U.S. Digital Mental Health Market to Grow at 20.25% CAGR till 2035

Revenue, 2025

7.46 Billion

Forecast, 2035

47.13 Billion

CAGR, 2026 – 2035

20.25%

Report Coverage

United States

U.S. Digital Mental Health Market Size, Trends and Key Players with Forecast

The U.S. digital mental health market size was estimated at USD 7.46 billion in 2025 and is predicted to increase from USD 8.97 billion in 2026 to approximately USD 47.13 billion by 2035, expanding at a CAGR of 20.25% from 2026 to 2035.

U.S. Digital Mental Health Market Trends and Growth (2026)

The U.S. digital mental health market is expanding rapidly, driven by rising mental health awareness, growing acceptance of virtual therapy, and increasing adoption of AI-enabled diagnostic and support tools. Strong employer-led wellness programs, integration of telepsychiatry into healthcare systems, and demand for accessible, affordable care further accelerate growth. Advancements in mobile apps and remote monitoring strengthen its overall market momentum.

Key Takeaways

U.S. digital mental health market to crossed USD 8.97 billion by 2026.
Market projected at USD 47.13 billion by 2035.
CAGR of 20.25% expected in between 2026 to 2035.
By component, the software segment registered its dominance over the U.S. market in 2025.
By component, the services segment is expected to grow with the highest CAGR in the market during the studied years.
By age group, the adult (20 to 65) segment held a dominant presence in the U.S. digital mental health market in 2025.
By age group, the children & adolescents (10 to 19) segment is expected to witness the fastest growth in the market over the forecast period.
By end user, the patients segment contributed the biggest revenue share in the market in 2025.
By end user, the providers segment is expected to grow at the fastest CAGR in the market during the forecast period.
By disorder type, the mental disorder segment registered its dominance over the U.S. market in 2025.
By disorder type, the behavioral disorder segment is expected to grow with the highest CAGR in the market during the studied years.

Executive Summary Table

Key Elements	Scope
Market Size in 2026	USD 8.97 Billion
Projected Market Size in 2035	USD 47.13 Billion
CAGR (2026 - 2035)	20.25%
Market Segmentation	By Component, By Age Group, By End User, By Disorder Type
Top Key Players	BioTelemetry, Inc., eClinicalWorks, Allscripts Healthcare Solutions, Inc., iHealth Lab, Inc., AT&T, Honeywell International Inc., Cisco Systems, McKesson Corporation, Cerebral, Inc. (added)

The U.S. digital mental health market is driven by rising anxiety and depression rates, increased acceptance of virtual therapy, and strong demand for accessible care. Innovations in AI-powered assessments, employer-sponsored mental wellness programs, and expanded insurance coverage further accelerate adoption, strengthening digital platforms as mainstream mental health solutions.

The digital mental health market refers to technology-enabled solutions designed to support, monitor, and improve mental well-being through digital platforms. It includes teletherapy services, mental health apps, AI-based assessment tools, online cognitive-behavioral therapy programs, remote monitoring systems, and virtual care platforms. These solutions aim to increase accessibility, reduce stigma, and deliver timely mental health support regardless of location. The market serves individuals, healthcare providers, employers, and insurers, offering personalized care pathways and scalable interventions.

AI integration can significantly enhance the U.S. digital mental health market by enabling personalized, data-driven care. Machine learning algorithms can analyze user behavior, speech patterns, and physiological data to detect early signs of mental health issues, allowing timely interventions. AI-powered chatbots and virtual therapists provide 24/7 support, reducing barriers to care and improving accessibility. Predictive analytics help clinicians tailor treatment plans and remotely monitor progress.

Trends & Future Outlook in the U.S. Digital Mental Health Market

Teletherapy & virtual counseling becoming mainstream - More people use video or chat‑based therapy from home rather than in‑person, enjoying convenience, flexibility, and privacy. 
Employer/corporate‑wellness adoption rising - Companies increasingly include mental‑wellness apps and digital therapy as part of employee benefits, driven by growing awareness of workplace stress and burnout. 
Wearable device integration & real‑time monitoring - Mental health apps now often connect with smartwatches or fitness trackers to monitor sleep, stress, heart‑rate variability and other signals, enabling continuous and preventive mental‑health support. 
Personalized & specialized care paths - There's a shift toward apps tailored to specific issues (anxiety, sleep, stress, depression), rather than one‑size-fits-all wellness tools, improving relevance and effectiveness for users.
Integration with traditional care & clinical workflows - Digital mental health isn’t just consumer‑oriented anymore: many platforms are aligning with healthcare providers, allowing therapists to monitor patients’ progress, integrate with electronic health records (EHRs), and blend virtual with in-person care.
Growing emphasis on preventive care & early intervention - Users and providers use apps not only for treating disorders but also for stress management, sleep hygiene, mood tracking, and early detection of mental health issues, making digital mental health part of everyday wellness.
Greater Insurance & Reimbursement Support - As more insurers (private, Medicaid/Medicare) expand coverage for virtual therapy and digital mental‑health services, cost barriers will shrink, and access will rise widely. 
Hybrid Care Models Blending Virtual and in‑Person Therapy - Patients and providers will increasingly combine online sessions with occasional in‑person visits, allowing flexibility while maintaining therapeutic relationships and care continuity.

