Telepsychiatry Market Size, Share & Trends Analysis Report By Product (In-home Solutions, Forensic Solutions), By Age Group, By End Use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global telepsychiatry market size was valued at USD 5.5 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 24.7% from 2020 to 2027. The growth can be attributed to increase in the patient pool of anxiety, stress, and mental illnesses. For instance, according to the National Alliance on Mental Illness, in 2018, 43.3% of U.S. citizens received treatment for mental illness. Moreover, rising suicidal deaths are further anticipated to drive the market growth. For instance, according to the Centers for Disease Control and Prevention (CDC), in 2017, suicide was the 2nd leading cause of death in people aged between 10-34 years and 4th leading cause for individuals between 35 and 54 years in U.S. Additionally, the rapidly evolving technological advancements and mobile penetration are fueling the market growth.

The novel coronavirus is having a significant economic impact on most sectors, including the healthcare industry. Governments all over the world are responding to the threat of COVID-19 with all essential measures, such as nationwide lockdowns, social distancing, and large-scale quarantine to reduce the spread of the virus. Most states have declared mandatory stay-at-home for non-essential workers, which has impacted physical and mental health of several patients. According to KFF tracking poll, around 47% of Americans staying at home have reported negative mental health effects by March 2020. Out of them, over 21% have reported major negative impact on their mental health.

Telepsychiatry services helps in providing affordable, convenient and readily-accessible mental health services. The American Psychiatric Association helped psychiatrists to adopt the telepsychiatry service for better patient satisfaction and care. During the COVID-19 outbreak HHS waived the HIPAA penalties for using the NON-HIPAA compliant videoconferencing software, thus increasing the adoption. The licensure requirements have also been waived so patients can reach to any providers interstate for services.

The shortage of psychiatry beds further increases the need for virtual consultation services. According to the Psychiatric Services report, there were around 14 beds per 100,000 people available in the U.S. as of 2018 which is much lower than the growing demand. The lack of proactive care and inconsistent treatment may lead to a dangerous situation which can be reduced by constant monitoring via telepsychiatry services. Telepsychiatry helps in more effective crisis response, thus propelling the demand. The patients can get more consistent treatment via video calls, chats and telephonic conversion which can reduce overburden of in-patient appointments.

Telepsychiatry Market Trends

Telepsychiatry has emerged as a convenient and affordable service that offers consumer on-call consulting. People are inclined towards utilization of such services because it saves them the hassle of finding and commuting to the psychiatrist’s place and it also increases the turnaround time for patients. In addition, this service is also beneficial for people staying in rural areas where it is not possible for the psychiatrist to reach physically. The growth of this market is attributable to the aforementioned factors.

It may have many advantages, but it is still not supposed to be as effective as direct consultation. The consumers are not used to opening up much on call as compared to direct consultation and it is expected to obstruct the market growth. However, the COVID-19 pandemic has created a window to support market growth as an opportunity. Various measures have been taken such as lockdowns, social distancing, and quarantine to contain the virus which affected the mental health of several individuals. Owing to the restrictions on movements, people are obligated to use the services of telepsychiatry. Resultantly, it increased the dependence on such services and is expected to propel market growth.

Product Insights

The in-home solutions dominated the telepsychiatry market with a revenue share of around 37.0% in 2019, owing to the rising preference for telepsychiatry treatment at home. The in-home solution saves valuable traveling time as consultation is available at fingertips. Moreover, the continuously changing guidelines regarding improved privacy and security help to increase the patient’s confidence in virtual consultation which is expected to increase the revenue in the forthcoming years.

The forensic telepsychiatry segment is expected to witness steady growth as these solutions offer mental health services for prison inmates, correctional facilities. Furthermore, these services cut down healthcare costs as well as reduce the risk and time required to escort the inmate to the treatment center. The crisis solution segment is gaining popularity due to COVID-19 pandemic as many people are facing mental health disorders during staying at home. Many players are providing free service during this public health emergency which is expected to increase the adoption.

Age Group Insights

Adults dominated the age group market segment with a revenue share of around 57% as of 2019. The rising level of depression and anxiety in adults is fueling the demand for virtual consultation in this age group. Moreover, adults are very much accustomed to using smartphones and online services, which is further fueling the demand. There is an upsurge in virtual consultation demand for mental health during this pandemic due to social distancing, job losses, etc. which is increasing the adoption of these services.

People with mental health disorders can get drifted toward harmful lifestyle choices very easily. Thus, they need continuous monitoring to curb the feeling of loneliness which can be provided via remote monitoring. Moreover, early warning signs, follow-up appointments can also easily be tracked using telepsychiatry, which is fueling the demand.

End-use Insights

Community mental health centers dominated the market with a revenue share of over 26% in the year 2019. The high demand of telepsychiatry service due to shortage of a large number of clinical teams in these facilities is fueling the demand. Moreover, the service is cost-effective and increased patient satisfaction is projected to further propel the growth of the segment.

On the basis of end-use, the market is segmented into community mental health centers, specialty care settings, skilled nursing facilities, homecare and others. Homecare segment is expected to be the fastest-growing sub-segment over the forecast period. The growth can be attributed to ease of using the services from the comfort of home, increase in smartphone penetration, and supportive government measures facilitating adoption of these services.

Regional Insights

North America dominated the market with a revenue share of around 38% in 2019. This growth can be attributed to increase in smartphone penetration, favorable reimbursement policies, and the presence of a large number of industry players. Moreover, the pandemic eventually gave a much-needed push to this technology. CMS and FDA considered telemedicine and the virtual care service as the backbone of the COVID-19 response strategy which is further fueling the revenue for telepsychiatry.

Asia Pacific is expected to exhibit lucrative growth over the forecast period. Factors such as increasing awareness amongst patients, rising smartphone adoption, and favorable government initiatives are contributing to the increased adoption of this service in the region. On March 11, 2020, The Japanese Ministry of Economy, Trade, and Industry (METI) launched free remote consultation services in collaboration with Line and Medpeer, which is expected to increase the revenue. Moreover, the Ministry of Health and Family Welfare, India launched new guidelines to provide remote consultation via video call, chat, and telephone in order to serve people in remote areas during lockdown and cope up with their mental health.

Key Companies & Market Share Insights

The market is competitive in nature with the key players involved in strategic collaborations, regional expansions, and new product launches to increase their market penetration. For instance, in December 2019, the two telepsychiatry service providers- InSight Telepsychiatry and Regroup Telehealth merged to foster the telepsychiatry business growth. In November 2019, AmWell acquired Aligned Telehealth, a vendor of telepsychiatry in order to gain greater market share. Australian Government started providing additional funding services form January 2020 to address the mental health needs of rural and remote patients during any emergency. Several community tele-mental health service providers such as Black Dog Institute, Betterhelp, E-couch in Australia were promoting campaigns in order to cope up with the mental health problems during this pandemic. Such initiatives are anticipated to increase adoption of mental health services over the forecast period.

Recent Developments

• In July 2020, Eugenia launched Telepsychiatry Program in partnership with Insight + Regroup to improve the mental health care services in Lewis County. Through this partnership, they are trying to reach more people who have mental health issues.

• In May 2020, MDLIVE published a research paper that tells about the mental health of moms in the American region. According to the research conducted by the company, around 33% of the moms were stressed out because of the responsibilities they had.

• In November 2021, around 230 organizations in Washington DC sent a letter to all 50 state governors in order to expand their telehealth license flexibilities to address the patients in a better manner.

Some of the prominent players in the telepsychiatry market include:

• InSight Telepsychiatry

• Telemynd

• e-Psychiatry

• Advanced Telemed Services

• American Telepsychiatrists

• Iris Telehealth

• MDLIVE Inc.

• innovaTel Telepsychiatry

• SOC Telemed

• Encounter Telehealth, LLC

Telepsychiatry Market Report Scope

Telepsychiatry Market Segmentation

This report forecasts revenue growth at global, regional, and country-level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global telepsychiatry market report on the basis of product, age group, end use, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2027)

  • In-home Solutions

  • Forensic Solutions

  • Routine Solutions

  • Crisis Solutions

• Age Group Outlook (Revenue, USD Million, 2016 - 2027)

  • Adult

  • Pediatric and Adolescent

  • Geriatric

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Community Mental Health Centers

  • Specialty Care Settings

  • Skilled Nursing Facilities

  • Homecare

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

    • Sweden

    • France

    • Italy

    • Russia

    • Netherlands

    • Spain

    • Switzerland

  • Asia Pacific

    • China

    • India

    • Australia

    • Singapore

    • Japan

    • South Korea

    • Malaysia

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE