Virtual and Augmented Reality in Healthcare Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component, by Technology, by End User : Global Opportunity Analysis and Industry Forecast, 2024-2033

Key Market Dynamics

According to the VR and AR in healthcare market analysis key factors driving the growth of the market are rise in adoption of digital healthcare technology, advancement in virtual and augmented reality technology and high use of virtual and augmented reality in surgical planning and assistance. Virtual reality (VR) and augmented reality (AR) technologies have revolutionized surgical procedures by providing enhanced visualization, improved precision, and greater control for surgeons. VR and AR allow for detailed 3D modeling of patient anatomy, enabling surgeons to plan and rehearse complex surgeries in a virtual environment before performing them on patients. This leads to reduced surgical errors, shorter operation times, and improved patient outcomes. According to 2023 article by National Library of Medicine, virtual reality has the potential to create highly accurate, immersive simulations, thereby crafting a realistic training environment for surgical residents outside of the operating room. Additionally, AR provides real-time guidance during surgeries by overlaying critical information and visuals onto the surgeon's field of view, thus enhancing decision-making and reducing risks. The integration of VR and AR in surgical training and education also plays a crucial role, offering immersive, hands-on experiences for medical students and professionals, which translates to better preparedness and competence in real-life scenarios. Thus, the rise in adoption of the digital healthcare and technological advancement is expected to significantly contribute in the VR and AR in healthcare market growth.

According to the VR and AR In healthcare market opportunity analysis rapid advancements in virtual reality (VR) and augmented reality (AR) technology have emerged as significant factors driving the growth of the market. Virtual reality (VR) and augmented reality (AR) technology have revolutionized various aspects of medical practice, offering immersive and interactive experiences that enhance both patient care and medical training. In diagnostics, VR and AR enable detailed visualizations of complex anatomical structures, assisting in accurate diagnoses and pre-surgical planning. Furthermore, VR is increasingly used in pain management and mental health therapies, offering patients immersive environments that aid in distraction, relaxation, and therapeutic interventions. According to 2023 article by National Library of Medicine, virtual reality is a promising pain control strategy for various pain conditions such as perioperative, periprocedural, and chronic pain settings. Thus, the technological advancement in the virtual reality (VR) and augmented reality (AR) technology and high adoption of virtual reality (VR) and augmented reality (AR) technology in pain management and surgical procedures is expected to drive the growth of the VR and AR in healthcare market size.

Recent Funding for Virtual Reality (VR) and Augmented Reality (AR) Technology

According to the VR and AR in healthcare market trends analysis funding for startups and key players is expected to contribute significantly to the growth of the market. The funding enables the development of more sophisticated and tailored VR/AR solutions, addressing various medical needs such as surgical training, patient rehabilitation, pain management, and mental health therapy. With increased funding, startups can attract top talent, invest in cutting-edge technology, and refine their products to better meet the rigorous standards of the healthcare sector. Moreover, well-funded companies can conduct comprehensive clinical trials to validate the efficacy and safety of their VR/AR applications.  Additionally, financial support will facilitate the scaling of VR/AR technologies, making them more accessible to a broader range of healthcare providers and patients. This could lead to cost reductions and the development of affordable solutions that can be deployed in various settings, from large hospitals to remote clinics. Collaborations between funded startups and established healthcare institutions can also drive the integration of VR/AR into existing medical systems, ensuring seamless adoption and utilization

Recent funding for virtual reality (VR) and augmented reality (AR) technology

Market Segmentation

The VR and AR in healthcare industry is segmented into component, technology, end user, and region. By component, the market is divided into hardware, software, and services. By technology, it is categorized into augmented reality and virtual reality. By end user, the market is classified into hospitals, research institutions, diagnostic centers, and clinics. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

Regional/Country Market Outlook

North America dominated the VR and AR In healthcare market share in 2023 owing to substantial research and development activities, a strong presence of major technology firms, and widespread adoption of advanced healthcare technologies. However, according to the VR and AR In healthcare market forecast analysis, the Asia-Pacific region is expected to witness rapid market expansion owing to rise in healthcare expenditure, increase in awareness of virtual and augmented reality benefits in the healthcare sector, and surge in technology startups focusing on virtual and augmented reality in healthcare.

• Some of the major players in North America are CAE (Canada) , GE Healthcare (U.S.) , Intuitive Surgical (U.S.) , Eon Reality, Inc (U.S.) , Bioflight VR (U.S.) , TheraSim Inc (U.S.) , Vuzix Corporation (U.S.) .
• Government of India has introduced various funding programs for startups. For instance, The Startup India Seed Fund Scheme (SISFS) , a flagship initiative launched by the Department for Promotion of Industry and Internal Trade (DPIIT) on April 19, 2021. The scheme aims to provide financial assistance to startups at their early stages, including proof of concept, prototyping, product trials, market entry, and commercialization. The financial incentives, tax exemptions, and streamlined regulatory processes provided by the initiative have reduced the entry barriers for startups, allowing them to focus on developing and refining their VR/AR technologies. As a result, the healthcare industry has witnessed a surge in the adoption of these technologies, leading to improved diagnostic tools, enhanced surgical precision, and better patient outcomes.

Industry Trends

• According to 2023 article by National Library of Medicine, virtual reality (VR) is increasingly used in healthcare settings as recent technological advancements create possibilities for diagnosis and treatment.
• In February 2024, Pixee Medical, a France-based company providing reality navigation technologies for orthopedic surgery, raised $15 million in funding.
• According to 2023 article by National Library of Medicine, integration of virtual reality (VR) and augmented reality (AR) technologies in surgical practices not only plays crucial role in training of surgical trainees, offering immersive and interactive experiences but are also enhancing the surgical precision of seasoned professionals in the operating room.

Competitive Landscape

The major players operating in the VR and AR in healthcare industry include CAE, GE Healthcare, Koninklijke Philips N.V., Intuitive Surgical, Siemens Ltd, Eon Reality, Inc,  Bioflight VR, WorldViz, TheraSim Inc, and Mindmaze. Other players in the Virtual and Augmented Reality in Healthcare market are Radboudumc and Vuzix Corporation. 

Recent Key Strategies and Developments

• In December 2022, Vuzix Corporation announced a new partnership with TechSee, a leader in intelligent visual assistance technology, to deliver a remote visual assistance solution to field service technicians using AR and computer vision on Vuzix M400 M4000 Smart Glasses
• In July 2021, Radboudumc and SyncVR Medical signed a collaboration agreement to boost virtual reality in healthcare. They aim to provide better care with the help of virtual reality applications, Radboudumc will collaborate intensively with startup SyncVR Medical.

Key Sources Referred

1. Government of India
2. National Library of Medicine
3. Center of Disease Control and Prevention
4. American Cancer Society
5. Clinical Trials
6. World Health Organization

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the virtual and augmented reality in healthcare market analysis from 2024 to 2033 to identify the prevailing virtual and augmented reality in healthcare market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the virtual and augmented reality in healthcare market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global virtual and augmented reality in healthcare market trends, key players, market segments, application areas, and market growth strategies.