AR/VR/MR in Healthcare Market

Market Overview

The global AR/VR/MR in healthcare market size was valued at USD 2,836.94 million in 2022. It is estimated to reach USD 28,142.93 million by 2031, growing at a CAGR of 29.04% during the forecast period (2023–2031).

AR/VR/MR technologies have revolutionized the healthcare industry with their adoption in virtual training of surgeons for challenging surgeries, 3D operating room simulations, phobia buster in mental health treatment, chronic pain management, and many others. Further, VR technology has also played a substantial role in Reprocessing (EMDR) therapy and Eye Movement Desensitization, allowing the reframing of traumatic memories through certain eye movements.

AR/VR/MR technologies deliver benefits in numerous areas of care management, such as autism and depression therapy, cancer therapy, and assisted living. AR is also useful for training and education in the healthcare sector. AR-based apps are utilized to provide improved care to patients. Whereas mixed reality (MR) is a combination of both virtual reality (VR) and augmented reality (AR) by the amalgamation of the real-life environment with digital elements.

Highlights

• Hardware dominates the component segment
• Augmented reality (AR) devices dominate the devices type segment
• Hospital clinics and surgical centers dominate the end-user segment
• North America is the highest shareholder in the global market

Market Dynamics

Global AR/VR/MR in Healthcare Market Drivers

Increasing Adoption of AR and VR Technologies

Augmented reality offers numerous opportunities for its execution in various healthcare areas, such as medical training, surgery assistance, diagnostics/ imaging, rehabilitation, etc. Augmented reality in surgical training is used for telementoring in which the supervisor teaches the trainee by representing the proper surgical moves, paths, and handlings on the AR screen. On the other hand, the virtual reality system helps train residents, assists surgeons in planning upcoming operations, and educates patients. It also guides surgeons in a three-dimensional space in the operating room.

AR and VR technologies find the most applications in surgery, such as nephrectomy, neurosurgery, orthopedics, and particularly laparoscopic surgery. In China, researchers from Soochow University have applied AR technology to spinal surgery to provide more intuitive information to surgeons. In addition, the Fraunhofer Research Institute's MEVIS initiative employs an iPad-based augmented reality application during liver operations. Comparing the actual operation to the planning data derived from 3D X-ray images enables the surgeon to determine the location of blood vessels within the organ. AR and VR technologies enhance CT or MRI data visualization by superimposing stereoscopic projections during a surgical procedure, fuelling market expansion.

Medical and Mixed Reality Technology Revolution

Mixed reality is a novel technology that combines Virtual Reality (VR), Augmented Reality (AR), and Artificial Intelligence (AI) to produce experiences that combine the actual world with digital components. Innovations in medical technology are driving the use of simulation and greater acceptance of remote and virtual delivery methods. New medical devices and advanced procedures require advanced training solutions, such as simulation, for internal product development and customer training.

Advanced procedures such as intracardiac echocardiography, cardiac assist devices, and mechanical ventilation enhancements can be done easily with AR/VR/MR technologies. AR, VR, and MR technologies are becoming more widely available and reasonably priced for medical education, imaging, dentistry, and nurse training. They combine digital information with the user's environment in real time. Market players such as CAE Healthcare and GE Healthcare are bringing a commercial Microsoft HoloLens mixed reality application to the medical simulation market, stimulating market expansion.

Global AR/VR/MR in Healthcare Market Restraint

Security and Privacy Issues with AR/VR/MR

The AR/VR/MR business has substantial difficulties related to privacy and security. There is a genuine possibility of getting into trouble because of programming errors, oversights, and carelessness with augmented reality. The loss of privacy if hackers have access to a device is significant. Furthermore, the major concern is that no actual regulation defines what is allowed and not in the augmented reality environment. AR/VR/MR technologies operate in the real world and add a digital into it. These elements drive attention away from the reality that hampers global market growth.

