Augmented and Virtual Reality in Healthcare Market Drives Innovation Across Global Medical Services

The global augmented and virtual reality in healthcare market size is calculated at USD 4.04 billion in 2025 and is forecasted to reach around USD 18.38 billion by 2034, accelerating at a CAGR of 18.38% from 2025 to 2034. Rising investments in digital healthcare, advancements in immersive hardware and software, and the growing need for precise, patient-centered care are fueling adoption worldwide.

Last Updated : 08 Aug 2025  |  Report Code : 2062  |  Category : Healthcare   |  Format : PDF / PPT / Excel

List of Contents

  • Last Updated : 08 Aug 2025
  • Report Code : 2062
  • Category : Healthcare

Augmented and Virtual Reality in Healthcare Market Size and Growth 2025 to 2034

The global augmented and virtual reality in healthcare market size was estimated at USD 3.40 billion in 2024 and it is expected to hit around USD 18.38 billion by 2034, poised to grow at a CAGR of 18.38% during the forecast period 2025 to 2034.

Augmented and Virtual Reality in Healthcare Market Size 2025 to 2034

Augmented and Virtual Reality in Healthcare Market Key Takeaways

  • By region, North America dominated the market with a 41% revenue share in 2024.
  • By technology, the augmented reality segment garnered a revenue share of around 61% in 2024.
  • By component, the hardware segment held the highest revenue share of around 67.8% in 2024.

U.S. Augmented and Virtual Reality in Healthcare Market Size and Growth 2025 To 2034

The U.S. augmented and virtual reality in healthcare market size reached USD 980 million in 2024 and is anticipated to be worth around USD 5,490 million by 2034, poised to grow at a CAGR of 18.81% from 2025 to 2034.

U.S. Augmented and Virtual Reality in Healthcare Market Size 2025 to 2034

North American region is expected to have the highest demand for augmented and virtual reality in the healthcare sector due to the constant research and development activities, investments made in this technology and the initiatives taken by the government of various regions that are extremely favorable for the market. Many funds are provided for the research purpose in order to provide these platforms for the healthcare sector. In order to provide affordable treatments there has been an increase in the outsourcing of the services of health care. Due to which the demand for augmented reality and virtual reality is expected to grow in the coming year. 

The Asia Pacific region will also grow well do tooth adoption of this technology is in the coming years. As the population in this region is growing aware of the benefits associated with the use of augmented reality and virtual reality the market is expected to grow well in the coming years.

Augmented and Virtual Reality in Healthcare Market Share, By Region, 2024 (%)

Market Overview

The use of augmented reality and virtual reality in healthcare segment will prove to be extremely beneficial. This has provided best solutions for education in the healthcare sector. It also helps in the visualization of the veins order surgeries. With the help of augmented reality and virtual reality the patients can be relaxed to a great extent. The use of augmented reality and virtual reality in the healthcare segment has helped in increasing the recovery speed of the patients.

Google Glass makes use of augmented reality as it enhances the environment of the real world. But when it comes to virtual reality this happens to be an immersive process. We can take an example of the VR glass which provides complete coverage to the eyes and the experience provided is an immersive one. The use of augmented reality and virtual reality in the healthcare sector can be used in the description of the symptoms that the patients are facing.

Augmented and Virtual Reality in Healthcare Market Growth Factors

As a lot of expenditure is made on the healthcare segment to improvise the infrastructure and the technology is used the demand for augmented reality and virtual reality is expected to grow in the coming years. Augmented reality and virtual reality are used on a large scale for the training of the medical professionals and it is also used in some of the surgical procedures. Augmented reality and virtual reality are also used in providing health care education, rehabilitation, performing surgeries, training and diagnosis of various diseases. The use of augmented reality and virtual reality in surgeries is extremely beneficial as it enhances the efficiency and optimizes the procedures. These are some of the factors that will help in the growth of the market in the coming years.

The use of augmented reality and virtual reality has also increased for treatment of various diseases do to which the market is expected to grow well during the forecast period. Many learning models that are based on augmented reality are offered in the healthcare sector. These models enhance the learning experience of the health care professionals and provides better knowledge. When it comes to the utilization of augmented reality for the patients this platform provides information regarding the flow of the treatment and the visuals provided on this platform are easy to understand.

