Augmented and Virtual Reality in Healthcare Market Size to Attain USD 16.14 Bn by 2033

Published Date : 03 May 2024

The global augmented and virtual reality in healthcare market size surpassed USD 2.85 billion in 2023 and is projected to reach USD 16.14 billion by 2033 with a noteworthy CAGR of 18.89% from 2024 to 2033. AR & VR are helpful in improving patient care, increasing efficiency, accuracy, and remote work, which fuels the growth of the market.

Augmented and Virtual Reality in Healthcare Market Size and Growth Rate From 2024 to 2033

Market Overview

Augmented and virtual reality in healthcare market deals with 3D visualizations, patient care, and surgeries via contextual data, assisting medical workers in diagnosis and digital information in the real-world environment. Augmented and virtual reality technologies are increasingly utilized in diagnostics and surgeries. Medical training, increasing usage in surgical procedures, increasing healthcare spending, favorable government initiatives, digitalization in healthcare, and technological advancements are some of the major factors expected to drive the growth and demand of the market. The increasing adoption of virtual reality and augmented reality technologies in medical surgeries to increase the efficiency of treatment and improve surgical procedures is the major factor driving the growth of the market. The major factors enhancing the growth of the market are the growth in a number of AR startup companies, increasing investments in augmented reality, and increasing adoption of augmented reality in healthcare. 

Increasing improvement of patient experiences and enhancing medical training fuels market growth 

Improving patient outcomes with augmented and virtual reality in healthcare is now much easier. These advanced technologies help patients create a virtual atmosphere that supports patients in engaging in activities and improves their hospital experiences. These experiences divert patients from anxiety and pain and make their hospital stays more comfortable. Augmented reality can help patients understand their treatment plans and medical conditions better and permit them to make informed decisions. In addition, virtual reality therapies help in rehabilitation, manage anxiety, and reduce pain perception. Almost 33% of patients experienced complete pain relief with the help of virtual reality-based therapy, according to research. In addition, augmented and virtual reality provide interactive environments for medical training and permit healthcare professionals to practice scenarios and complex procedures in a safe setting. Augmented and virtual reality also help medical students improve their decision-making capacities, confidence, and skills. These are the major factors driving the growth of augmented and virtual reality in healthcare market. 

However, clinical and organizational issues and a lack of knowledge may restrain the growth of the market. Respondents and committee members identified various aspects of modern healthcare organizations that can restrain the adoption of augmented and virtual reality technologies in healthcare, including complex and lengthy public tender processes, privacy issues, EMR issues, healthcare software issues, and platform friction. In addition, insufficient knowledge of augmented and virtual reality technologies in the healthcare industry may hinder the growth of augmented and virtual reality in healthcare market.

Augmented and Virtual Reality in Healthcare Market Scope

Report Coverage Details
Market Revenue in 2023 USD 2.85 Billion
Projected Forecast Revenue by 2033 USD 16.14 Billion
Growth Rate from 2024 to 2033 CAGR of 18.89%
Largest Market North America
Base Year 2023
Forecast Period 2024 to 2033
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Augmented and Virtual Reality in Healthcare Market Top Companies

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

Recent Development by Siemens Ltd.

  • In May 2022, Siemens Healthneers partnered with PrecisionOS and launched an immersive VR training program. The training sessions are for providing skills and knowledge to technicians and surgeons for using the mobile 3D C-arm Cios Spin launched by Siemens for surgical workflow guidance and quality control.

Recent Development by Osso VR

In April 2024, Osso VR virtual training company launched a surgical training app with the name Osso Health. The aim behind this launch was to leverage Apple Vision Pro to focus on common orthopedic processes, including knee replacement and tunnel release. 

Regional Insights

Asia Pacific is expected to grow fastest in the forecast period. India, China, Japan, and South Korea are emerging countries in the Asia Pacific region. China is highly investing in digital and telehealth healthcare industries. Some organizations and hospitals are spending more on virtual technologies in China. To immerse patients in seemingly real atmospheres that expose them to complicated situations, Chinese physicians are utilizing virtual reality for mental healthcare. China also has more than 100 virtual and augmented reality companies focused on medical applications. Those companies include Shanghai Quing Tech, Shanghai Invasion Digital Technology, Oxford Virtual Reality, and Cognitive Leap Solutions Inc. Such virtual and augmented reality technology is now rising in demand as healthcare companies, including all kinds of businesses, treat and diagnose patients from long distances and make continuity their priority in China. These are the major companies and factors that are expected to drive augmented and virtual reality in healthcare market.

North America dominated the augmented and virtual reality in healthcare market in 2023. The government initiatives of various regions, technological investments, development activities and constant research are driving the market growth in the North America region. The U.S. and Canada are the emerging countries in North America.

In the U.S., increasing demand for innovation and rising healthcare costs are expected to drive market growth. These technologies are rising in number to treatment strategies and improve patient care. The increasing demand for technology has motivated venture capitalists to invest more in the USA. There are various virtual development companies in the United States, such as Visible Magic, Algoryte, CM&D, Wemersive, Next/Now, Treeview, and FACE.ME, Lucid Reality Labs, and Vention. U.S. provides outstanding conditions for AR and VR companies and start-ups for this new technology. USA has the most active AR and VR atmospheres for Venture Capital funds. According to some studies, millions of customers were set to utilize augmented reality. The U.S. has a leading position in the healthcare market for AR and VR. In addition, VR and AR solutions are developing the United States healthcare system by offering innovative research opportunities, improving training and diagnostics, and boosting patient care. These are the major factors driving the growth of augmented and virtual reality in healthcare market.

Market Potential and Growth Opportunity

Superior quality of care in remote locations and instructional videos for patients

Patients with long-duration health problems will soon be able to get home care treatment using virtual and augmented reality technologies. Those unable to be carried or to move out easily. With the help of these technologies, a healthcare supplier in other locations can connect with a patient in their own place or home and provide detailed demonstrations and consultations without having to meet personally with the patients. In addition, Patients will see what their surgery process looks like rather than their imagination. Surgeons can pre-surgery brief their patients with the mobile app development of VR technology. These are major opportunities driving the growth of the market in the coming years. 

Augmented and Virtual Reality in Healthcare Market News 

  • In April 2024, to reimagine how the home can become a system that improves health equity, the FDA approached a new initiative called Home as a Health Care Hub, which will focus on extended augmented and virtual reality technologies.
  • In June 2023, in Kochi, South Asia, Amrita Hospital launched its Extended Reality Supported ecosystem in healthcare. This launched leveraged mixed reality, virtual reality and augmented reality technologies to enhance capabilities in research, medical training and patient care. According to experts, this advanced technology in clinical practice marks significant developments in India.
  • In December 2022, in the United States, the FDA and the Food and Drug Administration launched a new webpage devoted to medical devices that included virtual reality and augmented reality technologies. The FDA agency has approved some 39 virtual and augmented devices.

Market Segmentation

By Component

  • Hardware
    • Sensors
      • Accelerometer
      • Gyroscope
      • Magnetometer
      • Proximity Sensor 
    • Semiconductor Component
      • Controller/processor
      • Integrated Circuits
      • Displays and Projectors
      • Position Tracker
      • Cameras
      • Others
  • Software
  • Services

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
  • Research Organizations and Pharma Companies
  • Research and Diagnostics Laboratories
  • Government and Defense Institutions
  • Others

By Application

  • Surgery
  • Therapy
  • Education and training
  • Rehabilitation
  • Pain management
  • Others

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