BEHAVIORAL REHABILITATION MARKET ANALYSIS

Market Size and Trends

Global behavioral rehabilitation market is estimated to be valued at USD 256.30 Bn in 2024 and is expected to reach USD 366.61 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.

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Global behavioral rehabilitation market is witnessing notable trends such as rising popularity of digital therapeutics and technological advancements in rehabilitation services. Growing need for cost-effective and scalable solutions is prompting players to offer digital and virtual rehabilitation programs. Furthermore, increasing healthcare expenditure of consumers and favorable regulations worldwide are creating new opportunities in home and community-based rehabilitation settings.

Increasing Awareness about Available Therapeutic Options

Increasing awareness about available therapeutic options is expected to drive the global behavioral rehabilitation market growth during the forecast period. For instance, in May 2021, The Texas Health and Human Services Commission (HHSC) launched a new behavioral health awareness eLearning series to empower families with more knowledge and understanding about behavioral health conditions that impact more than 3 million people each year. The series will empower and prepare communities to better understand signs and symptoms of mental illness, decreases stigma, and promotes emotional, psychological, and social well-being for Texans.

Market Concentration and Competitive Landscape

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Growing Prevalence of Behavioral Disorders

Growing prevalence of behavioral disorders across the globe is expected to drive the global behavioral rehabilitation market growth over the forecast period. Behavioral disorders typically develop in childhood or adolescence. Nearly everyone shows some of these behaviors at times, but behavioral disorders are more serious. Behavioral disorders involve a pattern of disruptive behaviors in children that last for at least 6 months and cause problems in school, at home and in social situations. According to the National Institute of Mental Health (NIMH), emotional and behavioral disorders affect 10-15% of children worldwide.

Key Takeaways of Analyst:

Global behavioral rehabilitation market growth is driven by increasing prevalence of behavioral disorders and rising awareness about effective treatment options. North America currently dominates the market, owing to growing acceptance of behavioral rehabilitation programs and favorable reimbursement policies in the region. However, Asia Pacific is expected to emerge as the fastest growing regional market in the near future.

Some of the key factors fueling the behavioral rehabilitation industry include the opioid crisis, rising mental health concerns, growing substance abuse cases, and increased adoption of evidence-based treatment approaches. Moreover, private insurance coverage for behavioral rehabilitation services along with availability of state-funded programs are supporting market expansion. Lack of aftercare services, high treatment costs, and stigma associated with behavioral disorders can hamper the market growth.

Manufacturers are coming up with digital therapies and online treatment options to increase accessibility and address unmet needs. Partnerships with payers are also helping providers diversify their services portfolios and penetrate untapped areas. The implementation of favorable regulatory guidelines regarding behavioral rehabilitation facilities and staffing is anticipated to open new avenues for market players. Adoption of personalized treatment plans combined with family involvement would further strengthen clinical outcomes.

Market Challenges: Impact of Stigma on People with Behavioral Disorder

Impact of stigma on people with behavioral disorder is expected to hamper the growth of the global behavioral rehabilitation market. The stigma associated with the behavioral disorder has a negative impact on people, and it directly affects individuals and their families. Social stigma and discrimination can make mental health problems worse and stop a person from getting the help these people need. Moreover, stigma can prevent mentally ill people from seeking treatment, adhering to treatment regimens, and living successfully in community settings.

Market Opportunities: Advent of Online Counselling (or Telerehabilitation)

Advent of online counselling (or telerehabilitation) is expected provide significant growth opportunities for players in the behavioral rehabilitation market. In January 2022, BHI-TWP launched TeleBehavioral Health 301 and 401 Series. The 301 series will focus more on how TeleBehavioral Health skills can be used to enhance the mental health for certain populations and on developing TeleBehavioral-specific tools and protocols. The 401 series will bring national experts from across the country to discuss highly relevant complex issues related to designing and implementing effective TeleBehavioral Health programs.

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Insights, By Type of Behavioral Disorder: Rising prevalence of mental health issues drives the anxiety disorder segment growth

Type of Behavioral Disorder segment is sub-segmented into anxiety disorder, mood disorder, substance abuse disorder, personality disorder, and attention deficit disorder. Anxiety Disorder sub-segment is estimated to hold 28.6% of the market share in 2024, owing to rising prevalence of mental health issues globally. Anxiety disorders have become increasingly common in recent years due to higher stress levels, more complicated lifestyles and other social and environmental factors. The continuous change and high pressures at workplace and in personal lives makes many people susceptible to stress, worries and fears that often manifest as anxiety disorders. Conditions related to generalized anxiety disorder, social anxiety, panic attacks and phobias are being frequently diagnosed. Moreover, greater awareness and reduced stigma have encouraged more people to seek clinical help for anxiety-related issues. This has significantly boosted demand for specialized treatment methods and rehabilitation services catering to anxiety disorders. The market is also witnessing positive impact of newer drugs and therapies that are more effective in managing anxiety conditions.

Insights, By Healthcare Settings: Cultural acceptance spurs growth in outpatient behavioral rehabilitation segment

Healthcare Settings segment is sub-segmented into outpatient behavioral rehabilitation, inpatient behavioral rehabilitation, residential behavioral rehabilitation. Outpatient Behavioral Rehabilitation sub-segment is estimated to hold 32.4% of the market share in 2024 due to  growing cultural acceptance of seeking therapy on outpatient basis. While inpatient and residential treatments are still preferred for severe cases, majority of people now feel comfortable visiting therapy centers, counselling clinics or psychiatrist's office for an outpatient consultation or session. This non-hospital setting helps avoid unnecessary medicalization and allows individuals to get treatment without disrupting their professional or personal responsibilities. Lower costs compared to inpatient care makes outpatient treatment financially viable for people. Various therapies such as cognitive behavioral therapy, exposure therapy, dialectical behavior therapy, and others that are widely used today can be effectively administered on an outpatient basis. Many behavioral rehabilitation providers have expanded their portfolio to offer more customized outpatient services.

Insights, By Treatment Method: Popularity of counselling boosts non-pharmacological treatment methods segment

Treatment Method segment is sub-segmented into counselling, medication, support services, and others. Counselling sub-segment is estimated to hold 42.1% of the market share in 2024 due to growing popularity of non-pharmacological or psychotherapy-based approaches for treating behavioral disorders. This preference stems from a variety of factors such as growing disillusionment with sole reliance on drugs for mental illness; better understanding of the limitations of medications; and emergence of evidence supporting the role of counseling therapies that directly target root causes. Counselling allows patients to address personal problems while developing coping strategies through speaking with a trained counselor. Common techniques employed are cognitive behavioral therapy, interpersonal therapy, rational emotive behavior therapy, relapse prevention counseling and humanistic therapies. The non-judgmental nature and emphasis on active participation makes counselling an attractive and effective solution. Many counselors also provides other support services like family counseling, career guidance, academic assistance, and others which present significant opportunities for the growth of counselling segment. Counselling is gaining popularity as a mainstream diagnostic and treatment approach for various mental health issues.

Regional Insights

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North America remains the dominant region in the global behavioral rehabilitation market and is estimated to hold 38.7% of the market share in 2024. The region has a highly developed behavioral healthcare infrastructure with the presence of numerous inpatient and outpatient rehabilitation centers. It is home to some of the world's leading behavioral healthcare service providers who have grown organically as well as through strategic acquisitions. The favorable regulatory environment and comprehensive insurance coverage for behavioral healthcare services have boosted the market growth in the region. Several states provide Medicaid assistance for low-income patients seeking addiction or mental health treatment. Leading technology and pharmaceutical companies based in the U.S. and Canada further strengthen the regional market landscape. These are constantly investing in digital and pharmacological solutions to enhance treatment regimes.

