Augmented Reality (AR) & Virtual Reality (VR) In Healthcare Market | 2031

Report Description

The global augmented reality (AR) & virtual reality (VR) in healthcare market size was valued at USD 2.53 Billion in 2022 and is anticipated to reach USD 10.27 Billion by 2031, expanding at a CAGR of 16.84% during 2023-2031. The market growth is attributed to the growing usage of technology in surgical procedures, and medical training.

Virtual reality is the representation of an artificial environment utilizing sensors, cameras, and software, whereas augmented reality technology integrates digital information with the environment in real-time. The widespread use of these two technologies in the healthcare industry is transforming how patients are diagnosed and treated. Moreover, healthcare professionals are started adopting advanced technology to offer effective service to patients, which is a major factor fueling the market. For instance,

• In March 2022, CAE Healthcare simulation-based healthcare education technologies introduced CAE CathLabVR, it is a non-invasive cardiovascular simulator integrated with Microsoft HoloLens 2. This technology provides realism and lifelike immersion while treating cardiac and vascular issues.

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Physicians are adopting AR and VR technology to train interns and educate patients to make informed decisions. Several academic institutes incorporate augmented and virtual reality-based healthcare technologies to offer immediate and efficient treatment for any disease.

• In June 2022, MediSim VR a med-tech company, built an automated VR laboratory to train medical students to perform difficult surgeries. This laboratory is located at the Puducherry Institute of Medical Sciences which offers effective training solutions.

This, in turn, draws the attention of academic institutes towards augmented and virtual reality-based healthcare technologies. The development of AR and VR in the healthcare industry facilitates an ideal way to learn human anatomy and mechanism.

• In January 2023, EON Reality agreed to offer AI-powered XR solutions to Hospital Metropolitan in Costa Rica, for medical staff and patients. It is an innovative module that incorporates two AI technologies to offer an interactive learning and comprehensive experience.

The research report finds that the COVID-19 pandemic boost augmented reality (AR) & virtual reality (VR) in the healthcare market. Globally, various governments implemented several social distancing measures to curb the outbreak of the pandemic which induced educational establishments in adopting digital technologies technology for learning purposes.

• In July 2021, as per the study published in the Journal of Medical Internet Research, titled 'Augmented, Mixed, and Virtual Reality-Based Head-Mounted Devices for Medical Education: Systematic Review', augmented reality in the form of head-mounted displays (HMDs) is expected to offer new prospects for teaching medical information in low-resources settings. It allows repeated practice in different medical disciplines without causing harm to patients.

Advanced technology aids in learning complicated medical content and is projected to alleviate the use of traditional medical learning materials including cadavers and skills lab equipment. The demand for interactive and online learning sessions increased drastically during the pandemic, as virtuality tools allow doctors to understand new virus strains' impact and help in the recovery of patients who suffered from Post-Intensive Care Syndrome.

Augmented Reality (AR) & Virtual Reality (VR) in Healthcare Market Dynamics

Major Drivers

Increasing investment in augmented reality and virtual reality in healthcare systems is expected to fuel market growth. These investments help enterprises to develop augmented reality products and improve patient outcomes. Moreover, healthcare enterprises are using augmented reality to develop 3D models of organs or tumors, which is further used while performing surgeries as a reference model.

Thus, major players in the market are investing heavily to offer the benefits of technology to healthcare providers in providing efficient treatments. With growing advances in healthcare, the inclusion of AR and VR is projected to expand considerably in the coming years. For instance,

• In February 2022, XRHealth a virtual clinic, announced to invest USD 10 million to expand its virtual healthcare treatment in Metaverse. It accepted funding from Bridges Israel impact investment fund, HTC, crowdfunding on StartEngine.com, AARP, and existing investors.

Existing Restraints

High cost of equipment is a major barrier to global AR and VR growth in the healthcare market. Lack of knowledge and research studies around AR/VR in healthcare solutions is expected to hamper the market during the forecast period.

Many health industry professionals are unaware of medical use research of AR and VR in healthcare. However, training regarding advanced devices and their incorporation into the workflow is expected to boost the market in the coming years. For instance,

• In March 2022, Arvizio offers enterprise augmented and mixed reality software solutions and launched a suite of capabilities for its augmented reality workflow. AR helps healthcare professionals, medical organizations, and technicians in operation, equipment training, and maintenance.

Emerging Opportunities

Increasing penetration of the Internet of Things (IoT) in healthcare and rising adoption of connected devices are expected to act as an opportunity for market growth. IoT and connected devices gather the necessary information from patients who are not physically present in a healthcare facility. This eliminates the patient’s travel time for collecting information from the provider.

Connected devices are time-saving, offer more accessible information, and can be used for remote monitoring. Therefore, healthcare facilities are adopting connected devices to offer efficient and rapid service. For instance,

• In October 2022, GE Healthcare entered into a partnership with AMC Health in remote health monitoring to offer patients with post-acute and chronic care. This collaboration offers a virtual care solution that improves patient care in the home environment.

Scope of Augmented Reality (AR) & Virtual Reality (VR) in Healthcare Market Report

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

Augmented Reality (AR) & Virtual Reality (VR) in Healthcare Market Segment Insights

Component Segment Analysis

In terms of components, augmented reality (AR) & virtual reality (VR) in healthcare market is segmented into hardware, software, and services.

The hardware segment is projected to hold a major share of the market during the forecast period, owing to the availability of advanced devices such as 3D sensors, head-mounted displays, and smart glasses. These devices are widely utilized in healthcare facilities for a variety of purposes, including surgery, telemonitoring, training and simulation, and diagnostics.

Healthcare AR/VR hardware has a broad commercialized product base with a high rate of adoption, particularly in developed countries, which account for the majority of its market share. Furthermore, using a single piece of hardware in many applications is one of the key elements accelerating its adoption and impacting industry profitability.

The software segment is anticipated to account for a considerable market share during the forecast period, owing to the increasing adoption of augmented reality and virtual reality technology in surgical operations to improve patient outcomes. Medical device manufacturing companies are using VR software to let surgeons try innovative products in the virtual environment to plan surgical interventions. For instance,

• In January 2022, A group of healthcare facilities got early access to Magic Leap's second-generation augmented reality headset. SentiAR produces software that allows surgeons to examine a 3D representation of a patient's heart when operating on it. Whereas, Brainlabwants to introduce its Mixed Reality Viewer software well-matched with Magic Leap.

Technological advancements in AR/VR app design propelling market growth, for instance, EyeDecide is an app that detects eye conditions by calculating various parameters. Furthermore, Apps including Applied VR assist patients to overcome their anxiety during the surgical procedure

Applications Segment Analysis

Based on applications, the market is fragmented into surgery, training & education, behavioral therapy, medical imaging, and others. The surgery segment constituted a significant market share in 2022 and is projected to expand at a rapid rate during the forecast period.

AR/VR technology in healthcare is employed in a variety of medical sectors, including surgical preparation and minimally invasive surgery. Market leaders in AR/VR technologies are forming collaborations with domestic players to increase their product reach and develop new goods.

AR/VR gadgets enable surgeons to incorporate data visualization into treatment and diagnostic operations, resulting in increased productivity and safety. Such devices reduce costs and result in surgical operations, propelling the market.

The medical imaging segment accounts for a significant market share, due to the growing incidence of lifestyle-related diseases and rising demand for early detection tools. Major companies are focusing on early detection tools and technology which help in immediate patient and physician interaction and diagnosis of the disease.

• In November 2022, GE Healthcare collaborated with Mediview XR, Inc. to integrate mixed reality and medical imaging technology by developing OmnifyXRTM Interventional Suite System.

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End-users Segment Analysis

On the basis of end-users, the market is segregated into hospitals, clinics, academic institutes, and others. The hospitals segment is projected to expand at a robust CAGR during the assessment period, due to the growing adoption of digital technologies to offer efficient and safer treatments.

Among all end-users, hospitals are among the first to implement augmented reality and virtual reality solutions. Training of medical professionals in areas such as anatomy, surgical and postoperative services, and various medical training procedures resulted in the high adoption of healthcare AR/VR technologies in hospitals, which fueled the market.

Various hospitals around the globe aim to implement healthcare AR-based solutions to increase efficiency and lower expenses, which is expected to boost the technology demand during the forecast period. Moreover, the academic institute's segment is projected to account for a significant market share during the forecast period, due to the rising adoption of advanced technology for teaching and learning purposes.

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Regional Analysis

In terms of regions, the global Augmented Reality (AR) & Virtual Reality (VR) in the healthcare market is split into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America is expected to dominate the market during the forecast period, owing to increasing investment in healthcare AR/VR products/tools, along with the use of cutting-edge technology.

There is an increase in outsourcing healthcare IT services in North America, due to rising pressure from healthcare providers and payers to lower treatment costs. These factors have a positive impact on regional development. Moreover, the presence of significant players in the region is expected to boost the market.

The market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period, due to the improving healthcare infrastructure in the region. Emerging economies of the region, including India, China, and Japan are anticipated to dominate the market in terms of revenue.

According to the Invest India Report, the healthcare sector received a great investment of USD 370 Billion in 2022 from the investments, the healthcare industry is projected to invest in VR technologies. Whereas, China is investing in its digital and telehealth industries and is likely to propel the market growth in the country.  

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