VR in Healthcare Market

Market Overview

The global VR in healthcare market size was valued at USD 570 million in 2021 and is projected to reach USD 7574 million by 2030, registering a CAGR of 33.3% during the forecast period (2022 – 2030). Factors such as Rise in Use of VR in Dentistry and Cancer Therapies, significantly drives the VR in healthcare market demand by 2030.

Virtual reality is one of the most recent innovations in the medical and healthcare industries. To give a person a sensory experience similar to that of real life, the reality is the building of a computer-generated simulated virtual environment. An individual can manipulate virtual items and do several tasks in a highly immersive, visual, and three-dimensional environment created by this technology. An individual can feel and interact with items and characters in an environment that is either real or simulated. Virtual treatment has some advantages over traditional forms of therapy, including the fact that it frequently forgoes the use of medications and intricate, invasive surgical procedures, saving money and time.

The prevalence of neurological illnesses is on the rise, there is an increase in the need for cutting-edge diagnostic methods, and there is a growing understanding of the advantages of VR technologies. These are the primary factors driving the growth of worldwide virtual reality in the healthcare market. In addition, recent developments in information technology, including sophisticated computers, laptops, internet access, and mobile applications, have further fueled industry expansion.

Market Dynamics

VR in Healthcare Market Driving Factors

Rise in Incidences of Neurological Disorders

Virtual reality has positively impacted the healthcare industry. As per WHO, in 2019, neurological disorders contributed 2% of the global disease burden in 2005 and are estimated to continue to 2.4% by 2030. VR may provide a new treatment for neurological disorders such as spinal cord injury, multiple sclerosis, stroke, dementia, and Parkinson's. Moreover, immersive VR technologies are proven beneficial for clinical rehabilitation, developing a practical and accessible solution for patients suffering from neurological disorders. This increase in the use of VR in medical and healthcare applications is expected to propel the market's growth.

VR in Healthcare Market Restraining Factors

Data Privacy Concerns of the Users

Potential security and privacy concerns include the personal data breaching risks that the users submit as a part of the registration process. Another significant potent risk is hacking private information and recording while using the products. Hackers can access payment information submitted to the app vendors, posing a threat to the user's data privacy. In addition, advanced virtual reality systems can track and analyze the user's movement with the help of sensors, brain waves, and biometric data without the user's consent. Thus, this is anticipated to hamper the VR in healthcare market growth.

Increase in Number of VR-based Startups

Growth in several VR-based startups, namely MindMaze, zSpace, Vicarious Surgical, Firsthand, Psious, EchoPixel, Medical Realities, Surgical Theater, FundamentalVR, RealView Imaging, Augmedics, DeepStream VR, KineQuantum, Oxford VR, HITLab, Embodied Labs, and Limbix, among others are expected to drive the growth of the VR in healthcare market in the coming years. Moreover, an increase in investments from the public and private sectors for implementing VR technology across several industry verticals also boosts the market's growth.

VR in Healthcare Market Key Opportunities

Rise in Use of VR in Dentistry and Cancer Therapies

Anxiety during treatment creates problems in dental procedures for both the patient as well as the dental professionals. Thus, doctors often prefer medical interventional distractions for treating anxiety and pain. Therefore, virtual reality representation is a potent distraction tool. These distractions during treatments can help patients cope with pain, improving patient treatment. Moreover, side effects such as nausea, anxiety, and pain after cancer therapies are relieved by distracting the patient and helping port access (a necessary procedure during chemotherapies).

Regional Analysis

Region-wise, the global VR in healthcare market share is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America was the highest revenue contributor and is estimated to grow at a CAGR of 31.9%. Rapid advancements in the healthcare sector and the rise in the adoption of VR technology in healthcare are the major factors that drive the growth of the North American virtual reality market for healthcare. In addition, per the data published by American Psychological Association, virtual reality is rapidly expanding its application in healthcare. For instance, the use of the Limbix system for treating anxiety-based disorders, prevention of substance abuse, post-traumatic stress disorder, and phobias is one of the most preferred treatments used by psychiatrists in North America.

Moreover, the increase in investment in VR and prominent players such as DAQR, EON, Reality Inc., Facebook, Google, HTC, Microsoft, Samsung, Seiko Epson, and Sony Vuzix Corporation are mainly responsible for the growth of the market in this region. The market for VR in healthcare is expanding due to increased private and public financing for developing these technologies in the healthcare industry and the presence of advanced healthcare infrastructure in the area. For instance, the U.S. government is investing in integrating VR across various industry verticals, thereby providing start-ups, vendors, and manufacturers with business opportunities. Furthermore, using VR in medical training by several universities and institutions drives the market growth.

Europe is the second largest region. It is estimated to reach an expected USD 2525 million by 2030 at a CAGR of 34.1%. The VR in healthcare market experiences rapid growth during the forecast period, owing to a rise in expenditure in the healthcare sector in this region. Furthermore, the rise in government support for adopting these technologies has significantly increased the demand for the integration of VR in the healthcare sector. For instance, VR applications require considerable bandwidth for functioning; thus, the European government is deploying 5G with their 5G for Europe Action plan. The plan aims to provide 5G coverage across Europe by 2020. However, due to intellectual property protection and data security, European companies usually outsource technologies. Rapid technological advancements and the convenience of VR Devices for businesses and consumers are expected to boost the demand for VR Devices in the European region.

Moreover, government initiatives such as the "Europe in your hands" project are designed to increase European business relations through virtual reality formats. Furthermore, EUROVR is an organization that gathers individuals as well as corporate companies interested in augmented, virtual, and mixed reality. Thus, these favorable conditions are expected to boost VR's growth in Europe's healthcare market.

Asia-Pacific is the third largest region. China and India are the major revenue contributors in the Asia-Pacific region. This region offers rewarding prospects for the growth of the VR in healthcare market and is anticipated to be the fastest growing market during the forecasting period. Furthermore, increasing acceptance of VR technologies across several industries and the presence of major vendors are expected to drive market growth further. For instance, Sony Corporation, Niantic, Inc., Nintendo Co., Ltd., Google Inc., Samsung Electronics, AccuVein, Inc., Microsoft Corporation, and Medsights Tech Corp are some prominent players operating in the VR market in Asia-Pacific. The Asia-Pacific region includes China, Japan, India, and the rest of Asia-Pacific. This region is expected to grow at the fastest CAGR, owing to several measures to facilitate the growth of the VR industry in healthcare. For instance, Shenzhen Municipal Government recently 2019 partnered with HTC to create a US $1.45bn Shenzhen VR Investment fund for boosting the VR ecosystem in China. In addition, in 2017, Guizhou Province initiated the development of Beidouwan Virtual Reality Town for making VRAR systems across China. The Korean government launched Korean Virtual Reality Augmented Reality Complex (Kovac) in 2017 and planned to increase such centers to 20 by 2020. Similarly, such initiatives are undertaken by the governments of India, Australia, and Malaysia, thereby driving the growth of the VR market in healthcare in the Asia-Pacific region.

Segmental Analysis

The global virtual reality in the healthcare market is segmented based on technology, product, end user, and region.

Based on technology, the global VR in healthcare market is segmented into head-mounted, gesture-tracking, and projector & display walls. The projector and display walls segment was the highest contributor to the market and is estimated to grow at a CAGR of 33.5% during the forecast period. The combination of projection technology and lighting with VR technology is the current trend in healthcare. Projection mapping in medical procedures is done with the help of prism projectors. The prism projector function allows the users to view the digital imagery projected between the real world and the eye, making the digital images appear more authentic. An increase in the use of VR rooms equipped with projector-based immersive 3D visualization systems simulating virtual or real environments by involving multiple users simultaneously is expected to create lucrative opportunities for the growth of VR in healthcare market for projector & display walls.

The gesture tracking segment is the fastest growing. Several gesture-tracking devices are used in virtual reality to enhance user interaction. This technology has improved the way users interact with objects in the virtual world. The gesture tracking technology is different for different devices and is classified into touch device-based input, computer vision interaction device-based input, and wearable-sensor device-based input. Furthermore, many gesture interaction output display devices in VR, such as VR glasses, VR helmets, and computer monitors. Advancements in scaling, positioning, and animating 3D objects in virtual reality environments using data gloves and neural networks are one of the key trends responsible for creating numerous opportunities for the growth of VR in healthcare industry. This allows improved virtual object interaction for surgeons during various medical procedures.

Based on product, the global market for VR in healthcare is segmented into VR Semiconductor Components, VR Devices, VR Sensors, and others. The VR Sensors segment was the highest contributor to the market and is estimated to grow at a CAGR of 34.1% during the forecast period. The VR technology uses different sensors for motion trackings, such as a gyroscope, accelerometer, magnetometer, optical sensors, and structured light sensors. VR technology maps the structure of the environment and heavily relies on hardware sensors of the devices for accuracy. VR Sensors support the camera with additional information on location, sound, depth, temperature, and other similar properties. Such properties drive segment growth.

The VR Devices segment is the second largest. Some popular devices include Oculus Quest, Nintendo Labo VR Kit, Sony PlayStation VR, HTC Vive, Oculus Go, Oculus Rift S, HTC Vive Cosmos, and Lenovo Mirage Solo with Daydream, among others. VR Devices include VR glasses (monocular and binocular), VR headsets (tethered and mobile devices), gloves, desktops, and monitors. Multiple devices are available to support the virtual reality environment. These devices help the users interact and bridge the gap between the physical and digital worlds. Such benefits drive segment growth.

 Based on end-user users, the global VR in healthcare market is categorized into hospitals & clinics, research laboratories, and other end users. The hospitals and clinics segment was the highest contributor to the market and is estimated to grow at a CAGR of 32.9% during the forecast period.

The hospitals and clinics segment is expected to grow at a lucrative CAGR, owing to the surge in virtual reality for surgeons to assist them during surgeries in hospitals across the globe. Furthermore, the growth in demand for innovative diagnostic procedures to treat patients in hospitals and the rise in awareness regarding the benefit of VR in medical procedures are expected to create ample opportunities for VR in healthcare industry for the hospitals and clinics segment. This upsurge in usage and integration of VR in clinical procedures is all set to increase the growth of VR in healthcare market.

The research laboratories segment is the second largest. The Augmented and Virtual Reality Laboratory (AVR Lab) is a research laboratory of the Department of Engineering for Innovation of the University of Salento. The research activities focus on virtual reality technologies in medicine and surgery, cultural heritage, and education. Advanced human-machine interface design and development are other activities by the AVR Lab. Furthermore, increasing the use of VR in research laboratories for monitoring their experiments and allowing the medical researcher to practice and revise the protocols on VR rather than performing actual procedures is expected to boost the demand for VR technologies for research laboratories. For instance, the AVR Lab of the University of Salento mainly focuses on research based on surgery and medicine with the help of virtual reality technologies.

Recent Developments

• September 2022 - "Hybrid Work Is Just Work," a Work Trend Index Pulse study from Microsoft Corp. Do We Have It Wrong? Additionally, the business unveiled updates to Microsoft Viva, its employee experience platform, intended to empower and energize staff members during economic uncertainty.
• September 2022 - The Communications Workers of America (CWA) and Microsoft are launching "Get Connected," an initiative to boost enrollment in the Federal Communication Commission's Affordable Connectivity Program, at a community Labor Day festival in Atlanta, Ga. Additional events are planned throughout September and early October in Detroit, Mich., Memphis, Tenn., New York City, and rural North Carolina.