Behavioral Health Software Market Analysis

Global Behavioral Health Software Market Overview

Behavioral Health Software Market Size was valued at USD 2.05 billion in 2021 and is projected to grow from USD 2.44 Billion in 2022 to USD 14.06 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 19.1% during the forecast period (2023 - 2032). Increasing levels of stress, anxiety, and depression, rising government initiatives and increase in adoption of EHR solutions are driving the market growth.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Behavioral Health Software Market Trends

• Increasing levels of stress, anxiety, and depression to boost market growth

Behavioral health software provides users with real-time analytics, data accessibility, and remote access to efficient mental health care. The increasing prevalence of stress, anxiety, and depression ly is a major driver of the demand for behavioral health software. For instance, according to data published by the World Health Organization in March 2022, the COVID-19 pandemic triggers a 25% increase in the prevalence of depression and anxiety around the globe. Additionally, according to the WHO, in 2021, around 5% of adults suffered from depression.

Furthermore, according to the American Psychological Association, in 2020, almost 50% of Americans claimed that stress has negatively impacted their behavior. According to SingleCare (US), in June 2021, anxiety is considered the most prevalent mental illness ly, affecting over 284 million people worldwide. Hence, the increasing prevalence of such disorders is driving the adoption rate of behavioral health software.

Additionally, the various governments around the globe are taking initiatives to tackle mental health-related issues among people, which is also boosting market growth. For instance, in 2022, the U.S. Department of Health & Human Services announced spending around 35 million dollars to strengthen mental health support for America’s children and young adults. Additionally, Department of Health and Social Care, UK, in 2021, funded 500 million dollars to expand mental health services. Therefore, such government initiatives worldwide are fueling the demand for behavioral health software across the globe.

However, to cater to the demand, the players are launching behavioral health software with new features. The features, such as electronic medication administration records and scheduling, appointment reminders, and automated billing, led to increased adoption of the software. This is another factor driving the growth of the behavioral health software market revenue.

Behavioral Health Software Market Segment Insights

Behavioral Health Software Functionality Insights

The  behavioral health software market segmentation, based on functionality, includes clinical functionality, administrative functionality, and financial functionality. The clinical functionality is further segmented into electronic health records (EHRs), clinical decision support (CDS), telehealth, and others. The administrative functionality segment is also sub-segmented into patient and client scheduling, workforce management, and others. The financial functionality is further segmented into revenue cycle management, managed care, and others. The clinical functionality segment held the majority share in 2021, contributing around ~Significant% in respect to the market revenue. This is primarily owing to the high demand for behavioral health software by clinicians and positive government initiatives. For instance, data published by Public Health Agency of Canada, Government of Canada Invested 12.2 million dollars in mental health and wellbeing promotion.

October 2021: Allscripts Healthcare, LLC (US) launched an artificial intelligence-based guided scheduling feature in Allscripts Practice Management platform to streamline the patient scheduling process.

February 2020: Battery Ventures L.P. (US) launched a cloud-based platform for mental health centers and education organizations to improve operational efficiency.

Figure 2:  Behavioral Health Software Market, by Functionality, 2021 & 2030 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Additionally, there is a rise in the adoption of behavioral health software for clinical functions such as patient record keeping, appointment scheduling, and billing in mental health facilities. The software also helps clinicians design and choose optimal treatment plans for patients with mental illness issues. These factors are also likely to drive sector growth throughout the projection period.

Behavioral Health Software Delivery Method Insights

The  behavioral health software market segmentation, based on delivery method, includes subscription model and ownership model. The subscription model segment held the largest market share in 2021 due to its high demand from small- and medium-scale mental health providers. A major reason is funding limitations that prevent them from purchasing full software ownership and paying a large sum. The subscription model refers to a software licencing model where the user must pay a recurring fee, usually monthly or yearly, to access the software’s full capabilities. This model is comparatively cheaper and can be opted out of or into as per the user’s desire and in line with their requirements. These factors positively impacted market growth.

Behavioral Health Software Type Insights

The behavioral health software market data has been bifurcated by type into standalone and integrated. The integrated segment dominated the market in 2021 and is projected to be the fastest-growing segment during the forecast period, 2022–2030. Integrated software integrates different functionalities, such as clinical, administrative, and financial support, into one platform. This allows users to subscribe to a single software platform that provides access to all the major services.

Behavioral Health Software End User Insights

Based on End User, the behavioral health software industry has been segmented into payers, providers, and patients. Patients segment held the largest share in 2021, owning to the high volume of patients using behavioral health software at homecare settings and hospitals. Patients are people who have a behavioural or mental illness and are being treated by mental health professionals. Patients access behavioral health software for self-care purposes. Increasing mental health awareness is also expected to drive growth for this segment.

March 2022: Epic Systems Corporation (US) launched a new shared environment software service. This service offers small and independent physician groups access to Epic electronic health records.

December 2022: Valant (US), a cloud-based EHR for behavioral health practices, launched a new tool prospective patient management. This tool will help match new patients with the optimal behavioral health provider to improve a practice’s patient experience, intake efficiency, and clinician satisfaction.

Behavioral Health Software Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific and Rest of the World. North America behavioral health software market accounted for USD Significant billion in 2021 and is expected to exhibit an Significant% CAGR during the study period. This is attributed to the high demand for behavioral health services, high mental health awareness, and positive behavioral health reforms across the region.

Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  BEHAVIORAL HEALTH SOFTWARE MARKET SHARE BY REGION 2021 (%)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North America behavioral health software market accounts for the largest market share due to increased awareness regarding behavioral health software, increasing demand for behavioral health services, high mental health awareness, and positive behavioral health reforms. Further, the US behavioral health software market held the largest market share, and the Canada behavioral health software market accounts for the second largest market in the North America region

The Asia-Pacific Behavioral Health Software Market is expected to grow at a CAGR of XXXX% from 2022 to 2030. This is due to increasing smartphone & internet penetration and the rising geriatric population. Moreover, the China behavioral health software market held the largest market share, and the India behavioral health software market was the fastest growing market in the Asia-Pacific region.

For instance, India behavioral health software market has the large number of smartphone users as well growing number of geriatric populations providing huge opportunities for the players operating in the market. According to data published in a Deloitte (US) report, India had 750 million smartphone users in the year 2021. On the other hand, China has one of the fastest growing geriatric populations in the world. For instance, according to the WHO, it is estimated that around 402 million people will be more than age of 60 by 2040. Additionally, according to the European Parliament, in Japan, around 28.7% of the total population is 65 or older. This increasing geriatric population leads to an increasing number of people suffering from mental illness. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.

Behavioral Health Software Key Market Players & Competitive Insights

Major market players are adopting several business strategies to increase their market presence. They are significantly investing in R&D activities to expand their product portfolio, further driving the behavioral health software market. In addition, the market players are adopting several strategic initiatives such as new product launches, contractual agreements, mergers & acquisitions, increasing investments, and partnering with other players to expand their footprint.

Some key players in the market are Oracle (US), Credible Behavioral Health (US), and Epic Systems Corporation (US). Oracle Cerner is engaged in developing, designing, and installing healthcare information technology. It caters to managed care organizations, hospitals, medical centers, and others. The company has a  presence across 19 countries. Cerner Millenium and Cerner PowerChart are some behavioral health software the company offers. The company provides behavioral health software services through collaborations with healthcare organizations. In June 2022, Oracle (US) completed the acquisition of Cerner (US). Another player is Epic Systems Corporation (US), which provides behavioral software. In October 2019, Epic Systems Corporation (US) expanded its facilities in Verona, Italy, house an additional 1,200 employees, improving its operating capabilities.

Key Companies in the Behavioral Health Software market includes

• Oracle (US)


• Credible Behavioral Health (US)


• Meditab Software, Inc. (US)


• Netsmart Technologies, Inc. (US)


• Epic Systems Corporation (US)


• Mediware (US)


• Allscripts Healthcare, LLC (US)


• Valant (US)


• Welligent, Inc. (US)


• Core Solutions, Inc. (US) among others

Behavioral Health Software Industry Developments

December 2021: Netsmart Technologies, Inc., Inc. (US) acquired Remarkable Health (US), an industry-leading provider of artificial intelligence (AI) technology and software solutions for behavioral health to accelerate AI innovations and expand the Netsmart CareFabric platform capabilities.

April 2020: Netsmart Technologies, Inc., Inc. (US) collaborated with CalVet (US) to offer their myUnity EHR platform for US veteran residents at CalVet and provide effective care to them.

March 2020: - Credible Behavioral Health (US) partnered with Change Healthcare (US), one of the nation's leading revenue cycle management providers to offer free Electronic Health Record (EHR) during COVID-19 pandemic.

October 2019: Epic Systems Corporation (US) expanded its facilities in Verona, Italy, house an additional 1,200 employees, improving its operating capabilities.

Behavioral Health Software Market Segmentation:

Behavioral Health Software Functionality Outlook

• 
  Clinical Functionality
  
  
  
  • Electronic Health Records (EHRs)
  
  
  • Clinical Decision Support (CDS)
  
  
  • Telehealth
  
  
  • Others
  
  
  
  


• 
  Administrative Functionality
  
  
  
  • Patient/Client Scheduling
  
  
  • Workforce Management
  
  
  • Others
  
  
  
  


• 
  Financial Functionality
  
  
  
  • Revenue Cycle Management
  
  
  • Managed Care
  
  
  • Others
  
  
  
  

Behavioral Health Software Delivery Method Outlook

• Subscription Model


• Ownership Model

Behavioral Health Software Type Outlook

• Standalone


• Integrated

Behavioral Health Software End User Outlook

• Payers


• Providers


• Patients

Behavioral Health Software Regional Outlook

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America