Towards Healthcare
Europe Behavioral Health Market to Extend USD 63.23 Bn by 2034

Europe Behavioral Health Market Expands with AI Support

Based on market forecasts, the Europe behavioral health market, projected at USD 34.67 billion in 2024, is expected to reach USD 63.23 billion by 2034, growing at a CAGR of 6.19% over the forecast period. The Europe behavioral health market is expanding due to growing mental health awareness.

Category: Therapeutic Area Insight Code: 6262 Format: PDF / PPT / Excel

The Europe behavioral health market size is calculated at US$ 34.67 billion in 2024, grew to US$ 36.82 billion in 2025, and is projected to reach around US$ 63.23 billion by 2034. The market is expanding at a CAGR of 6.19% between 2025 and 2034.

Europe Behavioral Health Market Size 2024 to 2034

The growing mental health disorders across Europe are increasing the use of behavioral health solutions. They are offering various services, treatments, and digital tools or platforms for their detection, cure, and prevention. AI is also being used for the accurate analysis of the conditions and for developing personalized treatment plans, where the companies and government are also investing in these approaches, services, as well as other growing innovations. The companies are launching and developing new treatment options or digital platforms, where these advancements are promoting Europe behavioral health market growth.

Key Takeaways

  • Europe behavioral health sector pushed the market to USD 34.67 billion by 2024.
  • Long-term projections show USD 63.23 billion valuation by 2034.
  • Growth is expected at a steady CAGR of 6.19% in between 2025 to 2034.
  • The global behavioral health market is valued at USD 173.35 billion in 2024 and is projected to reach USD 332.77 billion by 2034, growing at a CAGR of 6.74%.
  • By condition category type, the mood & anxiety disorders segment dominated the market in 2024.
  • By condition category type, the substance use disorders (SUD) segment is expected to be the fastest growing during the forecast period.
  • By service modality type, the outpatient counseling & psychiatry segment dominated the market in 2024.
  • By service modality type, the tele-behavioral/virtual care segment is expected to be the fastest growing during the forecast period.
  • By patient age group type, the adults segment dominated the Europe behavioral health market in 2024.
  • By patient age group type, the children & adolescents segment is expected to be the fastest growing during the forecast period.
  • By payer/funding type, the public & social insurance segment dominated the market in 2024.
  • By payer/funding type, the commercial/employer-sponsored segment is expected to be the fastest growing during the forecast period.

Key Indicators and Highlights

Table Scope
Market Size in 2025 USD 36.82 Billion
Projected Market Size in 2034 USD 63.23 Billion
CAGR (2025 - 2034) 6.19%
Market Segmentation By Condition Category, By Service Modality, By Patient Age Group, By Payer/Funding
Top Key Players Ramsay Health Care, Acadia Healthcare, Lifepoint Behavioral Health, HCA Healthcare, Magellan Health, Sheppard Pratt Health System, Carelon Behavioral Health, Optum Behavioral Health (UnitedHealth Group), Teladoc Health/BetterHelp, Lyra Health, Talkspace, Modern Health, Headspace Health (Ginger + Headspace), Array Behavioral Care, SonderMind, Spring Health, Brightline, Quartet Health

What is Behavioral Health?

The Europe behavioral health market is driven by supportive government policies, increased awareness, and technological adoption. The behavioral health encompasses the treatments, products, services, and technologies used to treat, diagnose, manage, and prevent various behavioral and mental health disorders across Europe. They focus on the emotional, behavioral, and mental well-being of the patient by understanding, improving, treating, and managing their stress, mental illness, trauma, or even addictions. Moreover, they offer medications, virtual care, as well as other services, which are further supported by the policies and investments.

Europe Behavioral Health Market Outlook:

  • Industry Growth Overview: There is a rise in technological innovations, growth in the treatment and preventive needs, and expanding access to care by the industry. Therefore, various pharmaceutical and digital technology companies are collaborating to accelerate these advancements.
  • Major Investors: The major investors in the market include impact investors, dedicated healthtech funds that finance mental health startups, and venture capital firms. Calm/Storm Ventures, Index Ventures, Sofinnova Partners, and Molten Ventures are some of the major investors.
  • Startup Ecosystem: The startup ecosystem is focusing on scalable solutions for mental health challenges and using digital technologies such as AI to enhance personalized treatment and accessibility. The startups are contributing to address conditions like depression and anxiety.

AI Technological Shifts in the Europe Behavioral Health Market

The use of AI in behavioural health is increasing as it helps in its analysis. At the same time, it also helps in the early detection of any mental health disorders, promoting the development of personalized treatment plans. It also provides insights and virtual therapeutic platforms, enhancing the availability of healthcare, which in turn improves the treatment outcomes.

For instance,

  • In September 2025, to develop the first behavioral AI platform operating fully on user devices to support youth mental health, a collaboration between Multiverse Computing and SOHMA AI was announced.
  • In September 2025, to evaluate AI-powered technology, enabling remote, accurate drug testing for individuals in recovery from opioid use disorder, a collaboration between Q2i and King's College London was announced.

