Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.2 % over the past five years, to reach an estimated $24.3bn in 2024.
Trends and Insights
Increased need for services combined with increased funding brought strong revenue growth
- According to the 2022 National Survey on Drug Use and Health (NSDUH) by the Substance Abuse and Mental Health Services Administration, an estimated 59.3 million adults aged 18 and older in the United States experienced AMI, accounting for 23.1% of the adult population in the country.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A prognosis of healthy wages, revenues and profit
- Increases in the number of people with private insurance coverage are expected for each of the next five years, increasing the number of individuals who can afford services. During the same period, funding for Medicaid and Medicare programs is expected to grow for all years but one, at a robust CAGR of 6.7%, aiding affordability for those needing services.
Biggest companies in the Mental Health & Substance Abuse Centers in the US
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 | Profit ($short_0)
2024 | Profit Margin (%)
2024 |
|---|
There are no companies that hold a large enough market share in the Mental Health & Substance Abuse Centers in the US industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Residential treatment programs (mental illnesses), Residential treatment programs (detoxification & substance abuse) and Independent living services. Residential treatment programs (mental illnesses) is the largest segment of the Mental Health & Substance Abuse Centers in the US.
Trends and Insights
Residential care for mental health is diversified
- Treatment for those struggling with mental illness is highly individualized and intensive, with programs tailored specifically for different mental illnesses. Centers will have separate programs for those struggling with anxiety disorders, eating disorders, memory disorders, dementia, depression, schizophrenia or peripartum mood disorders, among others.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
The Mental Health and Substance Abuse Centers industry includes establishments that primarily provide residential care and treatment for patients with mental illnesses, drug addiction and alcoholism. Industry services include lodging, supervision, evaluation and counseling. Medical services may be available, though these are incidental to counseling, mental rehabilitation and support services.
What's included in this industry?
Residential treatment programs (mental illnesses)Residental treatment programs (detoxification & substance abuse)Independent living servicesResidential treatment with counseling servicesAll otherCompanies
Purchase this report to view all major companies in this industry.
Related Terms
MANAGED BEHAVIORAL HEALTH ORGANIZATION (MBHO)SERIOUS MENTAL ILLNESS (SMI)ACUTE CAREHALFWAY HOUSESUBSTANCE ABUSEOUTPATIENT CAREMANAGED CAREIndustry Code
NAICS 62322 - Mental Health & Substance Abuse Centers in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Government funding and assistance play a critical role in performance. Residential centers sustain healthy profit and revenue because of strong government support and expandi...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
New technology will increase competition and erode demand. Residential treatment centers will face tougher competition from outpatient therapy providers as AI, smart wearable...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
CON laws may not substantially hinder growth. In the Southeast region, states like Florida maintain many locations despite substance abuse CON laws, benefiting from their lar...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Technology will foster competition. Hospitals and outpatient facilities can use new wearable and telehealth technologies to replace many features of residential therapy.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Residential treatment is fragmented. Most mental health and substance abuse residential centers are small, with fewer than twenty employees and no major companies hold a sign...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Government funding and education programs raise crucial awareness about substance abuse and mental illness. Access to funding will enable more individuals who previously foun...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit is low and heavily dependent on wage expenses. Residential treatment is labor-intensive, requiring centers to offer competitive and higher salaries to attract skilled ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Mental Health & Substance Abuse Centers in the US industry in United States in 2024?
The market size of the Mental Health & Substance Abuse Centers in the US industry in United States is $24.3bn in 2024.
How many businesses are there in the Mental Health & Substance Abuse Centers in the US industry in 2024?
There are 4,779 businesses in the Mental Health & Substance Abuse Centers in the US industry in United States, which has grown at a CAGR of 2.0 % between 2019 and 2024.
Has the Mental Health & Substance Abuse Centers in the US industry in United States grown or declined over the past 5 years?
The market size of the Mental Health & Substance Abuse Centers in the US industry in United States has been growing at a CAGR of 2.2 % between 2019 and 2024.
What is the forecast growth of the Mental Health & Substance Abuse Centers in the US industry in United States over the next 5 years?
Over the next five years, the Mental Health & Substance Abuse Centers in the US industry in United States is expected to grow.
What does the Mental Health & Substance Abuse Centers in the US in United States include?
Residential treatment programs (mental illnesses) and Residental treatment programs (detoxification & substance abuse) are part of the Mental Health & Substance Abuse Centers in the US industry.
How competitive is the Mental Health & Substance Abuse Centers in the US industry in United States?
The level of competition is moderate and increasing in the Mental Health & Substance Abuse Centers in the US industry in United States.
Related Industries
Widen your competitive advantage with related industries
Competitors
- Mental Health & Substance Abuse Clinics in the US
- Psychiatric Hospitals in the US
- Residential Intellectual Disability Facilities in the US
Complementors
- Psychologists, Social Workers & Marriage Counselors in the US
- Family Counseling & Crisis Intervention Services in the US
International industries
- Mental Health & Substance Abuse Centres in Canada
- Psychiatric Hospitals in Australia
- Crisis and Care Accommodation in Australia
- Crisis and Care Accommodation in New Zealand
- Learning Disability, Mental Health & Substance Abuse Facilities in the UK
View all industries in United States
Methodology
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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
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IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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