Substance Abuse Treatment Market Size and Share

Substance Abuse Treatment Market (2025 - 2030)
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Substance Abuse Treatment Market Analysis by Mordor Intelligence

The substance abuse treatment market size is valued at USD 11.75 billion in 2025 and is forecast to reach USD 15.35 billion by 2030, advancing at a 5.5% CAGR. Growth rests on unprecedented public-sector funding such as the USD 46.8 million behavioral-health grants announced in May 2024; and regulatory modernization that removed the Drug Addiction Treatment Act waiver in October 2024, letting any qualified clinician prescribe buprenorphine[1]Source: U.S. Federal Register, “Medications for the Treatment of Opioid Use Disorder; Final Rule,” federalregister.gov . These forces are re-shaping competitive strategy: technology firms now partner with clinics to deploy FDA-cleared prescription digital therapeutics, while insurers rapidly widen reimbursement under the parity rules that came into full effect in January 2025. Asia-Pacific’s 7.15% CAGR underlines a pivot from infrastructure building to integrated care, showcased by China’s 191 detoxification pilots that treated 1.7 million people by end-2023.

Key Report Takeaways

  • By product type, pharmacotherapy led with 43.65% of substance abuse treatment market share in 2024, whereas digital therapeutics is projected to grow at 6.45% CAGR through 2030.
  • By treatment setting, outpatient services commanded 52.35% share of the substance abuse treatment market size in 2024, while telehealth is expanding at 7.01% CAGR to 2030.
  • By substance dependency, alcohol use disorder accounted for 31.24% share of the substance abuse treatment market in 2024; opioid use disorder registers the highest projected CAGR at 6.23% to 2030.
  • By end user, government and non-profit facilities held 33.50% share in 2024, whereas workplace programs are set to advance at 5.98% CAGR through 2030.
  • By geography, North America controlled 44.32% of market revenue in 2024; Asia-Pacific is the fastest-growing region at 7.15% CAGR through 2030.

Segment Analysis

By Product Type: Integrated Therapeutics Redefine Care

Pharmacotherapy remains the largest revenue generator, holding 43.65% of substance abuse treatment market share in 2024. Methadone, buprenorphine, and extended-release naltrexone anchor clinical guidelines and receive widening reimbursement under parity enforcement. Digital therapeutics, however, is the fastest climber at 6.45% CAGR through 2030. FDA-cleared apps such as reSET-O pair cognitive behavioral therapy with real-time adherence tracking, permitting clinicians to monitor dosage logs and craving scores remotely. Insurers increasingly bundle software prescriptions with medication bills, ensuring revenue capture without direct facility expansion. Behavioral therapy retains relevance as the human connective tissue that sustains engagement and addresses trauma; culturally-tailored cognitive restructuring is critical for younger cohorts and minority groups whose relapse triggers differ from historical norms. The substance abuse treatment market benefits from converging data streams—wearable biosignals, electronic health record (EHR) alerts, and patient-reported outcomes—that feed predictive analytics. NIH-supported pilots show AI-driven dashboards reduce hospital readmissions, reinforcing payers’ interest in data-validated interventions. Downstream, combination protocols—long-acting injectable buprenorphine plus prescription digital therapeutic coaching—signal a hybrid future where care teams orchestrate medication, software, and counseling into a singular treatment pathway.

A parallel monetization shift is unfolding. Software-as-a-medical-device (SaMD) companies license platforms to health systems, collecting per-member-per-month fees rather than episodic therapy margins. Pharma firms are co-packaging adherence apps with new formulations, betting that digital support will boost refill persistence and protect patent value. Investors deem the blended model more defensible than stand-alone clinics, amplifying merger activity between tele-MAT providers and analytics startups. This synergy underlines how the substance abuse treatment market is migrating from unit-based payments toward longitudinal value contracts tied to relapse-free days and workforce productivity metrics.

Subatance Abuse Treatment Market
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

Get Detailed Market Forecasts at the Most Granular Levels
Download PDF

By Treatment Setting: Virtual Care Mainstreams Outpatient Models

Outpatient programs provided 52.35% of total revenue in 2024, driven by clinical guidelines that favor continuous, community-based MAT over expensive inpatient stays. The DEA’s telemedicine flexibility—now extended through December 2025—lets clinicians prescribe buprenorphine after virtual evaluation, collapsing geographical barriers and accelerating telehealth uptake at a 7.01% CAGR. Clinics re-engineer workflows for hybrid care: initial stabilization may occur onsite, followed by digital check-ins, synchronous therapy, and asynchronous medication refills. Research funded by HHS confirms tele-MAT maintains parity with in-person retention and satisfaction scores.

