Telepsychiatry Market Size, Share & Trends Analysis Report By Product (In-home Solutions, Forensic Solutions, Routine Solutions, Crisis Solutions), By Age Group, By End Use, By Region, And Segment Forecasts, 2025 - 2030

Telepsychiatry Market Size & Trends

The global telepsychiatry market size was valued at USD 22.9 billion in 2024 and is expected to grow at a CAGR of 18.4% from 2025 to 2030. This market growth can be attributed to the growing prevalence of anxiety, stress, and mental health disorders. For instance, according to the National Alliance on Mental Illness, in 2021, 22.8% of U.S. citizens had mental illness. Moreover, the rising number of suicides is further anticipated to drive market growth. For instance, according to the CDC, in 2021, suicide was the second-leading cause of death in people aged between 10-14 and 25-34, the third-leading cause of death for individuals between 15 and 24, and the fifth-leading cause of death among individuals between the ages of 35 and 44. In addition, the rapidly evolving technological advancements and mobile penetration are fueling market growth. 

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

Telepsychiatry services help provide affordable, convenient, and readily accessible mental health services. The American Psychiatric Association (APA) helped psychiatrists adopt the telepsychiatry service for better patient satisfaction and care. During the COVID-19 outbreak, HHS waived the HIPAA penalties for using non-HIPAA-compliant video conferencing software, thus increasing adoption in the telepsychiatry market. The licensure requirements were also waived so patients could access services from any interstate provider. The shortage of beds further increased the need for virtual consultation services.

As per a report published in APA in May 2022, a survey was conducted by American College of Emergency Physicians members, in which 48% of the respondents reported that psychiatric patients were boarded one or more times a day in their emergency department, and nearly 38% of respondents reported that the longest wait time for an inpatient bed in the emergency department was between 1 and 5 days.

According to an American Psychiatric Services report, around 14 beds per 100,000 people were available in the U.S. as of 2018, which did meet the required demand. This further enhanced the need for telepsychiatry services. The lack of proactive care and inconsistent treatment can impact patient health, which can be tackled by constant monitoring via telepsychiatry services. Telepsychiatry enables a more effective crisis response, thus propelling the market demand. Moreover, patients can receive consistent treatment via video calls, chats, and telephonic conversion, reducing the burden of inpatient appointments.

Telepsychiatry Market Trends

Telepsychiatry has emerged as a convenient and affordable service that offers consumer on-call consulting. People are inclined toward using such services as they eliminate the hassle of finding and commuting to the psychiatrist’s place and decrease patient turnaround time. In addition, these services are also beneficial for people living in rural areas with limited or no access to psychiatrists. The abovementioned factors are driving the segment growth.

Even though telepsychiatry has advantages, it is still not as effective as direct consultation. This is since patients are not used to opening up on calls as much as direct consultations, which can impede market growth. However, the pandemic created a supportive environment for the growth of the telepsychiatry industry. Various measures that were undertaken, such as lockdowns, social distancing, and quarantine, to contain the virus eventually impacted the mental health of several individuals. Hence, due to the movement restrictions, individuals increasingly relied on telepsychiatry services, driving the demand.

Product Insights

The in-home solutions dominated the telepsychiatry market with a revenue share of around 36% in 2024, owing to the rising preference for telepsychiatry treatment. In-home solutions save valuable travel time due to remote access. Moreover, the continuously changing guidelines regarding improved privacy and security help increase confidence in virtual consultation, which is expected to drive segment revenue in the coming years.

However, the crisis solutions segment is expected to grow steadily, with a CAGR of 18.7%. These solutions include mental health services for prison inmates and correctional facilities, helping cut down healthcare costs and eliminating the risk and time required for inmate transportation to treatment centers. The crisis solution segment gained popularity due to the pandemic, as many people were facing mental health disorders by staying at home. Many players started providing free service during this public health emergency, further propelling the telepsychiatry industry.

Age Group Insights

The adult segment dominated the market with a revenue share of around 57% in 2024. The rising prevalence of depression and anxiety in adults is fueling the demand for virtual consultation in this age group. Moreover, adults are accustomed to using smartphones and online services, further fuel the demand. There was an upsurge in the demand for virtual consultations for mental health during the pandemic due to social distancing, job losses, etc. 

People with mental health disorders can drift toward harmful lifestyle choices very easily. Thus, they need continuous monitoring to curb their loneliness, which can be provided via remote monitoring. Moreover, early warning signs and follow-up appointments can also be tracked easily using telepsychiatry, which drives segment growth.

The pediatric and adolescent segment is expected to grow rapidly at a CAGR of 18.6%. This expansion can be attributed to the growing recognition of mental health concerns among the younger population and the increasing prevalence of anxiety, depression, and behavioral disorders in children and teenagers. The demand for telepsychiatry is increasing due to advocacy from schools, parents, and healthcare providers. The widespread use of smartphones and digital tools among adolescents facilitates easy access to these services. Moreover, features such as virtual therapy sessions and parental monitoring provide effective, convenient, and scalable mental health support.

End Use Insights

Community mental health centers dominated the telepsychiatry industry with a revenue share of over 28.7% in 2024. The high demand for telepsychiatry services due to a significant shortage of clinical teams in community mental health centers is fueling the market growth. Moreover, community mental health centers often cater to underserved populations and have low budgets. They are further supported by telepsychiatry, as it reduces costs related to infrastructure and travel, making it a feasible option for budget-conscious organizations.

The homecare segment is expected to witness the fastest CAGR of 18.9% over the forecast period. This growth can be attributed to the ease of using the services from the comfort of home, an increase in smartphone penetration, and supportive government measures facilitating the adoption of these services.

Regional Insights

North America telepsychiatry market dominated the global market, with a revenue share of 33.4% in 2024. This growth can be attributed to an increase in smartphone penetration, favorable reimbursement policies, and the presence of many industry players in the region. Moreover, the pandemic eventually pushed for this technology. CMS and FDA considered telemedicine and virtual care services to be the backbone of the COVID-19 response strategy, which further fueled the regional telepsychiatry industry.

U.S. Telepsychiatry Market Trends

The U.S. telepsychiatry market held a significant share of the North American market, driven by increasing awareness of mental health issues, advancements in digital health technologies, and favorable telehealth regulations. Key developments in the telepsychiatry industry include utilizing Artificial Intelligence (AI), remote medication management, and specialized solutions for underserved populations, such as rural communities and correctional facilities. Telepsychiatry's flexibility and accessibility have made it an essential tool for addressing various mental health needs, including the mental health workforce, school-based services, and crisis management. The growing adoption of this service across diverse demographics and care settings can be attributed to its cost-effectiveness, increasing consumer trust, and widespread accessibility.

Europe Telepsychiatry Market Trends

Europe telepsychiatry market is undergoing significant transformation, driven by increasing awareness of mental health issues and the growing adoption of advanced technologies. Telepsychiatry helps effectively address pressing challenges, including the shortage of mental health professionals and limited access to care in rural or underserved areas. Digital platforms enable patients to connect remotely with licensed psychiatrists, ensuring timely and efficient mental health support.

Innovations such as AI-powered chatbots, digital mental health applications, and integrated telehealth solutions have enhanced personalized care delivery. Moreover, regulatory frameworks across Europe have standardized practices, fostering trust in telehealth services. The market adoption is growing across various settings, including schools, workplaces, and traditional healthcare facilities, showcasing its versatility.

Telepsychiatry has proven effective in managing conditions such as anxiety, depression, and post-traumatic stress disorder, particularly during heightened mental health demand periods, such as the COVID-19 pandemic. Collaboration among key market players has strengthened the ecosystem, enabling seamless telepsychiatry integration into broader telehealth platforms. With a focus on accessibility and technological innovation, Telepsychiatry is expected to become a cornerstone of future mental health strategies in Europe.

Asia Pacific Telepsychiatry Market Trends

Asia Pacific telepsychiatry market is expected to grow at a significant CAGR of 19.3% over the forecast period. Factors such as increasing patient awareness, rising smartphone adoption, and favorable government initiatives contribute 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, contributing to telepsychiatry market revenue. Moreover, the Ministry of Health and Family Welfare, India, launched new guidelines to provide remote consultation via video call, chat, and telephone to serve people in remote areas during lockdowns and to help them cope with their mental health issues.

China telepsychiatry market is undergoing a rapid expansion as the Chinese government has acknowledged the significance of mental health and is investing heavily in telehealth infrastructure to improve service delivery. In addition, the widespread availability of mobile technology and internet access across China's urban and rural regions is driving the rapid adoption of telepsychiatry, enabling patients to connect remotely with mental health professionals and fostering greater accessibility to quality care.

Key Telepsychiatry Company Insights

The market is competitive in nature, with key players involved in strategic collaborations, regional expansions, and new product launches to increase their market penetration. Some prominent companies such as Array Behavioral Care, Telemynd, MDsafari Inc., and innovaTel focus on enhancing access to mental health services through telehealth platforms. These companies address the shortage of psychiatrists and the increasing demand for mental health care, particularly in underserved areas. However, challenges such as limited broadband access and data privacy concerns remain critical issues in the sector. For instance, in December 2019, two telepsychiatry service providers-InSight Telepsychiatry and Regroup Telehealth-merged, fostering market growth.

MDLIVE, now a subsidiary of Cigna's Evernorth, is leveraging its telehealth platform to expand behavioral health services. MDLIVE (Evernorth Company) aims to improve patient access across diverse demographics by integrating virtual psychiatric and therapy services with broader healthcare solutions.

Recent Developments

• In November 2021, around 230 organizations in Washington, D.C., sent a letter to all 50 state governors urging them to expand the flexibility of telehealth licenses enacted at the beginning of the pandemic to better address patients’ needs during that phase.

Telepsychiatry Market Report Scope

Global Telepsychiatry Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. 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, 2018 - 2030)

  • In-home Solutions

  • Forensic Solutions

  • Routine Solutions

  • Crisis Solutions

  • Others

• Age Group Outlook (Revenue, USD Million, 2018 - 2030)

  • Adult

  • Pediatric and Adolescent

  • Geriatric

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Community Mental Health Centers

  • Specialty Care Settings

  • Skilled Nursing Facilities

  • Homecare

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Norway

    • Denmark

    • Sweden

  • Asia Pacific

    • China

    • India

    • Australia

    • Japan

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait