Augmented Reality (AR) in Healthcare Market Size, Share | 2031

Report Description

The global augmented reality (AR) in healthcare market size was nearly USD 2.4 Billion in 2022 and is likely to reach USD 13.02 Billion by 2031, expanding at a CAGR of 29.8% during 2023 – 2031. Increasing integration of AR technology to enhance medical training and improve surgical procedures is expected to boost the market.

Augmented reality (AR) technology refers to the integration of virtual elements into real-world environments. It helps to visualize invisible concepts in surgeries for a better understanding of medical procedures, which ensures safe surgeries and enhances medical procedures and overall patient care.

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The COVID-19 pandemic boosted the market. Increasing need for social distancing and reducing physical contact AR emerged as a valuable tool to support healthcare professionals and patients. The pandemic has accelerated the adoption of AR technology in healthcare by highlighting its potential in areas such as telemedicine, remote collaboration, and medical training.

• As per a report published by the National Library of Medicine on April 27, 2021, augmented reality (AR) is used in various industries during the COVID-19 pandemic including healthcare for high-resolution audio and video communication for telemedicine.

Augmented Reality (AR) in Healthcare Market Dynamics

Major Drivers

Increasing demand for AR technology in medical training and education is expected to drive the market during the forecast period. As the field of medicine advances, doctors and other medical practitioners need to continuously update their knowledge and learn new techniques. Augmented reality provides an effective and immersive training experience. It allows medical students and professionals to practice procedures in a virtual environment that closely mimics real-life situations. Furthermore, it offers hands-on experience and enhances the students’ skills without the need for actual patients.

Rising implementation of AR technology in surgeries and diagnostics is a major driver in the market. AR provides deep visualization and enhanced depth perception of the human body, which allows for precise and accurate procedures. For instance, Novard, a medical technology provider announced its FDA 510(k) approval for VisAR, an AR surgical navigation system. This technology converts patients’ imaging data into a 3D hologram, which allows surgeons to observe surgical objectives with no requirement for additional monitor.

Existing Restraints

High cost associated with the implementation of augmented reality (AR) technology in healthcare is expected to hinder the market in the coming years. AR devices and software are expensive, which makes it challenging for small healthcare organizations or private clinics to invest in these technologies. Moreover, the healthcare industry is highly regulated and the introduction of AR technology brings new regulatory considerations. Compliance with privacy laws, data protection regulations, and healthcare standards pose obstacles to the widespread adoption of AR in healthcare.

Emerging Opportunities

Increasing research activities and the implementation of advanced visualization technologies in healthcare are likely to create immense opportunities for players competing in the market. Developers are focusing on the enhancement of precise medical visualization, which enables healthcare professionals to view detailed anatomical structures of medical images and patient data overlaid in the real world. This simplifies the understanding of complex medical information to improve diagnostics and facilitate treatment planning. Furthermore, advancements in AR creates possibilities for remote patient care, especially in telemedicine.

Rising advancements in AR software are creating novel opportunities to expand the capabilities of AR in healthcare. Software developers are constantly improving the performance, features, and compatibility of AR applications to expand their market. This includes developing sophisticated algorithms for real-time data processing, enhancing visualization techniques, and integrating machine learning and artificial intelligence capabilities.

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Scope of the Augmented Reality (AR) in Healthcare Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Component Segment Analysis

Based on component, the augmented reality (AR) in healthcare market is bifurcated into hardware and software. The hardware segment is anticipated to dominate the market during the projected period, as it plays a crucial role in delivering efficient and effective AR experiences in healthcare. AR technology heavily relies on physical devices to provide an immersive and interactive experience. High-quality headsets or glasses are essential for healthcare professionals to view and interact with augmented information seamlessly.

These devices are specifically designed to overlay virtual elements onto the real-world environment, which enables healthcare providers to visualize patient anatomy, access medical data, and perform procedures with enhanced precision. Furthermore, the hardware component is continuously evolving and improving to meet the specific demands of the healthcare industry, which is further boosts the segment.

