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Behavioral/Mental Health Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 115 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 5119990
The behavioral/mental health software market is projected to register a CAGR of 11.8% during the forecast period.

Due to the recent COVID-19 pandemic, an increase in stress, anxiety, depression, frustration, and fear was observed among the population, increasing the prevalence of mental health conditions. According to the scientific brief released by WHO in March 2022, the global prevalence of anxiety and sadness soared by a staggering 25% in the first year of the COVID-19 pandemic. Thus, due to the increasing burden of the meatal issue amid the pandemic and restrictions imposed worldwide in early 2020, there was increased usage of behavior and mental health software. Thus, the market showed growth initially. The pandemic has raised awareness about using behavioral/mental health software, and the market is expected to follow the same trend over the coming years. Hence the market is expected to project stable growth over the next 3-4 years.

The key factors propelling the market’s growth during the forecast period are the increasing stress conditions requiring mental health management, government funding and initiatives for EHR adoption in behavioral health organizations, and improved health reforms.

The increasing problems of stress, anxiety, and depression are driving patients to seek treatment. Hence, healthcare facilities are adopting advanced systems, such as various software solutions, to manage behavioral/mental health. In October 2021, according to the report published by the Centers for Disease Control and Prevention, the United States Census Bureau Household Pulse Survey data indicated that the percentage of US adults with symptoms of anxiety and depressive disorders increased nationwide from 36.4% to 41.5% from August 2020 to February 2021. The percentage of those reporting unmet mental health care needs increased from 9.2% to 11.7%. It is also reported that disorders were commonly reported among adults aged 18-29 years and those with less than a high school education. Thus, the growing prevalence of mental disorders is expected to rise in demand for the management of diseases which will propel the growth of the behavioral/mental health software market.

In addition, the focus of healthcare professionals on providing quality care to patients, behavioral health modifications, increasing government support for the enhancement of behavioral healthcare services, new products and service launches, and partnerships among market players are rapidly propelling the growth of the overall market. For instance, in January 2021, Ehave Inc. partnered with Cognitive Apps Software Solutions Inc. to commercialize its AI-based Workforce Mental Health Analytical Platform in G20 countries. Thus, this is expected to boost market growth over the forecast period.

Thus, factors such as the rising burden of behavioral/mental diseases and government initiatives are expected to boost the market over the forecast period. However, data privacy concerns and the usage of traditional paper-based systems are expected to hamper the market’s growth during the forecast period.

Mental Health Software Market Trends

Electronic Health Record Segment Expected to Hold Significant Market Share

As per healthcare professionals, managing behavioral mental health and treating addiction is very different from dealing with family medicine practices and practices dedicated to various specialities like cardiology, oncology, or paediatrics. Adding to the complexities of behavioral/mental health and addiction medicine is the fact that organizations can be run on an in-patient basis, partial in-patient basis, or strictly outpatient basis.

Electronic Health Record (EHR) systems are becoming more common as the healthcare business moves toward digitization. Many government initiatives, including encouraging physicians to use electronic health records, investing in training healthcare information technology professionals, and building regional extension centres to provide technical and other help, are fueling the expansion of the EHR segment.

Rising product launches in behavioural health Electronic Health Records are expected to increase the adoption of these products, thereby driving this segment's growth. For instance, in February 2022, Core Solutions launched a significant update to its flagship product Cx360 behavioral health EHR system. The platform has been updated to include various new features and a more modern and efficient user interface to improve quality care and billing. Additionally, in March 2022, NextGen Healthcare, Inc. released the most recent version of NextGen Behavioral Health Suite. The suite, based on the company's award-winning NextGen Enterprise EHR and practice management system, is the platform to integrate comprehensive physical, behavioral health, human services, and dental health in a single software solution.

Thus, factors such as the advantages of EHR and product launches are expected to fuel market growth over the forecast period in this segment.

North America Expected to Hold a Significant Market Share

North America is predicted to project growth throughout the forecast period. This is due to significant market players, robust infrastructure, and the increasing burden of depression and stress. The population's adoption rate of behavioral/mental health-related software is another growth-inducing factor.

According to the National Institute of Mental Health, in January 2022, in 2020, an estimated 21.0 million adults experienced at least one major depressive episode in the United States 2020. This figure represents 8.4% of all adults in the United States. Adult females had a higher rate of major depressive episodes (10.5%) than males (6.2%). Individuals aged 18-25 had the highest rate of major depressive episodes (17.0%). Additionally, according to the Canadian Mental Health Association, in July 2021, one in every five Canadians suffer from a mental health problem or illness yearly. Thus, the growing prevalence of mental disorders is expected to rise in demand for managing mental diseases, thereby boosting demand for behavioral/mental software.

Additionally, the various strategies adopted by the key market players are expected to propel the market's growth. For instance, in April 2021, Appriss Health acquired PatientPing, which also provides care coordination software but focuses more on seniors and patients with complex needs. In February 2021, CloudMD Software & Services Inc., a healthcare technology company revolutionizing the delivery of care to patients, expanded its mental health services into the United States. Snapclarity Inc. ('Snapclarity'), CloudMD's mental health solution, is available for providers and corporations (B2B) in the United States

Hence, the growing burden of mental health-related conditions and increasing product launches are expected to fuel the market in this region.

Mental Health Software Market Competitor Analysis

The behavioral mental health software market is moderately competitive, with the presence of several key players. Key market players adopt several strategies, such as partnerships and collaborations, increased acquisitions and mergers, and product innovation. Such trends in the mental health software market are expected to result in massive market growth in the forthcoming years. Some of the key market players in the global behavioral/mental health software market include Accumedic, BestNotes, Oracle Corporation (Cerner Corporation), and Welligent Inc.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Study Assumptions & Market Definition
1.2 Scope Of The Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Stress Conditions Requiring Mental Health Management
4.2.2 Government Funding and Initiatives toward EHR Adoption in Behavioral Health Organizations
4.3 Market Restraints
4.3.1 Data Privacy Concerns
4.3.2 Usage of Traditional Paper-based Systems
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size by Value - USD Million)
5.1 By Function
5.1.1 Clinical Functionality Electronic Health Records Clinical Decision Support Care Plans/Health Management Other Clinical Functionalities
5.1.2 Administrative Functionality Patient/Client Scheduling Case Management Other Administrative Functionalities
5.1.3 Financial Functionality Revenue Cycle Management Accounts Payable/General Ledge Other Financial Functionalities
5.2 By Solution
5.2.1 Software Integrated Software Standalone Software
5.2.2 Services
5.3 By End-user
5.3.1 Community Clinics
5.3.2 Hospitals
5.3.3 Private Practices
5.3.4 Other End-users
5.4 By Geography
5.4.1 North America United States Canada Mexico
5.4.2 Europe Germany United Kingdom France Italy Spain Rest of Europe
5.4.3 Asia-Pacific China Japan India Australia South korea Rest of Asia-Pacific
5.4.4 Middle East and Africa GCC South Africa Rest of Middle East and Africa
5.4.5 South America Brazil Argentina Rest of South America
6.1 Company Profiles
6.1.1 Accumedic Computer Systems Inc.
6.1.2 BestNotes
6.1.3 Oracle Corporation (Cerner Corporation)
6.1.4 Credible a part of Qualifacts Systems, LLC
6.1.5 Netsmart Technologies Inc.
6.1.6 Planet DDS, Inc. (NXGN Management LLC)
6.1.7 Valant Medical Solutions Inc.
6.1.8 Welligent Inc.
6.1.9 CloudMD Software & Services Inc.
6.1.10 New Directions Behavioral Health, LLC (Tridiuum Inc.)
6.1.11 TELUS Health
6.1.12 Behave Inc.
6.1.13 Psyquel

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Accumedic Computer Systems Inc.
  • BestNotes
  • Oracle Corporation (Cerner Corporation)
  • Credible a part of Qualifacts Systems, LLC
  • Netsmart Technologies Inc.
  • Planet DDS, Inc. (NXGN Management LLC)
  • Valant Medical Solutions Inc.
  • Welligent Inc.
  • CloudMD Software & Services Inc.
  • New Directions Behavioral Health, LLC (Tridiuum Inc.)
  • TELUS Health
  • Behave Inc.
  • Psyquel