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Augmented and Virtual Reality in Healthcare Market By Component (Hardware, Software, Services), By Technology, By Application - Global Industry Outlook, Key Companies (GE Healthcare, Siemens Healthcare, CAE, and others), Trends and Forecast 2024-2033

Published on : May-2024  Report Code : RC-945  Pages Count : 276  Report Format : PDF
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Market Overview

The Global Augmented and virtual reality in healthcare market size was valued at USD 3.1 billion in 2023, and it is further anticipated to reach a market value of USD 19.6 billion by 2033 at a CAGR of 20.2%. 

Augmented reality (AR) & Virtual reality (VR) are showing immense potential in improving patient outcomes, reducing medical errors, enhancing medical training, and expanding access to healthcare services, particularly in remote or underserved areas. 
 

AR is a progressing technology that overlays digital information, such as images, videos, or 3D models, onto the real world. AR glasses and devices are used to show patient data, anatomical models, or procedural instructions by healthcare professionals during surgery or diagnosis. 

As per who The 2024 edition of the World Health Statistics Report reviews over 50 health-related indicators from the Sustainable Development Goals (SDGs) and the WHO's Thirteenth General Programme of Work. It also examines the Global Health Estimates 2021, emphasizing the significant effects of the COVID-19 pandemic on both life expectancy and healthy life expectancy.

Since 2005, the World Health Statistics Report has been an annual publication by the World Health Organization (WHO). The 2023 edition also assessed more than 50 health-related indicators, drawing from the SDGs and WHO's GPW 13, providing a comprehensive overview of global health trends and challenges.

In healthcare, augmented reality (AR) integrates digital information into the real-world environment, assisting medical professionals in diagnoses, surgeries, & patient care by providing contextual data & 3D visualizations. The market has seen significant growth over the past few years and is predicted to grow significantly during the forecasted period as well. 

Further, virtual reality immerses users in digitally replicated environments, proving effective in healthcare for purposes like medical education, therapy, & engaging patients in immersive experiences. Together, augmented and virtual reality techniques improve distinctive facets of healthcare delivery & contribute to advancements in medical practices.

The global Augmented and Virtual Reality in Healthcare Market is witnessing exponential expansion, due to increased adoption of these immersive technologies for medical training, patient treatment and surgical planning. They allow healthcare professionals to simulate procedures realistically while improving patient outcomes through hands-on experiences that provide realistic experience simulation.

Recent advancements in AR and VR have enabled more sophisticated tools, including virtual patient models and surgical simulations, that enable doctors and surgeons to practice complex procedures before performing actual surgeries, thus minimizing risks during actual surgeries while increasing precision within healthcare practices.

Augmented and virtual reality technologies in healthcare are being driven by an increase in telemedicine use and remote healthcare solutions, specifically remote surgeries and real-time patient monitoring capabilities that make healthcare more accessible and cost effective, particularly in underserved rural regions. AR and VR enable virtual consultations, remote surgeries, real-time patient monitoring - making healthcare more accessible and efficient especially in underserved rural regions.

Key Takeaways

  • Market size: The Global Augmented & Virtual Reality in Healthcare Market is projected to grow by 15.2 billion, at a CAGR of 20.2 % from 2025 to 2033.
  • Market Definition: It is an immersive technology that integrates digital information or virtual environments into real-world healthcare settings or creates entirely virtual experiences.
  • Component Analysis: Hardware is forecasted to hold the largest market share based on components with a revenue share of 70.4% in 2024.
  • Technology Analysis: Augmented reality is anticipated to dominate the market in terms of technology with the largest market share of 65.4% in 2024.
  • Application Analysis: Surgery as the application is forecasted to hold the largest market share and dominate the global market in 2024.
  • Regional Analysis: Asia-Pacific is anticipated to dominate the Augmented & Virtual Reality in Healthcare Market, capturing a revenue share of 51.1% in 2024.

Use Cases

  • Telemedicine and Remote Consultation: VR helps in creating virtual clinics or environments for therapy sessions which improves accessibility and patient engagement, therefore improving the telemedicine market. It allows healthcare providers to conduct remote consultations more effectively by overlaying medical data and virtual images in the real world.
  • Medical Education and Patient Education: AR & VR are transforming medical education by exploring 3D anatomy models, visualizing diseases, and understanding medical concepts more interactively.
  • Pain Management and Rehabilitation: Augmented and virtual reality techniques are constantly used for pain distraction and management during medical procedures. They are also employed in physical therapy for rehabilitation exercises, making the process more interactive and motivating.
  • Mental Health Treatment: Mental health therapists use Augmented Intelligence Market solutions and virtual reality technologies for exposure therapy, anxiety reduction, and phobia treatment. Patients can confront their fears in a controlled virtual environment, helping them overcome psychological challenges.