Asia Pacific region has emerged as the fastest growing market for behavioral rehabilitation globally. Nations like China, Japan, Australia and India are witnessing increased incidence of behavioral disorders due to rapid urbanization, lifestyle changes and work-related stress. This has boosted demand for professional treatment and rehabilitation services in the region. Countries like South Korea and Singapore are proactively formulating national policies to combat mental health issues and substance abuse disorders. The adoption of Western treatment methodologies along with traditional practices is helping overcome the stigma around mental illnesses. Significant spending on healthcare modernization programs by APAC governments is improving infrastructure and service quality. Leading international providers have entered into partnerships with local players to offer multidisciplinary evidence-based rehabilitation programs. This is attracting more patients and helping address the rising shortfall in trained behavioral healthcare professionals locally. The abundant young demography with growing purchasing power is driving the APAC behavioral rehabilitation industry's high growth prospect.

Market Report Scope

Key Developments

• In September 2023, Discovery Behavioral Health, Inc., a mental health, substance use and eating disorder treatment center, had entered into a clinical research agreement that will play an integral role in the launch of a new A.I.-driven platform called Discovery365. The platform tracks patient progress for 12 months after discharge from a behavioral treatment program, a period Discovery refers to as "the one-year recovery gap," when industry relapse rates are exceedingly high.
• In March 2023, Centra and Lifepoint Behavioral Health, a business unit of Lifepoint Health, announced that it had entered into a joint venture partnership to build and operate a new inpatient behavioral health hospital in Lynchburg, Virginia
• In May 2022, Department of Health and Human Services (HHS) announced a funding opportunity of nearly USD 15 million for a three-year federal grant to establish a Substance Abuse and Mental Health Services Administration (SAMHSA) program that will strengthen the delivery of behavioral health care to residents of nursing homes and other long-term care facilities
• In January 2022, BHI-TWP launched TeleBehavioral Health 301 and 401 Series. The 301 series will focus more on how TeleBehavioral Health skills can be used to enhance the mental health for certain populations and on developing TeleBehavioral-specific tools and protocols. The 401 series will bring national experts from across the country to discuss highly relevant complex issues related to designing and implementing effective TeleBehavioral Health programs.
• In October 2020, Golden Years Behavioral Health Group announced the launch of its recently licensed behavioral health outpatient services to provide counselling and support to community members in need of addiction, mental health, and other behavioral health services.

*Definition: Behavioral therapy is an umbrella term for types of therapy that treat mental health disorders. This form of therapy looks to identify and help change potentially self-destructive or unhealthy behaviors. Behavioral rehabilitation uses positive reinforcement to create lasting changes by changing unwanted behaviors after a brain injury. It is a wildly used methodology to recover patients from behavioral addictions (same as substance misuse addictions, and usually, require the individual to undergo different methodological courses along with drugs). It is designed to create a new intervention that could not only prevent new mood episodes but also improve memory, attention, executive functioning, and enhance quality of life.

Market Segmentation

•  Type of Behavioral Disorder Insights (Revenue, USD Bn, 2019 - 2031)
  • Anxiety Disorder
  • Mood Disorder
  • Substance Abuse Disorder
  • Personality Disorder
  • Attention Deficit Disorder
•  Healthcare Settings Insights (Revenue, USD Bn, 2019 - 2031)
  • Outpatient Behavioral Rehabilitation
  • Inpatient Behavioral Rehabilitation
  • Residential Behavioral Rehabilitation
•  Treatment Method Insights (Revenue, USD Bn, 2019 - 2031)
  • Counselling
  • Medication
  • Support Services
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Universal Health Services Inc.
  • Springstone Inc.
  • Niznik Behavioral Health
  • Magellan Health Inc.
  • Behavioral Health Group
  • AAC Holdings
  • Acadia Healthcare
  • Haven Behavioral Healthcare Inc.
  • Promises Behavioral Health
  • Aurora Behavioral Health System
  • BHG Holdings, LLC
  • Discovery Behavioral Health, Inc.
  • Centra and Lifepoint Behavioral Health