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US Virtual Reality Therapy Market

ID: MRFR/ICT/56884-HCR
200 Pages
Aarti Dhapte
February 2026

US Virtual Reality Therapy Market Research Report: By Technology (Full Immersive VR, Semi-Immersive VR, Non-Immersive VR), By Device (Head Mount, Gesture Control, Projectors), and By Application (Phobia Treatment, Robotic Surgery, Visualization, Rehabilitation, Treatment Of Post-Traumatic Stress Disorder, Treatment Of Autism, Surgery Simulation) - Forecast to 2035.

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US Virtual Reality Therapy Market Infographic
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US Virtual Reality Therapy Market Summary

As per Market Research Future analysis, the US virtual reality-therapy market Size was estimated at 315.0 USD Million in 2024. The US virtual reality-therapy market is projected to grow from 358.72 USD Million in 2025 to 1316.26 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 13.8% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The US virtual reality-therapy market is experiencing robust growth driven by technological advancements and increasing mental health awareness.

  • The integration of virtual reality with traditional therapies is becoming more prevalent, enhancing treatment efficacy.
  • Accessibility and affordability are key focuses, ensuring that virtual reality therapy reaches a broader audience.
  • Research and development initiatives are intensifying, leading to innovative solutions in the virtual reality-therapy space.
  • Technological advancements in VR and growing mental health awareness are major drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 315.0 (USD Million)
2035 Market Size 1316.26 (USD Million)
CAGR (2025 - 2035) 13.88%

Major Players

Oculus (US), MindMaze (CH), VRHealth (IL), Psious (ES), AppliedVR (US), BehaVR (US), Virtually Better (US), Limbix (US)

Our Impact
Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
Partnering with 2000+ Global Organizations Each Year
30K+ Citations by Top-Tier Firms in the Industry

US Virtual Reality Therapy Market Trends

This market is experiencing notable growth, driven by advancements in technology and increasing acceptance of innovative treatment methods. This market appears to be gaining traction as healthcare providers recognize the potential of virtual reality in addressing various mental health issues, including anxiety, PTSD, and phobias. The immersive nature of virtual reality allows patients to engage in therapeutic scenarios that may be difficult to replicate in traditional settings. As a result, practitioners are increasingly integrating these solutions into their treatment protocols, suggesting a shift towards more interactive and engaging therapeutic experiences. Moreover, the rising prevalence of mental health disorders in the US is likely to further propel the demand for virtual reality-therapy solutions. With a growing emphasis on mental well-being, healthcare systems are exploring alternative therapies that can complement conventional approaches. This trend indicates a broader acceptance of technology in healthcare, as patients and providers alike seek innovative ways to enhance treatment outcomes. As the virtual reality-therapy market continues to evolve, it may pave the way for new therapeutic modalities that could redefine mental health care in the coming years.

Integration with Traditional Therapies

The virtual reality-therapy market is increasingly integrating with conventional therapeutic practices. This trend suggests that mental health professionals are recognizing the value of combining traditional methods with immersive technology. By doing so, they aim to enhance patient engagement and improve treatment efficacy. This integration may lead to more personalized therapy sessions, allowing practitioners to tailor experiences to individual patient needs.

Focus on Accessibility and Affordability

There appears to be a growing emphasis on making virtual reality-therapy solutions more accessible and affordable. This trend indicates that developers and healthcare providers are working to reduce barriers to entry for patients. By focusing on cost-effective solutions and user-friendly interfaces, the market may attract a broader audience, including those who may have previously been hesitant to explore such therapies.

Research and Development Initiatives

This market is witnessing increased investment in research and development initiatives.. This trend suggests that stakeholders are committed to exploring the full potential of virtual reality in therapeutic settings. Ongoing studies may lead to the discovery of new applications and improved methodologies, ultimately enhancing the effectiveness of virtual reality as a therapeutic tool.

US Virtual Reality Therapy Market Drivers

Growing Mental Health Awareness

In recent years, there has been a notable increase in awareness surrounding mental health issues, which significantly impacts the virtual reality-therapy market. As society becomes more open to discussing mental health, the demand for innovative therapeutic solutions rises. VR therapy offers unique benefits, such as providing safe environments for exposure therapy and reducing anxiety during treatment. This growing acceptance is likely to lead to a higher adoption rate among practitioners, with an estimated 30% increase in the use of VR in therapeutic settings by 2026. The virtual reality-therapy market stands to benefit immensely from this cultural shift.

