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US Behavioral Health Report: Digital Therapeutics and AI Transform the US Behavioral Health Landscape

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The US Behavioral Health Report explores how digital therapeutics (DTx), AI, and integrated care models are redefining behavioral health delivery in the United States. With rising mental illness prevalence, favorable reimbursement reforms, and sustained investor interest, the sector is entering a transformative phase. The report analyzes key market drivers, growth trends, AI adoption, and investment patterns shaping the $165 billion behavioral health ecosystem of the future.

Key Takeaways

  • The US behavioral health market is projected to grow from $94.8B in 2025 to $165.4B by 2034 with a 6.4% CAGR.
  • The digital therapeutics (DTx) market will nearly double to $21B by 2034, supported by FDA approvals and CMS reimbursement codes.
  • Virtual reality therapy is emerging as a credible treatment tool with a projected 21.6% CAGR through 2035.
  • AI adoption is accelerating, with the behavioral health AI market expected to reach $115.6B by 2034, transforming screening and therapy delivery.
  • Integrated care models combining behavioral and primary health can cut annual costs by over $1,000 per patient.
  • Investor activity remains strong, with 298 deals and $15B in capital deployed since 2024, reflecting long-term confidence in the sector.
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SG Analytics (SGA) is a leading global data and AI consulting firm delivering solutions across AI, Data, Technology, and Research. With deep expertise in BFSI, Capital Markets, TMT (Technology, Media & Telecom), and other emerging industries, SGA empowers clients with Ins(AI)ghts for Business Success through data-driven transformation.


A Great Place to Work® certified company, SGA has a team of over 1,600 professionals across the U.S.A, U.K, Switzerland, Poland, and India. Recognized by Gartner, Everest Group, ISG, and featured in the Deloitte Technology Fast 50 India 2024 and Financial Times & Statista APAC 2025 High Growth Companies, SGA delivers lasting impact at the intersection of data and innovation.

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