Virtual and Augmented Reality in Healthcare Market By Component (Hardware, Software, Services) , By Technology (Augmented Reality, Virtual Reality) By End User (Hospitals, Research Institutions, Diagnostic Centers, Clinics) : Global Opportunity Analysis a

Virtual and Augmented Reality in Healthcare Market By Component (Hardware, Software, Services) , By Technology (Augmented Reality, Virtual Reality) By End User (Hospitals, Research Institutions, Diagnostic Centers, Clinics) : Global Opportunity Analysis and Industry Forecast, 2024-2033

The virtual and augmented reality in healthcare market was valued at $2.5 billion in 2023, and is projected to reach $14.9 billion by 2033, growing at a CAGR of 19.6% from 2024 to 2033.
Augmented reality (AR) and virtual reality (VR) serve as practical tools in modern medical practices. AR facilitates the accumulation of data, which is subsequently represented as 3D model, whereas VR is used for recreation of the environment virtually. These technologies are revolutionizing the processes such as surgical simulations, patient care, remote consultation, and medical training.
The growth of the virtual and augmented reality in healthcare market is majorly driven by increase in demand for AR and VR in healthcare to improve imaging methods, patient treatment programs, and surgical training. In addition, alarming increase in the prevalence of chronic diseases necessitates innovative treatment and management solutions, which VR and AR can provide through remote monitoring, rehabilitation, and patient education, thereby contributing toward the growth of the market. Moreover, surge in demand for better training tools drives the adoption of VR and AR for realistic simulations, allowing medical students and professionals to practice procedures in a safe, controlled environment. The planning and performance of intricate surgical procedures, as well as the training of medical professionals, are greatly improved by immersive and interactive settings of these technologies. Surgeons may practice procedures in 3D settings created by VR that are realistic and immersive, all without putting patients at danger. Surgeons can improve their skills and decision-making processes by using these simulators, which can recreate a variety of circumstances, including uncommon and challenging instances. For instance, in 2022, with the assistance of VR-enabled surgical procedure, a pair of conjoined twins, Bernardo and Arthur Lima—three-year-olds from Brazil—were successfully separated. As these twins were born joint at the head with their brains interconnected, medical experts were of the opinion that it was impossible to separate them and ensure there was no loss of life. However, the surgery was accomplished successfully with the help of VR technology in a hospital in Rio de Janeiro that was directed live by Dr. Noor ul Owase Jeelani from a hospital in London. This extraordinary surgical intervention stands as a benchmark in enhancing surgical precision and patient outcomes. However, high expense of the gadget and the requirement for a lot of processing power limit the adoption of AR and VR. Moreover, concerns associated with user satisfaction and safety significantly hamper the market growth. Around 65% of the respondents have experienced concerns about comfort, usability, and the immersive nature of AR and VR devices, indicating these as the most common barriers faced among users. Thus, improving the practicality and usability of these technologies is essential for their wider acceptance. In addition, about 27% of the respondents mentioned about the cost to consumers. On the contrary, rise in investments from venture capitalists, government grants, and private sectors in VR and AR healthcare start-ups and research initiatives is expected to offer remunerative opportunities for the expansion of the market during the forecast period. Moreover, continuous improvements in VR and AR hardware and software, such as better graphics, more powerful processors, and advanced sensors, will make these technologies more effective and accessible, thus opening new avenues for the expansion of the global market.
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. On the basis of technology, it is categorized into augmented reality and virtual reality. Depending on end user, it is classified into hospitals, research institutions, diagnostic centers, and clinics. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Key Findings

By component, the hardware segment dominated the market share in 2023.
On the basis of technology, the augmented reality segment was the major shareholder in 2023.
Depending on end user, the hospitals segment acquired the largest market share in 2023.
Region wise, North America held a dominant position in the market in 2023; however, Asia-Pacific is expected to register the highest CAGR during the forecast period.

Competition Analysis

Competitive analysis and profiles of the major players in the global Virtual and Augmented Reality in Healthcare Market include CAE, GE Healthcare, Koninklijke Philips N.V., Intuitive Surgical, Inc., Siemens Ltd., Eon Reality, Inc, Bioflight VR, WorldViz, TheraSim Inc, and MindMaze. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to gain a strong foothold and sustain the intense competition.

Key Market Segments

By Component

Hardware
Software
Services

By Technology

Augmented Reality
Virtual Reality

By End User

Hospitals
Research Institutions
Diagnostic Centers
Clinics

By Region

North America
U.S.
Canada
Mexico
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
Japan
China
Australia
India
South Korea
Rest of Asia-Pacific
LAMEA
Brazil
Saudi Arabia
South Africa
Rest of LAMEA
Key Market Players
CAE
GE Healthcare
Koninklijke Philips N.V.
Intuitive Surgical, Inc.
Siemens Ltd
Eon Reality, Inc
Bioflight VR
WorldViz
TheraSim Inc
MindMaze