Integration of AI in VR Therapy

The integration of artificial intelligence (AI) into the virtual reality-therapy market is poised to revolutionize therapeutic practices. AI can enhance the personalization of therapy sessions by analyzing user data and adapting scenarios to meet individual needs. This capability not only improves patient engagement but also increases the effectiveness of treatment outcomes. As AI technology continues to advance, its application in VR therapy is expected to grow, potentially leading to a 40% increase in user satisfaction rates. The synergy between AI and VR is likely to create a more dynamic and responsive therapeutic environment.

Technological Advancements in VR

The rapid evolution of technology plays a pivotal role in the virtual reality-therapy market. Innovations in hardware and software, such as improved graphics, motion tracking, and user interfaces, enhance the therapeutic experience. For instance, the introduction of lightweight VR headsets and haptic feedback systems has made therapy sessions more immersive and engaging. This technological progress is likely to attract more healthcare providers to adopt VR solutions, potentially increasing market penetration. As of 2025, the market is projected to reach a valuation of approximately $2 billion, indicating a robust growth trajectory driven by these advancements.

Rising Demand for Remote Therapy Options

The shift towards remote therapy solutions is a significant driver for the virtual reality-therapy market. As more individuals seek convenient and accessible mental health care, VR therapy presents a viable option that can be delivered remotely. This modality allows therapists to conduct sessions from various locations while providing patients with immersive experiences that traditional teletherapy cannot offer. The market is likely to see a 25% increase in remote VR therapy sessions by 2027, as both patients and providers recognize the benefits of flexibility and accessibility in mental health treatment.

Increased Funding for Mental Health Solutions

The virtual reality-therapy market is experiencing a surge in funding from both public and private sectors, which is crucial for its expansion. Government initiatives aimed at improving mental health services have led to increased investments in innovative therapies, including VR. For example, federal funding for mental health programs has seen a rise of over 20% in recent years, facilitating research and development in VR applications. This influx of capital not only supports the creation of new VR therapy tools but also encourages collaboration between tech companies and healthcare providers, fostering a more integrated approach to mental health treatment.

Market Segment Insights

By Technology: Full Immersive VR (Largest) vs. Semi-Immersive VR (Fastest-Growing)

In the US virtual reality-therapy market, Full Immersive VR holds the largest market share due to its comprehensive approach in providing therapeutic experiences that deeply engage patients. This technology envelops users in fully interactive environments, subsequently delivering effective treatment outcomes. In contrast, Semi-Immersive VR, while not as dominant, shows significant growth potential as it offers an effective middle ground for therapy, blending virtual interactions with the real world to enhance patient comfort and reduce the barrier to entry for users. The growth trends for these technologies are driven by increasing acceptance of VR for therapeutic purposes, coupled with advancements in VR technology that improve user experience and therapeutic efficacy. Semi-Immersive VR is particularly gaining traction due to its accessibility and utility in various therapeutic settings, making it increasingly favorable among therapists seeking adaptable solutions. As both technologies evolve, they cater to different patient needs, contributing to the overall expansion of the market.

Technology: Full Immersive VR (Dominant) vs. Semi-Immersive VR (Emerging)

Full Immersive VR is characterized by its ability to create a completely artificial environment, offering users a sense of presence that significantly enhances therapy effectiveness. This segment is often preferred for treatments involving exposure therapy, pain management, and PTSD, as it allows complete immersion in traumatic scenarios for therapeutic purposes. On the other hand, Semi-Immersive VR provides a more flexible approach by integrating real-world elements with virtual constructs, making it a preferred choice for therapists who need adaptability in their treatment protocols. Its emerging popularity is attributed to lower costs and easier accessibility, which make it suitable for a wider array of therapeutic applications.

By Device: Head Mount (Largest) vs. Gesture Control (Fastest-Growing)

In the US virtual reality-therapy market, the distribution of market share among various devices indicates that Head Mount technology leads the segment, accounting for a significant portion of overall usage. Gesture Control is gaining traction, however, and is creating a competitive landscape as it captures interest among users for intuitive interaction. Projectors, on the other hand, remain a niche option, appealing primarily to specific institutional settings rather than individual therapy sessions. The growth trends of these devices show a clear differentiation between established and emerging segments. Head Mount technology benefits from widespread adoption due to its immersive capabilities and compatibility with various VR applications. Gesture Control is accelerating in popularity as advancements in gesture recognition enhance user experience, making it a sought-after option in therapy settings. This is largely influenced by the increasing demand for interactive and personalized therapy sessions that engage users more effectively.

