Chatbots for Mental Health and Therapy Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The chatbots for mental health and therapy market size has grown strongly in recent years. It will grow from $1.27 billion in 2024 to $1.38 billion in 2025 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to rise in the demand for accessible mental health services, growth in awareness of mental health, increased mental health awareness, increased prevalence of mental health disorders, advancements in natural language processing (NLP) and machine learning algorithms.

The chatbots for mental health and therapy market size is expected to see strong growth in the next few years. It will grow to $1.95 billion in 2029 at a compound annual growth rate (CAGR) of 9%. The growth in the forecast period can be attributed to the growing need for scalable therapy solutions, growing acceptance and adoption of digital health technologies, rising awareness about mental health issues, rising awareness towards the benefits of chatbots for mental health, growing need for scalable therapy solutions. Major trends in the forecast period include technological advancements, expansion of teletherapy capabilities, integration of virtual reality for immersive experiences, integration with wearable devices and other digital health tools, and expansion of crisis intervention features.

The growing demand for mental health services is expected to drive the expansion of chatbots in the mental health and therapy markets. Mental health demand refers to the increasing need for services, resources, and support systems to address the rising prevalence of mental health disorders and related challenges within the population. This demand is growing due to heightened awareness of mental health issues, improved accessibility, trauma and adverse experiences, and workplace stress. Chatbots offer psychoeducational resources, self-help tools, and evidence-based treatments to help users acquire knowledge and skills for effectively managing their mental health. Additionally, they provide 24/7 availability, enabling individuals to seek help anytime, regardless of their location or time zone. For example, a study by the Royal College of Psychiatrists (RCPsych) in August 2022 reported that spending on mental health services in England was $290.55 per person in 2022/2023, with an increase to $322.01 in 2023/2024. As a result, the rise in mental health demand is driving the growth of chatbots in the mental health and therapy markets.

Market leaders in the chatbots for mental health and therapy sector are prioritizing the development of cutting-edge solutions by integrating advanced technological features, such as state-of-the-art natural language processing (NLP) algorithms. These algorithms enhance chatbots' ability to comprehend, empathize, and engage effectively with users, resulting in more personalized and supportive interactions conducive to mental health care and therapy. For instance, in July 2023, TalkThru, a US-based digital therapy platform, unveiled an AI therapist equipped with innovative NLP algorithms for sensitive and meaningful user interactions. This solution offers round-the-clock accessibility, personalized support, and stigma reduction, making mental health support more accessible and effective.

In March 2024, UpLift, a US-based payment solutions provider, acquired TAO Connect for an undisclosed sum. This acquisition is designed to strengthen mental health support for higher education institutions and improve access to mental health resources for college students. TAO Connect, Inc. is a US-based mental health technology company specializing in AI chatbots.

Major companies operating in the chatbots for mental health and therapy market are Talkspace Online Therapy Inc., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Twilio Inc., Teladoc Health Inc., BetterHelp, Calm.com Inc., American Well Corp., Headspace Inc., Doctor On Demand Inc., MDLIVE, HelloSelf Limited, Mindstrong Inc., Lyra Health Inc., Valant, Welligent, Sensely Inc., LISSUN, Wysa Ltd., Happify Inc.

North America was the largest region in the chatbots for mental health and therapy market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the chatbots for mental health and therapy market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the chatbots for mental health and therapy market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The chatbots for mental health and therapy market includes revenues earned by entities by providing services such as automated mental health support, therapy sessions, counseling, and personalized interventions through chatbot platforms. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Chatbots for mental health and therapy utilize artificial intelligence (AI) and natural language processing (NLP) technologies to offer mental health support and therapy services through text or voice interactions. These applications aim to democratize access to mental health services, promote self-awareness, enhance emotional resilience, and foster a proactive mental health care culture.

These chatbots typically consist of various components, with Software as a Service (SaaS) being a prominent model. SaaS involves a cloud provider hosting applications and delivering them to users over the Internet. These platforms integrate a range of technologies, including machine learning, deep learning, and natural language processing. They support various applications such as conversational interfaces and behavioral pattern recognition to provide comprehensive mental health support and therapy services.

The chatbots for mental health and therapy market research report is one of a series of new reports that provides chatbots for mental health and therapy market statistics, including chatbots for mental health and therapy industry global market size, regional shares, competitors with chatbots for mental health and therapy market share, detailed chatbots for mental health and therapy market segments, market trends, and opportunities, and any further data you may need to thrive in the chatbots for mental health and therapy industry. This chatbots for mental health and therapy market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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