Prevalence of Mental Illness in Adults in the U.S. (In MIllion)

Major Investments and/or Government Data in the U.S. Digital Mental Health Market

In March 2025, Klarity Health expanded its platform, integrating AI tools for providers and accepting major insurers, including Anthem and Cigna.
On January 1, 2025, the Centers for Medicare & Medicaid Services (CMS) began reimbursing certain FDA‑authorized digital mental health treatments (digital therapeutics or DTx), meaning apps and software-based therapy tools may now be covered under Medicare, improving accessibility and incentivizing uptake.

Segmental Insights

Which Component Segment Dominated the U.S. Digital Mental Health Market?

Software

The software segment dominates the market due to the widespread adoption of teletherapy, virtual counseling, and online psychiatric services. Increased demand for professional guidance, personalized treatment plans, and real-time support drives growth. Employer wellness programs, insurance reimbursements, and integration with healthcare systems further strengthen service offerings, making them the primary choice for accessible and effective mental health care.

Services

The services segment is anticipated to be the fastest-growing in the U.S. digital mental health market due to digital mental health services offer a wide range of solutions like teletherapy, AI chatbots (Woebot, Wysa), wellness apps (Calm, Headspace), VR therapy, and wearables for tracking, growing rapidly to bridge mental healthcare gaps via accessible, scalable, and personalized tools, driven by increased awareness and tech adoption post-pandemic, though facing challenges in data privacy and long-term efficacy proof.

Why Did adult (20 to 65) Dominant Segment in the U.S. Digital Mental Health Market?

Adult (20 to 65)

The adult (20 to 65) segment dominates the market due to the higher prevalence of stress, anxiety, and depression among working-age populations. Greater awareness, willingness to seek virtual therapy, integration with workplace wellness programs, and widespread smartphone usage drive adoption, making adults the primary users of digital mental health services.

Children & Adolescents

The children & adolescents (10 to 19) segment is anticipated to be the fastest-growing age group in the U.S. digital mental health market due to increasing awareness of youth mental health issues, rising school-based programs, and parental demand for accessible support. Gamified apps, virtual counseling, and early intervention tools cater to younger users, promoting engagement, prevention, and timely management of stress, anxiety, and behavioral challenges.

Which End User Segment Led the U.S. Digital Mental Health Market?

Patients

The patients segment dominates the market due to direct demand for accessible, personalized, and convenient mental health solutions. Growing awareness, increased acceptance of teletherapy, and the availability of mobile apps and virtual counseling platforms drive patient adoption, making them the primary end-users of digital mental health services.

Providers

The providers segment is estimated to be the fastest-growing end-user in the U.S. digital mental health market due to increasing adoption of teletherapy platforms, digital tools for patient monitoring, and integration with electronic health records. Growing demand for efficient care delivery, remote patient management, and streamlined clinical workflows drives rapid provider engagement.

Why is Mental Disorder Dominant Segment in the U.S. Digital Mental Health Market?

Mental Disorder

The mental disorder segment dominates the market due to the high prevalence of conditions such as depression, anxiety, and stress-related disorders. Rising awareness, early diagnosis initiatives, and demand for accessible therapy and monitoring solutions drive adoption. Digital platforms provide continuous support, personalized care, and integration with healthcare services, strengthening their prominence in managing mental disorders.

Behavioral Disorder

The behavioral disorder segment is the fastest-growing disorder-type segment in the U.S. digital mental health market due to increasing recognition of ADHD, autism spectrum disorders, and other behavioral conditions. Rising demand for remote monitoring, digital therapy programs, and early intervention tools, combined with parental and clinical support, drives adoption. Mobile apps and telehealth platforms enhance engagement and continuous management for affected individuals.