Head Mount (Dominant) vs. Gesture Control (Emerging)

Head Mount devices stand out in the US virtual reality-therapy market due to their immersive experience that facilitates deeper therapeutic engagement. These devices are well-established and widely used, offering a robust solution for various therapeutic applications. Gesture Control, as an emerging segment, introduces innovative ways for users to interact with the virtual environment, making therapy sessions more intuitive and reducing the learning curve for new users. While Head Mount devices dominate in adoption and functionality, Gesture Control is quickly carving out its space through growing technological advancements, presenting a compelling alternative that is increasingly favored in patient-centric therapy environments.

By Application: Phobia Treatment (Largest) vs. Rehabilitation (Fastest-Growing)

The US virtual reality-therapy market exhibits a diverse distribution of applications, with phobia treatment leading in market share. This segment continues to capture a significant portion of the overall demand, driven by the increasing prevalence of anxiety disorders and the effectiveness of VR therapy in providing safe exposure therapy. Following closely is the rehabilitation segment, which has gained traction as healthcare providers recognize the value of immersive environments in enhancing recovery outcomes. As the market evolves, rehabilitation stands out as the fastest-growing application, fueled by technological advancements and a growing body of evidence supporting VR’s efficacy in physical and cognitive rehabilitation. Moreover, increasing investment in VR platforms from healthcare stakeholders underscores the untapped potential in other applications like post-traumatic stress disorder and surgery simulation, which are also projected to expand as awareness and adoption increase.

Phobia Treatment: Dominant vs. Rehabilitation: Emerging

Phobia treatment is a dominant application in the US virtual reality-therapy market, leveraging cutting-edge technology to address various anxiety disorders effectively. This segment utilizes controlled environments that allow patients to confront and overcome their fears gradually. On the other hand, rehabilitation is emerging rapidly, focusing on utilizing immersive technology to assist patients in recovering motor skills and cognitive functions post-injury or surgery. As healthcare becomes increasingly patient-centered, both segments showcase unique attributes that cater to specific therapeutic needs, indicating a robust market presence and potential for future growth.

Get more detailed insights about US Virtual Reality Therapy Market

Key Players and Competitive Insights

The virtual reality-therapy market is currently characterized by a dynamic competitive landscape, driven by technological advancements and increasing acceptance of VR solutions in therapeutic settings. Key players such as Oculus (US), AppliedVR (US), and BehaVR (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Oculus (US) focuses on innovation through continuous product development, aiming to integrate more immersive experiences into therapy. Meanwhile, AppliedVR (US) emphasizes partnerships with healthcare providers to expand its reach and validate its therapeutic applications. BehaVR (US) is leveraging digital transformation to enhance user engagement and improve therapeutic outcomes, indicating a collective shift towards more personalized and effective treatment modalities.The market structure appears moderately fragmented, with a mix of established players and emerging startups. Key business tactics include localizing manufacturing to reduce costs and optimize supply chains, which is crucial in maintaining competitive pricing. The influence of major players is significant, as their strategies often set benchmarks for operational excellence and innovation within the sector.

In October Oculus (US) announced a strategic partnership with a leading mental health organization to develop a new VR platform aimed at treating anxiety disorders. This collaboration is expected to enhance the therapeutic efficacy of their offerings, potentially increasing user adoption rates. The strategic importance of this move lies in its potential to validate Oculus's technology in clinical settings, thereby expanding its market share.

In September AppliedVR (US) secured a $20M funding round to accelerate the development of its VR-based pain management solutions. This influx of capital is likely to bolster its research and development efforts, allowing for the introduction of more advanced therapeutic applications. The significance of this funding is underscored by the growing demand for non-pharmacological pain management options, positioning AppliedVR as a leader in this niche.

In August BehaVR (US) launched a new VR program specifically designed for PTSD treatment, which has garnered attention for its innovative approach. This launch not only diversifies BehaVR's product offerings but also addresses a critical need in mental health care. The strategic importance of this initiative lies in its potential to attract a broader patient demographic, thereby enhancing the company's competitive edge.

As of November current trends in the virtual reality-therapy market include a strong emphasis on digitalization, with companies increasingly integrating AI technologies to enhance user experiences. Strategic alliances are becoming more prevalent, as firms recognize the value of collaboration in driving innovation. Looking ahead, competitive differentiation is likely to evolve, shifting from price-based competition to a focus on technological innovation and supply chain reliability. This transition suggests that companies that prioritize R&D and strategic partnerships will be better positioned to thrive in an increasingly competitive environment.

