According to Towards Healthcare, the global AI in mental health market size is calculated at USD 1.80 billion in 2025 and is expected to reach around USD 11.84 billion by 2034, growing at a CAGR of 24.15% for the forecasted period.
Ottawa, April 24, 2025 (GLOBE NEWSWIRE) — The global AI in mental health market size was valued at USD 1.45 billion in 2024 and is predicted to hit around USD 11.84 billion by 2034, a study published by Towards Healthcare a sister firm of Precedence Research.
The rising prevalence of mental disorders and technological advancements are the major growth factors of the market. North America dominated the global market due to the increasing use of AI in healthcare and the growing demand for personalized medicines.
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AI in Mental Health Market Overview
Artificial intelligence (AI) has revolutionized the detection and treatment of mental health disorders. It offers advanced detection approaches, tailored therapies, and virtual therapeutic platforms, leading to increased healthcare access and better treatment outcomes. Numerous AI algorithms, such as machine learning, computer vision, natural language processing, and generative AI, play a vital role in performing different functions to transform mental healthcare. These algorithms offer enhanced accuracy and precision, reducing manual errors.
The rising prevalence of mental health disorders necessitates their early diagnosis and treatment. The growing demand for personalized medicines favors the development of cognitive behavioral therapy, depending on the patient’s conditions. The growing awareness about mental health as a significant health concern encourages the general public to treat it. Numerous government organizations launch initiatives for the screening and early detection of mental disorders.
AI in Mental Health Market Trends
- Rising Prevalence of Mental Health Disorders: The rising prevalence of mental health disorders globally is a major public health concern. The different types of mental disorders include anxiety, depression, bipolar disorder, and schizophrenia. Depression is the most common disorder, affecting around 280 million people globally.
- Technological Advancements: Ongoing efforts are made to develop advanced and innovative tools for screening and early detection of mental health disorders. Researchers are also developing algorithms that can analyze speech patterns to detect anxiety and predict psychiatric episodes before they occur.
- Increasing Investments: Several government and private organizations provide funding to support the adoption of AI tools and algorithms for mental health disorders. The increasing venture capital investments for healthcare startups also contribute to the market.
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Limitations & Challenges in the AI in Mental Health Market
- Biasedness: AI algorithms can provide biased results due to inaccuracies and imbalances in datasets while training algorithms. This leads to incorrect results and potentially affects clinical decisions, thereby reducing treatment outcomes.
- Privacy & Data Protection: Another major challenge is the privacy & data protection when using AI algorithms to detect a patient’s mental health condition. There are high chances of security breaches, leading to the leakage of sensitive patient information.
- Regulatory Hurdles: There are currently no clear and comprehensive regulatory frameworks governing the use of AI in mental health. This limits the development of novel AI-enabled medical devices, restricting market growth.
Wearable Devices: Transforming Mental Health
The rising adoption of wearable devices can prove to be beneficial in identifying a patient’s mental health status. AI-enabled wearable devices can monitor a patient’s sleep patterns, physical activity, and variations in heart rate and rhythm. This gives an idea to assess the user’s mood and cognitive state. These devices can be used by individuals for the prescreening assessment of mental health disorders, like anxiety and depression. Through wearable devices, healthcare professionals can continuously monitor a patient’s condition. AI-based wearable devices create ample opportunities for patients and healthcare professionals in the future, facilitating remote monitoring. This benefits the geriatric population, as they are more prone to mental health disorders, affecting 14% of adults over 60 years globally.
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Regional Analysis
Technological Advancements Dominated North America
North America dominated the global AI in mental health market in 2024. The rising prevalence of mental health disorders and the increasing adoption of advanced technologies in healthcare drive the market. The presence of key players develops advanced AI tools for the diagnosis and treatment of mental disorders. The growing demand for personalized medicines also promotes market growth. Advanced healthcare infrastructure and growing research and development activities also contribute to the market.
- United States: The National Institute of Health (NIH) estimated that more than 57 million Americans are affected by mental illness. The Trump Administration issued a new executive order in 2025 to remove barriers to innovation and position the U.S. as a global leader in AI.
- Canada: According to a Canadian Mental Health Association report, 57% of adults aged 18-24 years had early signs of mental illness. E-Mental Health Strategy for Canada highlights the need for safety concerning the application of AI in mental healthcare for Canadians.
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Growing Awareness Promotes Asia-Pacific
Asia-Pacific is projected to host the fastest-growing AI in mental health market in the coming years. The government and private institutions conduct workshops and seminars to create awareness among the general public about mental health. This increases the demand for the development of innovative AI-enabled medical devices and mobile apps, improving healthcare outcomes for people living in Asia-Pacific countries. Favorable government initiatives and growing investments boost the market. The rising collaborations and the burgeoning healthcare sector also govern market growth.