Augmented and Virtual Reality in Healthcare Market Dynamic

Drivers

Use of Telemedicine
Adoption of telemedicine, with Augmented Reality (AR) & Virtual Reality (VR) playing an important role in delivering remote healthcare. These technologies facilitate virtual doctor-patient interactions, remote monitoring, & therapy, making healthcare more accessible, which drives the growth of this market.

Increase in population

The global rise in the elderly population & the number of chronic diseases increases the demand for innovative healthcare solutions. AR & VR prove valuable in eldercare, cognitive health, & chronic disease management, contributing to an enhanced quality of life for seniors & individuals with long-term medical concerns.

Restraints

High initial cost
Major development, acquisition, & maintenance costs of AR & VR software & hardware pose challenges, especially for smaller healthcare institutions in resource-constrained areas. The starting expenditure, covering specialized equipment & software licenses, may be a barrier, which restricts the growth of this market.

Data privacy and safety
AR & VR is becoming integral to healthcare, ethical & legal concerns also arise, including issues such as patient consent, data privacy, accountability for virtual medical errors, & the potential for addiction or misuse of VR experiences.

Opportunities

Improvement in surgical procedure
Virtual reality is increasingly used in surgeries due to its ability to provide detailed visuals of patient physiology and anatomy. It facilitates better understanding and preparation for surgeries but also enhances precision and accuracy during intricate procedures. It creates many growth opportunities for the market in the foreseeable future.

Healthcare Workflow Optimization
These technologies, including Healthcare Virtual Assistants Market solutions, help in optimizing healthcare workflows by streamlining data visualization, patient monitoring, and medical documentation. It improves efficiency reduces administrative burdens, and enhances overall healthcare delivery.

Trends

Training and Education
These platforms provide training and education for healthcare professionals. They offer interactive modules, case studies, and virtual patient scenarios that allow doctors, nurses, and other medical staff to stay updated with the latest medical advancements and best practices. These AR and VR trainings are customized according to different learning styles and levels of expertise which ensure that healthcare professionals receive personalized and effective training.

Medical Imaging and Visualization
Medical imaging equipped with AR and VR technologies is enhancing collaboration among healthcare teams with interactive and detailed visualizations. They allow multidisciplinary teams to view and analyze medical data simultaneously, facilitating discussions, decision-making, and treatment planning in real-time.

Augmented and Virtual Reality in Healthcare MarketResearch Scope and Analysis

By Component
In the augmented reality & virtual reality market in healthcare, the hardware segment is expected to be the dominant force in 2024, securing the largest revenue share of 70.4%, as key devices like head-mounted displays, smart glasses, & 3D sensors played a significant role in this dominance, finding application in training, surgery, diagnostics, tele mentoring2, & many other healthcare scenarios. The versatility of head-mounted devices & smart glasses, to meet multiple applications, contributes significantly to their market impact.

Further, the software segment is expected to rapidly growth in the forecast period, driven by recent technological advancements, as applications like EyeDecide, detecting eye conditions through different parameters, & Applied VR, addressing patient anxiety during surgeries, highlight the expanding role of software in healthcare AR & VR. The growth in the development of interconnectivity & network services further encourages patient access to these platforms, showcasing a promising trajectory for software-based development in the healthcare sector.

By Technology

The augmented reality (AR) segment is anticipated to lead the AR & VR in healthcare market, securing the largest share of 65.4% in terms of revenue, which is attributed to the growth in the adoption of head-mounted devices & the increased usage of Smart Glasses for Augmented Reality Technology Market, providing an immersive 3D view of the environment. 


The anticipation of continued growth stems from the enhanced capabilities of these devices in providing enhanced treatments for various diseases. Further, technological advancements play a major role in driving the market expansion. 

Further, the flow of investments from both public organizations & market players drives growth prospects, facilitating accessibility to these devices at more favorable rates. With the ongoing developments in AR technology, the market is expected to substantial growth in the coming years, catering to the rise in demand for advanced healthcare solutions.

By Application

In terms of application, the augmented reality (AR) & virtual reality (VR) healthcare market includes Patient Care Management, Surgery, Medical Training & Education, Fitness Management, and Pharmacy Management, among which the Surgery segment is predicted to command a significant market share in 2024 & is expected to have the highest growth in the forecast period, facilitating both complex & minimally invasive surgeries. Technological advancements & the growing demand for streamlining medical procedures drive this expansion.
 
Further, domestic & global market players in AR technology form partnerships to expand their customer base & introduce innovative products, improving the overall efficiency of the healthcare sector. Further, the competition in the future is expected to minimize platform prices. 

The increasing usage of AR & VR in operative procedures and anatomical visualization propels market growth, with virtual reality providing applications in phobia treatment, robotic surgeries, training, & simulation, ensuring continual innovations for a thriving healthcare sector.

The Augmented and Virtual Reality in Healthcare Market Report is segmented based on the following

By Component

  • Hardware
  • Software
  • Services

By Technology

  • Augmented Reality
    • Rehabilitation
    • Surgical Application
    • Training & Medical Education
  • Virtual Reality
    • Simulation
    • VRET
    • Diagnostics
    • Rehabilitation
    • Pain Distraction

By Application

  • Surgery
  • Patient Care Management
  • Fitness Management
  • Medical Training & Education
  • Pharmacy Management

Augmented and Virtual Reality in Healthcare Market Regional Analysis

North America is predicted to lead the augmented & virtual reality in healthcare market, commanding a major share of 51.1% of the total revenue, which is fueled by factors like growth in the adoption of these technologies, high investments in research & development, and supportive government initiatives. 

Further, the US National Institute of Health is heavily funding research in virtual reality for healthcare applications. Moreover, the region also experiences an increase in outsourcing healthcare IT services, driven by the necessity to cut treatment costs, further contributing to market growth.

Also, the Asia Pacific region is expected to be the fastest-growing market, with rising public awareness & development in healthcare infrastructure. Emerging economies like India, China, and others within the region provide major opportunities for outsourcing services related to the development & deployment of AR & VR technologies in the healthcare sector.

By Region

North America
  • The U.S.
  • Canada
Europe
  • Germany
  • The U.K.
  • France
  • Italy
  • Russia
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
Asia-Pacific
  • China
  • Japan
  • South Korea
  • India
  • ANZ
  • ASEAN
  • Rest of Asia-Pacific
Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Rest of Latin America
Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Israel
  • Egypt
  • Rest of MEA

Augmented and Virtual Reality in Healthcare MarketCompetitive Landscape

The Augmented & Virtual Reality in healthcare market shows moderate competition, driven by key players investing more, technological advancements, & growing collaborations among market participants. 

Further, the market dynamics are influenced by these factors, showcasing a trend where innovation, financial investments, & strategic partnerships contribute to the ongoing development & growth within augmented reality in the healthcare industry. Players operating in the augmented reality market are developing innovative technologies and solutions to enhance user experiences.

In May 2022, the University of Findlay's College of Health Professions created a milestone by integrating MediView XR, Inc.'s advanced augmented reality technology into its Sonography Program curriculum, which marked the institution as a pioneer in adopting this innovative tool within the US, enhancing the hands-on learning experience for students enrolled in the program & showcasing a commitment to advanced educational methodologies.

Some of the prominent players in the Global Augmented and Virtual Reality in Healthcare Market are
  • GE Healthcare
  • Siemens Healthcare
  • EchoPixel
  • AcciVein Inc
  • Augmedix
  • Layar
  • WorldViz
  • Mindmaze
  • CAE
  • TheraSim Inc
  • Other Key Players

Recent Development

  • In April 2024, The Food and Drug Administration (FDA) announced the launch of a new initiative, Home as a Health Care Hub, that focuses on using augmented reality and virtual reality to improve health equity by reimagining the home environment as part of a healthcare system.
  • In February 2024, Apple’s new Vision Pro headset is used to display medical records, filling a doctor’s field of view with anything from graphs of a patient’s blood pressure over time to the results of their latest chest X-ray.
  • In November 2023, Agora, Inc. is hosting the RTE Telehealth webinar, which focused on exploring how augmented &, virtual reality (VR), and artificial intelligence (AI) are reshaping telehealth, showcasing their ability to improve various aspects of healthcare, including research, training, workflows, diagnosis, treatment, and patient education.
  • In July 2023, Augmedics announced a funding of USD 82.5 million aimed at advancing augmented reality spine surgery adoption and bolstering their AR and AI portfolio through acquisitions of intellectual property and other digital health assets.
  • In December 2022, Vuzix Corporation announced a new partnership with TechSee, a leader in intelligent visual assistance technology, to deliver a remote visual assistance solution to field service technicians using AR and computer vision on Vuzix M400 M4000 Smart Glasses.

