(PharmaNewsWire.Com, December 16, 2020 ) Increasing adoption of behavior health software, availability of government funding, government initiatives to encourage EHR adoption in behavioral health organizations, favorable behavioral health reforms in the US, and high demand for mental health services amidst provider shortage are the major factors driving the growth of this market.
The behavioral health software market is expected to reach USD 2,306 billion by 2022 from USD 1,155 billion in 2017, at a CAGR of 14.8%. Behavioral/Mental Health Software Market by Component (Service, Software), Delivery (Subscription, Ownership), Functionality (Clinical, Administrative, Financial), End User (Clinic, Hospital, Private Practice, Payer).
Opportunity: Growing Emphasis On Subscription Model
For enhanced data accessibility and real-time analysis, the subscription model of delivery has emerged as a significant solution for integrated or standalone behavioral health software. This helps healthcare organizations to share information stored across different systems, in real time.
Furthermore, the subscription model requires minimal upfront investment and also reduces the burden on healthcare systems. This results in increased productivity and cost-efficiency. Subscription model-based behavioral health software also ensures fast and secure transfer of data between organizations. These advantages will offer significant growth opportunities to behavioral health software vendors in this market.
Overcoming financial constraints is the biggest challenge for healthcare organizations, especially in emerging economies. Nevertheless, the extent of data that is stored proves to be so important that IT infrastructure has started becoming the backbone of healthcare institutions.
Implementation and subscription/licensing fees for behavioral health software are also major financial drains and add to the budgetary concerns faced by many hospitals today; advanced behavioral health solutions, for example, can cost over USD 50,000 for implementation. This makes it challenging for behavioral health organizations to justify spending, at least in the short term, when they are focused on implementing EHRs and upgrading RCM systems.
Based on functionality, the behavioral health software market is segmented into clinical, financial, and administrative functionalities. The clinical functionality segment is expected to account for the largest share of the behavioral health software market in 2017 and is expected to register the highest CAGR during the forecast period. High growth in the clinical functionality segment is attributed to the increasing government initiatives to boost adoption of this software by clinicians to provide quality care to their patients at lower costs.
Region Covered in Mental Health Software Market
In 2017, North America is expected to dominate the market, followed by Europe. The high growth of the North American market is attributed to factors such as increasing behavioral health reforms and the availability of government funding for expanding behavioral health services in the region. While North America is expected to dominate the market in 2017, Europe is expected to register the highest CAGR during the forecast period. The high growth in this regional segment is attributed to growing incidence of mental disorders, government initiatives for increasing awareness about mental disorders, and the improving accessibility of behavioral healthcare.
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