Growing mental health problems: There is a rise in mental health problems across Europe, which in turn is increasing the demand for appropriate treatment and services. To deal with their growing incidences, various awareness programs are being conducted. Additionally, investment and government funding are also being provided to increase awareness, enhance the development of various treatment options, and increase access to the services.

For instance,

  • In May 2025, by ensuring access to the appropriate support and solidifying the early intervention and prevention methods, the European Commission aims to promote mental well-being. Therefore, over €1.2 billion is being mobilised through Horizon Europe, Erasmus+, and EU4Health, along with targeted calls for cross-border collaboration, digital tools, research, and workforce development.
  • In March 2025, over €6 million in cash and media-for-equity was received by HelloBetter, which is a leading European company in digital therapies for mental health and a global pioneer in mental health research, making the total funding €31 million. This funding will promote the company to become a household name for mental health in Germany, help to launch new products, and bring the proven digital mental health solutions to the French market.

Table: Advancements in the Behavioral Health Market

Companies Announcements Source
Biogen Inc. ZURZUVAE® gained marketing authorization from the European Commission (EC) to treat post-partum depression (PPD) Biogen Receives European Commission Approval for ZURZUVAE® (zuranolone), the First and Only Treatment Approved for Women with Postpartum Depression in Europe | Biogen
Sonomind A non-invasive, personalised ultrasound brain stimulation platform will be developed to help people living with depression, with recently secured investments. Sonomind Raises €3M to Advance Depression Therapy
Sheffield Health and Social Care NHS Foundation Trust Name changed to “Sheffield Health Partnership University NHS Foundation Trust”, representing a powerful stride towards advancing mental health research and transforming mental health. Mental Health Trust becomes Sheffield Health Partnership University NHS Foundation Trust.

Segmental Insights

How the Mood & Anxiety Disorders Segment Dominated the Europe Behavioral Health Market in 2024?

By condition category type, the mood & anxiety disorders segment led the market in 2024, due to their growing incidence rates. At the same time, growth in awareness enhanced their early diagnosis. This, in turn, increased the demand for their treatment options.

By condition category type, the substance use disorders (SUD) segment is expected to show the highest growth during the predicted time. Due to the growing use of alcohol and opioids, these disorders are increasing. Moreover, they are also being overlapped with stress, depression, and anxiety, which is increasing the use of advanced treatment solutions.

What Made Outpatient Counseling & Psychiatry the Dominant Segment in the Europe Behavioral Health Market in 2024?

By service modality type, the outpatient counseling & psychiatry segment held the largest share of the market in 2024, driven by its wide range of accessibility. At the same time, they also offered affordable services. Additionally, due to their focus on preventive mental health measures, they were preferred.

By service modality type, the tele-behavioral/virtual care segment is expected to show the fastest growth rate during the predicted time. Their use is increasing as they are enhancing patient convenience and increasing their access across remote areas. Moreover, it also helps in maintaining the patient's privacy, increasing their satisfaction.

Why Did the Adults Segment Dominate in the Europe Behavioral Health Market in 2024?

By patient age group type, the adults segment led the market in 2024, due to an increase in their depression and anxiety conditions. Moreover, this age group is often faced with workplace stress and burnout. This increased the use of various services to deal with the growing mental health disorders.

By patient age group type, the children & adolescents segment is expected to show the highest growth during the upcoming years. Due to the growing use of smartphones and social media, behavioral health problems are increasing in this age group. Moreover, growing awareness through government programs and promoting early diagnosis.

Which Payer/Funding Type Segment Held the Dominating Share of the Europe Behavioral Health Market in 2024? 

By payer/funding type, the public & social insurance segment held the dominating share of the market in 2024, as they were an essential and universal healthcare system. They were used to cover the medication and counseling of the patient. Moreover, they also helped in enhancing access to behavioral health services.

By payer/funding type, the commercial/employer-sponsored segment is expected to show the fastest growth rate during the upcoming years. Due to growing workplace stress and burnout, these services are providing employers with support. Additionally, mental health coverage and digital therapy platforms are also being launched by the companies.

Regional Insights

Growing Awareness Drives Europe

The Europe behavioral health market is expected to grow significantly during the forecast period, due to growing awareness through various campaigns and programs about mental health issues. This, in turn, is increasing the demand for various curative treatment options as well as driving the adoption of digital solutions, which are enhancing access to the services. At the same time, the government is also introducing new policies and investments, enhancing the development of the mental health infrastructure. Additionally, growing incidences of mental health conditions are also increasing the use of various services such as outpatient care, patient-centered care, etc., which is promoting the market growth.

Country-level analysis talking about investments

In September 2025, for mental healthcare services, a total of 4.1 million Euros will be invested in therapeutic XR technologies by the UK government. To use audio, VR, MR, AR, and haptics and immersive software for mental healthcare applications, this investment will be utilized.

Global Behavioral Health Market Growth

The global behavioral health market is valued at USD 173.35 billion in 2024 and is expected to grow to USD 185.03 billion in 2025. Looking ahead, it’s projected to reach approximately USD 332.77 billion by 2034, expanding at a CAGR of 6.74% from 2025 to 2034.

