Global healthcare virtual reality market to reach USD 19.61B

As per Facts and Factors study, The global healthcare augmented and virtual reality market size was worth around USD 2.31 billion in 2022 and is predicted to grow to around USD 19.61 billion by 2030 with a compound annual growth rate (CAGR) of roughly 26.9% between 2023 and 2030.

Healthcare augmented and virtual reality market: Overview
The industry is also known as AR/VR industry and refers to the utilization of technologies related to augmented reality and virtual reality in the healthcare sector to provide patient care and treatment. The technical devices and systems in the market are supposed to be used only by trained healthcare professionals who have undergone the necessary education, training, and improved visualization sessions so that they can effectively optimize the offering of the programs. Augmented reality deals with overlaying the real world with digital information while virtual reality involves the creation of a simulated situation or an environment that is interactive.

Key insights:

• As per the analysis shared by our research analyst, the global healthcare augmented and virtual reality market is estimated to grow annually at a CAGR of around 26.9% over the forecast period (2022-2030)
• In terms of revenue, the global healthcare augmented and virtual reality market size was valued at around USD 2.31 billion in 2022 and is projected to reach USD 19.61 billion, by 2030.
• The market is projected to grow at a significant rate due to the growing prevalence of chronic conditions
• Based on end-user segmentation, hospitals, clinics, and surgical centers were predicted to show maximum market share in the year 2022
• Based on component segmentation, hardware was the leading component in 2022
• On the basis of region, North America was the leading revenue generator in 2022

Industry dynamics:
Global healthcare augmented and virtual reality market: Growth drivers

• Growing prevalence of chronic conditions to propel market demand.

The global healthcare augmented and virtual reality market is projected to grow owing to the increasing prevalence of multiple chronic conditions that can severely impact the quality of life among patients. Some of these conditions include cardiovascular diseases, diabetes, and cancer and the number of patients detected with these conditions is growing at a rapid rate. This has led to higher demand for better technological systems in the healthcare sector that can aid in enhanced patient care and medical treatment. The healthcare sector received heavy investments annually as the need of the hour is to upgrade medical care across the globe.

Global healthcare augmented and virtual reality market: Restraints

• High cost to act as market restraints.

AR/VR software and devices are high in cost which is major restraint faced by many players operating in the sector. Along with the initial investment being high, these programs can be significantly expensive in terms of operation and maintenance since they need dedicated technical teams for the initial training of healthcare professionals. Many clinics or hospitals operating in the medical field may not have the necessary resources to fund such high investments leading to the loss of consumer databases.

Healthcare augmented and virtual reality market: Opportunities

• Development of specialized AR/VR solutions to provide further growth opportunities.

One of the most lucrative opportunities in the global industry is in the form of the development of AR and VR solutions that are designed to deliver specific results or outcomes. These systems are tailored to meet the needs of certain medical conditions and associated treatment of therapies. For instance, augmented reality can be used to help patients suffering from arthritis to better manage their pain while virtual reality can be used for treating patients with mental health conditions.

Healthcare augmented and virtual reality market: Challenges

• Regulatory concerns to challenge market growth.

AR/VR technologies that are used in the healthcare sector are heavily regulated. It is essential that the product manufacturers or services obtain the necessary license and approval from regulatory bodies before entering a new market or when introducing a new product. Since these devices play an important role in the medical health conditions of patients, they have to undergo stringent quality checks before they receive approval for operations. These processes can be extremely complicated and time-consuming, thus acting as a major challenge for the industry players.

Global healthcare augmented and virtual reality market: Segmentation
The global healthcare augmented and virtual reality market is segmented based on end-user, component, and region.
Based on end-user, the global market segments are government and defense institutions, hospitals, clinics, and surgical centers, research and diagnostics laboratories, research organizations and pharma companies, and others.

• In 2022, the global market registered the highest growth in the hospitals, clinics, and surgical centers segment
• Since healthcare providers are the first source of treatment and are primary caregivers, they are most likely to make use of AR/VR systems for patient treatment or care
• Furthermore, the technology is used to provide necessary training to the professionals before they can use these devices in the live environment to avoid any mishaps
• Research organizations, pharma companies, and diagnostic laboratories are also significant contributors to the global industry
• AR headset developed by Microsoft and called the HoloLens 2 is sold at a starting price of USD 3,500

Based on component, the global market divisions are software, hardware, and services

• The most significantly used component is the hardware however software and services are equally important since they ensure that the hardware provides desired results without any error
• Software programs enable healthcare providers to create, deploy, or develop different AR/VR solutions. For instance, the software programs are used to provide training to the medical staff and also to create virtual patient consultations
• The services segment includes various types of services like custom development, consulting, support, and training
• A report submitted by the Healthcare Information and Management Systems Society (HIMSS) concluded that the average yearly budget for IT training in healthcare in the US is around $1,000< per full-time employee (FTE) per year

List of key players in healthcare augmented and virtual reality market:

• Google Inc.
• Microsoft Corporation
• HTC Corporation
• Alphabet Inc.
• 3D Systems Corporation
• Intuitive Surgical Inc.
• Samsung Electronics Co. Ltd.
• AccuVein Inc.
• CAE Healthcare
• Siemens Healthcare GmbH
• Orca Health Inc.
• Philips Healthcare
• Medtronic plc
• Osso VR
• ImmersiveTouch Inc.
• EON Reality Inc.
• Magic Leap Inc.

Facts and Factors