Mental Health Technology: what it is and why it is attracting investment in 2026
Mental health technology refers to the range of digital platforms that diagnose, monitor and treat mental health using software: computerised psychological assessment, telepsychiatry, corporate wellbeing and continuous monitoring using artificial intelligence. The global market, valued at $23,630 million in 2024, is projected to reach $85,300 million by 2035, with an annual growth rate of between 16.3% and 18.7%.
In Spain, the digital mental health sector is growing even faster than the global average. It is set to rise from $833.94 million in 2024 to $5,410 million in 2035, representing a CAGR of 18.54 per cent – well above the 8.95 per cent expected for the traditional clinical market. For founders and management teams in the sector, this growth differential presents a specific window of opportunity for sales, capital raising or the entry of a strategic investor.
This article outlines the trends, investment figures and growth projections for the mental health technology sector at both a global and Spanish level, with data updated to February 2026.
What does the mental health technology sector encompass?
The sector encompasses digital clinical diagnostic platforms, telepsychiatry applications, computerised psychological assessment tools, corporate wellbeing solutions and AI-powered continuous monitoring systems.
Traditional face-to-face clinical services and psychotropic drugs fall outside this scope, as they constitute adjacent markets with distinct business dynamics and regulatory frameworks. This distinction is important when comparing valuations or multiples between companies: a clinically validated digital psychometrics platform does not compete for the same multiples as a face-to-face practice or a pharmaceutical company.
The five trends that are transforming the market
From the digitisation of tests to native assessment using AI
The sector is evolving from digital versions of paper-based tests towards tools that make the most of the software’s inherent capabilities. Computer-Adaptive Testing (CAT) generates clinical profiles between 20% and 30% faster than static questionnaires, and the new digital assessment platforms achieve reliability coefficients of 0.92, compared with the historical average of 0.85 for paper-based methods.
Measurement-Informed Care and continuous monitoring
The integration of continuous assessments into day-to-day clinical workflows transforms the care model from reactive to proactive. IoT-based monitoring systems, combined with wearables such as the Apple Watch or Fitbit that track heart rate variability and sleep patterns, make it possible to anticipate decompensations before they develop into acute episodes. With 34,700 million IoT connections forecast by 2028, the infrastructure for this model is already in the hands of consumers.
Corporate wellness as a competitive advantage
Spanish companies are embracing mental health as a competitive advantage in the face of stricter labour regulations and with 70 per cent of the working population reporting work-related stress. The pay-per-employee-per-month (PEPM) model and pay-as-you-go systems are establishing themselves as the dominant business models in the B2B segment, generating predictable recurring revenue – a factor that has a direct impact on the valuation of these companies.
European regulation as a barrier to entry
The EU AI Act classifies diagnostic AI and candidate profiling as ‘High-Risk’ systems, requiring third-party compliance assessments, risk management plans and human oversight mechanisms. This framework creates a regulatory divide that favours companies with sufficient capital to absorb compliance costs, raising barriers to entry and reducing market fragmentation.
In this article on the European Union’s Artificial Intelligence Act , we set out in detail all the implications and obligations that technology companies must comply with.
Destigmatisation and patient-centred care
In Spain, 30% of the population recognise mental health as a critical component of general wellbeing, and 50% of patients prefer digital platforms for their initial consultation. Smartphone penetration exceeds 80%, providing a virtually universal distribution channel. The fastest-growing segments are teenagers, with an overall CAGR of 13.05%, and those aged 65 and over.
Investment in mental health technology: a sector undergoing structural recovery
Investment activity in digital mental health is undergoing a recovery following the post-pandemic lows. In behavioral health, the US market — the global benchmark for the sector — is on track to close 2025 with approximately 167 transactions, driven by demand for operational efficiency and back-office automation in mental health care platforms.
75% of major transactions are driven by private equity strategies focused on platform consolidation and revenue cycle management. The consolidation trend is particularly pronounced in the clinically validated platforms segment, where the hybrid model combining AI with human supervision attracts the lion’s share of capital.
