AR & VR in Healthcare Market Size

AR and VR in Healthcare Market Overview

The AR and VR in Healthcare Market Size was valued at USD 0.70 billion in 2023 and is projected to grow from USD 0.85 Billion in 2024 to USD 4.05 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.55% during the forecast period (2024 - 2032). Growing penetration of connected devices and rising application in the treatment and medical training are the key market drivers enhancing the market growth.

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

AR and VR in Healthcare Market Trends

• Growing applications in medical training, diagnosis and treatment is propelling market growth

Augmented and virtual reality enables users to experience extended digital content in virtual and physical space. Until the past few years, AR & VR was most commonly used in the gaming and entertainment sector. Still, in a few years, researchers in the healthcare sector have been studying and integrating AR & VR in various areas such as patient care management, fitness, surgical procedure, diagnostic testing, and medical training. The Application of AR & VR has been growing rapidly owing to its benefits. According to studies published in 2016, approximately 18% of U.S. physicians used VR for professional purposes. Since the adoption of AR and VR has been rapidly growing.

Doctors are rapidly adopting augmented reality and virtual reality technologies in surgeries to optimize the output of surgical procedures and increase the efficiency of treatment provided to patients. Systems that use virtual reality help in the diagnosis of the patient's physiology and anatomy. Research institutes are using AR & VR to provide medical training as they help perform surgeries without any risks. Doctors also use them to explain to patients the operation process so they will be able to understand it better and will be effective for faster recovery. In recent years, such growing applications in various healthcare fields have enhanced the market CAGR of AR and VR in Healthcare globally.

To cater to the rising demand, there have been significant advancemenTechnologynology. Doctors and other healthcare specialists are using it for robotic surgery and physical therapy, among other factors boosting AR and VR growth in healthcare market revenue.

AR and VR in Healthcare Market Segment Insights

AR and VR in Healthcare Technology Insights

The market segmentation of AR and VR in Healthcare, based on technology, includes AR and VR technology. The AR technology segment held the majority share in 2021, contributing to the majority of the share with respect to the AR and VR in Healthcare market growth. Some factors contributing to this segment's growth include technological advancements and the growing demand for AR diagnostic and medical training. Additionally, increasing investments and research & development activities are also aiding the growth of the augmented reality in healthcare segment. However, VR technology is also anticipated to grow at the fastest CAR during the forecast period owing to growing private and public investments and increasing demand among doctors and other healthcare professionals.

March 2021 ApplliedVR secured USD 29 million in series A funding for including VR for chronic pain care. The company plans to use the investments to pursue U.S. FDA approval, prepare for further clinical trials, and launch the market.

December 2019 Augmedics received U.S. Food and Drug Administration (FDA) 510(k) clearance and launched 'xvision Spine,' an AR system that can be used in surgery.

AR and VR in Healthcare Offering Insights

The AR and VR in Healthcare market segmentation, based on offering, includes hardware & software. The hardware segment held the largest market share of AR and VR in Healthcare market revenue in 2021. This is due to the increasing use of various devices such as 3D sensors and smart glasses for performing surgeries, diagnostics, training, and simulations. Moreover, single hardware can be used for several applications, and this acts as one of the major factors of the hardware of AR and VR in Healthcare, in turn positively impacting the market growth. However, the software segment is anticipated to be the faster-growing segment during the forecast period i.e., 2022-2030. Some of the factors contributing to the growth of this segment include development in connected devices and frequent updating in advancements.

AR and VR in Healthcare Application Insights

The AR and VR in Healthcare market data have been bifurcated by application into fitness, patient care, pharmacy management, and others. The fitness application segment dominated the market in 2021. Growing demand for AR & VR for pain management among patients post-surgery and assisting patients suffering from phantom limb pain are among the key drivers of the segment. Moreover, growth investments for developing devices and rising product launches are among the key factors boosting application market growth in the AR and VR in Healthcare.

January 2022 Virdio launched AR-based live as well as on-demand workouts for at-home fitness. This launch has further expanded the growth opportunity for AR and VR in Healthcare industry.

Figure 2 AR and VR in Healthcare Market, by Application, 2021 & 2030 (USD Million)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

AR and VR in Healthcare Regional Insights

By region, the study provides market insights for AR and VR in Healthcare into North America, Europe, Asia-Pacific, and the Rest of the World. North America AR and VR in Healthcare market accounted for USD 0.18 billion in 2021 and is expected to grow at a significant CAGR growth during the forecast period. Some factors attributing to this growth include growing investment and rising research and development activities. Moreover, the presence of well-developed healthcare infrastructure, major players in this Region, and growing product launches are also propelling the market growth of AR and VR in Healthcare in this Region.

Further, the major countries studied in the market report for AR and VR in Healthcare are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3 AR AND VR IN HEALTHCARE MARKET SHARE BY REGION 2021 (%)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe AR and VR in Healthcare market accounts for the second-largest market share in the AR and VR in Healthcare due to the availability of cutting-edge treatment facilities and growing government support for developing the healthcare industry. Moreover, UK market of AR and VR in Healthcare held the largest market share, and the Germany market of AR and VR in Healthcare was the fastest-growing market in this region.

The Asia-Pacific AR and VR in Healthcare Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to growing government and private funding for supporting the healthcare industry, improving healthcare infrastructure, and growing integration of connected devices. Moreover, China's market of AR and VR in Healthcare held the largest market share, and India's market of AR and VR in Healthcare was expected to be the fastest-growing market in the Asia-Pacific region.

For instance, India's market of AR and VR in Healthcare is the favored destination for medical tourists owing to the availability of trained surgeons and lower cost for various surgeries compared to developed countries. According to the Medical Tourism Association, India has been ranked 10th in Medical Tourism Index (MTI) for 2020-21 out of 46 destinations worldwide. Moreover, World Population Review ranked Singapore as the 6th best country for its medical facilities as it offers cost-effective medical procedures. Hence, Asia-Pacific is expected to register the highest growth rate in AR and VR in Healthcare over the projected period.

AR and VR in Healthcare Key Market Players & Competitive Insights

Major market players are investing and raising funds for R&D activities to expand the application of the AR & VR in healthcare industry. Players in the market are taking various strategic initiatives to strengthen their market position, with key market developments such as new device and software launches, agreements, collaborations, mergers, and acquisitions with other organizations.

One of the primary market strategies adopted by players in the  AR and VR in Healthcare industry is collaborating with other players. The AR and VR in Healthcare industry major players Daqri, Atheer, Augmedix, Medical Realities, Firsthand Technology, Google, EchoPixel Inc, Osso VR Inc, Microsoft, Mindmaze Oculus VR, and Orca Health Inc, and others are also working on expanding their products by investing in research and development activities.

Google is a company that organizes information and makes it available to users. The company constantly takes various strategic initiatives, such as collaborating with or acquiring other companies to elaborate their existing products and services. The company is also conducting research and development on Augmented reality (AR) and Virtual Reality (VR) to bridge the gap between the digital and physical worlds. In May 2022, Google acquired MicroLED, a California-based startup developing AR headsets. MicroLED will help Google for building the next generation of augmented/virtual and mixed-reality headsets,

Also, Augmedix is a healthcare company focused on changing the physician-patient relationship by considering the pain point in the US healthcare system. The company is focused on harnessing the power of AI to document and provide data services. For instance, Augmedix launched Augmedix Prep, a new service that helps in significantly reduce the burden of preparing charts before a patient visit.

Key Companies in the market of AR and VR in Healthcare includes

• Daqri


• Atheer


• EchoPixel Inc


• Augmedix


• Medical Realities


• Firsthand Technology


• Google


• Osso VR Inc


• Microsoft


• Mindmaze Oculus VR


• Orca Health Inc., among others

AR and VR in Healthcare Industry Developments

November 2023: OssoVR receives FDA approval for its virtual reality (VR) surgical training platform. The platform is designed to provide surgeons with a realistic and immersive training experience that can help them to improve their skills and reduce the risk of complications during surgery.Immersive VR Education announces a partnership with Stanford Health Care to develop new VR-based educational programs for medical professionals. The partnership will focus on developing programs that can help medical professionals to learn new skills and improve their patient care.AppliedVR raises $50 million in a Series B funding round to support the development of its VR-based therapy for chronic pain. The company's therapy uses VR to provide patients with immersive and interactive experiences that can help them to manage their pain.

September 2023: Several companies announce new partnerships to develop and commercialize new AR & VR technologies for healthcare. These partnerships aim to develop new technologies that are faster, more efficient, and more cost-effective than existing technologies.A new study published in the journal Nature Medicine finds that VR can be used to effectively treat patients with anxiety disorders. The study found that VR-based therapy was as effective as traditional therapy in reducing anxiety symptoms.Another study published in the journal Pain finds that VR can be used to effectively treat patients with chronic pain. The study found that VR-based therapy was effective in reducing pain symptoms and improving quality of life.

AR and VR in Healthcare Market Segmentation

AR and VR in Healthcare Technology Outlook

• AR and VR technology

AR and VR in Healthcare Offering Outlook

• Hardware


• Software

AR and VR in Healthcare Application Outlook

• Fitness


• Patient Care


• Pharmacy Management


• Others

AR and VR in Healthcare Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America