Cost dynamics reinforce the trend. Payers observe that a 12-week virtual intensive outpatient episode costs materially less than residential admission yet yields equivalent abstinence days. Providers leverage remote urine-drug testing kits and computer-vision pill counts to satisfy compliance audits. Rural health systems capitalize by embedding addiction specialists via e-consult portals, bypassing recruitment bottlenecks. The substance abuse treatment market size for hybrid outpatient services is projected to expand at 6.8% annually, reflecting payer preference for capitated models that bundle telehealth, pharmacy, and lab services. Brick-and-mortar operators respond by converting under-utilized beds into community hubs for group therapy and peer-led recovery coaching, aligning physical assets with digital service layers.

By Substance Dependency: Opioid Innovation Outpaces Alcohol Dominance

Alcohol use disorder remained the largest pathology, representing 31.24% of global revenue in 2024. Yet opioid use disorder posts the quickest climb—6.23% CAGR to 2030—propelled by regulatory easing and novel treatments. Eliminating the waiver for buprenorphine prescribing instantly broadened eligible clinician ranks from specialists to primary care, multiplying access points. Simultaneously, research into non-opioid adjuncts such as lofexidine, acquired by BioCorRx in 2025, widens detox options without precipitating respiratory depression. Methamphetamine-opioid polysubstance cases complicate care trajectories; UCLA’s ADAPT-2 data suggest pharmacologic synergy for stimulant withdrawal, spurring guideline revisions that integrate multi-drug regimens.

Tobacco and synthetic cannabinoid dependencies draw less venture funding but hold strategic significance for population-health contracts. Employers seek bundled cessation-plus-recovery offerings that tackle nicotine, alcohol, and opioids in one benefits line. Regional profiles diverge: fentanyl dominates U.S. overdose statistics, whereas emerging synthetic opioids pose rising threats in India’s under-regulated markets, prompting WHO to recommend swift scheduling under international control who.int. Tailoring pharmacologic and psychosocial protocols to regional substance mixes reinforces the need for agile, data-driven program design within the substance abuse treatment market.

Substance Abuse Treatment Market
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

Get Detailed Market Forecasts at the Most Granular Levels
Download PDF

By End User: Public Facilities Anchor Access as Employers Accelerate Adoption

Government and non-profit centers accounted for 33.50% of 2024 revenue, reflecting their safety-net role for the uninsured. Expansion of the Certified Community Behavioral Health Clinic model—adopted by 10 new states in 2024—extends wrap-around services including transportation and peer navigation. Public-sector demand often spikes during economic downturns, bolstering the recession resistance of the substance abuse treatment market. Meanwhile, employer programs record the fastest trajectory at 5.98% CAGR. Parity enforcement, combined with evidence that workers in recovery have higher retention, pushes large self-insured firms to contract directly with digital MAT vendors, negotiate Center-of-Excellence networks, and include family counseling benefits. ADA provisions protect recovering employees, legitimizing accommodations such as flexible scheduling for therapy sessions.

Private for-profit chains refine positioning by offering specialized tracks—perinatal addiction, veterans, LGBTQ+ populations—supported by outcome guarantees attractive to value-based contracts. Correctional institutions, while outside mainstream insurance flows, represent a pivotal relapse-reduction opportunity; drug courts backed by federal grants increasingly mandate MAT instead of incarceration, creating new demand channels. Across all end users, data integration with state prescription drug monitoring programs is now baseline, raising the compliance bar and differentiating providers with robust health-IT investments.

Geography Analysis

North America captured 44.32% of total revenue in 2024, underpinned by mature insurance coverage, robust prescribing capacity, and prompt adoption of FDA-authorized digital therapeutics. The Mental Health Parity Act’s 2025 enforcement milestone compels commercial plans covering 175 million lives to remove non-quantitative limits such as fail-first policies, immediately lifting utilization ceilings. Federal funding remains pivotal: USD 1.48 billion in State Opioid Response grants finance naloxone distribution, peer recovery coaches, and mobile MAT units in high-overdose counties. Canada’s publicly-funded systems lag in digital-therapy reimbursement yet pioneer safe-supply pilots, while Mexico expands cross-border tele-MAT partnerships to reach remote regions.

Asia-Pacific is the fastest-growing territory, advancing at 7.15% CAGR through 2030. China’s deployment of 191 detoxification centers serving 1.7 million patients by end-2023 exemplifies state-driven infrastructure scaling globaltimes.cn. Australia introduces nurse-prescribing of buprenorphine in rural zones, easing workforce scarcity. India confronts fentanyl spill-over risks, prompting draft rules for precursor surveillance and joint task forces with WHO. However, digital mental-health access gaps persist; broadband penetration and mental-health literacy remain uneven, necessitating mobile-first solutions and culturally-adapted content in local languages.

Europe occupies a middle ground, boasting universal coverage but facing fragmented reimbursement for digital therapeutics. Germany’s DiGA framework fast-tracks software-as-a-medical-device reimbursement, yet addiction apps constitute only 4% of listings. Workforce shortages—particularly psychiatrists trained in addiction—slow throughput in rural Scandinavia and Eastern Europe. Middle East & Africa show nascent yet accelerating demand; Saudi Arabia funds medically-supervised detox centers as part of Vision 2030, while South Africa pilots community-based harm-reduction projects aligned with WHO guidelines. Regional heterogeneity underscores the need for adaptable, evidence-backed models within the substance abuse treatment market.

Substance Abuse Treatment Market
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Get Analysis on Important Geographic Markets
Download PDF

Competitive Landscape

Competitive intensity remains high as no single operator holds dominant share, and market entry barriers ease with virtual-first models. Traditional residential chains pivot toward specialized tracks and payer-tied outcome guarantees, while venture-backed tele-MAT startups exploit low fixed-asset bases. Teladoc Health’s USD 30 million acquisition of UpLift in May 2025 embeds psychiatric services into its BetterHelp platform, creating an end-to-end digital pathway from screening to medication management. NeuroFlow’s analytics suite integration with Intermountain Health’s risk model in January 2025 scales measurement-based care across 17 million covered lives, strengthening payer relationships.

AI and data assets increasingly separate leaders from followers. NIH-funded trials confirm that machine-learning algorithms embedded in EHRs can flag opioid-use disorder risk weeks before clinical diagnosis, enhancing prescriber outreach and insurer predictive modeling [3]Source: National Institutes of Health, “AI Screening for Opioid Use Disorder Associated with Fewer Hospital Readmissions,” nih.gov. Platform players bundle these analytics with tele-prescribing, drug-delivery logistics, and peer-support networks, delivering turnkey solutions attractive to self-insured employers. Facility consolidation remains selective; private equity targets niche centers with strong referral pipelines rather than large-scale roll-ups. With payment models shifting toward bundled and capitated contracts, the strategic race centers on demonstrating superior outcomes at lower total cost—a dynamic that rewards data-rich, tech-enabled operators in the substance abuse treatment market.

Substance Abuse Treatment Industry Leaders

  1. Alkermes PLC

  2. Mallinckrodt LLC

  3. Cipla Ltd

  4. GlaxoSmithKline PLC

  5. Indivior PLC

  6. *Disclaimer: Major Players sorted in no particular order
Substance Abuse Treatment Market Concentration
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Need More Details on Market Players and Competitors?
Download PDF

Recent Industry Developments

  • May 2025: Teladoc Health purchased UpLift for USD 30 million to expand insurance-covered virtual therapy within BetterHelp
  • April 2025: Charlie Health launched a fully virtual primary substance-use-disorder program combining therapy, MAT, and peer support.
  • March 2025: BioCorRx acquired LUCEMYRA, the first FDA-approved non-opioid for withdrawal, broadening detox options.

Table of Contents for Substance Abuse Treatment Industry Report

1. Introduction

  • 1.1 Study Assumptions & Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Check-point inhibitor dominance in 1L metastatic setting
    • 4.2.2 Rapid uptake of EGFR/ALK targeted therapies in resectable early-stage NSCLC
    • 4.2.3 Liquid-biopsy companion diagnostics adoption
    • 4.2.4 Radiopharmaceutical pipeline breakthroughs
    • 4.2.5 AI-guided trial design & faster FDA approvals
  • 4.3 Market Restraints
    • 4.3.1 Price caps & HTA push-backs in Europe
    • 4.3.2 Diagnostic biomarker testing capacity gaps in emerging Asia
    • 4.3.3 PD-(L)1 class saturation & payer rebate squeeze
    • 4.3.4 Manufacturing bottlenecks for ADC payloads
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter’s Five Forces
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Suppliers
    • 4.7.3 Bargaining Power of Buyers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Competitive Rivalry

5. Market Size & Growth Forecasts (Value)

  • 5.1 By Histology
    • 5.1.1 Adenocarcinoma
    • 5.1.2 Squamous Cell Carcinoma
    • 5.1.3 Large Cell Carcinoma
  • 5.2 By Treatment Modality
    • 5.2.1 Surgery
    • 5.2.2 Radiation Therapy
    • 5.2.3 Chemotherapy
    • 5.2.4 Targeted Therapy
    • 5.2.5 Immunotherapy
    • 5.2.6 Radiopharmaceuticals
  • 5.3 By Drug Class
    • 5.3.1 EGFR TKIs
    • 5.3.2 ALK/ROS1/RET Inhibitors
    • 5.3.3 PD-1 / PD-L1 Inhibitors
    • 5.3.4 CTLA-4 & LAG-3 Inhibitors
    • 5.3.5 Antibody-Drug Conjugates (ADC)
  • 5.4 By Region
    • 5.4.1 North America
    • 5.4.1.1 United States
    • 5.4.1.2 Canada
    • 5.4.1.3 Mexico
    • 5.4.2 Europe
    • 5.4.2.1 Germany
    • 5.4.2.2 United Kingdom
    • 5.4.2.3 France
    • 5.4.2.4 Spain
    • 5.4.2.5 Italy
    • 5.4.2.6 Rest of Europe
    • 5.4.3 Asia-Pacific
    • 5.4.3.1 China
    • 5.4.3.2 India
    • 5.4.3.3 Japan
    • 5.4.3.4 South Korea
    • 5.4.3.5 Australia
    • 5.4.3.6 Rest of Asia Pacific
    • 5.4.4 Middle East and Africa
    • 5.4.4.1 GCC
    • 5.4.4.2 South Africa
    • 5.4.4.3 Rest of Middle East and africa
    • 5.4.5 South America
    • 5.4.5.1 Brazil
    • 5.4.5.2 Argentina
    • 5.4.5.3 Rest of South America

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Market Share Analysis
  • 6.3 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)
    • 6.3.1 AstraZeneca
    • 6.3.2 Merck & Co.
    • 6.3.3 F. Hoffmann-La Roche
    • 6.3.4 Bristol Myers Squibb
    • 6.3.5 Novartis
    • 6.3.6 Pfizer
    • 6.3.7 Eli Lilly
    • 6.3.8 Amgen
    • 6.3.9 BeiGene
    • 6.3.10 Takeda
    • 6.3.11 Regeneron
    • 6.3.12 Sanofi
    • 6.3.13 Daiichi Sankyo
    • 6.3.14 Johnson & Johnson
    • 6.3.15 Boehringer Ingelheim
    • 6.3.16 Innovent Biologics
    • 6.3.17 Exelixis
    • 6.3.18 Mirati Therapeutics
    • 6.3.19 Blueprint Medicines
    • 6.3.20 Zai Lab

7. Market Opportunities & Future Outlook

  • 7.1 White-space & Unmet-Need Assessment
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Research Methodology Framework and Report Scope

Market Definitions and Key Coverage

Our study defines the substance abuse treatment market as all physician-directed, licensed interventions, pharmacologic, behavioral, or digital, that aim to reduce or stop harmful use of alcohol, tobacco/nicotine, opioids, cannabis, stimulants, or other illicit drugs across outpatient, inpatient, residential, and tele-health settings. Services delivered purely for social support or drug testing are counted only when bundled into a clinical treatment episode.

Scope Exclusion: Standalone drug screening laboratories and over-the-counter self-help apps that do not involve a certified caregiver are outside the estimates.

Segmentation Overview

  • By Histology
    • Adenocarcinoma
    • Squamous Cell Carcinoma
    • Large Cell Carcinoma
  • By Treatment Modality
    • Surgery
    • Radiation Therapy
    • Chemotherapy
    • Targeted Therapy
    • Immunotherapy
    • Radiopharmaceuticals
  • By Drug Class
    • EGFR TKIs
    • ALK/ROS1/RET Inhibitors
    • PD-1 / PD-L1 Inhibitors
    • CTLA-4 & LAG-3 Inhibitors
    • Antibody-Drug Conjugates (ADC)
  • By Region
    • North America
      • United States
      • Canada
      • Mexico
    • Europe
      • Germany
      • United Kingdom
      • France
      • Spain
      • Italy
      • Rest of Europe
    • Asia-Pacific
      • China
      • India
      • Japan
      • South Korea
      • Australia
      • Rest of Asia Pacific
    • Middle East and Africa
      • GCC
      • South Africa
      • Rest of Middle East and africa
    • South America
      • Brazil
      • Argentina
      • Rest of South America

Detailed Research Methodology and Data Validation

Primary Research

Structured interviews with medical directors of treatment chains, addiction psychiatrists, payor policy leads, and advocacy groups across North America, Europe, Asia-Pacific, and Latin America validated therapy utilization, relapse-driven readmission rates, and typical episode costs. Online surveys with former patients clarified adherence and tele-health uptake.

Desk Research

Our analysts collated prevalence and treatment-seeking ratios from tier-1 public sources such as SAMHSA's National Survey on Drug Use and Health, CDC's Alcohol-Related Disease Impact files, WHO and UNODC situation reports, and region-specific health ministry dashboards. Financial and enrollment data drawn from U.S. Medicaid budget briefs, NHS Digital releases, and EU-Eurostat hospitalization records helped anchor payer mix and average spend. Subscription databases, including D&B Hoovers for clinic revenues, Dow Jones Factiva for funding announcements, and Questel for MAT patent trends, supplemented the public corpus. Company 10-Ks, investor decks, and respected trade journals rounded out supply-side insights. This list is illustrative, not exhaustive.

Market-Sizing & Forecasting

Top-down modeling starts with regional substance-use prevalence, multiplies by evidence-based treatment-seeking rates, and then by mean cost per treated patient before currency conversion. Select bottom-up checks, sampled provider revenues and average selling price times filled prescriptions, fine-tune totals. Key model inputs include opioid dispensing volumes, government grant allocations, licensed bed capacity, digital therapeutics adoption, and insurance coverage mandates. Multivariate regression against these variables generates five-year projections, with scenario analysis adjusting for policy shocks and emerging therapies. Data gaps in smaller geographies are bridged through ratio benchmarking to epidemiologically similar markets.

Data Validation & Update Cycle

Outputs move through anomaly scans, senior analyst peer review, and client-facing analyst sign-off. Models refresh annually, while material events such as FDA approvals trigger interim updates so buyers always receive the latest view.

Why Mordor's Substance Abuse Treatment Baseline Earns Trust

Published figures often diverge because firms pick different abuse categories, cost assumptions, and refresh cadences.

Key gap drivers here include some studies that fold in unlicensed self-help apps, others that assume uniform relapse treatment, and a few that project aggressive price inflation without payer offsets, whereas our base case reports blended public-private cost trajectories and yearly recalibration.

Benchmark comparison

Market Size Anonymized source Primary gap driver
USD 11.75 B (2025) Mordor Intelligence
USD 18.91 B (2025) Global Consultancy A Includes ancillary wellness apps and clinical drug testing revenues
USD 14.14 B (2024) Industry Journal B Uses prevalence only for alcohol, tobacco, and vaping yet applies blended cost of full-service rehab
USD 11.13 B (2023) Regional Firm C Forecast rolls forward a 2019-22 CAGR without new policy or pricing inputs

Taken together, the comparison shows that Mordor's disciplined scope selection, dual-path modeling, and annual refresh cadence provide a balanced, transparent baseline that decision-makers can replicate and trust.

Need A Different Region or Segment?
Customize Now

Key Questions Answered in the Report

What is the current Substance Abuse Treatment Market size?

The Substance Abuse Treatment Market is projected to register a CAGR of 5.40% during the forecast period (2025-2030)

Who are the key players in Substance Abuse Treatment Market?

Alkermes PLC, Mallinckrodt LLC, Cipla Ltd, GlaxoSmithKline PLC and Indivior PLC are the major companies operating in the Substance Abuse Treatment Market.

Which is the fastest growing region in Substance Abuse Treatment Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Substance Abuse Treatment Market?

In 2025, the North America accounts for the largest market share in Substance Abuse Treatment Market.

What years does this Substance Abuse Treatment Market cover?

The report covers the Substance Abuse Treatment Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Substance Abuse Treatment Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Page last updated on:

Substance Abuse Treatment Market Report Snapshots