Global Augmented Reality & Virtual Reality In Healthcare Market by Component (Software, Service, Hardware), by Technology (Augmented Reality, Virtual Reality) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global Augmented Reality & Virtual Reality market in healthcare was worth USD 2.0 billion in 2020. It is projected to grow at a compound annual rate (CAGR of 27.2%) between 2021 and 2028. Positive government initiatives, technological advancements, rising healthcare spending, increased use in surgical procedures, medical training, and favorable government initiatives are all factors expected to drive the adoption and growth of augmented reality (AR), and virtual reality(VR) technologies in healthcare. These technologies are widely used in healthcare, including surgery, education, diagnosis, rehabilitation, training, as well as for training.

Surgery and diagnostics are increasingly using virtual and augmented reality techniques. Systeme such as touch surgery make use of virtual reality to show the anatomy and physiology of patients. This will allow surgeons to better understand the patient and provide them with more options. One of the main factors behind market growth in recent years has been the increasing adoption of Augmented Reality and Virtual Reality technologies in medical surgery to improve surgical procedures and increase efficiency. Augmedics, for example, launched the Augvision Spine AR guidance system in the U.S. in December 2019. This allows surgeons to see the 3D anatomy of patients during surgery. Augmedics was also approved by the U.S. FDA for Xvision in December 2019 Additionally, Augmedics received the U.S. FDA approval for Xvision in December 2019.

AR is also being used for training and education purposes by medical personnel. AR-based learning modules offer anatomical simulation and visualization, which gives medical professionals a richer learning experience. These learning modules can also be used to help patients understand treatment flows and how to manage them. AR-based image visualization aids surgeons by enhancing their precision and accuracy during complex operations. In February 2019, Philips Healthcare teamed up with Azurion, Microsoft and Azurion to create a mixed reality concept that provides a 3D holographic AR environment. It is based on multiple image modalities in order to aid surgeons.

COVID19's augmented reality and virtual realities in the healthcare market have a 27.7% increase on revenue

The technological advances in this area influenced AR & VR positively during the COVID-19 pandemic. In April 2020, XRHealth raised USD 7 million to expand their telehealth platform. Similar to the London hospitals, St. Mary's Hospital and Imperial College use augmented reality glasses for 3D imaging visualizations of blood vessels in reconstructive surgery. Virtual reality and Augmented Reality in Healthcare help to efficiently manage treatment plans, delivery and plans. This is expected to increase exponentially during the pandemic. Growth is expected due to decreasing healthcare costs, rapid digitalization, and better delivery of quality health services. Due to the widespread adoption of AR and VR in healthcare, including medical training & education, patient management, and medical marketing, during the COVID-19 pandemic, AR and VR are now gaining momentum.

Key players are also taking important initiatives to increase market growth, such as mergers and acquisitions. Hologic Inc purchased Biotheranostics (a molecular diagnostics firm) for USD 230 millions in January 2021. Hologic Inc and Biotheranostics have combined their resources and will use their expertise in advanced women health diagnostics and oncology diagnostics.

Component Insights

The largest revenue share, 67.6%, was attributed to the hardware segment in 2020. It dominated the market for Augmented Reality and Virtual Reality in Healthcare. Head-mounted displays, smart glasses, 3D sensors, and smart glasses hold large shares of the AR & VR market in healthcare. Smart glasses and head-mounted displays are used extensively in training and simulation, surgeries and diagnostics. They also have telementoring capabilities. AR/VR hardware is the market leader in 2020. It has a large commercialized product base and high adoption rates, particularly in developed countries. Additionally, the use of single hardware in multiple applications is a key factor, which will increase its usage and impact the market for AR/VR in healthcare.

The software segment will grow rapidly over the forecast period due to technological advances in in-app design, including apps like EyeDecide. It measures various parameters to detect eye conditions. Apps such as Applied VR can also be used to help patients overcome anxiety during surgery. There has been a lot of progress in interconnectivity and network service that allows patients to access these platforms.

AR Application Insights

Augmented reality technology is being increasingly used in many fields of medical science, such as surgical preparations and minimally invasive surgeries. Augmented reality technology is being adopted more frequently due to technological advancements and rising demand to simplify medical procedures. To expand their product reach, AR technology market players are forming partnerships with domestic players. In April 2019, Vuzix, an AR technology expert and smart glass manufacturer, joined forces with VSee to create smart glasses for the telemedicine sector.