The software segment is expected to expand at a considerable CAGR in the coming years, owing to the growing demand for customized and specialized AR software solutions in the healthcare industry. Software plays a crucial role in creating and developing AR content specifically tailored for healthcare applications. This includes designing intuitive interfaces, developing algorithms for image recognition and tracking, and programming interactive features. The software enables healthcare professionals to overlay digital information in the real-world environment, which further provides them with valuable insights, visualizations, and guidance during medical procedures.

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Application Segment Analysis

In terms of application, the market is classified as fitness management, medical training & education, and others. The medical training & education segment is anticipated to expand at a significant pace in the coming years, owing to the ability of AR to provide realistic and interactive learning experiences for medical students and practitioners. AR allows practitioners to practice surgical procedures, explore anatomy, and simulate medical scenarios in a virtual environment. This hands-on approach enhances their understanding and proficiency, which ultimately leads to improved healthcare delivery.

The global reach of AR technology in medical training and education is a boosting factor. With the use of AR applications, medical students and professionals gain access to high-quality training materials and resources from around the world. This promotes equal learning opportunities and reduces geographical barriers to obtain quality medical education.

Product Segment Analysis

Based on product, augmented reality (AR) in healthcare market is divided into AR input devices, AR displays, AR semiconductor components, AR sensors, and others. The AR input devices segment is expected to hold a major share of the market during the forecast period, due to the rising use of AR-based medical devices in medical procedures. The AR input devices play a fundamental role in providing a seamless and intuitive experience. These devices enable healthcare professionals to interact with AR applications, navigate through virtual interfaces, and manipulate virtual objects. Input devices such as hand controllers, haptic gloves, and gesture recognition systems allow to input commands and perform actions within the AR.

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Technology Segment Analysis

On the basis of technology, the market is bifurcated into head mounted devices and handheld devices. The head mounted devices segment is anticipated to expand at a rapid pace during the forecast period owing to its benefits of providing an immersive visualization experience to medical professionals. The head-mounted display (HMD) technology allows surgeons and healthcare professionals to have a hands-free visual experience during surgical procedures. Moreover, they are also able to view real-time data, medical images, and surgical guidance without the need to shift their attention to external monitors or displays. This enhances their focus and precision during surgeries.

HMD technology facilitates telemedicine and remote collaboration. Surgeons wearing HMDs transmit their point-of-view visuals and audio to remote experts allowing them to provide guidance and support during surgeries regardless of geographical barriers. This promotes knowledge sharing, training, and access to specialized expertise leading to improved surgical outcomes and expanded healthcare reach.

End-user Analysis

In terms of end-user, the augmented reality (AR) in healthcare market is fragmented into hospitals and clinics, research laboratories, and others. The hospitals and clinics segment is estimated to hold a key share of the market during the projected period due to its reliable and improved patient care and enhanced medical practices within healthcare facilities.

The AR technology offers immense potential for enhancing surgical procedures, diagnosis, and treatment within hospital and clinic settings. It enables surgeons to overlay virtual information onto the real-world surgical field, providing real-time visualizations of patient anatomy and assisting in precise surgical interventions. This improves surgical outcomes, reduces risks, and enhances patient safety.

Regional Outlook

In terms of region, the global augmented reality (AR) in healthcare market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market in the coming years, owing to the presence of advanced healthcare infrastructure and rising number of technological advancements. The region has a strong presence of leading technology companies and AR solution providers. These companies are at the forefront of AR innovation, developing advanced hardware and software solutions specifically tailored for the healthcare industry. Their expertise, research, and development capabilities, and collaborations with healthcare organizations fuels the market in North America.

The market in Asia Pacific is anticipated to expand at a rapid pace due to the increasing adoption and integration of AR technology in healthcare to improve patient care. Growing economies, such as China, India, and Japan are making substantial investments in healthcare modernization and digital transformation. This includes the adoption of AR technology in hospitals, clinics, and medical institutions to improve medical procedures, diagnostics, and patient care.

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