Occupational Therapy Services Market Size, Share, Forecast, & Trends Analysis by Application (Musculoskeletal, Stroke, Concussion, Depression, Autism, ADHD, Dementia) Type (Sensory Integration, Aquatic, Splinting) Payor, End User - Global Forecast to 2031

Occupational Therapy Services Market Size & Forecast

The Occupational Therapy Services Market is expected to reach $50.47 billion by 2031, at a CAGR of 7.1% from 2024 to 2031. The growth of the occupational therapy services market can be attributed to several factors, including the availability of medical reimbursements, rising awareness regarding mental health, increasing healthcare expenditures, the use of occupational therapy services in supervising post-amputation patients, and the rising geriatric population. Moreover, technological advancements in occupational therapies and positive clinical outcomes of occupational therapy are expected to offer growth opportunities for the players operating in this market.

Occupational Therapy Services Market Growth Drivers

Rising Awareness Regarding Mental Health

According to the World Health Organization, the incidence of mental health illness is increasing globally. The most common mental health illnesses are anxiety, clinical depression, bipolar disorder, and substance use disorders. For instance, according to the World Health Organization (WHO), approximately 1 billion people globally are living with mental, neurological, and substance use disorders. Several factors can contribute to mental health illness, including individual, family, community, and structural factors. Some risk factors include adverse childhood experiences, biological factors, stressful life events, and long-term physical conditions.

Additionally, the COVID-19 pandemic has resulted in mental health problems like depression, stress, and anxiety. Due to this, global initiatives are being undertaken to raise awareness regarding mental health and to get early access to mental health care and treatment. Governments of several countries, as well as public and private organizations, are making efforts to increase access to mental health care. For instance, in October 2022, the government of India launched the National Tele Mental Health Programme to improve access to quality mental health counseling and care services in the country. Such initiatives are expected to raise awareness and access to care for mental disorders.

Availability of Medical Reimbursements

Several countries provide medical reimbursements for occupational therapy/ergotherapy, physiotherapy, and speech therapy services. These reimbursements provide financial assistance and benefits covering hospitalization expenses, tax benefits, protection against critical illnesses, and holistic care treatments.

The Wisconsin Department of Health Services (DHS) (U.S.) established maximum allowable fees for all covered occupational therapy services to enable reimbursement payments. Similarly, in May 2023, the Central Government Health Scheme of India issued guidelines for the reimbursement of speech therapy, occupational therapy, and behavioral therapy for children with autism spectrum disorder (ASD), attention deficit hyperactivity disorder (ADHD), and specific language impairment (SLI), with the reimbursement rate per session to be USD 4.84 (INR 400).

Such reimbursements are expected to increase awareness of the acceptance of occupational therapy services for mental disorders.

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Occupational Therapy Services Market Trends

Emergence of Exoskeleton and Virtual Reality (VR)

Occupational therapy (OT) is an evidence-based form of rehabilitation or treatment to help patients overcome physical and mental disabilities that impact their performance in day-to-day activities. The traditional activities of OT include health management, daily instrumental activities, education, play, and social participation, among others. Apart from traditional therapies, researchers are experimenting with the use of exoskeletons and virtual reality to improve the patient experience.

Virtual reality (VR) can allow patients suffering from stroke, cerebral palsy, and autism to experience real-life scenarios in a safe and controlled environment in order to learn new skills. Another innovation transforming occupational therapy and the lives of patients is the use of exoskeletons. Exoskeletons are shield-like structures that are worn by patients to help regain mobility and also provide real-time feedback of health data to occupational therapists. For instance, in February 2021, Fujitsu Limited (Japan) launched an AI-powered physical rehabilitation solution called the FUJITSU Healthcare Solution HOPE ROMREC, which uses AI technology to measure the range of motion of the shoulder and elbow joints from videos of patients’ rehabilitation sessions.

Use of Telehealth in Occupational Therapy

Telehealth occupational therapy is the service provided by healthcare professionals to patients virtually or through a technology platform. This was initially introduced to provide healthcare services to patients in rural parts of the world. The use of telehealth in OT has led to reduced delays in care, easier contact of patients to doctors, and also identifying challenges within the home environment.

