Precision Psychiatry Market Set to Reach More Than US$ 4.2 Billion by 2035 at 14.2% CAGR Driven by AI Integration| TMR

Precision psychiatry market to grow from US$ 0.9 Bn in 2024 to over US$ 4.2 Bn by 2035 at a 14.2% CAGR, driven by AI and genomics adoption

WILMINGTON, DE, UNITED STATES, February 24, 2026 /EINPresswire.com/ -- Precision Psychiatry Market

The global precision psychiatry market is experiencing rapid expansion, supported by technological advancements, increasing mental health awareness, and growing adoption of data-driven diagnostic and treatment approaches. Valued at US$ 0.9 billion in 2024, the market is projected to reach more than US$ 4.2 billion by 2035, expanding at a CAGR of 14.2% from 2025 to 2035.

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Precision psychiatry integrates genetic testing, biomarker analysis, neuroimaging, artificial intelligence (AI), machine learning (ML), and digital health tools to personalize psychiatric diagnosis and treatment. The shift from traditional trial-and-error treatment models to evidence-based, biologically informed strategies is transforming global mental healthcare systems.

Market Overview

Precision psychiatry represents a transformative shift in mental healthcare. Unlike conventional psychiatry, which relies primarily on symptom-based diagnosis, precision psychiatry incorporates:

• Genetic and pharmacogenomic testing
• Biomarker identification
• Neuroimaging technologies
• AI-driven predictive analytics
• Digital phenotyping tools

This approach aims to:
• Improve treatment efficacy
• Reduce medication trial-and-error cycles
• Enhance patient outcomes
• Lower healthcare costs associated with ineffective treatments

The increasing prevalence of mental health disorders globally—combined with advancements in genomics, AI, and big data analytics—is driving adoption across hospitals, clinical laboratories, and research institutions.

Additionally, collaborations among biotechnology companies, pharmaceutical firms, academic institutions, and healthcare providers are accelerating clinical implementation.

Key Market Growth Drivers

1. Rising Prevalence of Mental Health Disorders
The global burden of mental health disorders—including depression, anxiety, schizophrenia, bipolar disorder, and substance use disorders—is increasing significantly. According to global health estimates, more than 1 billion people live with mental health conditions.
Precision psychiatry offers personalized solutions by integrating biological, psychological, and environmental data to improve treatment outcomes and reduce relapse rates.

2. Rapid Integration of AI and ML in Psychiatry
AI and ML algorithms are increasingly used for:
• Predictive modeling of treatment response
• Early diagnosis
• Risk stratification
• Digital behavioral analysis
These technologies are enhancing diagnostic accuracy and enabling data-driven clinical decision-making.

3. Expansion of Genomics and Pharmacogenomics
Genetic testing, particularly pharmacogenomics, helps determine:
• How patients metabolize psychiatric medications
• Appropriate drug selection
• Optimal dosage levels
Advancements in next-generation sequencing (NGS) and decreasing testing costs are supporting widespread adoption.

4. Supportive Government Initiatives
Government-backed research programs and funding initiatives are accelerating innovation. Investments in digital health infrastructure, data-sharing networks, and biomarker research are creating favorable regulatory and reimbursement environments.

5. Growing Collaboration Across Stakeholders

Partnerships between:

• Technology companies
• Research institutes
• Healthcare providers
• Pharmaceutical companies

are accelerating product development and clinical validation.

Analysis of Key Players – Key Player Strategies

Leading companies in the global precision psychiatry market include:

Labcorp
Myriad Genetics, Inc.
TruGenomix, Inc
GeneDx, LLC
Genomind
CNSDose
MedGenome
GeneHealth Global Research & Diagnostics
Quest Diagnostics Incorporated
Illumina, Inc.
F. Hoffmann-La Roche Ltd
Bio-Rad Laboratories, Inc.
QIAGEN
Thermo Fisher Scientific Inc.
Fulgent Genetics
Other Prominent Players

Key Strategies Adopted by Market Players

1. Product Innovation
o Development of advanced genetic panels
o AI-powered psychiatric assessment tools
o Biomarker-based diagnostic platforms

2. Strategic Partnerships
o Collaborations with hospitals and mental health providers
o Academic research alliances
o Technology integrations

3. Clinical Validation Studies
o Expanding peer-reviewed research
o Real-world evidence generation
o Regulatory compliance initiatives

4. Geographical Expansion
o Strengthening presence in North America and Europe
o Expanding into Asia Pacific and emerging markets

5. Mergers & Acquisitions
o Acquiring digital health startups
o Expanding genomics capabilities

These strategies are enhancing competitive positioning and accelerating commercialization.

