Behavioral Rehabilitation Market (2024 - 2030)

Market Size & Trends

The global behavioral rehabilitation market size was valued at USD 548.7 billion in 2023 and is projected to grow from USD 656.7 billion in 2026 to USD 845.5 billion by 2030, at a CAGR of 6.4% from 2024 to 2030. The market in North America dominated with a revenue share of 41.9% in 2023. The market expansion is due to a rise in the prevalence of behavioral & mental health conditions and growing awareness about available treatments. Researchers and industry players are continuously upgrading their services to offer high-quality solutions that meet the market demand. Rising government initiatives, such as the National Tele Mental Health Program launched in October 2022, to improve access to behavioral and mental health care and counseling services in India, are expected to boost the market's growth. Change in perception regarding behavioral rehabilitation is the most vital factor associated with the increasing demand for behavioral therapies in recent times.

Source: Grand View Research, IR Documents, Primary Interviews, Paid Databases

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Societal acceptance of behavioral disorders encourages patients to seek appropriate treatment. In addition, the categorization of mental health treatment into essential care benefits in the Affordable Care Act in the U.S. is expected to facilitate many patients opting for these therapies. Along with increasing demand, institutes that offer these services are strategizing mergers and acquisitions and regional expansions, thereby promoting market growth. For instance, in September 2023, Praesum Healthcare Services, LLC acquired Beacon Point Recovery Center, LLC, a behavioral health provider network in Philadelphia, U.S.

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The rising cases of behavioral and substance use disorders globally are anticipated to propel the demand for behavioral rehabilitation services, aiding market growth. As per the WHO, one out of eight individuals globally suffers from a mental health disorder, which involves substantial disturbances in thinking, behavior, and emotional regulation. Moreover, in 2019, around 40 million people globally were suffering from conduct-dissocial disorder. This has increased the focus of providers on better patient outcomes, and is offering access to high-quality specialized care services for the treatment of mental health disorders, addiction, and substance use.

COVID-19 significantly impacted the market growth owing to a reduction in treatment capacity; treatments were interrupted, terminated, or replaced by telemedicine services. According to the article published in the BMC journal in March 2023, in 2020, around 50% of depression patients reported constraints in receiving medical care, and inpatient treatment capacities were reduced to 60% of the pre-pandemic levels. However, due to these continuous restrictions and isolations, the prevalence of behavioral and mental health disorders increased post-pandemic. This has resulted in increased demand for rehabilitation services, majorly for depression and anxiety disorders.

Disorder Insights

Based on disorders, the market is segmented into anxiety disorders, mood disorders, substance abuse disorders, personality disorders, and attention deficit disorders. The anxiety disorders segment accounted for the largest share of 32.18% in 2023 and is expected to witness the fastest growth from 2024 to 2030. The major anxiety disorders include social anxiety, phobias, and other panic disorders. A higher prevalence of mental ailments and a wide range of treatment options are expected to drive segment growth. According to the 2021 COVID-19 Practitioner Survey by the American Psychological Association, more than 8 in 10 (84%) psychologists reported increased demand for treatment of anxiety disorders since the beginning of the pandemic.

Rising awareness about substance abuse & social acceptance of rehabilitated patients is a high-impact-rendering factor driving the demand for rehabilitation services. Along with these factors, rising government efforts against substance abuse are further expected to drive the segment’s growth at the highest CAGR from 2024 to 2030. The personality disorder segment is expected to witness significant growth over the forecast period. This growth is on account of the increasing awareness about the treatment of borderline personality disorder and histrionic personality disorder, which are effectively treated with Dialectical Behavior Therapy (DBT) and Cognitive-Behavioral Therapy (CBT) respectively.

Healthcare Settings Insights

Based on the healthcare settings, the market is segmented into inpatient, outpatient, and residential settings. The outpatient segment accounted for a revenue share of 74.07% in 2023, and is expected to witness the fastest CAGRfrom 2024 to 2030. Lower cost, increasing availability of services, and patient convenience are the factors contributing to its large share. According to the National Mental Health Services Survey 2020, around 40% of mental health facilities were outpatient facilities in 2020 in the U.S.

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A notable shift from inpatient & residential settings to outpatient settings has been witnessed in recent years. This trend is projected to continue during the assessment period, making it the fastest-growing segment through 2030. Outpatient treatment enables patients to stay connected to their community and maintain social interaction, which helps in faster recovery. The residential segment is expected to witness significant growth over the forecast period. This significant growth can be attributed to the growing preference of patients to receive treatment at home or residential facilities.

Regional Insights

North America dominated the market in 2023 with the largest revenue share of 41.92%. Rising awareness about mental disorders and the availability of advanced treatments are key factors contributing to its high share. In addition, favorable government initiatives and reimbursement policies are also driving market growth in this region. For instance, in June 2022, the U.S. congress government signed the Bipartisan Safer Communities Act (BSCA) to provide the Mental Health Services Block Grant (MHBG) funding for children and families in the U.S. In addition, rising competition among private insurance providers directly impacts the rising number of patients seeking treatments.

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Asia Pacific is expected to witness the fastest growth over the forecast period. Factors, such as increasing number of private institutes and subsequently growing competitiveness, which results in the availability of these services at affordable prices, are expected to drive growth in this region. For instance, in March 2023, Mission Australia opened a new residential alcohol & other drug rehabilitation facility in Mareeba, Far North Queensland. Furthermore, changing trends and adopting advanced technologies, such as software designed to record & analyze data, are expected to drive regional market growth.

Key Companies & Market Share Insights

The market is highly fragmented with the presence of many local and regional providers. However, a significant number of mergers and acquisitions have been observed in recent years, which reflects the dynamic nature of this market. With the rising demand for mental & behavioral health services, many established players are expanding their footprints by launching behavioral health centers at different locations. For instance, in July 2023, Discovery Behavioral Health, Inc. opened a new residential evidence-based substance use, mental health, and eating disorder treatment center, Horizon Hills, in Malibu, Los Angeles.

Global Behavioral Rehabilitation Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the behavioral rehabilitation market report on the basis of disorder, healthcare settings, and region:

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• Disorder Outlook (Revenue, USD Million, 2018 - 2030)

  • Anxiety Disorders

  • Mood Disorders

  • Substance Abuse Disorders

  • Personality Disorders

  • Attention Deficit Disorders

• Healthcare Settings Outlook (Revenue, USD Billion, 2018 - 2030)

  • Inpatient

  • Residential

  • Outpatient

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Norway

    • Denmark

    • Sweden

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Mexico

    • Brazil

    • Argentina

  • Middle East & Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait