Global Healthcare Extended Reality Market 2024-2031

Global Healthcare Extended Reality Market 2024-2031

Global Healthcare Extended Reality Market Size, Share & Trends Analysis Report by Component (Software & Services and Hardware), by Technology (Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR)), and by Application (Medical Training and Education, Surgical Planning, Rehabilitation & Therapy, and Patient Care & Monitoring), and by End-User (Hospitals, Clinics & Surgical Centers, Pharmaceutical & Biotechnology Companies, Research Organization & Diagnostics Laboratories, and Government & Defense Institutions) Forecast Period (2024-2031)

The global healthcare extended reality market is anticipated to grow at a CAGR of 16.2% during the forecast period (2024-2031). The rising need for remote medical consultations is especially accentuated by recent global health crises, the need for advanced training methods, and the growing investments in Extreme Programming (XP) technology by healthcare organizations are some of the major factors contributing to the market growth. Additionally, advances in telemedicine technologies are positively affecting the extended reality sector within healthcare. However, the market also faces challenges due to the high cost of devices and the lack of standardized regulations for their use in healthcare settings.

Segmental Outlook

The global healthcare extended reality market is segmented by component, technology, application, and end-user. Based on the component, the market is sub-segmented into software & services, and hardware. Based on the technology, the market is sub-segmented into AR, VR, and MR. Based on the applications, the market is sub-segmented into medical training and education, surgical planning, rehabilitation and therapy, and patient care & monitoring. Further, based on the end-users, the market is sub-segmented into hospitals, clinics & surgical centers, pharmaceutical & biotechnology companies, research organizations and diagnostics laboratories, and government & defense institutions. Among the end-users, the hospitals, clinics, and surgical centers sub-segment is anticipated to hold a considerable share of the market.Extended reality technologies provide significant benefits considering the scope and diversity of medical processes and patient interactions. This increases surgical accuracy, expedites diagnostic processes, and improves patient engagement. Investments in extended reality technologies by healthcare organizations are set to grow in the coming years, further solidifying their role as the primary end-users.

The AR Sub-Segment is Anticipated to Hold a Considerable Share of the Global Healthcare Extended Reality Market

Among the technology, the AR sub-segment is expected to hold a considerable share of the healthcare extended reality market. AR is becoming increasingly crucial for procedures that require real-time overlays of data, such as surgeries and diagnostics. It offers benefits such as reduced risk and less cognitive load for healthcare providers. Wearable technology, such as head-mounted displays and smart glasses, provide a hands-free approach to perform work by providing data and virtual instructions to workers as they complete activities. The efficiency of healthcare processes can be enhanced by using AR technologies as AR-based image visualization assists surgeons and enhances their accuracy and precision during complex surgeries. For instance, in December 2023, Augmedics announced 5,000 patients treated with its xvision Spine System. Both were the first AR navigation systems to gain FDA approval for surgery and the first to be used in surgery in the US.

Regional Outlook

The global healthcare extended reality market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, Asia-Pacific is anticipated to hold a prominent share of the market across the globe, owing to the improving healthcare infrastructure. Emerging economies such as China, India and Japan present attractive options for outsourcing services associated with the development and distribution of AR and VR technology in the healthcare industry.

The North America Region is Expected to Grow at a Significant CAGR in the Global Healthcare Extended Reality Market

Among all regions, the North American region is anticipated to grow at a considerable CAGR over the forecast period due to its robust healthcare infrastructure, investment in R&D activities, favorable government initiatives, and significant investments in technology. Additionally, the presence of leading extended reality and healthcare technology companies in the region boosting the market growth. Advanced VR tool for neurosurgery and thoracic surgery, enables surgeons to virtually explore a patient's brain and body before performing a procedure. It enables surgeons to virtually explore a patient’s anatomy prior to performing a procedure.Furthermore, VR is a more recent form of distraction that may have been used in the pediatric setting for reducing pain and fear in children undergoing needle-based intravenous procedures. For instance, in March 2023, Shriners Hospitals for Children Canada integrated VR into its care processes after four years of research. The use of this interactive technology allows children to use VR, while undergoing medical procedures reducing anxiety or pain they may experience. With sustained efforts, the hospitals could offer VR to approximately 3,500 patients in 2024 and up to 17,500 patients over the next 5 years.

Market Players Outlook

The major companies serving the global healthcare extended reality market include Sony Corporation, Magic Leap, Medtronic, Surgical Theater, Inc., Osso VR, AppliedVR, BioflightVR, Fundamental Surgery, Fusion VR, GIGXR, Medicalholodeck, PrecisionOS, SphereGen Technologies LLC, XRHealth, and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in January 2021, Hologic, Inc. acquired Biotheranostics, Inc., a privately held, commercial-stage Company that provides molecular diagnostic tests for breast and metastatic cancers, for approximately $230 million. By acquiring Biotheranostics, Hologic, Inc. may launch its venture into a sizable and rapidly expanding oncology adjacency, which aligns with their larger company objectives.

The Report Covers

Market value data analysis of 2023 and forecast to 2031.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global healthcare extended reality market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.