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Market Challenges & Opportunities

Challenges

1. High Implementation Costs
o Advanced testing technologies require significant infrastructure investment.
2. Data Privacy & Ethical Concerns
o Handling sensitive genetic and behavioral data requires robust security frameworks.
3. Limited Standardization
o Lack of uniform diagnostic guidelines across regions can slow adoption.
4. Regulatory Complexity
o AI-driven psychiatric tools require careful regulatory review.

Opportunities

1. Expansion of Digital Health Ecosystems
2. Integration of Real-World Evidence (RWE)
3. Emerging Markets Growth
4. Personalized Treatment Demand
5. AI-Based Predictive Psychiatry Tools

With increasing acceptance of personalized medicine, precision psychiatry is expected to become a core component of global mental healthcare systems.

Recent Developments

• In July 2025, Polaris Genomics, a U.S.-based company, secured a second USD 100K Maryland Industrial Partnership grant to advance the validation of its PTSD genomic test, accelerating the commercialization of precision psychiatry diagnostics.

• In June 2025, U.S.-based GeneDx published the SeqFirst study results in The Journal of Pediatrics. The results showed that rapid genomic testing reduced pediatric diagnostic times from 289 days to 13, supporting broader adoption.

• In May 2025, GrayMatters Health (GMH) announced the launch of Prism™ Suite, a next generation, comprehensive portfolio of solutions designed to empower providers and improve patient outcomes. The latest innovation within the portfolio is a Depression protocol that guides patients to learn to regulate brain activity associated with their depression using a reward-system biomarker.

• In October 2024, Psyomics Ltd, a UK-based company, revealed that it had entered into a significant collaboration with the Priory Group, a top mental health and social care provider in the UK, to roll out their Al-driven digital triage and assessment platform, Censeo, at various clinical locations.

Investment Landscape and ROI Outlook

The precision psychiatry market presents strong long-term investment potential due to:

• Rapid CAGR growth (14.2%)
• Increasing adoption in hospitals and laboratories
• Expanding AI integration
• Rising demand for personalized healthcare

Key Investment Drivers

• Venture capital funding in genomics and digital psychiatry
• Government-backed research grants
• Strategic corporate partnerships
• Expanding reimbursement support

ROI Outlook

Early adopters of precision diagnostic platforms may benefit from:
• Recurring revenue models (testing services)
• Long-term clinical partnerships
• Scalable digital platforms
• Growing global demand

As technology adoption accelerates, return on investment is expected to strengthen significantly across both developed and emerging markets.

Market Segmentations

By Service Type
• Genetic Testing
• Biomarker Analysis
• Data Analytics & Interpretation Services
• Others

By Technology
• Next-Generation Sequencing (NGS)
• Immunoassay
• Mass Spectrometry
• Others

By Therapeutic Area
• Depression and Anxiety Disorders
• Schizophrenia and Psychotic Disorders
• Bipolar Disorder
• Substance Use Disorders
• Others

By End-user
• Hospitals & Clinics
• Clinical Laboratories
• Others

By Region
• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

North America currently dominates the global market, followed by Europe and Asia Pacific. Emerging regions are expected to witness accelerated growth due to healthcare infrastructure improvements and rising awareness.

Why Buy This Report?

This comprehensive market report provides:

• Detailed market size and forecast (2020–2035)
• In-depth segment analysis
• Regional breakdown
• Competitive landscape overview
• Key company profiles
• Strategic insights
• Investment opportunities analysis
• Growth drivers and challenges
• Recent developments
• Value chain analysis

The report supports decision-making for:

• Investors
• Healthcare providers
• Pharmaceutical companies
• Biotechnology firms
• Policy makers
• Strategic planners

It serves as a valuable resource for understanding current trends and future growth prospects.

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FAQs

1. What is the current size of the precision psychiatry market?
The global precision psychiatry market was valued at US$ 0.9 billion in 2024.

2. What is the projected market value by 2035?
The market is expected to reach more than US$ 4.2 billion by 2035.

3. What is the expected CAGR during the forecast period?
The market is projected to grow at a CAGR of 14.2% from 2025 to 2035.

4. Which segment dominates the market?
The genetic testing segment holds the largest share, accounting for 42.5% in 2024.

5. Which region leads the global precision psychiatry market?
North America dominates the market with a 38.8% revenue share in 2024.

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