Augmented and Virtual Reality in Healthcare Market Size, Share, and Trends 2024 to 2033

Augmented and Virtual Reality in Healthcare Market Size and Growth 2024 to 2033

The global augmented and virtual reality in healthcare market size was estimated at USD 2.85 billion in 2023 and it is expected to hit around USD 16.14 billion by 2033, poised to grow at a CAGR of 18.89% during the forecast period 2024 to 2033.

Augmented and Virtual Reality in Healthcare Market Key Takeaways

• By region, North America dominated the market with a 40.91% revenue share in 2023.
• By technology, the augmented reality segment garnered a revenue share of around 60.40% in 2023.
• By component, the hardware segment held the highest revenue share of around 67.8% in 2023.

Augmented and Virtual Reality in Healthcare Market Size in the U.S. 2024 To 2033

The U.S. augmented and virtual reality in healthcare market size reached USD 820 million in 2023 and is anticipated to be worth around USD 4,840 million by 2033, poised to grow at a CAGR of 19.42% from 2024 to 2033.

North American region is expected to have the highest demand for augmented and virtual reality in the healthcare sector due to the constant research and development activities, investments made in this technology and the initiatives taken by the government of various regions that are extremely favorable for the market. Many funds are provided for the research purpose in order to provide these platforms for the healthcare sector. In order to provide affordable treatments there has been an increase in the outsourcing of the services of health care. Due to which the demand for augmented reality and virtual reality is expected to grow in the coming year. 

Asia Pacific Augmented and Virtual Reality in Healthcare Market Size 2024 to 2033

The Asia Pacific region will also grow well do tooth adoption of this technology is in the coming years. As the population in this region is growing aware of the benefits associated with the use of augmented reality and virtual reality the market is expected to grow well in the coming years.

Augmented and Virtual Reality in Healthcare Market Overview

The use of augmented reality and virtual reality in healthcare segment will prove to be extremely beneficial. This has provided best solutions for education in the healthcare sector. It also helps in the visualization of the veins order surgeries. With the help of augmented reality and virtual reality the patients can be relaxed to a great extent. The use of augmented reality and virtual reality in the healthcare segment has helped in increasing the recovery speed of the patients.

Google Glass makes use of augmented reality as it enhances the environment of the real world. But when it comes to virtual reality this happens to be an immersive process. We can take an example of the VR glass which provides complete coverage to the eyes and the experience provided is an immersive one. The use of augmented reality and virtual reality in the healthcare sector can be used in the description of the symptoms that the patients are facing.

Augmented and Virtual Reality in Healthcare Market Growth Factors

As a lot of expenditure is made on the healthcare segment to improvise the infrastructure and the technology is used the demand for augmented reality and virtual reality is expected to grow in the coming years. Augmented reality and virtual reality are used on a large scale for the training of the medical professionals and it is also used in some of the surgical procedures. Augmented reality and virtual reality are also used in providing health care education, rehabilitation, performing surgeries, training and diagnosis of various diseases. The use of augmented reality and virtual reality in surgeries is extremely beneficial as it enhances the efficiency and optimizes the procedures. These are some of the factors that will help in the growth of the market in the coming years.

The use of augmented reality and virtual reality has also increased for treatment of various diseases do to which the market is expected to grow well during the forecast period. Many learning models that are based on augmented reality are offered in the healthcare sector. These models enhance the learning experience of the health care professionals and provides better knowledge. When it comes to the utilization of augmented reality for the patients this platform provides information regarding the flow of the treatment and the visuals provided on this platform are easy to understand.

The simulation offers great understanding of the disease and its treatment. When it comes to performing complex surgeries the demand for augmented reality has increased to a great extent as it has enhanced the level of precision and accuracy in such surgeries. Virtual reality platforms and augmented reality platforms in healthcare can also be used for providing plans, delivery of treatments and the schedules of treatments which will play an important role in the adoption of this technology. 

• Digitalization has emerged as a major growth factor
• Increased precision and accuracy during procedures
• Better visibility and access provided to the physician
• Accurate diagnosis of the disease condition
• Suitable selection of line of treatment
• Digitalization in the healthcare sector

Augmented and Virtual Reality in Healthcare Market Scope

Augmented and Virtual Reality in Healthcare Market Dynamics

Market Drivers

• Lucrative reimbursement policies- Favorable reimbursement policies provided by various nations across the globe will lead to an increased use of augmented reality and virtual reality in the surgeries and treatments of various diseases.
• Digitalization of healthcare sector- Digitalization is expected to play an instrumental role in the growth of the market in the coming years period constant research and development activities have provided advancements in the technology that will help in the growth of the market in the coming years period many initiatives taken by the government of various nations across the globe have been favorable in the introduction of innovative ways that will help and benefit the healthcare sector who a great extent.

