AR in healthcare market to grow at a CAGR of 27.4% from 2019-26

Allied Market Research published a report, titled, “AR in healthcare market by technology (Head mounted devices and handheld devices), type (AR displays, AR sensors, AR input devices, AR semiconductor components, and others), and end user (Hospitals & clinics, research laboratories, and others): Global opportunity analysis and industry forecast, 2019-2026.” According to the report, the global Augmented Reality (AR) In healthcare industry garnered $609.60 million in 2018, and is estimated to reach $4.23 billion by 2026, growing at a CAGR of 27.4% from 2019 to 2026.

Prime determinants of growth
The global market for Augmented Reality (AR) in healthcare is propelled by a surge in its application across diagnostic imaging, rehabilitation, surgical simulation, and patient care management, as well as the growing number of startups focusing on AR technology. However, the market growth faces obstacles such as concerns regarding data privacy and the absence of adequate infrastructure. Conversely, increasing investments in AR technologies and favorable government policies aimed at integrating new technologies into healthcare present promising opportunities for growth in the upcoming years.

The handheld segment to maintain its leadership status throughout the forecast period
In 2018, the handheld segment dominated the global AR in healthcare market, holding over three-fifths of the total share, and is projected to continue leading throughout the forecast period. This is attributed to the increased usage and convenience offered by handheld AR technology. However, the head-mounted segment is expected to experience the highest compound annual growth rate (CAGR) of 27.9% from 2019 to 2026, driven by the growing application of head-mounted devices in research and medical fields.

The hospitals & clinics segment to maintain its dominant position in terms of revenue by 2026
In 2018, the hospitals & clinics segment commanded the largest market share in the global AR in healthcare market, accounting for almost three-fifths of the total share, and is anticipated to continue leading in revenue throughout the forecast period. This dominance is credited to the growing adoption of augmented reality applications, particularly among surgeons seeking assistance during surgeries in hospital settings. Conversely, the research laboratories segment is projected to experience a notable compound annual growth rate (CAGR) of 26.8% from 2019 to 2026.

North America to maintain its highest share during the forecast period
In terms of region, North America held the largest market share, accounting for over two-fifths of the global AR in healthcare market in 2018, and is projected to sustain this position throughout the forecast period. This is attributed to the increase in both private and government funding allocated for the development of these technologies within the healthcare sector, alongside the presence of advanced healthcare infrastructure. Conversely, Asia-Pacific is anticipated to witness the fastest compound annual growth rate (CAGR) of 29.3% from 2019 to 2026, driven by the growing acceptance of AR technologies across various industries and the presence of key vendors in the region. Allied Market Research