiction Centers
• BHG Holdings LLC
• Core Solutions Inc.
• CuraLinc Healthcare
• EPIC Behavioral Healthcare
• HCA Healthcare Inc.
• Holmusk USA Inc.
• Impact Suite
• Integrated Behavioral Health
• Meditab Software Inc.
• Netsmart Technologies Inc.
• Oracle Corp.
• Promises Behavioral Health LLC
• QUALIFACTS SYSTEMS LLC
• Universal Health Services Inc.
• Pyramid Healthcare Inc.
• Sevita

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.

Market Dynamics and Customer Landscape

The Market is experiencing significant growth, driven by increasing awareness and recognition of mental health disorders such as anxiety, depression, substance use disorders, and eating disorders. Organizations like the Centers for Disease Control and Prevention (CDC) are actively promoting mental health awareness and the importance of seeking treatment. The rise of telehealth-based treatments and virtual care services, supported by companies like Acadia Healthcare, Ginger, and Headspace, has made mental health support more accessible than ever before. Moreover, digital tools and platforms like Talkspace, Inc. and Talkspace Self-Guided are empowering individuals to seek help and manage their mental health effectively. With the adoption of healthcare IT and electronic health records (EHR), healthcare facilities and mental care professionals can better manage patient data and provide personalized treatment plans, marking a significant advancement in the behavioral health landscape. There are multiple factors influencing market growth. Our researchers analyzed the data with 2022 as the base year, along with the key trends, and challenges. 

Significant Market Trends

The advent of online counseling is the primary trend shaping market growth. As the penetration of the Internet is increasing significantly across the globe, medical professionals are providing treatments for behavioral disorders via mobile applications and online video calling. The adoption of online counseling is also increasing due to the increase in awareness of behavioral disorders.

Moreover, online applications and video calls permit medical professionals to conduct therapy sessions that are similar to therapy sessions conducted in person. They consult patients to determine the type of treatment based on the patient's requirements. Therefore, the advent of similar online counseling services, which reduce the cost of treatment, will drive the growth of the market during the forecast period.

Major Market Challenges

A shortage of skilled professionals in the medical sector is a challenge that affects the growth of the market. The number of skilled professionals who can treat people with behavioral disorders is relatively low when compared with the number of patients. The lack of educational institutions that offer coursework specializing in behavioral disorder therapies, the absence of awareness about different types of addictions, and the low wages and uses for behavioral treatment professionals are the key factors for the shortage of skilled professionals.

Moreover, the shortages of skilled professionals are causing increased unmet demand, which is a challenge to the growth of the market. For instance, a SAMHSA-supported study estimated the shortage of psychiatrists and addiction counselors for 2030 in the US. Hence, the shortage of skilled professionals is expected to impede the growth of the market during the forecast period

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Key Market Customer Landscape

The market 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook 
  • Inpatient hospital treatment services
  • Outpatient counselling
  • Home-based treatment services
  • Emergency mental health services

• Type Outlook
  • Substance abuse disorders
  • Alcohol use disorders
  • Eating disorders
  • ADHD
  • Others

• Age Group Outlook
  • Adult
  • Geriatric
  • Pediatric

Market Analyst Overview

The Market is experiencing significant growth, driven by various factors such as the increasing prevalence of mental health disorders and substance use disorders. With initiatives from organizations like the Centers for Disease Control and Prevention (CDC) and the Commonwealth Fund, there is a growing focus on improving access to mental health support and treatment options. Telehealth-based treatments and virtual care services offered by platforms like Ginger, Headspace, and Talkspace, Inc. are bridging the gap in mental healthcare access, particularly in areas facing a lack of mental health professionals.

Technological advancements, including artificial intelligence and virtual reality tools, are revolutionizing behavioral and mental health services, enhancing diagnostic capabilities and treatment outcomes. However, challenges such as the high cost of treatment and the shortage of mental health professionals persist. Start-up businesses in the behavioral health sector are attracting funding, with investments from entities like Health Catalyst Capital (HCC) and Optum Ventures (OV). Despite challenges, the market shows promise in addressing the growing need for mental health and substance addiction services, supported by advancements in healthcare IT adoption and innovative treatment approaches.

Moreover, the Market in the US is witnessing transformative growth, fueled by advancements in digital tools and improved access to healthcare. With mental illness affecting millions, including those with diagnosable psychiatric disorders like anxiety disorders and PTSD, there's a pressing need for comprehensive behavioral and mental health services. Technology-driven platforms like Talkspace Self-Guided are revolutionizing care delivery, offering convenience and privacy to patients. Additionally, initiatives such as Anthem Insurance Companies' Series A funding in behavioral care practices underscore the sector's growing importance. Integration of electronic health records (EHR) and voice-enabled technology like Amazon Transcribe Medical enhances clinical workflows, reducing cognitive load and minimizing prescription errors. As healthcare expenditure rises, prioritizing behavioral care services becomes paramount, ensuring holistic support for individuals with mental disorders and trauma.

Access to behavioral and mental health services is a critical aspect of public health, particularly concerning illicit drug users. The National Survey on Drug Use and Health provides valuable insights into the prevalence and patterns of substance abuse, guiding policy and intervention efforts. The availability of these services is often influenced by factors such as public health insurance, private health insurance, and out-of-pocket expenses. While Medicare and Medicaid play significant roles in providing coverage for eligible individuals, gaps in access and affordability persist. Addressing the needs of illicit drug users requires a comprehensive approach that ensures equitable access to quality care. This necessitates collaboration between public and private sectors to expand coverage and reduce barriers to treatment. By prioritizing mental health and substance abuse services within healthcare systems, communities can better support individuals in need and promote overall well-being.

US Behavioral Health Market Scope
Report Coverage	Details
Page number	142
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.09%
Market growth 2023-2027	USD 8.26 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	3.79
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	2Morrow Inc, Acadia Healthcare Co. Inc., AHS Management Co. Inc., American Addiction Centers, BHG Holdings LLC, Core Solutions Inc., CuraLinc Healthcare, EPIC Behavioral Healthcare, HCA Healthcare Inc., Holmusk USA Inc., Impact Suite, Integrated Behavioral Health, Meditab Software Inc., Netsmart Technologies Inc., Oracle Corp., Promises Behavioral Health LLC, QUALIFACTS SYSTEMS LLC, Universal Health Services Inc., Pyramid Healthcare Inc., and Sevita
Market dynamics	Parent market analysis, Market forecasting, market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, 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.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across the US
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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