- China: Autism is the leading mental health disability among children in China, affecting around 2 million children from 0-14 years. Recently, the researchers at Feng’s Innovation Center developed an AI system for early diagnosis and identification of Autism Spectrum Disorder, resulting in a diagnostic accuracy rate of 91.67%.
- India: The Indian government’s tele-mental health program, Tele MANAS, facilitates 24×7 remote access to mental health. The Tele MANAS app was launched in 2024 with self-care resources, stress management tools, and direct consultation services.
Segmental Outlook
Offering Insights
The software segment held a dominant presence in the AI in mental health market in 2024 and is expected to grow at the fastest CAGR during the forecast period. AI-enabled software increases access to advanced mental health services due to the increasing use of smartphones. People can monitor their mental health status and send real-time data to their doctors. Additionally, AI-powered chatbots and virtual therapists assist patients with psychological disorders in identifying their problems. Integrating AI-enabled software in healthcare settings eliminates the need for favorable infrastructure for its installation.
Technology Insights
The natural language processing (NLP) segment led the global market in 2024. NLP can support the analysis and management of large datasets and can classify datasets based on a patient’s condition. It can facilitate information extraction, sentiment analysis, and emotion detection. It is predominantly used for simulating human conversations as well as creating and understanding clinical documentation. NLP can facilitate the early diagnosis of mental health disorders by analyzing human language.
The machine learning (ML) segment is anticipated to grow with the highest CAGR in the AI in mental health market during the studied years. ML and deep learning (DL) algorithms enhance the diagnostic accuracy of mental health conditions. They can analyze vast amounts of patient data, such as electronic health records and brain scans, to detect abnormalities that are not visible to a human. It can identify patterns and predict the possibility of mental health disorders in the near future. ML and DL algorithms have been found to enhance the diagnostic accuracy.
Disorder Insights
The anxiety segment held the largest share of the market in 2024. Anxiety is the most common mental disorder globally. The rising prevalence of anxiety disorders augments the segment’s growth. According to the WHO, 4% of the global population experiences anxiety disorder. The major risk factors of anxiety include trauma, stress, genetics, and substance abuse. Anxiety disorder can significantly impact a person’s lifestyle, reduce productivity at the workplace, and also lead to social isolation. Hence, early detection of anxiety disorders is necessary. Only 1 in 4 people (27.6%) in need receive any treatment for anxiety disorders.
The schizophrenia segment is predicted to witness significant growth in the AI in mental health market over the forecast period. Schizophrenia is a complex, multi-dimensional disorder with varying degrees of psychotic, negative, cognitive, and motor manifestations. It is caused by a variety of factors, including genetic, biological effects, and environmental factors. Schizophrenia is estimated to affect more than 24 million people globally, accounting for 1.5 per 10,000 people. AI can be used to detect and develop novel, tailored antipsychotic drugs for the effective treatment of Schizophrenia patients.
Top Companies in the Market
- Spring Care, Inc.
- Wysa Ltd,
- Lyra Health, Inc.
- Woebot Health
- Quartet
- Meru
- Syra Health
- New Life Solution, Inc. (meQ)
- Aiberry
- Limbic
- Ellipsis Health
- Kintsugi Mindful Wellness, Inc
- NextGen Healthcare
- SilverCloud (American Well Corporation)
- Fortis Healthcare
- HEADSPACE HEALTH
- Microsoft
Recent Breakthroughs in AI in Mental Health Market
- In April 2025, Lyra Health announced the launch of its new AI platform, Lyra Connect, in the next 12 months. The platform compares workplace information against peers, industries, and evidence-based best practices, along with predictive analytics to help HR leaders plan. The real-time data enables HR to respond quickly to workplace issues.
- In April 2025, researchers from Dartmouth College’s Geisel School of Medicine developed Therabot, a gen AI-powered therapy chatbot to enable users to interact with a digital presence. The mobile app demonstrated greater symptom reductions in patients with major depressive disorder (MDD), generalized anxiety disorder (GAD), and feeding and eating disorders in more than 200 participants of a randomized controlled trial.
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Segments Covered in the Report
By Offering
- Software
- Services
By Technology
- Natural Language Processing
- Text Analytics
- Speech Analytics
- Smart Assistance
- Others
- Machine Learning
- Deep Learning
- Others
By Disorder
- Anxiety
- Depression
- Schizophrenia
- Post-traumatic Stress Disorder (PTSD)
- Insomnia
- Others
By Region
- North America
- US
- Canada
- Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East and Africa (MEA)
- South Africa
- UAE
- Saudi Arabia
- Kuwait
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Towards Healthcare is a leading global provider of technological solutions, clinical research services, and advanced analytics to the healthcare sector, committed to forming creative connections that result in actionable insights and creative innovations. We are a global strategy consulting firm that assists business leaders in gaining a competitive edge and accelerating growth. We are a provider of technological solutions, clinical research services, and advanced analytics to the healthcare sector, committed to forming creative connections that result in actionable insights and creative innovations.
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