Global AR/VR/MR in Healthcare Market Opportunities

Increasing Need for Innovative Approaches to Prevent Medical Errors

Medical errors are one of the prominent causes of death in U.S. hospitals. More than 250,000 deaths per year are because of medical error in the U.S., according to Johns Hopkins patient safety experts. The WHO reported in 2018 that there is a 1 in 300 chance of being harmed during health care. Clinicians can improve patient safety by employing simulation training to build their knowledge, competence, and confidence in a risk-free setting.

In addition, a rising body of evidence indicates that medical simulation increases clinical competency and patient outcomes. It also reduces medical errors, which can help mitigate the increase in healthcare costs. The healthcare system is anticipated to become increasingly relevant by using AR/VR/MR technologies in a world more acutely aware of the benefits of healthcare simulation and training to help save lives at a steady state and in a healthcare crisis, creating opportunities for market growth.

Regional Analysis

Based on region, the global AR/VR/MR in healthcare market is bifurcated into North America, Europe, Asia-Pacific, and RoW. 

North America Dominates the Global Market

North America is the most significant global AR/VR/MR in healthcare market shareholder and is expected to grow at a CAGR of 29.10% over the forecast period. North America is among the key contributors to the overall AR/VR/MR in healthcare market growth as it is a developed and technologically advanced region. The United States currently holds a slight edge over every other country due to deploying many AR/VR/MR solutions and products in the healthcare sector. The U.S. is the key market for AR/VR/MR tools and usage. A mature IT infrastructure in healthcare, a large market with 325 million citizens, and the fact that the most successful and innovative software vendors and venture capitalists are located there might stimulate that impression.

In addition, extended reality technologies are already used in various ways throughout the U.S. healthcare system. Currently, these technologies are being used at different levels of the US healthcare industry. The U.S. is also more incentivized than any other country to develop approaches and strategies that encourage greater AR/VR/MR adoption in the healthcare industry. High spending of GDP on healthcare, especially in the US and Canada, is likely to foster the growth of next-gen technologies such as AR/VR/MR in the region.

Europe is estimated to exhibit a CAGR of 28.75% over the forecast period. In Europe, the Nordic countries and the Netherlands are pioneers in using AR/VR/MR products and solutions in the healthcare sector. Moreover, the demand for AR/VR/MR healthcare solutions and products is increasing, especially in Germany, Switzerland, the UK, and Spain. The variety of available AR/VR/MR healthcare solutions and products is broad. In Europe, the demand for healthcare workers is expected to reach 18.2 million by 2030, according to the World Health Organization, and the 8.6 million nurses, midwives, and healthcare assistants currently available cannot keep up with anticipated demand. This is estimated to provide new opportunities for deploying AR/VR/MR technology in the European healthcare sector.

Asia Pacific is estimated to grow quickly during the projected period and is set to follow North America's growth closely. Explosive growth, changing demographics, and shifting consumer expectations will predictably lead to significant healthcare transformation combined with AR/VR/MR adoption in this region. Asia-Pacific healthcare will shift dramatically in the next few years. The region's expanding healthcare sector will climb nearly twice as fast as the rest of the world over the forecast period, contributing more than 40% of the rise in global healthcare spending. By 2025, the region will have over half a billion individuals aged 65 and older, requiring a change in the care model due to aging populations and significant chronic illness. In addition, the growth of healthcare AR/VR/MR in the region is projected to be bolstered by an improving IT infrastructure, a demand for affordable healthcare, and favorable government regulations.

The RoW consists of South America and the Middle East and Africa. The greatest gains from AR/VR/MR in healthcare in the Middle East region will likely be in Israel, UAE, and the Kingdom of Saudi Arabia. UAE, the second-most significant economy in the Arab world, is anticipated to benefit most from AR/VR/MR adoption. Israel is known for having one of the best startup infrastructures. As a result, startups such as Realview Imaging are pioneering new extended reality healthcare imaging technologies. In addition, the biggest economies of South America, including Argentina, Brazil, Chile, Colombia, and Peru, are likely to adopt AR/VR/MR in the healthcare sector by 2035. It also predicted that AR/VR/MR could help lower healthcare costs. However, the slow activity level places local healthcare businesses far behind those in Europe. However, another aspect of the study revealed that the Middle Eastern public is considerably more open and at an increasing rate to engage with an AR/VR/MR -driven healthcare system than consumers in Europe.

Segmental Analysis

The global AR/VR/MR in the healthcare market is bifurcated into components, device types, end-user, and applications.

Based on components, the global AR/VR/MR in healthcare market is bifurcated into hardware, software, and services. 

The hardware segment dominates the global market and is estimated to exhibit a CAGR of 28.97% over the forecast period. Hardware is the delivery systems or components that execute and store the instructions given by the software. The binocular head-mounted display is used in VR technology. Cameras, GPS, processors, displays, and microphones these types of various hardware are used in augmented reality. Increasing the utilization of VR for training will enhance the segment's growth. Some examples of hardware used in AR/VR/MR technology are Oculus Rift, HTC Vive, Google Glass, Microsoft HoloLens, Magic Leap, and Real View Horoscope.

Based on device type, the global AR/VR/MR in healthcare market is divided into augmented reality (AR), virtual reality (VR), and mixed reality (MR) devices. 

The augmented reality (AR) device segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 29.09% over the forecast period. AR is an interactive system presented in real-time that combines real and virtual realities registered in three dimensions. With the help of augmented reality devices, surgeons can access life-saving and real-time patient information. The surgeons can utilize the data during straightforward or complicated surgeries. The augmented reality device is also used to study the patient's anatomy with the help of the data collected by MRI and CT scans. It can also help surgeons to visualize bone strength, internal organs, and muscle growth. An example of an augmented reality device is Google Lenses.

Based on end-user, the global AR/VR/MR in healthcare market is bifurcated into hospitals, clinics, surgical centers, research organizations and pharma companies, government and defense institutions, research and diagnostics laboratories, and others. 

The hospitals, clinics, and surgical centers segment dominates the global market and is estimated to exhibit a CAGR of 29.68% during the forecast period. The hospitals, clinics, and surgical centers segment include the AR, VR, and MR solutions used in clinical settings for patient care, training, and other uses. Clinical applications such as medical training, robotic surgery, physical therapy, post-traumatic stress treatment, anxiety and depression treatment, and emergency treatment widely use AR/VR/MR solutions. Adopting these solutions in clinical settings offers various advantages, including time and cost reduction, easy skill level analysis, reduction of cadaver needs, and comprehensive diagnosis. Such benefits of AR, VR, and MR solutions augment their demand in hospitals, clinics, and surgical centers.

Based on application, the global AR/VR/MR in healthcare market is divided into surgery, fitness management, patient care management, pharmacy management, medical training and education, and others. 

The patient care management segment is the largest contributor to the market and is anticipated to exhibit a CAGR of 29.15% over the forecast period. Patient care management combines various health services to help individuals manage their health, from basic care practices like appointment scheduling to chronic illness and short-term case management. AR/VR/MR is revolutionizing patient care management at an unprecedented rate enabling doctors to take a more personalized approach toward patients. Doctors can virtually view a patient's medical records and test results in a headset and then provide suitable treatments, appointments, and medications. Additionally, individuals can better describe their symptoms to doctors through VR.

Furthermore, patients can understand their medical conditions and explore the available treatments through extended reality technologies. AR/VR/MR technologies have largely augmented the capabilities of doctors and healthcare professionals for patient care management at outpatient facilities. The need for AR/VR/MR patient healthcare management technology and the number of outpatient facilities are anticipated to increase.

Recent Developments

• February 2023- Face by Galderma is an augmented reality solution developed by Galderma that seeks to help healthcare professionals increase their productivity and enhance patient satisfaction.

• January 2023- ThirdEye, a pioneer in Augmented Reality and Artificial Intelligence (AR/AI) solutions, announced the launch of an entirely integrated hardware and software package for the healthcare industry, which includes solutions for AR Holographic display, AR telehealth, AI remote surgery, Alzheimer's aid, vision impairment, and thermal display.