Online Therapy Services Global Market Report 2024

The online therapy services market size has grown exponentially in recent years. It will grow from $9.57 billion in 2023 to $12.05 billion in 2024 at a compound annual growth rate (CAGR) of 25.9%. The growth observed in the historical period can be attributed to the increasing awareness of mental health, a reduction in the stigma associated with therapy, lifestyle and convenience factors, global events impacting mental health, and the expanding adoption of telehealth services.

The online therapy services market size is expected to see exponential growth in the next few years. It will grow to $31.03 billion in 2028 at a compound annual growth rate (CAGR) of 26.7%. The anticipated growth in the forecast period can be attributed to the ongoing emphasis on mental health advocacy, integration with employer wellness programs, the development of enhanced digital mental health platforms, global challenges in mental health, and supportive government initiatives. Key trends in the forecast period include a focus on specialized therapy areas, regulatory support and telehealth policies, the integration of digital therapeutics, and the evolution of payment and reimbursement models.

The increasing adoption of smartphones is poised to significantly drive the growth trajectory of the online therapy services market in the coming years. Smartphone adoption denotes the expanding number of individuals owning and utilizing these mobile devices. These smartphones, along with text messaging, serve as conduits for delivering treatments for specific psychological conditions through wearable technology and digital applications such as mood trackers, coaching programs, and connected monitors. These tools aid individuals in effectively managing anxiety, cultivating resilience, and fostering greater awareness of their emotional well-being. Mobile health applications complement conventional treatments such as counseling or function as standalone, less formal approaches for users to take charge of their well-being in a blended healthcare model, ultimately propelling the expansion of the online therapy services market. For example, data from Uswitch Limited in September 2022 indicated a notable rise in mobile connections in the UK, reaching 71.8 million in 2022 - a 3.8% increase from 2021. Notably, this surpasses the UK population, suggesting that individuals may possess multiple registered connections (e.g., personal and work phones). With the UK population expected to reach 68.3 million by 2025, an estimated 95% (approximately 65 million individuals) are projected to own a smartphone. Consequently, the escalating adoption of smartphones stands as a primary driver fueling the growth of the online therapy services market.

The upward trajectory of mental health disorders is anticipated to propel the expansion of the online therapy services market in the foreseeable future. Mental health disorders, encompassing conditions that impact emotional regulation, behavior, and perception, resulting in distress or impairment in crucial areas of functioning, notably contribute to this market's growth. Key factors such as depression, anxiety, and relationship issues play a pivotal role in driving market dynamics. The surge in mental health disorders is attributed to diverse factors, including societal pressures, lifestyle modifications, and the rapid pace of contemporary living, consequently fostering the demand for online therapy services. Notably, as of 2021, the National Alliance on Mental Illness, a U.S.-based nonprofit organization, reported that 22.8% of U.S. adults, equivalent to 57.8 million individuals, experienced mental illness, signifying a prevalence of 1 in 5 adults. Additionally, 5.5% of U.S. adults, totaling 14.1 million people, grappled with serious mental illness in the same year. This robust prevalence underscores the pivotal role mental health disorders play in propelling the growth of the online therapy services market.

Major players within the online therapy services market are actively pursuing innovative technologies, particularly artificial intelligence-based solutions such as machine learning-powered chatbots, to reinforce their market presence. An exemplar of this trend occurred in November 2021 when Insight Healthcare, a UK-based non-profit organization collaborating with the National Health Service (NHS) to enhance access to Psychological Therapies (IAPT) services, partnered with Limbic AI, a UK-based AI-driven therapy assistance provider. Together, they introduced an AI-powered therapy helper tailored for carers, professionals, and patients. This new AI referral tool efficiently gathers crucial information and categorizes individuals based on the severity of their symptoms, distinguishing between mild and complicated cases. Patients exhibiting mild symptoms can benefit from a more appropriate and focused 20-minute assessment. By automating these initial stages, the organization anticipates saving approximately 7,300 hours of therapist time annually. This strategic adoption of AI technology aims to streamline the early assessment process, enabling therapists to redirect their efforts towards expediting assistance to a larger number of individuals in need, ultimately improving overall access to mental health support services.

Major players in the online therapy services market are pioneering revolutionary and advanced technologies, specifically the development of free therapy apps, to cater to the mental health needs of teenagers. These free therapy apps typically come in the form of mobile applications delivering mental health support and counseling services, often through a network of licensed therapists or mental health professionals. An illustrative instance of this progression unfolded in November 2023 when Talkspace, a New York City-based online and mobile therapy company, introduced TeenSpace. This free therapy app is dedicated to offering telemental health services without charge to teenagers aged 13 to 17 residing in NYC. Teens can access accredited Talkspace therapists via their smartphones or computers by visiting Talkspace.com/NYC, verifying their address and birthdate. Beyond one-on-one therapy sessions, TeenSpace also offers self-guided exercises tailored for teenagers to navigate at their own pace, empowering them with additional resources for mental health support and self-care. This initiative marks a strategic effort to address the unique mental health needs of adolescents through accessible and innovative technology-driven solutions.

In January 2022, BayMark Health Services, a U.S.-based provider of opioid use disorder (OUD) services, successfully acquired Kaden Health for an undisclosed amount. The primary objective behind this acquisition is to drive innovation and improvements in addiction telemedicine services. BayMark aims to leverage this strategic move to enhance its array of treatment options, provide increased flexibility and convenience, and extend the reach of its services. The overarching goal is to contribute positively to the behavioral health industry, ultimately saving lives. Kaden Health, the acquired company, is a U.S.-based online addiction treatment platform specializing in offering assistance to individuals in need of opioid use disorder (OUD) treatment.

Major companies operating in the online therapy services market report are Telemental Health, Therapize, Teladoc Health, Babylon Health, BetterHelp, Cerebral Inc., American Well Corporation, Doctor on Demand, TalkSpace Inc., MDLive Inc., iCouch Inc., PlushCare, 7 Cups of Tea CO., MindBeacon, Pride Counseling, Tava Health, Larkr Laboratories Ltd., Wellin5 Innovations Inc., ThriveTalk, Virtue Health, HopeQure, Mental Fuel Inc., Regain, Breakthrough, Access TeleCare Inc., Online-Therapy.com, Teen Counseling, TherapyRoute.com, Mindspace, Telehealth Counseling Clinic, Happify Health, Kintsugi Mindful Wellness Inc., eTherapyPro, eMindful Inc.

Asia-Pacific was the largest region in the online therapy services market in 2023. The regions covered in the online therapy services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the online therapy services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Online therapy services encompass several main types, including cognitive behavioral therapy, psychodynamic therapy, and person-centered therapy. Cognitive behavioral therapy (CBT) stands out as a potent form of psychological treatment effective across various issues such as depression, anxiety, substance abuse, marital discord, eating disorders, and severe mental illnesses. These therapy methods utilize a range of tools such as email, mobile apps, real-time messaging, telephone, and video conferencing, catering to both residential and commercial applications.

The online therapy services market research report is one of a series of new reports that provides online therapy services market statistics, including online therapy services industry global market size, regional shares, competitors with an online therapy services market share, detailed online therapy services market segments, market trends and opportunities, and any further data you may need to thrive in the online therapy services industry. This online therapy services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The online therapy services market includes revenues earned by entities by providing dialectical behavior therapy, EMDR (eye movement desensitization and reprocessing) therapy and family therapy services virtually through the internet. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.