Augmented and Virtual Reality in Healthcare

Augmented and Virtual Reality in Healthcare

Global Augmented and Virtual Reality in Healthcare Market to Reach US$30.7 Billion by 2030

The global market for Augmented and Virtual Reality in Healthcare estimated at US$6.8 Billion in the year 2023, is expected to reach US$30.7 Billion by 2030, growing at a CAGR of 23.9% over the analysis period 2023-2030. Hardware Component, one of the segments analyzed in the report, is expected to record a 23.0% CAGR and reach US$19.5 Billion by the end of the analysis period. Growth in the Software Component segment is estimated at 25.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.0 Billion While China is Forecast to Grow at 23.2% CAGR

The Augmented and Virtual Reality in Healthcare market in the U.S. is estimated at US$2.0 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$4.7 Billion by the year 2030 trailing a CAGR of 23.2% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 20.9% and 19.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 16.1% CAGR.

Global Augmented and Virtual Reality in Healthcare Market - Key Trends and Drivers Summarized

What Are Augmented and Virtual Reality, and How Are They Used in Healthcare?

Augmented Reality (AR) and Virtual Reality (VR) are immersive technologies that are reshaping healthcare by enhancing medical training, patient treatment, and diagnostic capabilities. AR overlays digital elements onto the real world, using devices like smartphones, tablets, or specialized headsets to enhance real-world interactions with digital information. In contrast, VR creates a fully immersive, computer-generated environment that users can explore and interact with, often through VR headsets. In healthcare, these technologies are being applied to create realistic, interactive simulations for medical students and professionals, allowing them to practice surgeries, diagnostic techniques, and procedures in a controlled, risk-free environment. AR is often used in operating rooms to provide real-time information, such as anatomical guides or step-by-step procedural instructions, directly in the surgeon’s field of view, thus improving precision and outcomes. VR is also transforming mental health treatments by providing patients with controlled environments to confront fears, practice mindfulness, or engage in therapeutic exercises. Together, AR and VR enable advancements that were previously unimaginable, helping clinicians improve both the quality of care and the scope of their expertise.

What Sets AR and VR Apart from Traditional Medical Training and Treatment Approaches?

AR and VR stand out from traditional medical training and treatment methods by offering fully interactive, immersive experiences that can replicate real-life scenarios with unparalleled accuracy. Unlike traditional methods that often rely on textbooks, lectures, or limited hands-on practice, AR and VR allow medical students and professionals to repeatedly practice complex procedures, refine their skills, and make mistakes without risking patient safety. For instance, VR simulations can replicate challenging surgeries, enabling trainees to build confidence and experience before entering an operating room. AR enhances real-time applications by overlaying critical information directly onto a patient or procedure. During surgery, an AR headset could display a 3D anatomical map of the patient, helping surgeons navigate complex structures and reducing the risk of errors. These technologies also offer patients unique benefits, particularly in physical and mental health treatment. In rehabilitation, VR provides engaging, gamified exercises that motivate patients through interactive physical therapy. In mental health, VR is used in exposure therapy, where patients with conditions like PTSD or anxiety can confront fears in a controlled virtual environment, guided by a therapist. By offering immersive, flexible, and highly individualized experiences, AR and VR represent a significant step forward in how medicine is practiced and delivered.

How Are AR and VR Transforming Patient Care and Medical Training Across Different Specialties?

AR and VR are having a profound impact on patient care and medical training across numerous specialties, enhancing both the precision of treatments and the depth of learning. In surgery, VR training modules allow surgeons to perfect techniques on virtual patients, minimizing risks when performing these procedures on actual patients. These modules are highly customizable, letting surgeons rehearse specific cases with unique anatomical structures, which has been particularly valuable in complex fields like neurosurgery and orthopedics. For radiology, AR technology enables practitioners to visualize 3D anatomical structures overlaid on medical scans, making it easier to pinpoint abnormalities and plan interventions. VR is also improving mental health treatment, offering tools for cognitive behavioral therapy, anxiety reduction, and PTSD treatment. In these settings, VR environments can be tailored to patient needs, allowing therapists to guide individuals through exercises in a fully controlled and immersive space. Pediatric care has also benefited, as VR is used to distract young patients during painful procedures or treatments, reducing stress and improving patient experience. Additionally, in medical education, both AR and VR provide valuable anatomy lessons through 3D interactive models, allowing students to explore and understand the human body in ways traditional cadaver-based training cannot replicate. These applications are helping to raise standards across healthcare, supporting more precise diagnostics, effective therapies, and improved patient outcomes.

What’s Driving the Growth of AR and VR in Healthcare?

The growth of augmented and virtual reality in healthcare is driven by advancements in technology, increasing demand for minimally invasive procedures, and the need for more effective training methods and patient engagement tools. Technological improvements, such as higher-resolution displays, improved processing speeds, and enhanced AR/VR software, have made these tools more accessible, realistic, and effective for healthcare applications. Additionally, healthcare providers are increasingly recognizing the need for safer, more precise surgical techniques that minimize patient recovery times and improve outcomes, leading to greater investment in AR-enhanced surgical guidance systems and VR surgical simulations. The shift towards patient-centered care has also influenced the adoption of these technologies, as AR and VR provide engaging ways for patients to understand their conditions, follow treatment plans, and actively participate in their recovery. In the mental health sector, VR-based therapeutic applications are gaining traction due to their demonstrated efficacy in treating conditions like PTSD, anxiety, and phobias. The COVID-19 pandemic has further accelerated the adoption of AR and VR, as telemedicine and remote training solutions became vital, prompting a reevaluation of immersive technologies in healthcare. As research and development continue to drive innovations and costs decrease, the market for AR and VR in healthcare is expected to grow, becoming an integral part of how medical education, diagnostics, and patient care are delivered.

SCOPE OF STUDY:

The report analyzes the Augmented and Virtual Reality in Healthcare market in terms of US$ Million by the following Component; Technology, and Geographic Regions/Countries:

Segments:
Component (Hardware, Software, Services); Technology (Augmented Reality, Virtual Reality)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 38 Featured) -

• Atheer
• Augmedix
• Daqri
• Echopixel
• Firsthand Technology
• Google
• Medical Realities
• Microsoft
• Mindmaze
• Oculus VR

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