The simulation offers great understanding of the disease and its treatment. When it comes to performing complex surgeries the demand for augmented reality has increased to a great extent as it has enhanced the level of precision and accuracy in such surgeries. Virtual reality platforms and augmented reality platforms in healthcare can also be used for providing plans, delivery of treatments and the schedules of treatments which will play an important role in the adoption of this technology. 

  • Digitalization has emerged as a major growth factor
  • Increased precision and accuracy during procedures
  • Better visibility and access provided to the physician
  • Accurate diagnosis of the disease condition
  • Suitable selection of line of treatment
  • Digitalization in the healthcare sector

Market Scope

Report Coverage Details
Growth Rate from 2025 to 2034 CAGR of 18.38%
Market Size in 2025 USD 4.04 Billion
Market Size by 2034 USD 18.38 Billion
Largest Market North America
Base Year 2024
Forecast Period 2025 to 2034
Segments Covered By Component, By Technology, By End User, and By Application
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Market Dynamics

Market Drivers

  • Lucrative reimbursement policies- Favorable reimbursement policies provided by various nations across the globe will lead to an increased use of augmented reality and virtual reality in the surgeries and treatments of various diseases.
  • Digitalization of healthcare sector- Digitalization is expected to play an instrumental role in the growth of the market in the coming years period constant research and development activities have provided advancements in the technology that will help in the growth of the market in the coming years period many initiatives taken by the government of various nations across the globe have been favorable in the introduction of innovative ways that will help and benefit the healthcare sector who a great extent.

Market Challenges

  • Lack of skilled professionals- The growth of the market will only be hampered due to the technical limitations. Specifications of some computers all the resolution of these computers may hamper the growth of the market.

Market Opportunities

  • Provides better visuals during the procedure- Virtual reality is used as it provides visuals of the physiology and the anatomy of the patient which is extremely beneficial for various surgeries performed by the surgeons. This is expected to provide good number of opportunities for the growth of the market in the coming years.
  • Accuracy in diagnosis- For the diagnosis of any diseases and to perform surgeries of the invasive type the demand for augmented and virtual reality techniques is expected to grow in the coming years. The demand for augmented reality and virtual reality platforms in the operation room has grown in the recent years as it is extremely beneficial for the surgeons.

Component Insights

The hardware segment held the largest share of 47.20% in the 2024 global augmented and virtual reality in healthcare market. The hardware segments cover VR and AR devices. The AR devices, such as smart glasses, handheld devices, and head-mounted displays (HMDs), are reliably emerging into the healthcare sector. The VR devices, such as gesture-tracking, haptic feedback, and VR headsets, have also led the market to the top. The display panel is a vital part of modern healthcare that provides effective solutions for administrative tasks, patient care, and diagnostics. Also, the cameras and sensors are a new high-tech solution enabling improved diagnostic and remote patient monitoring and safety. 

The services segment is expected to grow at a CAGR of 20.40% during the forecast period. The services of installation, support, and training stimulate profit inflow. The integration of hardware and software components in healthcare has accelerated, enhancing the functionality of medical devices and services. The training and consulting sessions are important to understand the depth and technicality of the device's (application) components. 

Application Insights

The medical training and education peaked with its largest share of 29.50% in the 2024 global augmented and virtual reality in healthcare market. The nursing education is a support to the hospital activities, so the new advancements and education in it are a major upliftment to the surgical process and other key activities. The surgical training plays a vital role in hospitals' treatments and facilities. The technologies are transitioning the surgical training by delivering accessible, safe, and affordable costs for skill development. The anatomy simulation is a part of the surgical training to analyze the effectiveness and key areas for the progressive surgery. This segment will eventually remain consistent as the technology spectrum broadens over time and again. 

The telemedicine and remote monitoring are expected to grow at a CAGR of 21.20% during the forecast period. The virtual hospital rounds help the healthcare providers utilize time, allowing them to concentrate on serious cases. Also, remote therapy sessions support effective treatments and enhance access to patient care. AR/VR generates immense scope for surgical guidance, remote consultation/monitoring, and so on. The technology in this segment is progressively encouraging hospitals to develop in this area.

Technology Insights

The virtual reality (VR) segment held the largest share of 58.60% in the 2024 global augmented and virtual reality in healthcare market. The VR segment includes different types of VR in the healthcare sector. The non-immersive VR helps patients connect seamlessly with the virtual world via devices such as a joystick or mouse. It is a tool for pain management, medical training, and rehabilitation. The semi-immersive VR in healthcare includes using technology such as projection systems or large screens. It engages the virtual environment for users partially, whereas fully-immersive VR has transformed the healthcare sector with its incredible innovative solutions for patient care, rehabilitation, and medical education. This is a huge support to the education and health center. 

