- The size of the mental health apps market in 2022 was $5.2 billion. It was then assumed that by 2032, it would grow to $23.8 billion. But, in my opinion, it will grow by multiples!
- Because a new type of application is now emerging – AI psychologists, which can start taking money away from live psychologists. And the size of the psychological assistance market in the same 2022 was $140 billion with a growth prospect to $227 billion by 2032.
- Even if a small part of this market flows into applications, it will be a sharp rise. And you can soar with it if you manage to create your application following the example of this startup:
Project Essence
Sonia promises to help improve the mental health of anyone who desires it.
Because anyone can download the Sonia app and have a therapeutic session with an AI assistant acting as a psychologist. The usual session length is about 30 minutes. Users can communicate with the AI assistant through the app via text or voice.
Advantages of the Sonia AI psychologist compared to live psychologists:
Accessible. Now the high cost of seeing a live psychologist will not be a limitation, as the Sonia AI psychologist comes at “1% of the price of a session with a live psychologist.” Moreover, using the app is easier than overcoming the discomfort that arises from having to share one’s problems with another person. Available Everywhere. Over 100 million Americans live in small towns, where there is 1 psychologist for every 30,000 people. Therefore, scheduling an appointment with them when needed is not always possible. Always Available. You can use the app even at 2 a.m. when you can’t sleep due to overwhelming problems. And getting an appointment with a psychologist at 2 a.m. is unlikely.
A few days ago, the startup added a new feature to the app. Now, in moments of anxiety or stress, users can have a short five-minute chat with the AI psychologist to quickly relieve emotional tension.
At the same time, the startup is trying to attract corporate clients from companies that want to provide their employees with AI psychologist support. The goal is to improve employees’ mental well-being, reduce their stress and depression levels, which should positively impact their work productivity.
Sonia is participating in the current Y Combinator batch, from which it received its first $500,000 in investments. The startup has just announced the launch of the app on the accelerator’s website.
What’s interesting
Mental health is a significant issue.
According to 2022 data, about 20% of Americans have mental health problems — that’s a potential market of 50 million people in just one country. Moreover, a quarter of them have very serious mental health issues.
The average cost of one psychological session in the USA is around $100–$200, and of course, one session is not enough to address these problems. This means that such a service, in the necessary volume and with the required regularity, is clearly inaccessible to all those in need.
The increasing number of people with mental health problems and the high cost of their treatment contribute to the growth of the psychotherapy market. In the same USA, the size of this market was already $92 billion in 2023, and it is expected to grow to $144.18 billion by 2032.
Moreover, people are already willing to talk to psychologists online rather than in-person. The image clearly shows the growth of the online therapy market, the pace of which even exceeds the growth rate of the overall psychological services market.
Now, all that’s left is to take just one more step — and replace the live person at the other end of the internet with an AI character 😉
There’s a feeling that in most cases, the patient won’t even notice a significant difference because many just need to vent to receive words of support and motivation in return. On the other hand, as usual, in 80% of cases, 20% of the simplest psychological techniques work — and these 20% simple techniques an AI psychologist can easily master.
I wrote about the trend of the emergence and growth of the AI psychologist market less than a week ago when I reviewed the Maia startup. This startup created an AI psychologist that helps maintain relationships within couples.
By sheer coincidence, Maia is also currently undergoing acceleration at Y Combinator. Although I think it’s not a coincidence — but a manifestation of the trend I mentioned. On the one hand, the founders see that a new opportunity has opened up here. And on the other hand, Y Combinator is ready to invest in such startups because it sees it as a trend.
Where to run
In 2022, the size of the mental health apps market was $5.2 billion. It was then assumed that by 2032, this market should naturally grow to $23.8 billion.
However, in my opinion, the emergence of AI psychologists will lead to a more rapid market growth for two reasons:
Firstly, money will start flowing here from the general psychological assistance market, which is currently dominated by live psychologists.
Secondly, AI psychologists will significantly expand the market because the services of such psychologists will become available to a wider audience, which currently cannot afford it or is not willing to share their mental health problems with other people.
The total size of the psychological assistance market was $147.2 billion in 2023, and by 2032, it is projected to grow to $227.5 billion. If at least 10% of this money flows into the app market due to the emergence of AI psychologists, the app market could double in size by 2032 compared to the planned growth!
Therefore, a possible direction of movement is to create your own apps providing AI psychologist services.
If there are already about a dozen startups with valuations exceeding $1 billion in the regular meditation and exercise market, then in the AI psychologist market, it could soar even higher. However, it’s essential to enter here in time 😉
About the Company
Sonia
Website: soniahealth.com
Latest round: $500K, 01.12.2023
Total investments: $500K, rounds: 1