Part
01
of one
Part
01
Provide a market and industry breakdown of EEG neurofeedback therapy (market size, revenue and cost estimates, companies - established and startups, funding)
Hello and thank you for your question about the market-size of the EEG neurofeedback therapy. The short version is that this market is increasing in capacity and size thanks to advancements in technology, but funding for psychological therapy is still based out of the private sector as they FDA nor insurance companies are convinced of its benefits. You can find a deep-dive of my findings below.
METHODOLOGY
I've gathered information from a number of sectors, using publicly available data. For new trends and innovation within the sector (as well as possible areas of uncertainty) I've also included news reports from reputable sources.
REVENUE
The total market revenue for the EEG neurofeedback therapy market is around $2.2 b illion dollars; the Chief Scientist of the EEG Institute not only agrees with that figure but truly believes in the power of the technology citing that the direct economic impact of neurofeedback therapy is small, but the long term effects could help society as a whole, similar to how investing in green technology is worth it in the end.
Costs for therapy sessions (between 20-30 sessions) go for about $3,000 total, averaging around $150 per session, though there are a number of places charging less, around $85 per session.
It's important to note that neurotherapy is more of a service-based market, and because of this, it's hard to see profit. Says one industry professional (which is a great first-hand account of running a neurofeedback practice): "It’s one-on-one, and though you can arrange ways to be seeing 2 or 3 clients at the same time, there still are no economies of scale. Nobody profits from NF financially–not like a drug company profits."
COSTS
There is wide range of EEG machines intended for neurofeedback, it depends on what specific trait one want to record, how many and how sophisticated the machine. It appears a lot fall into the $20-$200 range (mostly muscle / finger monitors) but there are headsets and data acquisition units available for $1000 and $27,000.
One important thing to consider is that there laws governing the practice of neurofeedback therapy, anyone can offer these types of services. But there are still bodies that offer certification services in order to provide a more regulated market, the most notable being the Biofeedback Certification International Alliance.
GROWTH
I could not find CAGR figures for the neurofeedback therapy market, but there are some indicators that it is positive. The sefment of diagnostic centers using EEG machines is expected to increase at a CAGR of 7.2% to 2022.
More and more common is the use of these EEG devices in the "brain training" field, which is a $1.3 billion market that's expected to grow to $6 billion by 2020. Providing a neurofeedback approach to games like Lumiosity help the sector grow into more advanced offerings.
A field that came up time and time again during my research was the use of neurofeedback for the treatment of ADHD, especially in children. The ADHD therapeutic services industry was valued at $3.8 billion in 2010, and was forecasted to grow at a compound CAGR of 8.0% through to 2018.
There is a recent Global Biofeedback Instrument Industry study available here for a fee, but has great detail and historical data regarding these types of machines.
CAVEATS
Although neurofeedback therapy is gaining traction as a possible treatment for ADHD, there is still doubts as to its effectiveness. Studies and accounts have gone back and forth saying it's useful or not, promising or not significant (meta-analisys of peer reviewed studies have not shown evidence).
Because of the lack of evidence, not just in ADHD-related therapies, the FDA does not recognize EEG machines for neurofeedback other than "relaxation purposes". This means that insurance companies tend to not cover these therapies, or only in very specific cases with very specific requirements.
COMPANIES
There are a number of companies that offer neurofeedback services, a lot of hospitals and health providers have a dedicated section for it.
Betsy Devos, selected by Donald Trump to be the new education secretary, is a major financial backer of Neurocore. She and her husband heavily promote it for education "enhancement" and they claim to have worked with children with all sorts of mental problems.
Startups are geared more towards mobile/gaming portable solutions, not having to rely on a trained specialist. They include:
CONCLUSIONS
Despite the total market revenue for the EEG neurofeedback therapy market around $2.2 billion dollars, the FDA has still only approved it for relaxation purposes. There is conflicting evidence over its efficacy for certain illnesses, though for ADHD it seems to be not very helpful. Startups and innovation within the industry is focused on mobile / wearable tech for enhanced brain performance.
Thank you for using Wonder! Please let us know if we can help you discover anything else!