Augmented and Virtual Reality in Healthcare Market Share, By Technology , 2024 (%)

The augmented reality segment is expected to grow at a CAGR of 19.10% during the forecast period. Under this segment, the marker-based and markerless AR is developing rapidly in the healthcare sector. Marker-based AR depends on particular visual markers connecting closely to the real world, and markerless AR uses computer vision techniques. The projection-based AR relies on digital information projected onto a physical area with the help of a projector. It is slowly emerging among surgeons to visualize patient-related data on the patient's body during the procedures. The superimposition-based AR covers digital information like medical images (3D models) in the surgical field. This has enhanced surgical accuracy and development in the procedures contributes to the surgeon's surgical process. 

End user Insights

The hospitals and surgical centers segment held the largest share of 34.30% in the 2024 global augmented and virtual reality in healthcare market. The hospitals and surgical centers segment is interested in new technologies. AR/VR's entry into the massive healthcare market is a transformative change in healthcare technological advancement. The integration of high-tech devices into the computational system elevates treatments and patient care. 

The patients/home user segment is expected to grow at a CAGR of 20.80% during the forecast period. The new and transformative ways to develop AR/VR for home users/patients enable a good experience for physical therapy, mental health support, remote consultations, and pain management. This segment is slowly occupying space in this market due to the increased stress levels among teenagers and adults. This market's integration with new possibilities (segments) helps a vast distressed population to actively participate in life’s daily routine. 

Augmented and Virtual Reality in Healthcare Market Companies

  • Eon Reality, Inc
  • Layar
  • Bioflight VR
  • WorldViz
  • TheraSim Inc 
  • CAE
  • GE Healthcare
  • Koninklijke Philips N.V.
  • Intuitive Surgical
  • Siemens Ltd
  • Mindmaze

Segments covered in the report

By Component

  • Hardware
    • AR Devices
      • Head-mounted displays (HMDs)
      • Smart glasses
      • Handheld devices 
    • VR Devices
      • VR headsets
      • Gesture-tracking devices
      • Haptic feedback devices
    • Cameras & Sensors
    • Display Panels
  • Software
    • AR/VR Development Platforms
    • Visualization Software
    • Simulation & Training Software
  • Services
    • Installation & Integration
    • Support & Maintenance
    • Training & Consulting

By Technology

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

By End User

  • Hospitals, Clinics, and Surgical Centers
  • Hospitals & Surgical Centers
  • Academic Institutes & Research Organizations
  • Diagnostics Centers
  • Rehabilitation Centers
  • Pharmaceutical & Biotech Companies
  • Medical Device Manufacturers
  • Patients/Home Users
  • Government & Defense

By Application

  • Surgery
  • Therapy
  • Education and training
  • Rehabilitation Therapy
    • Physical therapy
    • Cognitive rehabilitation
    • Pain management
  • Medical Training & Education
    • Anatomy simulation
    • Surgical training
    • Nursing education
  • Diagnostic Imaging
    • Radiology & pathology visualization
    • 3D imaging overlays
  • Patient Care & Management
    • Patient engagement
    • Phobia and PTSD treatment
    • Mental health & meditation
  • Telemedicine & Remote Monitoring
    • Virtual hospital rounds
    • Remote therapy sessions
  • Pharmaceutical Use Cases
    • Drug mechanism simulation
    • Patient onboarding & compliance
  • Fitness & Wellness
    • Virtual reality exercise programs

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)

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Frequently Asked Questions

The global augmented and virtual reality in healthcare market size was accounted at USD 3.40 billion in 2024 and it is expected to reach around USD 18.38 billion by 2034.

The global augmented and virtual reality in healthcare market is poised to grow at a CAGR of 18.38% from 2025 to 2034.

The major players operating in the augmented and virtual reality in healthcare market are Eon Reality, Inc, Layar, Bioflight VR, WorldViz, TheraSim Inc, CAE, GE Healthcare, Koninklijke Philips N.V., Intuitive Surgical, Siemens Ltd and Mindmaze

The use of different types of wearable devices like goggles, fit bands, rings or expected to drive the market growth in the coming years

North America region will lead the global augmented and virtual reality in healthcare market during the forecast period 2025 to 2034.

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