Online Therapy Service Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 7.97 Billion |
| Market Size (2029) | USD 22.13 Billion |
| CAGR (2024 - 2029) | 22.66 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Online Therapy Service Market Analysis
The Online Therapy Service Market size is estimated at USD 7.97 billion in 2024, and is expected to reach USD 22.13 billion by 2029, at a CAGR of 22.66% during the forecast period (2024-2029).
Key drivers of the market include technological advancements in digital health, enhanced accessibility to online therapies, the cost-effectiveness of these therapies, and the rising prevalence of mental health disorders.
As mental health disorders become more prevalent, the demand for online therapies to manage these conditions is set to rise, propelling the market forward. For instance, data from February 2024 by the Australian Institute of Health and Welfare highlighted that approximately 20% of Australians aged 16 to 85 faced a mental disorder, with over 17% grappling with anxiety. Similarly, a report from the Mental Health Foundation noted that in 2022-2023, 37.1% of women and 29.9% of men in the United Kingdom (UK) reported elevated anxiety levels. These statistics underscore the global and regional burden of mental disorders, suggesting a pronounced impact on the market.
Moreover, advancements in digital solutions are making online therapy more accessible and affordable, further propelling the market. For instance, in March 2024, Big Health, known for its digital treatments for prevalent mental health issues, partnered with Grow Therapy. This collaboration aims to introduce a holistic mental health platform addressing a wide range of care needs. Grow's provider network will seamlessly integrate with Big Health's established digital programs targeting insomnia, anxiety, and depression. Such innovations in digital solutions not only enhance patient accessibility and convenience but also bolster the market's growth.
Additionally, heightened investments in online therapy startups are paving the way for new digital platforms. These platforms aim to boost the efficiency of online consultations for various mental disorders, facilitating quicker patient recovery. For instance, in December 2023, teletherapy startup Joon Care secured USD 6 million in funding. This investment aims to bolster Joon's mental health software platform, which offers online therapy sessions and digital mental health resources for teens and young adults. Joon also equips therapists with evidence-based care strategies and tools to monitor patient progress. Such financial backing for online therapy providers is anticipated to enhance accessibility and affordability, further energizing the market.
In conclusion, the rising prevalence of mental health disorders, advancements in digital therapy solutions, and increased investments in therapy startups are poised to drive the market. However, concerns surrounding data security and privacy may pose challenges to this growth.
Online Therapy Service Market Trends
Cognitive Behavioral Therapy Segment is Expected to Hold Significant Market Share Over the Forecast Period.
Cognitive behavioral therapy (CBT) is a structured, goal-oriented form of talk therapy. It is utilized to address mental health conditions like depression and anxiety, as well as emotional challenges such as grief and stress management. Beyond these, CBT proves beneficial for psychological issues, including insomnia and chronic pain. The growing prevalence of mental disorders, coupled with technological advancements and strategic activities, is poised to propel the segment's growth in the coming years.
Technological advancements in CBT platforms are enhancing the accessibility of online therapies, further fueling the market's growth. For example, in March 2024, Magellan Health, Inc., a provider of behavioral health services, unveiled two digital cognitive behavioral therapy (DCBT) programs. Targeted at children and adolescents with anxiety symptoms, "ThinkHero" caters to ages 6-12, while "ThinkWarrior" is for teens aged 13-17. Such advancements in digital technology not only broaden access to CBT but also bolster the segment's revenue.
Moreover, strategic activities like acquisitions and the introduction of new solutions are set to energize the market. For example, in February 2023, Embark Behavioral Health, a provider specializing in youth cognitive behavioral health, secured a substantial investment from Consonance Capital Partners, a private equity firm. This equity sale, valued at around USD 400 million, boasted an impressive multiple range of 12 to 15 times EBITDA. Such strategic moves pave the way for new service launches in CBT, further energizing the market.
In summary, technological strides in online CBT platforms, combined with heightened strategic activities like investments, are set to drive the segment's growth in the foreseeable future.
North America is Expected to Hold the Significant Market Share Over the Forecast Period
In North America, the online therapy services market is propelled by the rising prevalence of mental disorders, a robust healthcare infrastructure, and strategic activities like acquisitions and the launch of new solutions.
As mental disorders, notably depression and anxiety, become more prevalent, the demand for online therapy services to manage these conditions effectively surges. For example, a 2023 survey by the American Psychiatric Association revealed that nearly 29% of United States adults have faced depression at some point, with about 18% currently experiencing it. The survey also noted that women are more prone to depression than men, and younger adults are more affected than their older counterparts. Similarly, a May 2024 report from the Canadian Men's Health Foundation underscored that young men aged 19-29, especially those who are gay, bisexual, or part of racialized communities, are at a heightened risk for depression and anxiety. Given this backdrop, the pronounced prevalence of mental disorders in North America is set to bolster the demand for online therapy services, ensuring effective management and heightened patient comfort.
