Telepsychiatry Market: Current Analysis and Forecast (2021-2027)

Telepsychiatry Market: Current Analysis and Forecast (2021-2027)

The telepsychiatry market is expected to register a CAGR of approx. 19% over the period of 2022-2028. Telemedicine is defined as the process of providing healthcare services via technology, primarily through videoconferencing. Telepsychiatry is a branch of telemedicine that provides a wide range of mental health services, including therapies such as individual, family, and group therapy, as well as medication management, psychiatric evaluations, and patient education. Telepsychiatry entails either direct communication between the psychiatrist and the patient or the psychiatrist assisting primary care providers who are trained in mental health. The growing demand for telepsychiatry can be attributed to an increase in the prevalence of mental diseases such as anxiety and depression across the globe. For instance, in 2020, according to World Health Organization (WHO), in September 2021, depression is a common illness worldwide, with an estimated 3.8% of the population affected, including 5.0% among adults and 5.7% among adults older than 60 years and approximately 280 million people in the world have depression. Owing to these glaring statistics changes in lifestyle and excess work pressure, there is an increase in the demand for telepsychiatry which would contribute to the growth of the market in the forthcoming period as well. Furthermore, the telepsychiatry market is anticipated to grow on account of the increasing remote patient monitoring and the adoption of telemedicine. However, some of the restraints in the market including the high cost of expert consultation are impeding the growth of this market all over the world.

• Based on the product, the telepsychiatry market is segmented into in-home solutions, forensic solutions, routine solutions, crisis solutions, and others. The in-home solutions segment accounted for a significant market share, and it is estimated that it will grow rapidly during the projected timeframe because of the growing preference for telepsychiatry treatment at home. The constantly changing guidelines for improved privacy and security contribute to the patient's trust in virtual consultations and are likely to aid the growth of the segment.
• Based on age, the market is fragmented into adult, pediatric, and adolescent, geriatric. The adult segment grabbed a considerable market share and is expected to grow at a significant CAGR during the forecast period. Adults' increasing levels of depression and anxiety are fueling the demand for virtual consultations in this age group. Furthermore, adults are very accustomed to using smartphones and online services, which fuels demand even more.
• Based on the end-users, the market is fragmented into community mental health centers, specialty care settings, homecare, and others. The community mental health centers segment grabbed a considerable market share and is expected to grow at a significant CAGR during the forecast period. The lack of numerous clinical teams in these facilities is contributing to the high demand for telepsychiatry services. Furthermore, the service is cost-effective and increased patient satisfaction is expected to drive segment growth even further.
• For a better understanding of the market adoption of telepsychiatry, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, and Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. North America constitutes a major market for the telepsychiatry industry owing to increased smartphone penetration, favorable reimbursement policies, and the presence of a large number of industry players.
• Some of the major players operating in InSight Telepsychiatry, Telemynd, e-Psychiatry, Advanced Telemed Services, American Telepsychiatrists, Iris Telehealth, MDLIVE Inc., innovaTel Telepsychiatry, SOC Telemed, Encounter Telehealth LLC among others. Several M&A along with partnerships have been undertaken by these players.