The use of telehealth has increased since the COVID-19 pandemic. For instance, in March 2020, Athletico Management, LLC (U.S.) expanded its telehealth offerings for physical and occupational therapy to allow patients to continue their treatments from home.

Occupational Therapy Services Market Opportunity

Positive Clinical Outcomes of Occupational Therapy

Recent times have witnessed remarkable developments and advancements in occupational therapies and the treatments used. For instance, the integration of artificial intelligence, virtual reality, telehealth, wearable devices, and exoskeletons has proven to be advantageous as these advancements are cost-effective and offer personalized care to patients.

The use of occupational therapy, whether traditional or technologically advanced, has benefited not only the patients but the healthcare providers as well. For instance, the use of telehealth helps occupational therapists focus on building good relations with the patient in order to provide personalized treatments. According to a survey conducted by the Royal College of Occupational Therapists (U.K.) in September 2022, the demand for occupational therapy in children has increased to 85% in 2022 as compared to 80 % since July 2021 and is further expected to rise, offering opportunities for market growth.

Occupational Therapy Services Market Analysis: Key Findings

By Application: In 2024, the Physical Disorders Segment to Dominate the Occupational Therapy Services Market

Based on applications, the market is segmented into physical disorders and mental disorders. In 2024, the physical disorders segment is expected to account for the largest share of 68.5% of the occupational therapy services market. Physical disorders include conditions that majorly impact the musculoskeletal system and injuries due to accidents. The large share of the segment is attributed to factors such high prevalence of orthopedic and musculoskeletal disorders, a rise in the number of road accidents, and growth in participation in sports.

The ability of occupational therapies to provide a safe and efficient way to reduce/manage pain, reduce the need for prescription drugs, improve mobility, and speed up recovery from accidents also supports its higher adoption for physical disorders. For instance, according to the American Association for the Surgery of Trauma (ASST), the U.S. accounts for over 150,000 deaths and over 3 million non-fatal injuries per year. In certain cases, therapy would be required to regain motor function or stability, driving the demand for occupational therapy services.

However, the mental disorders segment is expected to grow at the highest CAGR of 7.4% during the forecast period. Mental disorders are conditions that are characterized by clinically significant disturbances in a person’s cognition, emotional regulation, or behavior. The high growth of the segment is attributed to factors such as growing awareness of mental health and its management, the high prevalence of depression and anxiety among adults, and improved access to mental health resources. In Europe, in January 2024, a capacity-building program for mental health, the European Programme For Mental Health Exchanges, Networking and Skills, was launched. The program is funded by the EU4Health program and will be implemented between January 2024 to December 2026. It aims to offer multi-disciplinary training on mental health for health professionals, teachers, educators, and social workers. Such initiatives are improving the accessibility to advanced resources for mental health.

By Type: In 2024, the Sensory Integration Segment to Dominate the Occupational Therapy Services Market

Based on types, the market is segmented into sensory integration, assistive technology, splinting and hand therapy, driver rehabilitation, and other types. In 2024, the sensory integration segment is expected to account for the largest share of the occupational therapy services market. Sensory integration is a type of occupational therapy service that focuses on addressing challenges related to sensory processing difficulties in individuals. The sensory processing challenges are observed in mental health patients, patients who have undergone neuro-spinal trauma, and children struggling with ADHD and autism. The large share of the segment is attributed to factors such as increasing incidence of mental disorders such as depression, anxiety, and attention-deficit hyperactivity disorders (ADHD) coupled with increasing recognition and understanding of sensory processing difficulties.

By Payor: In 2024, the Public Health Insurance Segment to Dominate the Occupational Therapy Services Market

Based on payors, the market is segmented into public health insurance, private health insurance, and out-of-pocket expenses. In 2024, the public health insurance segment is expected to account for the largest share of the occupational therapy services market. The large share of the segment is attributed to factors such as increasing incidences of mental illnesses and the availability of reimbursements in the U.S. and European markets. According to the World Health Organization (WHO), around 1 billion people are living with mental, neurological, and substance disorders globally. Additionally, 23.1% of people in the U.S. experienced a mental health condition in 2022 (Source: Substance Abuse and Mental Health Services Administration (U.S.)). The high incidence of mental disorders is driving the adoption of occupational therapy, supporting the large share of the public health insurance segment.

By Age Group: The Adults Segment to Dominate the Occupational Therapy Services Market

Based on age group, the market is segmented into adults and children. In 2024, the adults segment is expected to account for the larger share of 61.8% of the occupational therapy services market. The large share of the segment is attributed to factors such as the high incidence of mental illness in adults due to social insecurities, long-term physical conditions, traumatic experiences, and chronic use of alcohol and recreational substances. Apart from this, the growing awareness towards mental health due to public and private initiatives, reducing stigma around mental illness, and personalized options offered as per an individual’s need also supports the largest share.

However, the children segment is expected to grow at the highest CAGR of 7.8% during the forecast period. The high growth of the segment is primarily due to factors such as increasing incidences of mental conditions such as anxiety and attention-deficit hyperactivity disorder (ADHD), rising cases of video game addiction, and the rising risk of genetic factors. For instance, according to the Centers for Disease Control and Prevention (CDC), during 2020–2022, the prevalence of ADHD in children aged 5-17 years was 11.3%, with 14.5% being boys and 8% being girls. This number has increased as compared to 9.8% of children in 2019. Growing parent advocacy for their children’s medical needs drives the growth of children's visits to occupational therapists.

By End User: In 2024, the Hospitals & Clinics Segment is Expected to Dominate the Occupational Therapy Services Market

Based on end users, the market is segmented into hospitals & clinics, rehabilitation centers, and other end users. In 2024, the hospitals & clinics segment is expected to account for the largest share of 61.6% of the occupational therapy services market. The large share of the segment is attributed to factors such as the increasing number of hospitals, rising cases of road accidents and injuries, and the growing awareness of professional occupational therapists. Hospitals & clinics usually have a high number of occupational therapists, which leads the patients to therapy appointments at the hospital itself.

Geographical Analysis

By Geography: in 2024, North America is Expected to Dominate the Occupational Therapy Services Market

In 2024, North America is expected to account for the largest share of 39.8% of the occupational therapy services market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The large share of the region is primarily due to the presence of leading service players, the high prevalence of mental health disorders in the country, high awareness regarding mental health, the reduction in stigma around mental health among the general population of the U.S., and the high number of road accidents in the U.S. Additionally, the high adoption of digital healthcare technologies supports the large market share of the region. For instance, the use of mobile applications supporting occupational therapy has considerably increased post-COVID-19 pandemic.

However, Asia-Pacific is slated to register the highest CAGR of 8.6% during the forecast period. This is attributed to factors such as favorable government initiatives to recognize mental illness, a slow but steady rise in awareness regarding mental health issues, and rising spending on healthcare. The growing middle-class population and availability of professional occupational therapists drive the market growth.

Occupational Therapy Services Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the occupational therapy services market are ATI Holdings, LLC (U.S.), Upstream Rehabilitation, Inc. (U.S.), LifePoint Health, Inc. (U.S.), Athletico Management, LLC (U.S.), CORA Health Services, Inc. (U.S.), Encompass Health Corporation (U.S.), United States Physical Therapy, Inc. (U.S.), Concentra, Inc. (U.S.), Select Medical Corporation (U.S.), Knight Health Holdings, LLC (U.S.), and Optima Health Care, Inc. (U.S.).

Occupational Therapy Services Industry Overview: Latest Developments from Key Industry Players

• In November 2022, Penumbra, Inc. (U.S.) announced the launch of a full-body, non-tethered REAL y-Series device that uses upper and lower body sensors and can be used for rehabilitation by allowing clinicians to track full-body movement and progress in real-time.

• In October 2022, CureDuchenne (U.S.), a research, patient care, and innovation company, launched the CureDuchenne Occupational Therapist Certification Program, which provides advanced training to help occupational therapists deliver superior care to patients suffering from muscular dystrophy.

• In July 2022, Professional Physical Therapy (U.S.), a provider of hand therapy, announced the acquisition of Complete OT (U.S.), a hand therapy clinic. This clinic was then renamed Professional PT.

Occupational Therapy Services Market Research Summary

Key questions answered in the occupational therapy services market report: