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.
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 therapist uses reality 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 TelemedicineAdoption 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 costMajor 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 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 VisualizationMedical 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 ComponentIn 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, 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
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.