Augmented reality technology can be used to improve the efficiency of healthcare processes. Mergers and acquisitions will increase in the near future. This could increase competition and lower prices. With the use of augmented reality technology, there have been continuous improvements in the surgical environment. It can be used in various areas, including anatomy, postoperative and medical training, as well as other areas. Augmented reality technology can be used in rehabilitation services to create a controlled environment that allows users to interact with one another and help speed up the recovery process.

VR Application Insights

The VR sector in healthcare will continue to grow, as many healthcare IT companies are investing more in it due to the potential growth opportunities. OssoVR, led by Kaiser Permanente, raised USD 14 millions in September 2020. The funds will be used by the company to develop VR-based medical device and surgical training modules.

VR can be used in many areas, including surgery simulation, robotic surgery and skills training. The segment is driven by recent innovations in healthcare IT. Virtual reality technology is expected to increase market adoption due to the ease of learning and performing surgical procedures in virtual reality.

Technology Insights

Technology aside, the augmented and virtual reality segments dominated the healthcare market and accounted for 59.8% of the total revenue in 2020. Wearables like smart glasses and head-mounted display devices can create augmented reality, which allows for a 3D view to be created of objects and the surrounding environment. Technology advancements, rising demand for efficient treatment and increasing public and private investments, as well as a falling price for head-mounted devices, are some of the factors driving the demand.

The virtual reality market is expected to grow significantly over the next few years. Virtual reality allows users to interact with a 3-dimensional environment. It offers huge potential for rehabilitation and pain management. Virtual Reality exposure therapy can be used to treat phobias like fear of heights, driving, claustrophobia and other post-traumatic stress disorders. The market is growing because of factors such as the rise in neurological disorders and the rising demand for more diagnostic methods.

Regional Insights

According to region, North America was the dominant market for augmented reality (AR), and virtual reality (VR), in the healthcare industry. It also accounted for the largest share of revenue at 40.7% in 2020. These factors are driving the region's growth, including higher adoption of these technologies and investment in R&D activities. The National Institute of Health of the United States offers funds to support research into virtual reality and its use in healthcare. Due to rising pressure from payers and healthcare providers to lower treatment costs, North American healthcare IT services are on the rise. This has had a positive impact on the growth of the healthcare market in North America for virtual reality and augmented reality.

Asia Pacific will be the fastest growing market in the future due to increased awareness and improved healthcare infrastructure. In order to outsource services related to AR and VR technology in healthcare, developing markets like India, Brazil, China, Mexico, and Brazil are attractive destinations. Due to a lack of awareness and lower adoption of these technologies by the populace, Latin America, Middle East and Asia Pacific remain at a very early stage of development. Countries like Israel and UAE are seeing an increase in healthcare spending and quality services. This will further propel the region's market growth over the forecast period.

Market Share Insights & Key Companies

In order to counter the competition, the market for augmented reality/virtual reality in healthcare is seeing a rise in investment in R&D activities and mergers and acquisitions. Mindmaze and BioflightVR are two of the many startups that have introduced new applications for these technologies to healthcare. The following are some of the most prominent players in the augmented and virtual reality market for healthcare:

• CAE

• GE Healthcare

• Koninklijke Philips N.V.

• Intuitive Surgery

• Siemens Ltd

• Eon Reality, Inc

• Layar

• Bioflight VR

• WorldViz

• TheraSim Inc

• Mindmaze

Up Market Research published a new report titled “Augmented Reality & Virtual Reality In Healthcare Market research report which is segmented by Component (Software, Service, Hardware), by Technology (Augmented Reality, Virtual Reality), By Players/Companies CAE, Bioflight VR, TheraSim Inc, Mindmaze, WorldViz, Layar, Intuitive Surgical, Siemens Ltd, Koninklijke Philips NV, GE Healthcare, Eon Reality Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Augmented Reality & Virtual Reality In Healthcare Market Report Segments:

The market is segmented by Component (Software, Service, Hardware), by Technology (Augmented Reality, Virtual Reality).

Augmented Reality & Virtual Reality In Healthcare Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Augmented Reality & Virtual Reality In Healthcare Market

Overview of the regional outlook of the Augmented Reality & Virtual Reality In Healthcare Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Augmented Reality & Virtual Reality In Healthcare Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Augmented Reality & Virtual Reality In Healthcare Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Software

                2. Service

                3. Hardware

                1. Augmented Reality

                2. Virtual Reality

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Augmented Reality & Virtual Reality In Healthcare Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Augmented Reality & Virtual Reality In Healthcare Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.