Market Challenges

• Lack of skilled professionals- The growth of the market will only be hampered due to the technical limitations. Specifications of some computers all the resolution of these computers may hamper the growth of the market.

Market Opportunities

• Provides better visuals during the procedure- Virtual reality is used as it provides visuals of the physiology and the anatomy of the patient which is extremely beneficial for various surgeries performed by the surgeons. This is expected to provide good number of opportunities for the growth of the market in the coming years.
• Accuracy in diagnosis- For the diagnosis of any diseases and to perform surgeries of the invasive type the demand for augmented and virtual reality techniques is expected to grow in the coming years. The demand for augmented reality and virtual reality platforms in the operation room has grown in the recent years as it is extremely beneficial for the surgeons.

Component Insights

Based on component, the hardware segment is expected to dominate the market in the coming years period this segment has dominated the market in the past in terms of revenue and it will continue to grow in the coming years period the demand for smart glasses, displays that are head mounted and the 3D sensors will have a major share in the market. For the simulation and training purposes smart glasses are used on a large scale. There are many other applications of smart glasses and the head mounted displays or the devices like that in diagnostics and surgeries. The adoption of the hardware of augmented reality and virtual reality has increased on a large scale in various nations across the globe due to the commercialization of the product. In many applications a single hardware is used and this is expected to drive the market growth in the coming years.

The software segment is also expected to grow well due to constant research and development techniques that have provided advancements in the technology. Recent applications that are designed are applicable in detecting the defects in the eye. Other virtual reality platforms help in reducing the anxiety of the patient when surgeries are performed. All of these factors will drive the market growth in the coming years

Application Insights

On the basis of application, the augmented reality and virtual reality technologies are used in different fields of health care. It helps in performing the most complex surgeries and even the minimally invasive type of surgeries. The advancements in the technology and the growing demand for simplifying the medical surgeries will create more demand for augmented reality in the healthcare sector.

The domestic players and the market players in augmented reality technology have entered into partnership to increase its customer base and provide innovative products in the market. The use of this technologies has enhanced the efficiency of the healthcare sector. In the coming years the competition is expected to grow due to which the prices of these platforms will reduce. Due to the increased use of augmented reality and virtual reality inoperative procedures and visualization of anatomy the market is expected to grow well in the coming years.

any growth opportunities will be provided by the virtual reality platforms in the healthcare sector. Virtual reality can be used for the treatment of phobia robotic surgeries, training, surgery simulation etc. constant innovations add expected to boost the market for virtual reality in the healthcare sector.

Technology Insights

Based on technology, augmented reality segment has dominated the market in the past with the largest market share in terms of revenue. Due to the head mounted devices and they increased use of smart glasses that help in providing a 3D image or view of various things in the environment this segment is expected to grow well in the coming years. In order to have better treatments for various diseases the demand for augmented reality has increased in the recent years period technological advancements have also played an instrumental role in the growth of the market.

The investments that come from the public organizations as well as the market players will help in the growth of the market in the coming years. These devices are offered at better rates do to which the market is expected to grow well in the coming years.

Augmented and Virtual Reality in Healthcare Market Recent Developments

• For developing the medical and surgical devices that are virtual reality based, and to provide training modules for the medical devices funds of about 14 million U.S. dollars were raised by OssoVR in the year 2020.
• To introduce smart glass in telemedicine Vuzix entered into a partnership with VSee in the year 2019.

Augmented and Virtual Reality in Healthcare Market Companies

• Eon Reality, Inc
• Layar
• Bioflight VR
• WorldViz
• TheraSim Inc 
• CAE
• GE Healthcare
• Koninklijke Philips N.V.
• Intuitive Surgical
• Siemens Ltd
• Mindmaze

Segments covered in the report

By Component

• Hardware
  • Sensors
    • Accelerometer
    • Gyroscope
    • Magnetometer
    • Proximity Sensor 
  • Semiconductor Component
    • Controller/processor
    • Integrated Circuits
  • Displays and Projectors
  • Position Tracker
  • Cameras
  • Others
• Software
• Services

By Technology

• Augmented Reality
  • Surgical Application
  • Rehabilitation
  • Training & Medical Education
• Virtual Reality
  • Simulation
  • Diagnostics
  • Virtual Reality Exposure Therapy (VRET)
  • Rehabilitation
  • Pain Distraction

By End User

• Hospitals, Clinics, and Surgical Centers
• Research Organizations and Pharma Companies
• Research and Diagnostics Laboratories
• Government and Defense Institutions
• Others

By Application

• Surgery
• Therapy
• Education and training
• Rehabilitation
• Pain management
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)