Healthcare Augmented and Virtual Reality Market Size, Share, Growth, Forecast 2030

Healthcare Augmented and Virtual Reality Industry Prospective:

The global healthcare augmented and virtual reality market size was worth around USD 2301.47 million in 2022 and is predicted to grow to around USD 8654.28 million by 2030 with a compound annual growth rate (CAGR) of roughly 18.01% between 2023 and 2030.

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Healthcare Augmented and Virtual Reality Market: Overview

The healthcare augmented and virtual reality industry deals with the use of advanced simulation technologies to improve the overall performance of the healthcare sector. Virtual reality (VR) is a 3-dimensional simulated environment where users can interact and participate with their surroundings in a manner that completely mimics real-life interactions. Augmented reality (AR), on the other hand, is an immersive experience enjoyed by a user consisting of or superimposing a real-world environment with content generated using computers. AR helps in creating a composite view of the surroundings. The application of VR and AR technologies in healthcare is a result of the surging integration of modern technologies to improve patient care and deal with complex diseases in manners that have less impact on human health. Both AR and VR have specific roles to play in the healthcare sector owing to their certain advantages and characteristic properties. 

Key Insights:

• As per the analysis shared by our research analyst, the global healthcare augmented and virtual reality market is estimated to grow annually at a CAGR of around 18.01% over the forecast period (2023-2030)
• In terms of revenue, the global healthcare augmented and virtual reality market size was valued at around USD 2301.47 million in 2022 and is projected to reach USD 8654.28 million, by 2030.
• The healthcare augmented and virtual reality market is projected to grow at a significant rate due to the increasing healthcare expenditure
• Based on application segmentation, education & training was predicted to show maximum market share in the year 2022
• Based on component segmentation, hardware was the leading segment in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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Healthcare Augmented and Virtual Reality Market: Growth Drivers

Increasing healthcare expenditure to drive market growth

The global healthcare augmented and virtual reality market is projected to grow owing to the increasing healthcare expenditure across the globe. The rising population, increased demand for access to primary medical care, growing initiatives toward improving patient care, and surging demand for more effective medical procedures especially when dealing with complicated treatments such as the ones involving the central nervous system are likely to push the demand for AR and VR in the healthcare industry. The rising number of hospitals equipped with modern facilities and state-of-the-art devices is likely to help the use of augmented and virtual reality systems to new heights. In June 2023, the expansive 1350-bed hospital in Kochi, India called Amrita Hospital announced that it had developed the world’s first-of-its-kind Extended Reality (ER)-supported environment in healthcare. The new ecosystem is based on the advantages of VR, AR, and mixed reality (MR) technologies and is expected to not only improve patient care but also enhance research and medical training.

Rising need for continuous medical training in healthcare to assist in delivering better results

The global healthcare industry is steadily evolving. Market players and caregivers are ensuring that new and advanced tools, technologies, or systems play a crucial role in ensuring the patient's needs are met. The healthcare sector is becoming more demanding in terms of patient expectations with the growing research and development of novel medical procedures. This results in an ongoing need for medical training where the skills of doctors and medical professionals must be aligned with the technical developments in the medical sector.

Healthcare Augmented and Virtual Reality Market: Restraints

Resistance to change and lack of primary healthcare infrastructure to restrict market growth

The global healthcare augmented and virtual reality market growth is expected to be restricted owing to the tendency to resist changes in the ongoing technological ecosystems. In several cases, medical professionals have an established routine and they initially hesitate to adopt novel systems. They may not have sufficient time to invest in learning new tools or may not be comfortable with advanced technology which could block the adoption of AR and VR systems in healthcare. In addition to this, one of the major problems in the integration of augmented and virtual reality in the medical community is the lack of primary healthcare infrastructure in several economies. This is especially applicable to countries with limited resources or that are under social, political, and financial unrest. A large part of the population in these countries does not have access to medical care.

Healthcare Augmented and Virtual Reality Market: Opportunities

Ongoing technological developments and innovation to create higher growth opportunities

The healthcare augmented and virtual reality industry is projected to benefit from the ongoing research and development initiatives to deliver better technological solutions. Technology manufacturers are focusing on comprehensive applications and higher user-friendliness. AR and VR systems in healthcare must ensure that the technology does not interfere with surgical procedures while continuing to be helpful. In June 2023, technology giant, Apple announced the launch of the Vision Pro Headset, a product of its mixed-reality project leading to growing conversations in the medical community that Apple may make an entry in AR and VR in the healthcare sector. In January 2020, Samsung Electronics Co., Ltd. announced the launch of a wearable vision assistance headset in association with Irisvision. It is a new VR tool that offers assistance to people with weak vision. It allowed Samsung to strengthen its foothold in the healthcare AR and VR sector.

The market is further expected to deliver better results driven by ongoing partnerships between technology companies and players in the healthcare sector. In January 2021, Hologic, Inc., a leading medical device company focusing on women’s health acquired Biotheranostics in which the latter will allow Hologic to leverage its expertise in oncology diagnostics.

Healthcare Augmented and Virtual Reality Market: Challenges

High cost of investment and technical limitations to challenge market growth

Using augmented or virtual reality in healthcare is expensive since a high level of technological sophistication is required to create VR and AR systems that match the expectations of the healthcare sector. Furthermore, these tools have limited application and cannot be used for all types of medical procedures thus raising questions over cost-efficiency, especially for research or medical centers with limited budgets.

Healthcare Augmented and Virtual Reality Market: Segmentation

The global healthcare augmented and virtual reality market is segmented based on application, end-user, technology, component, and region.

Based on application, the global market segments are therapy, surgery, rehabilitation, education & training, pain management, and others. Both AR and VR tools have separate applications in the healthcare sector. VR is typically used to conduct surgical procedures related to the nervous system while AR is used to improve the accuracy of medical procedures along with superior diagnostics. However, since the demand for AR is currently higher than VR, the education & training segment delivered better results. The increasing need for consistent medical training and technological skill upgrades in medical professionals could trigger higher segmental growth. The cost of AR can start from a few thousand dollars and reach over USD 300000.

Based on end-user, the healthcare augmented and virtual reality industry divisions are government & defense institutes, hospitals, clinics, & surgical centers, research & diagnostic laboratories, research organizations & pharma companies, and others.

Based on component, the healthcare augmented and virtual reality industry is segmented into software, hardware, and services. During 2022, the hardware segment was the most dominant and is projected to continue the same trend during the forecast period. The growth is a result of higher demand for AR and VR gadgets, headsets, 3D sensors, and other tools that facilitate the use of AR and VR technology. The software programs are generally built into the hardware systems and provided by the manufacturers. Several research centers and hospitals are investing in developing in-house AR, VR, or MR ecosystems. A recent report indicated that nearly 25.1% of hospitals globally are investing in augmented and virtual reality.

Based on technology, the global market segments are augmented reality and virtual reality.

Healthcare Augmented and Virtual Reality Market: Report Scope

Healthcare Augmented and Virtual Reality Market: Regional Analysis

North America to witness the highest recorded revenue

The global healthcare augmented and virtual reality market will be led by North America with the US taking the lead. The main reason for higher growth is the presence of key giants in the advanced technology industry that are investing heavily in making VR and AR a part of the healthcare sector. Their efforts are further strengthened by collaboration with medical technology makers. The existence of a highly advanced, technology-driven healthcare sector and a research and development-oriented medical community may further become leading causes of higher regional revenue. Additionally, favorable government policies and demand for improved medical care could work in the favor of North America. Asia-Pacific is expected to deliver significant results due to rapidly rising investments in healthcare infrastructure and growing medical tourism. Countries such as China, India, Japan, and others are working toward integrating modern systems in healthcare for better patient care.

Healthcare Augmented and Virtual Reality Market: Competitive Analysis

The global healthcare augmented and virtual reality market is led by players like:

• Philips Healthcare
• Microsoft
• Magic Leap
• Surgical Theater
• Oculus (Meta Platforms)
• HoloPatient (Health Scholars)
• DAQRI
• Intuitive Surgical
• Google
• VirtaMed
• Samsung
• AccuVein
• Pear Therapeutics
• Osso VR
• CAE Healthcare.

The global healthcare augmented and virtual reality market is segmented as follows:

By Application

• Therapy
• Surgery
• Rehabilitation
• Education & Training
• Pain Management
• Others

By End-User

• Government & Defense Institutes
• Hospitals, Clinics, & Surgical Centers
• Research & Diagnostic Laboratories
• Research Organization & Pharma Companies
• Others

By Component

• Software
• Hardware
• Services

By Technology

• Augmented Reality
• Virtual Reality

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa