Market Overview
The Global Augmented and Virtual Reality in Healthcare Market is expected to reach a value of
USD 3.1 billion in 2023, and it is further anticipated to reach a market value of
USD 15.5 billion by 2032 at a
CAGR of 19.5%. The market has seen significant growth over the past few years and is predicted to grow significantly during the forecasted period as well.
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. Further, virtual reality (VR) immerses users in digitally replicated environments, proving effective in healthcare for purposes like medical education, therapy, & engaging patients in immersive experiences. Together, AR & VR technologies improve distinctive facets of healthcare delivery & contribute to advancements in medical practices.
Market Dynamic
The COVID-19 pandemic has accelerated the 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, enabling healthcare more accessible. 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.
However, the 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. As AR & VR become 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.
Research Scope and Analysis
By Component
In the augmented reality & virtual reality market in healthcare, the hardware segment is the dominant force, securing the largest revenue share, as key devices like head-mounted displays, smart glasses, & 3D sensors played a significant role in this dominance, finding application in training, surgery, diagnostics, telementoring, & 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
In 2023, the augmented reality (AR) segment takes the lead in the healthcare market, securing the largest share 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 commands a significant market share in 2023 & 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 on the basis of the following:
By Component
• Hardware
• Software
• Services
By Technology
• Augmented Reality
o Rehabilitation
o Surgical Application
o Training & Medical Education
• Virtual Reality
o Simulation
o VRET
o Diagnostics
o Rehabilitation
o Pain Distraction
By Application
• Surgery
• Patient Care Management
• Fitness Management
• Medical Training & Education
• Pharmacy Management
Regional Analysis
North America takes the lead in the augmented reality (AR) & virtual reality (VR) healthcare market, commanding a major share of 51.1% of the total revenue, which is fueled by factors like growth in the adoption of AR & VR 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 growing 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
Competitive Landscape
The augmented reality in the 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 the augmented reality segment of the healthcare industry.
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
COVID-19 Pandemic & Recession: Impact on the Global Augmented and Virtual Reality in Healthcare Market:
The COVID-19 pandemic has influenced a major shift in the global Augmented and Virtual Reality in the healthcare market. While the healthcare sector experienced unprecedented challenges, the demand for AR/VR solutions grew as they proved instrumental in remote patient monitoring, medical training, & virtual consultations. The pandemic highlighted the importance of these technologies in improving healthcare delivery & mitigating physical contact risks. However, the economic recession created financial constraints, slowing the market's growth to some extent. However, the long-term outlook remains positive as the healthcare industry highly recognizes the transformative potential of AR/VR technologies in providing efficient & accessible healthcare solutions in the post-pandemic era.
Report Characteristics |
Market Size (2023) |
USD 3.1 Bn |
Forecast Value (2032) |
USD 15.5 Bn |
CAGR (2023-2032) |
19.5% |
Historical Data |
2017 - 2022 |
Forecast Data |
2023 - 2032 |
Base Year |
2022 |
Estimate Year |
2023 |
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 |
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Frequently Asked Questions
The Global Augmented and Virtual Reality in Healthcare Market size is estimated to have a value of USD
3.1 billion in 2023 and is expected to reach USD 15.5 billion by the end of 2032.
North America has the largest market share for the Global Augmented and Virtual Reality in Healthcare
Market with a share of about 51.1% in 2023.
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.
The market is growing at a CAGR of 19.5 percent over the forecasted period.