Key Companies in the US Virtual Reality Therapy Market include

Industry Developments

Recent developments in the US Virtual Reality Therapy Market have highlighted significant advancements and activities among key players. In September 2023, AppliedVR announced a partnership with prominent US healthcare providers to enhance their virtual reality therapy solutions for pain management. Meanwhile, Psious secured additional funding to expand its mental health therapy applications using virtual reality techniques, indicating strong growth potential. Furthermore, in August 2023, HTC unveiled new VR products specifically designed for therapeutic use, reflecting a growing interest in therapeutic applications of VR technology.

The market also witnessed an increase in collaboration among companies; in July 2023, Google and Oculus joined forces to create an immersive therapeutic environment aimed at improving mental health outcomes. Notably, in June 2023, VRhealth expanded its market presence by acquiring a smaller VR therapy startup, thereby solidifying its position in the competitive landscape. The overall market is projected to grow significantly, driven by the rising recognition of VR therapy's efficacy in treating various conditions, and this momentum is seen in yearly valuations, as many companies have reported substantial increases in their financial metrics over the last two years.

Future Outlook

US Virtual Reality Therapy Market Future Outlook

The Virtual Reality Therapy Market is projected to grow at a 13.88% CAGR from 2025 to 2035, driven by technological advancements, increasing mental health awareness, and demand for innovative treatment solutions.

New opportunities lie in:

  • Development of VR-based cognitive behavioral therapy platforms
  • Partnerships with healthcare providers for integrated VR solutions
  • Creation of subscription models for ongoing VR therapy access

By 2035, the market is expected to achieve substantial growth, positioning itself as a leader in therapeutic innovation.

Market Segmentation

US Virtual Reality Therapy Market Device Outlook

  • Head Mount
  • Gesture Control
  • Projectors

US Virtual Reality Therapy Market Technology Outlook

  • Full Immersive VR
  • Semi-Immersive VR
  • Non-Immersive VR

US Virtual Reality Therapy Market Application Outlook

  • Phobia Treatment
  • Robotic Surgery
  • Visualization
  • Rehabilitation
  • Treatment of Post-Traumatic Stress Disorder
  • Treatment of Autism
  • Surgery Simulation

Report Scope

MARKET SIZE 2024 315.0(USD Million)
MARKET SIZE 2025 358.72(USD Million)
MARKET SIZE 2035 1316.26(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 13.88% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Oculus (US), MindMaze (CH), VRHealth (IL), Psious (ES), AppliedVR (US), BehaVR (US), Virtually Better (US), Limbix (US)
Segments Covered Technology, Device, Application
Key Market Opportunities Integration of advanced technologies enhances therapeutic applications in the virtual reality-therapy market.
Key Market Dynamics Technological advancements drive innovation in virtual reality-therapy, enhancing treatment efficacy and patient engagement.
Countries Covered US
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FAQs

What is the projected market size of the US Virtual Reality Therapy Market in 2024?

The US Virtual Reality Therapy Market is expected to be valued at 350.0 million USD in 2024.

What will be the market size of the US Virtual Reality Therapy Market by 2035?

By 2035, the market is expected to grow significantly to a value of 5550.0 million USD.

What is the expected compound annual growth rate (CAGR) for the US Virtual Reality Therapy Market from 2025 to 2035?

The expected CAGR for the market from 2025 to 2035 is 28.562 percent.

Which technology segment in the US Virtual Reality Therapy Market will have the highest value by 2035?

The Full Immersive VR segment is projected to reach 1700.0 million USD by 2035.

What will be the market value of Semi-Immersive VR in 2035?

The Semi-Immersive VR segment is expected to be valued at 2400.0 million USD by 2035.

Who are the key players in the US Virtual Reality Therapy Market?

Major players in the market include Microsoft, AppliedVR, HTC, Oculus, and Google.

What market value is projected for Non-Immersive VR by 2035?

The Non-Immersive VR segment is expected to reach a value of 1450.0 million USD by 2035.

What are the expected growth drivers for the US Virtual Reality Therapy Market?

The market growth is expected to be driven by technological advancements and increased applications in mental health treatment.

How does the market size of Full Immersive VR compare to Semi-Immersive VR in 2024?

In 2024, Full Immersive VR is valued at 100.0 million USD, while Semi-Immersive VR is valued at 150.0 million USD.

What overall opportunities exist in the US Virtual Reality Therapy Market?

The market presents opportunities to expand therapeutic applications and integrate VR with existing medical practices.

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