Furthermore, government initiatives promoting decentralized clinical trials, coupled with strategic moves by key players to enhance their accessibility, are poised to fuel the market's growth. A case in point: in July 2024, Uwill, a prominent mental health and wellness provider, acquired Virtual Care Group. This group offers telehealth and wellness support to students across over 100 colleges. Uwill's reach is already extensive, catering to more than 2 million students across 300 institutions in 50 states and 40 countries. Such strategic acquisitions are anticipated to broaden access to online therapy services, further propelling the market's growth.
In summary, the confluence of rising mental health disorders and strategic acquisitions positions North America's online therapy services market for significant growth in the coming years.
Online Therapy Service Industry Overview
The online therapy service market is fragmented due to the presence of a many startups in the field. The major players in the market are adopting various strategic activities such as mergers, collaborations, and expansions to strengthen their geographical presence and expand their customer base across the globe. Some of the key players in the market are BetterHelp, Calmerry, Inc., Brightside Health Inc., Regain, and Sesame, Inc., among other players.
Online Therapy Service Market Leaders
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BetterHelp
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Calmerry
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Brightside Health Inc.
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Regain
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Sesame, Inc.
*Disclaimer: Major Players sorted in no particular order
Online Therapy Service Market News
- July 2024: RedBox Rx, a telehealth and online pharmacy provider, launched Online Talk Therapy Services on its platform. This service offering helps expand access to mental health care treatment across the United States.
- April 2024: Headspace, a digital mental health company, reported that it will offer direct-to-consumer mental health coaching to its subscribers. Consumers can obtain three 30-minute online mental health coaching sessions for USD 99.99 per month.
Online Therapy Service Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and market definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Prevalence of Mental Health Diseases
4.2.2 Increasing Technological Advancements
4.3 Market Restraints
4.3.1 Data Security Coupled With Privacy Concerns
4.4 Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
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)
5.1 By Therapy Type
5.1.1 Cognitive behavioral therapy
5.1.2 Psychodynamics Therapy
5.1.3 Virtual Psychotherapy
5.1.4 Personal Centered Therapy
5.2 By Application
5.2.1 Commercial
5.2.2 Residential Use
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Italy
5.3.2.5 Spain
5.3.2.6 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 South Korea
5.3.3.6 Rest of Asia-Pacific
5.3.4 Middle East and Africa
5.3.4.1 GCC
5.3.4.2 South Africa
5.3.4.3 Rest of Middle East and Africa
5.3.5 South America
5.3.5.1 Brazil
5.3.5.2 Argentina
5.3.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 BetterHelp
6.1.2 Calmerry
6.1.3 Brightside Health Inc.
6.1.4 Regain
6.1.5 Sesame, Inc.
6.1.6 Talkiatry Management Services, LLC.
6.1.7 Modern Psychiatry
6.1.8 MDLive
6.1.9 Open Path Collective
6.1.10 American Well
6.1.11 Teladoc Health
6.1.12 Sequoia Teen Counseling
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Online Therapy Service Industry Segmentation
As per the scope of the report, online therapy refers to mental health services and counseling that are provided via the internet or phone rather than in person. The online therapy service market is segmented into therapy type, application, and geography. By therapy type, the market is segmented into cognitive behavioral therapy, psychodynamics therapy, virtual psychotherapy, and personal-centered therapy. By application, the market is segmented into commercial and residential use. By geography, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa and South America. The market report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers values (in USD) for the above segments.
| By Therapy Type | |
| Cognitive behavioral therapy | |
| Psychodynamics Therapy | |
| Virtual Psychotherapy | |
| Personal Centered Therapy |
| By Application | |
| Commercial | |
| Residential Use |
| Geography | ||||||||
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Online Therapy Service Market Research FAQs
How big is the Online Therapy Service Market?
The Online Therapy Service Market size is expected to reach USD 7.97 billion in 2024 and grow at a CAGR of 22.66% to reach USD 22.13 billion by 2029.
What is the current Online Therapy Service Market size?
In 2024, the Online Therapy Service Market size is expected to reach USD 7.97 billion.
Who are the key players in Online Therapy Service Market?
BetterHelp, Calmerry, Brightside Health Inc., Regain and Sesame, Inc. are the major companies operating in the Online Therapy Service Market.
Which is the fastest growing region in Online Therapy Service Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Online Therapy Service Market?
In 2024, the North America accounts for the largest market share in Online Therapy Service Market.
What years does this Online Therapy Service Market cover, and what was the market size in 2023?
In 2023, the Online Therapy Service Market size was estimated at USD 6.16 billion. The report covers the Online Therapy Service Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Online Therapy Service Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Online Therapy Service Industry Report
Statistics for the 2024 Online Therapy Service market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Online Therapy Service analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
