PERSONALIZED PSYCHIATRY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The personalized psychiatry market size is expected to reach US$ 8.68 billion by 2030, from US$ 4.10 billion in 2023, at a CAGR of 11.3% during the forecast period.

Personalized psychiatry involves using genetic, biological, and clinical data unique to each patient to develop targeted mental health treatments and therapies. It aims to move away from the one-size-fits-all approach to a more precise, individualized method. Some of the key technologies used include pharmacogenomic testing, quantitative EEG, computerized therapy programs, wearable biosensors, and molecular diagnostics. The main drivers of the market are growing awareness about mental health, advancements in genomic research and neurobiology, and the need for improved diagnosis and treatment outcomes in mental health.

Personalized Psychiatry Market Regional Insights:

• North America is expected to hold the largest market share for the personalized psychiatry market during the forecast period, accounting for over 40.5% of the market share in 2023. The growth of the market in North America is attributed to the high adoption of advanced genomic testing, the presence of leading providers of personalized psychiatry, and increasing awareness about mental health. In addition, the rising prevalence of mental health disorders such as obsessive-compulsive disorder (OCD) is also a reason for the higher market share in this region.
• The Europe market is expected to hold the second-largest market share for the personalized psychiatry market, accounting for over 28.2% of the market share in 2023. The growth of the market in Europe is attributed to increasing research and development (R&D) in neurobiology, favorable government initiatives, and the launch of innovative digital therapeutics.
• The Asia Pacific market is expected to hold the third-largest market share for the personalized psychiatry market, accounting for over 23.9% of the market share in 2023. The growth of the market in Asia Pacific is attributed to improving healthcare infrastructure, rising smartphone penetration, and a growing target patient population.

Figure 1. Global Personalized Psychiatry Market Share (%), by Region, 2023

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Personalized Psychiatry Market Analyst View:

The personalized psychiatry market holds promising growth opportunities over the forecast period. Technological advancements in genomics, big data analytics, and digital therapeutics are enabling more personalized psychiatric treatment options based on a patient's genetics, biomarkers, and digital footprint. This shift towards precision medicine will help address the unmet needs of several patient subsets that often do not respond well to traditional one-size-fits-all treatment approaches. However, regulatory hurdles around genomic data and digital health technologies may hamper faster clinical adoption in the short term.

The rapidly growing body of scientific literature linking genetics to psychiatric conditions is helping drug makers develop more targeted pharmacological interventions. Furthermore, neurological biomarkers identified through advanced brain scanning and sensor technologies promise to improve diagnostic accuracy and track real-world treatment responses. Digital solutions aiding remote patient monitoring and therapeutics delivery are also expanding access and lowering costs. Rising awareness about personalized care options among providers and patients alike will propel market growth.

Personalized Psychiatry Market Drivers:

• Growing need for improved diagnosis and treatment outcomes in mental healthcare: The need for more accurate diagnosis and effective treatment of mental health disorders is a major driver boosting the personalized psychiatry market’s growth. The traditional trial-and-error approach to psychiatric care has limitations in terms of matching treatments to patients. Personalized testing and data-driven therapies can help overcome this by identifying biological factors influencing mental illness.

For instance, pharmacogenomic testing determines how a person's genes affect their response to psychiatric medications. This allows doctors to make more informed prescribing decisions to avoid adverse events and improve outcomes. Using digital phenotyping through apps and wearables also facilitates continuous monitoring of symptoms to detect relapse early. Such technologies are enhancing the ability to diagnose and treat mental disorders in a targeted, patient-centric manner.

• Rising prevalence of mental disorders: The rising prevalence of mental health disorders such as obsessive-compulsive disorder (OCD), depression, anxiety, bipolar disorder, schizophrenia, and others is expected to increase the demand of personalized psychiatry, and this is expected to drive market growth for the forecast period. For instance, according to an article published in the Anxiety & Depression Association of America, in June 2022, there were around 2.5 million adults suffering from OCD in U.S. in 2021.
• Growing adoption of precision medicine model in healthcare: The shift towards precision medicine across healthcare sectors is also driving the adoption of personalized approaches in mental health. Precision techniques that provide custom-made therapies based on a patient's genes, biomarkers, and lifestyle are gaining increasing acceptance. This is also expected to drive market growth over the forecast period.

Personalized Psychiatry Market Opportunities:

• Scope for integration with telepsychiatry and remote patient monitoring: The COVID-19 pandemic heightened the scope for integrating personalized psychiatry with telemedicine to improve access and continuity of care. Remote delivery models like telepsychiatry and virtual therapy align well with personalized platforms involving genomic risk scores, digital therapeutics, m-Health apps, and patient monitoring.
• Emergence of consumer-focused personalized psychiatry: Growing consumer interest in mental wellbeing has opened up opportunities for direct-to-consumer personalized psychiatry products. Startups like Genomind, and BrightQuestMD are offering psychiatric genetic testing and customized treatment plans directly to consumers.

The demand for self-managed, genome-informed mental healthcare is rising. Players can tap this trend by providing consumers access to their genomic data, digital therapeutic apps, wearable mood trackers, and personalized therapy. This can expand adoption beyond specialized clinics.

• Untapped potential in emerging economies: Emerging markets across Asia Pacific, Latin America, and Middle East represent significant opportunities given the large underserved population and rising technology uptake. Digital health infrastructure is improving in these countries, creating avenues for personalized mobile psychiatry solutions.

Personalized Psychiatry Market Trends:

• Focus on prevention and early intervention through personalized care: Shifting focus towards preventive psychiatry and early diagnosis is an emerging trend being facilitated by precision techniques. Companies are developing tools to assess individual risk profiles and enable timely interventions.

For instance, Genomind, Inc., a genetic testing service provider, offers a behavioral health genetic test to help identify risk for conditions like depression, anxiety, and ADHD before the onset of symptoms.

• Growing research in biomarkers for mental health disorders: Considerable research is underway to identify and validate biomarkers that can accurately diagnose psychiatric conditions and predict treatment response. Biological markers like neuroimaging patterns, cognitive assessments, gene expression, and blood-based protein biomarkers are being investigated.

Personalized Psychiatry Market Restraints:

• High costs and inadequate insurance coverage: The high costs of most personalized psychiatry interventions like pharmacogenomic testing, quantitative electroencephalograms (EEG), and prescribing genetically guided medications are significant restraints limiting uptake. Many of these approaches are deemed experimental or investigational by payers and do not receive adequate insurance coverage.
• Addressing misconceptions regarding personalized medicine among clinicians: Some misconceptions exist among psychiatrists around the evidence base, utility, and feasibility of applying personalized medicine in real-world practice. Many clinicians believe these approaches are still premature, expensive, and disruptive to conventional workflows.

Companies need to focus efforts on educating psychiatrists through medical bodies and conferences to increase mindshare. Establishing clinical utility through studies and pilots demonstrating meaningful improvements in patient outcomes can help overcome skepticism.

• Security and ethical concerns related to genetic testing: Concerns around the privacy of sensitive genetic data, its potential for misuse in insurance and employment, and informed consent issues act as a drag on adoption of pharmacogenomic testing and other omics-based personalized care.

Key market players in the market need to implement stringent data security safeguards, maintain the highest ethical standards around transparent consent protocols, and use restrictions to build patient and provider trust. Progress on the regulatory front in protecting genetic information and prohibiting its misuse can also help address these concerns.

Recent Developments:

New product launches:

• In July 2023, Spring Health, a global mental health solution provider, announced a new suite of services to enhance its existing Family Care solution, which provides care and support for parents, caregivers, partners, and children from birth to adulthood.
• In May 2022, Tempus, a company providing services in artificial intelligence and precision medicine, announced the launch of Tempus N+, a program that aims to power precision medicine solutions through the use of real-world data for mental health.

Figure 2. Global Personalized Psychiatry Market Share (%), by Type, 2023

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Top companies in Personalized Psychiatry Market:

• GreyBird Ventures
• Sunovion Pharmaceuticals Inc.
• HMNC Holding GmbH
• Arcara Personalized Psychiatry
• Starling Minds
• Karuna Therapeutics
• CBT Plus
• AltheaDx, Inc.
• WayForward
• BrightQuest
• Peak Mental Wellness

Definition: Personalized psychiatry is an emerging field in mental healthcare that involves using a patient’s unique genetic makeup, biology, and clinical presentation to provide tailored diagnosis, treatment, and management of psychiatric disorders. It combines various technologies like pharmacogenomics, quantitative EEG, digital phenotyping, and advanced analytics to move away from the one-size-fits-all approach and offer individualized care based on the patient’s specific parameters. Personalized psychiatry aims to improve clinical outcomes by identifying genetic biomarkers that can predict drug responses, detect the risk of side effects, and select optimal medications and doses for each patient. It also facilitates the diagnosis of mental illness subtypes, early intervention, and tracking of treatment responses through data derived from wearables, mobile apps, lab tests, and brain imaging.

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