How Has the Occupational Therapy Market Evolved Historically and What is its Current Size?
The occupational therapy market has seen considerable growth due to a variety of factors.
• In recent years, the occupational therapy market has seen significant expansion. The market size, which stood at $5.26 billion in 2024, is projected to increase to $5.54 billion in 2025, representing a compound annual growth rate (CAGR) of 5.4%.
The previous growth can be attributed to factors such as the rising age of the population, the occurrence of chronic diseases, growing awareness of mental health, rules related to occupational health and safety, and broadening the sphere of occupational therapy practice.
What is the Forecasted Market Size and CAGR for the Occupational Therapy Market?
The occupational therapy market is expected to maintain its strong growth trajectory in upcoming years.
• The market for occupational therapy is projected to experience substantial expansion in the coming years, escalating to $6.99 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 6.0%.
The growth anticipated during this forecasted period is attributed to factors such as the incorporation of telehealth services, a surge in the occurrence of developmental disorders, a client-centric and personalized approaches, an emphasis on mental health in corporate settings, and practices based on research and evidence. Significant trends expected during this forecasted period involve collaborations with other healthcare professions, improvements in rehabilitation techniques, the increase in the aging population and care for the elderly, pediatric occupational therapy, office ergonomics, and wellness programs.
What Key Factors and Trends Are Driving The Growth Occupational Therapy Market?
The occupational therapy market is poised for growth due to the increasing prevalence of mental disorders. Defined as medical conditions impacting a person's thoughts, feelings, behavior, and overall mental health, mental illnesses can be managed through occupational therapy. This field assists those grappling with mental health issues to build the requisite skills and tactics to live fulfilling lives. For instance, a report by the National Center for Biotechnology Information, a U.S. government agency, estimated that 14.1 million adults in the U.S. were suffering from severe mental illnesses (SMI) as of March 2023. Moreover, the National Health Service, a UK public healthcare system, found that the percentage of people likely having a mental disorder aged between 17 and 19 has risen from 17.4% in 2021 to 25.7% in 2022 as of November 2022. Hence, this escalating occurrence of mental disorders is fueling the expansion of the occupational therapy market.
Occupational Therapy Market Driver: Increased Investment in Mental Health
What Are The Market Segments In The Occupational Therapy Market?
The occupational therapy market covered in this report is segmented –
1) By Product: Cloud-Based, On-Premises
2) By Disease: Mental Disorders, Physical Disorders
3) By Application: Psychological Disorders, Hospital, Other Applications
Subsegments:
1) By Cloud-Based: Cloud-Based Occupational Therapy Software, Teletherapy Platforms, Cloud-Based Patient Management Systems, Virtual Rehabilitation Solutions
2) By On-Premises: On-Premises Occupational Therapy Software, Physical Therapy Equipment For On-Site Use, On-Premises Patient Record Management Systems
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How Are Emerging Trends Reshaping The Dynamics Of The Occupational Therapy Market?
Prominent businesses in the occupational therapy market are innovating and implementing technologies like AI-powered physical rehabilitation solutions to secure a competitive advantage. The AI-powered physical rehabilitation solution is a technological breakthrough that uses artificial intelligence to revolutionize physical therapy and rehabilitation. For instance, Sword Health, a healthcare firm based in Portugal, introduced an AI solution named Phoenix in June 2024. This cutting-edge tool facilitates interactive sessions between patients and Phoenix, providing instantaneous guidance and feedback during therapy. Patients can communicate their emotions and advancements, and the AI modifies the difficulty level and span of the session to match their progress. Phoenix also interprets patient movements, offering instant feedback while collating performance data for analysis by Sword's human clinicians to ensure the safety and suitability of the exercises.
Who Are the Key Players In The Occupational Therapy Market?
Major companies operating in the occupational therapy market report are:
• Abbott Laboratories
• STERIS Corporation
• Getinge AB
• Johns Hopkins Medicine International LLC
• Premise Health Holding Corp.
• Cantel Medical Corporation
• Midmark Corporation
• Ergotron Inc.
• Performance Health Holdings Inc.
• Accord Medical Products Pvt. Ltd.
• A-Dec Inc.
• Drive DeVilbiss Healthcare
• WebPT Inc.
• Net Health Systems Inc.
• Clinicient Inc.
• Dynasplint Systems Inc.
• AliMed
• Optima Health Care Inc.
• Maddak Inc.
• Bio Med International Pvt. Ltd.
• Alliance Therapy Services
• Rifton Equipment
• BioSensics
• ClinicSource
• Divine Physiotherapy Equipments
What Are The Regional Insights Into The Occupational Therapy Market?
North America was the largest region in the occupational therapy market in 2024. The regions covered in the occupational therapy market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