Behavioral Health Market Size 2024 to 2034

Europe Behavioral Health Market Value Chain Analysis

R&D

To develop personalized, effective, and accessible interventions for a wide range of mental health conditions, the R&D of Europe's behavioral health is focusing on leveraging digital technologies such as AI, digital therapeutics (DTx), and virtual reality (VR).

Key Players: Novartis, Roche, Atai Life Sciences.

Clinical Trials and Regulatory Approvals

The clinical trials and regulatory approvals in Europe's behavioral health focus on the dual and distinct pathways for medical products versus digital health solutions.

Key Players: Pfizer, Novartis, Roche, Atai Life Sciences.

Patient Support and Services

The patient support and services of Europre behavioral health include community-based and digital services such as telepsychiatry to specialized non-governmental organizations and digital health companies, where digital tools provide therapy access, personalized monitoring, and medication adherence.

Key Players: HelloBetter, Unmind, Spill, Flow Neuroscience.

Which are the Top Vendors and What are Their Offerings?

  • Roche: It is one of the largest biotech companies that provides in-vitro diagnostics and transformative innovative solutions for major disease areas. Their main aim is to prevent, stop, or cure the diseases.
  • Novartis: The company is one of the largest pharmaceutical companies, manufacturing a wide range of drugs. The company is focusing on the mental health and well-being of the people by discovering ways to improve and extend people’s lives.
  • Atai Life Sciences: The company focuses on transforming patient outcomes in mental health care. The mental health innovations, pharmaceutical drug development, and biotech expertise are brought together in this company.
  • Universal Health Services (UHS): It is one of the largest healthcare and hospital services providers. It operates 331 behavioral health inpatient facilities and 29 acute care hospitals.
  • Priory Group (UK): It is the leading mental health and adult social care provider in the UK. It addresses a total of 70 conditions, such as depression, eating disorders, addictions, children’s mental health, and anxiety.

Which are the Top Companies in the Europe Behavioral Health Market?

  • Ramsay Health Care
  • Acadia Healthcare
  • Lifepoint Behavioral Health
  • HCA Healthcare
  • Magellan Health
  • Sheppard Pratt Health System
  • Carelon Behavioral Health
  • Optum Behavioral Health (UnitedHealth Group)
  • Teladoc Health/BetterHelp
  • Lyra Health
  • Talkspace
  • Modern Health
  • Headspace Health (Ginger + Headspace)
  • Array Behavioral Care
  • SonderMind
  • Spring Health
  • Brightline
  • Quartet Health

Recent Developments in the Europe Behavioral Health Market

  • In September 2025, with a goal to provide personalized, ethical, and accessible behavioral health services to families throughout select European regions, California, and Florida, multiple new clinics were launched by Go Behavioural.
  • In September 2025, a European digital hub for progressive mental health, that is States of Mind, was launched. This platform helps patients connect with therapists, clinics, digital health services, and retreat centers.

Segments Covered in the Report

By Condition Category

  • Mood & Anxiety Disorders
  • Serious Mental Illness (SMI: schizophrenia, bipolar)
  • Substance Use Disorders (SUD)
  • Trauma & PTSD
  • Eating Disorders
  • ADHD & Neurodevelopmental (pediatric)
  • Others (sleep, personality disorders, comorbid pain)

By Service Modality

  • Outpatient Counseling & Psychiatry
  • Inpatient Psychiatric Hospitals & Acute Units
  • Partial Hospitalization (PHP) & Intensive Outpatient Programs (IOP)
  • Tele-behavioral/Virtual Care
  • Residential Treatment Centers (RTC) & Rehab
  • Community-Based Services (ACT, case management)
  • Crisis Services (988-aligned, mobile teams, CSU)

By Patient Age Group

  • Adults
  • Children & Adolescents
  • Geriatric/Late-life Mental Health 

By Payer/Funding

  • Public & Social Insurance (Medicaid/Medicare/National Health Systems)
  • Commercial/Employer-sponsored 
  • Self-pay/Cash/Charity 

Tags

  • Last Updated: 06 October 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Shivani Zoting is a dedicated research analyst specializing in the healthcare industry. With a strong academic foundation, a B.Sc. in Biotechnology and an MBA in Pharmabiotechnology, she brings a unique blend of scientific understanding and strategy.

Learn more about Shivani Zoting

Aditi Shivarkar is a seasoned professional with over 14 years of experience in healthcare market research. As a content reviewer, Aditi plays a critical role in ensuring the quality and accuracy of all market insights and data presented by the research team.

Learn more about Aditi Shivarkar

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FAQ's

The Europe behavioral health market stands at USD 36.82 billion in 2025 and is expected to reach USD 63.23 billion by 2034, growing at a CAGR of 6.19% from 2024 to 2034.

The Europe behavioral health market is significantly growing due to increasing mental health awareness.

Some key players include Ramsay Health Care, Acadia Healthcare, Lifepoint Behavioral Health, and HCA Healthcare.

Supportive government policies are the factor that drives the market growth.

Ministry of Health and Family Welfare, Government of India, National Institutes of Health, FDA, WHO, PIB, CDC.