Augmented and Virtual Reality in Healthcare Market Report Details

Report Characteristics
Market Size (2024) USD 3.7 Bn
Forecast Value (2033) USD 19.6 Bn
CAGR (2024-2033) 20.2%
Historical Data 2018 – 2023
Forecast Data 2024 – 2033
Base Year 2023
Estimate Year 2024
Report Coverage Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc.
Segments Covered By Component (Hardware, Software, and Services), By Technology (Augmented Reality and Virtual Reality), By Application (Surgery, Patient Care Management, Fitness Management, Medical Training & Education, and Pharmacy Management)
Regional Coverage North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
Prominent Players GE Healthcare, Siemens Healthcare, EchoPixel, AcciVein Inc, Augmedix, Layar, WorldViz, Mindmaze, CAE, TheraSim Inc., and Other Key Players
Purchase Options Physio-Control Inc., Schiller, Medtronic, Abbott, Boston Scientific Corporation, Koninklijke Philips N.V., Zoll Medical Corporation, BIOTRONIK, Progetti Srl, LivaNova Plc, and Other Key Players

 

Frequently Asked Questions

  • How big is the Global Augmented and Virtual Reality in Healthcare Market?

    The Global Augmented and Virtual Reality in Healthcare Market size was estimated to have a value of USD 3.1 billion in 2023 and is expected to reach USD 19.6 billion by the end of 2033.

  • Which region accounted for the largest Global Augmented and Virtual Reality in Healthcare Market?

    North America is expected to be the largest market share for the Global Augmented and Virtual Reality in Healthcare Market with a share of about 51.1% in 2023.

  • Who are the key players in the Global Augmented and Virtual Reality in Healthcare Market?

    Some of the major key players in the Global Augmented and Virtual Reality in Healthcare Market are GE Healthcare, Siemens Healthcare, CAE, and many others.

  • What is the growth rate in the Global Augmented and Virtual Reality in Healthcare Market?

    The market is growing at a CAGR of 20.2 percent over the forecasted period.

  • Contents

      1.Introduction
        1.1.Objectives of the Study
        1.2.Market Scope
        1.3.Market Definition and Scope
      2.Augmented and Virtual Reality in Healthcare Market Overview
        2.1.Global Augmented and Virtual Reality in Healthcare Market Overview by Type
        2.2.Global Augmented and Virtual Reality in Healthcare Market Overview by Application
      3.Augmented and Virtual Reality in Healthcare Market Dynamics, Opportunity, Regulations, and Trends Analysis
        3.1.Market Dynamics
          3.1.1.Augmented and Virtual Reality in Healthcare Market Drivers
          3.1.2.Augmented and Virtual Reality in Healthcare Market Opportunities
          3.1.3.Augmented and Virtual Reality in Healthcare Market Restraints
          3.1.4.Augmented and Virtual Reality in Healthcare Market Challenges
        3.2.Emerging Trend/Technology
        3.3.PESTLE Analysis
        3.4.PORTER'S Five Forces Analysis
        3.5.Technology Roadmap
        3.6.Opportunity Map Analysis
        3.7.Case Studies
        3.8.Opportunity Orbits
        3.9.Pricing Analysis
        3.10.Ecosystem Analysis
        3.11.Supply/Value Chain Analysis
        3.12.Covid-19 & Recession Impact Analysis
        3.13.Product/Brand Comparison
      4.Global Augmented and Virtual Reality in Healthcare Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Component, 2017-2032
        4.1.Global Augmented and Virtual Reality in Healthcare Market Analysis by By Component: Introduction
        4.2.Market Size and Forecast by Region
        4.3.Hardware
        4.4.Software
        4.5.Services
      5.Global Augmented and Virtual Reality in Healthcare Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Technology, 2017-2032
        5.1.Global Augmented and Virtual Reality in Healthcare Market Analysis by By Technology: Introduction
        5.2.Market Size and Forecast by Region
        5.3.Augmented Reality
        5.4.Virtual Reality
      6.Global Augmented and Virtual Reality in Healthcare Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Application, 2017-2032
        6.1.Global Augmented and Virtual Reality in Healthcare Market Analysis by By Application: Introduction
        6.2.Market Size and Forecast by Region
        6.3.Surgery
        6.4.Patient Care Management
        6.5.Fitness Management
        6.6.Medical Training & Education
        6.7.Pharmacy Management
      10.Global Augmented and Virtual Reality in Healthcare Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by Region, 2017-2032
        10.1.North America
          10.1.1.North America Augmented and Virtual Reality in Healthcare Market: Regional Analysis, 2017-2032
            10.1.1.1.The US
            10.1.1.2.Canada
        10.2.1.Europe
          10.2.1.Europe Augmented and Virtual Reality in Healthcare Market: Regional Trend Analysis
            10.2.1.1.Germany
            10.2.1.2.France
            10.2.1.3.UK
            10.2.1.4.Russia
            10.2.1.5.Italy
            10.2.1.6.Spain
            10.2.1.7.Nordic
            10.2.1.8.Benelux
            10.2.1.9.Rest of Europe
        10.3.Asia-Pacific
          10.3.1.Asia-Pacific Augmented and Virtual Reality in Healthcare Market: Regional Analysis, 2017-2032
            10.3.1.1.China
            10.3.1.2.Japan
            10.3.1.3.South Korea
            10.3.1.4.India
            10.3.1.5.ANZ
            10.3.1.6.ASEAN
            10.3.1.7.Rest of Asia-Pacifc
        10.4.Latin America
          10.4.1.Latin America Augmented and Virtual Reality in Healthcare Market: Regional Analysis, 2017-2032
            10.4.1.1.Brazil
            10.4.1.2.Mexico
            10.4.1.3.Argentina
            10.4.1.4.Colombia
            10.4.1.5.Rest of Latin America
        10.5.Middle East and Africa
          10.5.1.Middle East and Africa Augmented and Virtual Reality in Healthcare Market: Regional Analysis, 2017-2032
            10.5.1.1.Saudi Arabia
            10.5.1.2.UAE
            10.5.1.3.South Africa
            10.5.1.4.Israel
            10.5.1.5.Egypt
            10.5.1.6.Turkey
            10.5.1.7.Rest of MEA
      11.Global Augmented and Virtual Reality in Healthcare Market Company Evaluation Matrix, Competitive Landscape, Market Share Analysis, and Company Profiles
        11.1.Market Share Analysis
        11.2.Company Profiles
          11.3.1.Company Overview
          11.3.2.Financial Highlights
          11.3.3.Product Portfolio
          11.3.4.SWOT Analysis
          11.3.5.Key Strategies and Developments
        11.4.GE Healthcare
          11.4.1.Company Overview
          11.4.2.Financial Highlights
          11.4.3.Product Portfolio
          11.4.4.SWOT Analysis
          11.4.5.Key Strategies and Developments
        11.5.Siemens Healthcare
          11.5.1.Company Overview
          11.5.2.Financial Highlights
          11.5.3.Product Portfolio
          11.5.4.SWOT Analysis
          11.5.5.Key Strategies and Developments
        11.6.EchoPixel
          11.6.1.Company Overview
          11.6.2.Financial Highlights
          11.6.3.Product Portfolio
          11.6.4.SWOT Analysis
          11.6.5.Key Strategies and Developments
        11.7.AcciVein Inc
          11.7.1.Company Overview
          11.7.2.Financial Highlights
          11.7.3.Product Portfolio
          11.7.4.SWOT Analysis
          11.7.5.Key Strategies and Developments
        11.8.Augmedix
          11.8.1.Company Overview
          11.8.2.Financial Highlights
          11.8.3.Product Portfolio
          11.8.4.SWOT Analysis
          11.8.5.Key Strategies and Developments
        11.9.Layar
          11.9.1.Company Overview
          11.9.2.Financial Highlights
          11.9.3.Product Portfolio
          11.9.4.SWOT Analysis
          11.9.5.Key Strategies and Developments
        11.10.WorldViz
          11.10.1.Company Overview
          11.10.2.Financial Highlights
          11.10.3.Product Portfolio
          11.10.4.SWOT Analysis
          11.10.5.Key Strategies and Developments
        11.11.Mindmaze
          11.11.1.Company Overview
          11.11.2.Financial Highlights
          11.11.3.Product Portfolio
          11.11.4.SWOT Analysis
          11.11.5.Key Strategies and Developments
        11.12.CAE
          11.12.1.Company Overview
          11.12.2.Financial Highlights
          11.12.3.Product Portfolio
          11.12.4.SWOT Analysis
          11.12.5.Key Strategies and Developments
        11.13.TheraSim Inc
          11.13.1.Company Overview
          11.13.2.Financial Highlights
          11.13.3.Product Portfolio
          11.13.4.SWOT Analysis
          11.13.5.Key Strategies and Developments
        11.14.Other Key Players
          11.14.1.Company Overview
          11.14.2.Financial Highlights
          11.14.3.Product Portfolio
          11.14.4.SWOT Analysis
          11.14.5.Key Strategies and Developments
      12.Assumptions and Acronyms
      13.Research Methodology
      14.Contact
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