In Spain, platforms such as ifeel and Koa Health have attracted significant investment by integrating assessment, therapy and continuous monitoring into a single digital environment. Public spending on digital mental health, with €1,500 million earmarked for 2025, is shifting the status of these solutions from optional to mandatory within the corporate environment.
Valuations in the sector are primarily driven by three factors:
- Revenue growth rate
- The presence of recurring revenue models (SaaS or subscriptions)
- The scope of clinical validation
The digital psychometrics sector, currently valued at between 2,600 and 3,500 million dollars, is the focus of strategic interest due to its ability to integrate into both the clinical and corporate sectors, and because of the high barriers imposed by the EU AI Act on new entrants without certification.
HTA reform and public spending in Spain
The reform of the health technology assessment (HTA) system brings national procedures into line with European regulations. Following this reform, public reimbursement will require proof of clinical effectiveness at Level C of the AQuAS framework, an essential condition for any platform to gain access to the public digital mental health channel in Spain.
For companies in the sector, this introduces an additional due diligence criterion: the strength of the clinical evidence and the level of validation against the AQuAS framework become just as important as growth metrics when assessing a sale or capital injection.
Market growth up to 2035
Projections vary depending on the scope of the calculation (whether or not they include telepsychiatry, hardware or licensing alone), but the baseline scenario points to sustained double-digit growth both globally and in Spain:
- Global digital mental health market: from $23,630 million in 2024 to an estimated $85,300 million in 2035, with a CAGR of between 16.3% and 18.7%.
- Spanish digital mental health market: from $833.94 million in 2024 to 5,410 million in 2035, with a CAGR of 18.54%.
- AI in mental health: the fastest-growing sub-segment, with a CAGR of 30.9% and a projected value of 21,500 million dollars by 2032, driven by automated triage, clinical chatbots and predictive analytics.
- Digital psychometric assessment: a market worth $24,740 million in 2030 and $35,120 million in 2033, with a CAGR of 10.75%.
- Mental health apps in Spain: a CAGR of 15.4%, reaching $1,010 million by 2035, with Android being the fastest-growing segment as it attracts rural and lower-income demographics.
The time to assess your position in the sector
The mental health technology market is characterised by double-digit growth, active consolidation by private equity firms and increasing regulatory barriers that favour the best-positioned platforms. For founders of technology companies in this sector, understanding these dynamics is the first step towards making informed decisions about growth, selling the business or seeking a strategic investor.
At Baker Tilly Tech M&A Advisors, we have produced a comprehensive report on the mental health technology sector, featuring global coverage and a specific analysis of the Spanish market, along with data on companies, acquisitions and funding rounds, all updated to February 2026.
Market Research
Market Research in the Mental Health Technology Sector
Download the full report here and stay informed about the financial status and latest news of the most important companies in the market.
Frequently asked questions about the mental health technology sector in Spain
These include digital clinical diagnostic platforms, telepsychiatry applications, computerised psychological assessment tools, corporate wellbeing solutions and AI-powered continuous monitoring systems. Traditional face-to-face clinical services and psychotropic drugs are excluded, as they are considered adjacent markets.
The global market was valued at 23,630 million dollars in 2024 and is projected to reach 85,300 million by 2035, with a CAGR of between 16.3% and 18.7%. This growth is driven by the adoption of diagnostic AI, connected wearables and the B2B corporate wellness model.
The Spanish market is set to grow from $833.94 million in 2024 to 5,410 million by 2035, with a CAGR of 18.54 per cent, well above the 8.95 per cent projected for the traditional clinical market. The projected public expenditure of €1,500 million by 2025 reinforces this trend.
The EU AI Act classifies diagnostic AI and candidate profiling as high-risk systems, requiring third-party compliance assessments and human oversight mechanisms. This raises the barriers to entry and favours companies with sufficient capital to absorb the costs of compliance, thereby reducing market fragmentation.
