Therapy Services Market: Size and Growth Trends

This article was written by our expert who is surveying the industry and constantly updating the business plan for a therapist.

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch therapy businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the therapy services market.

What is the global market size for therapy services in 2025 (revenue and patients)?

The 2025 therapy market exceeds USD 172.3B when counting behavioral therapy alone, with total services even larger once PT/OT/ST and online therapy are included.

Online therapy adds roughly USD 9.8–15.2B on top of in-person care, reflecting rapid digital adoption. Global patient need is in the hundreds of millions yearly, with >130M adults in the US+UK experiencing insomnia or anxiety alone. The practical implication for a new therapy business is that demand exists across both mental health and rehabilitative services.

You should size your local opportunity by payer mix and modality—mental health, PT/OT/ST, and hybrid offerings—then benchmark conversion rates from digital intake to first appointment. This is one of the many elements we break down in the therapist business plan.

Use conservative penetration assumptions (1–3% of reachable adults) for your first-year forecast.

Anchor your pricing to local payer rates and your cost per clinical hour to protect margins.

What was the 5-year CAGR of therapy services?

The market expanded at roughly 7–8% CAGR from 2020 to 2025 overall, with digital therapy growing faster at 7.7–14.6%.

This divergence reflects the surge in teletherapy adoption and persistent demand for PT/OT/ST. For a practice owner, this means digital access is no longer optional—patients expect it. You’ll find detailed market insights in our therapist business plan, updated every quarter.

Plan for hybrid operations—intake and follow-ups online; evaluations and certain sessions in person—to match utilization with reimbursement rules. Target utilization above 70% and keep no-show rates below 10% with reminders and same-day tele-slots.

Track weekly demand and flex your scheduling between telehealth and in-person visits.

Keep your tech stack lean and compliant to safeguard net margins.

What is the projected growth rate for the next 5–10 years?

The therapy market is projected to grow around 7–15% CAGR through 2030–2035, with digital modalities at the upper end.

Teletherapy, AI-supported triage, and self-guided CBT modules will drive higher capacity and lower cost per outcome. This gives new practices a path to scale without proportionally adding clinicians. We cover this exact topic in the therapist business plan.

Design care pathways that combine clinician-led sessions with digital homework and progress monitoring to raise throughput. Model sensitivity scenarios at +/-3 percentage points around base CAGR to stress-test revenues.

Secure reimbursement for remote services where available to stabilize cash flow.

Reinvest early into data capture and outcomes reporting to win payer contracts.

Which regions lead in size and growth—and why?

North America is the largest therapy market by revenue in 2025, followed by Europe; Asia–Pacific is the fastest-growing region.

Shares in behavioral therapy approximate NA ~39%, Europe ~28%, APAC ~21%. APAC growth (≈12–13% forecast) is propelled by smartphone adoption, rising middle-class income, and supportive digital health policies. For your clinic, this means digital acquisition channels matter in every region.

Where public systems dominate, expect slower contracting but higher patient volume; where private insurance dominates, expect higher rates but stricter utilization management. It’s a key part of what we outline in the therapist business plan.

Local supply of licensed therapists still determines wait times and achievable pricing.

Build referral relationships with primary care and schools to anchor steady demand.

Which therapy modalities are growing fastest?

Digital cognitive behavioral therapy (CBT) is the fastest-growing modality, while physical therapy remains robust and large.

Digital CBT captures over 55% of digital therapy revenue; physical therapy is on track to $140–186B by 2033 at ~6–8% CAGR. Occupational and speech therapy continue steady gains, supported by aging demographics and pediatric needs. For a new practice, consider a hybrid model combining in-person PT/OT/ST with teletherapy follow-ups.

Bundle evidence-based protocols with remote monitoring to improve adherence and payer acceptance. This is one of the strategies explained in our therapist business plan.

Standardize session templates and outcomes tracking to raise capacity per clinician.

Use clear inclusion criteria to triage patients to in-person vs. tele-first.

What are the main demand drivers?

• Aging populations and higher chronic disease burden increase PT/OT/ST and behavioral therapy utilization.
• Rising mental health awareness and employer benefits expand intake funnels across demographics.
• Digital convenience lowers access barriers, enabling multi-visit adherence and earlier intervention.
• Government and payer initiatives in telehealth reimbursement normalize hybrid care pathways.
• Mobile devices and AI tools improve screening, triage, and outcomes tracking at scale.

What are the biggest barriers to market growth?

• Regulation: multi-state/cross-border licensure, privacy compliance, and fragmented telehealth rules.
• Costs: platform fees, variable reimbursement, and out-of-network friction for patients.
• Workforce shortages: uneven therapist supply, especially in rural areas and narrow specialties.
• Data interoperability: limited EHR integration and outcomes reporting slow payer contracts.
• Digital inequity: device and broadband gaps can limit adoption for some populations.

How is digital health (teletherapy and AI tools) impacting expansion?

Digital health is expanding capacity, improving access, and compressing the cost per treated case.

Teletherapy unlocks flexible scheduling, reduces no-shows, and extends reach beyond your zip code. AI-supported intake and homework adherence improve outcomes and throughput. For a new therapy business, hybrid models are now the default operating system.

Prioritize HIPAA/GDPR-compliant vendors and build a simple, measurable digital care pathway. Get expert guidance and actionable steps inside our therapist business plan.

Negotiate telehealth reimbursement early to stabilize revenue.

Track outcome measures to differentiate in payer and employer networks.

Which payer models contribute most to growth?

Private insurance is the largest growth contributor in developed markets, while public systems dominate Europe and parts of Asia.

Out-of-pocket and subscriptions are major drivers in emerging markets and for digital platforms where self-pay convenience matters. Your practice should optimize around the local payer mix and credentialing timelines. Align authorization workflows to reduce denials and shorten cash cycles.

Offer transparent self-pay bundles (assessment + sessions + digital follow-up) to reduce friction. This is one of the strategies explained in our therapist business plan.

Automate eligibility checks and use claim scrubbing to lift first-pass acceptance.

Track days in A/R weekly and escalate payer follow-ups at 30/60/90 days.

What does the competitive landscape look like?

Large digital platforms (e.g., BetterHelp, Talkspace, Amwell) and major health systems dominate access and referrals.

Regional clinic networks lead in PT/OT/ST, while specialized digital platforms scale via niche programs and multilingual delivery. For a new therapy clinic, differentiation comes from outcomes, access speed, and patient experience. Build a clear niche and partner for referrals rather than compete head-to-head with national platforms at launch.

Use online scheduling, fast intake, and outcome dashboards to win payer/employer contracts. You’ll find detailed market insights in our therapist business plan, updated every quarter.

Maintain a strong local SEO and community referral strategy.

Standardize care pathways to ensure consistent quality at scale.

How are workforce trends shaping supply and pricing?

Therapist shortages in many regions elevate wages and extend wait times, especially for speech and certain OT specialties.

Digital and AI tools partially offset shortages by increasing throughput and reducing no-shows. For a new therapy business, staffing is the largest operational risk and the most powerful growth lever. Build a pipeline with universities, supervision programs, and flexible hybrid schedules.

Benchmark salary plus benefits to local medians and track cost per clinical hour weekly. It’s a key part of what we outline in the therapist business plan.

Use assistants/techs where allowed to expand capacity under supervision.

Adopt group formats and structured programs to improve clinician leverage.

What recent M&A or strategic partnerships are shaping the industry?

Digital health platforms continue to acquire specialized therapy startups and sign partnerships with hospital systems.

Deals focus on hybrid models, EHR integration, and expanding therapist networks, which raise patient capture and payer leverage. For a new practice, align with interoperable platforms to gain referral flow rather than building every capability from scratch.

Monitor local health system partnerships to position your clinic in narrow networks. Get expert guidance and actionable steps inside our therapist business plan.

Keep your data clean to meet enterprise integration requirements.

Use outcomes reporting to join preferred provider panels.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Cognitive Market Research – Behavioral Therapy Market
2. TherapyRoute – Future of Mental Health 2025
3. TBRC – Online Therapy Services Market
4. Mordor Intelligence – Online Therapy Service Market
5. Coherent Market Insights – Online Therapy Services
6. Future Market Insights – Telehealth Therapy Services
7. Straits Research – Physical Therapy Services Market
8. Verified Market Reports – Physical Therapy Services
9. Grand View Research – Speech Therapy Services Outlook
10. Market.us – Therapist Statistics