U.S. Market Analysis

Annual Prevalence of Mental Illness Among U.S. Adults, By Condition (In %)

The U.S. digital mental health market is witnessing strong growth across all regions. North U.S. shows significant adoption due to higher awareness, robust healthcare infrastructure, and widespread telehealth integration. The East U.S. benefits from major technology hubs and leading research institutions, driving innovation in AI-powered mental health tools. West U.S. sees rapid growth fueled by tech-savvy populations, early adoption of digital therapeutics, and strong venture capital investments. Nationwide, rising mental health concerns, increased acceptance of virtual care, employer wellness programs, and insurance reimbursements are key drivers. Regional variations reflect infrastructure, technology adoption, and investment levels, collectively supporting overall market expansion.

Top Vendors in the U.S. Digital Mental Health Market & Their Offerings

U.S. Digital Mental Health Market Key Players

Company	Digital Mental Health / Digital Health Offering (U.S.)
BioTelemetry, Inc.	Remote health monitoring technologies (connected health & remote patient monitoring); not specific mental health care.
eClinicalWorks	EHR and healthcare IT, including telehealth support, enabling digital care delivery (not a dedicated digital mental health platform).
Allscripts Healthcare Solutions, Inc.	EHR, practice management & patient engagement platforms with telehealth workflows; supports digital care but not a core mental health product.
iHealth Lab, Inc.	Consumer mobile health devices and mHealth peripherals; does not offer direct mental health services.
AT&T	Connectivity/telecom infrastructure supporting digital health ecosystems; not a direct mental health provider.
Honeywell International Inc.	IoT and facility tech supporting healthcare operations; not focused on mental health care.
Cisco Systems	Networking/telehealth infrastructure used by healthcare providers, including telemedicine; not a mental health service provider
McKesson Corporation	Healthcare distribution & IT support services enabling care delivery; not a core mental health provider.
Clarity Health / Klarity Health	Digital care marketplace connecting patients with licensed providers, including mental health services, via online consultations.
Cerebral, Inc. (added)	U.S. telehealth company offering online mental health care, including therapy, counseling, and medication management for mental health conditions.

SWOT

Strengths

High adoption of teletherapy and digital tools across adult and youth populations.
Growing mental health awareness and acceptance of virtual care.
Strong integration with employer wellness programs and insurance coverage.
Scalable, cost-effective, and accessible solutions for preventive and ongoing care.

Weaknesses

Limited physical interaction may affect therapy outcomes for some patients.
Data privacy and security concerns with sensitive health information.
Technology accessibility gaps in rural or underserved areas.

Opportunities

Expansion into children, adolescents, and behavioral disorder segments.
Integration with wearable devices, EHRs, and remote monitoring platforms.
Increasing partnerships with employers, schools, and healthcare systems

Threats

Regulatory changes or delays in insurance reimbursement.
Intense competition from traditional mental health services and emerging startups.
Patient reluctance due to stigma or lack of digital literacy.

Recent Developments in the U.S. Digital Mental Health Market

On June 4, 2025, Iris Telehealth announced a strategic partnership with Holmusk, merging telepsychiatry services with behavioral‑health data and real‑world insights. This collaboration aims to improve care personalization and expand remote mental health service availability.
On April 22, 2025, Lyra Health rolled out Lyra Empower, an upgraded mental‑health platform designed for workforce and employer‑sponsored care. It streamlines mental health support for employees and organizers, combining digital tools with clinical services for broader access.
On March 26, 2025, Klarity Health launched Kiwi Health, a new SaaS marketing and communications tool aimed at independent healthcare providers. The platform helps small practices better connect with patients from online discovery through after‑care engagement, potentially improving access and continuity of mental health services.

Segments Covered in the Report

By Component

Software
Hardware
Services

By Age Group

Children & Adolescents (10 to 19)
Adult (20 to 65)
Geriatric (Above 65)

By End User

Patients
Payers
Providers

By Disorder Type

Mental Disorder
Behavioral Disorder

FAQ's

The U.S. digital mental health market in 2026 is valued at USD 8.97 billion and is projected to climb to USD 47.13 billion by 2035, with a CAGR of 20.25% over the forecast period.

The U.S. digital mental health market includes four segments by component, by age group, by end user, and by disorder type.

Some key players include BioTelemetry Inc, eClinicalWorks, Allscripts Healthcare Solutions Inc, iHealth Lab Inc, AT & T, and Honeywell International Inc, etc.

Key trends include Teletherapy & virtual counseling becoming mainstream, Employer corporate‑wellness adoption rising, and Wearable device integration & real‑time monitoring, among others.

Society for Digital Mental Health, FDA, National Institutes of Health, Global Digital Mental Health Consortium (GDMC), Ministry of Health and Family Welfare, Government of India, National Alliance on Mental Illness (NAMI), WHO, PIB, CDC.

Any Questions

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