Virtual Reality (VR) Market in Healthcare by Component, End-user, and Geography - Forecast and Analysis 2023-2027

Virtual Reality (VR) in Healthcare Market Report Summary: 2023-2027

 Global Virtual Reality (VR) Market in Healthcare market size is estimated to grow at a CAGR of 32.85% between 2022 and 2027. The market size is forecast to increase by USD 9,019.06 million. The growth of the market depends on several factors, including growing demand for healthcare services, improved quality of products and services in healthcare, and advantages of virtual reality in healthcare.

This virtual reality market in healthcare market report extensively covers market segmentation by component (software and services), end-user (research and diagnostics, hospitals and clinics, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Virtual Reality Market in Healthcare Market During the Forecast Period?

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Virtual Reality Market in Healthcare Market: Key Drivers, Trends, Challenges, and Customer Landscape

 Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Virtual Reality Market in Healthcare Market Driver

Growing demand for healthcare services is notably driving the Virtual Reality (VR) in Healthcare Market growth. The rising aging population across the globe, along with rising global disposable income, are two key factors expected to drive increased uptake and access to modern healthcare services during the forecast period. In addition, chronic diseases and the need for improved healthcare are increasing. More medical services and staff are urgently needed to effectively deal with the growing number of patients. This has led to the emergence of new mobile applications and systems using virtual reality in the healthcare industry.

Current workforce levels across the healthcare industry are expected to be insufficient to handle the large influx of patients expected during the forecast period. Therefore, the shortage of skilled manpower in the medical industry is a key factor in driving the adoption of advanced and improved technology in this field. This growing demand for healthcare services will therefore drive increased adoption of virtual reality solutions in the healthcare sector to reduce human labor, achieve operational efficiencies and improve the overall quality of services across the industry. All these factors will drive the growth of the market during the forecast period. 

Significant Virtual Reality Market in Healthcare Market Trends

The advent of Industry 4.0 is a key trend influencing the virtual reality (VR) market in healthcare market. Technology has transformed the industrial world, integrating traditional manufacturing and industrial processes with advanced technology. Industry 4.0 refers to the use of emerging digital technologies and smart automation in business and production processes. This integration helps in creating connected and smart systems, which eventually leads to strategic and operational advantages. The advent of advanced technologies such as 3D printing, additive manufacturing, the Industrial Internet of Things (IIoT), AI, augmented reality, virtual reality, and Big Data Analytics has been a positive pointer to Industry 4.0.

With the advent of Industry 4.0, healthcare companies are increasingly adopting sensors and the Internet of Things (IoT) for the effective monitoring of patients and to provide treatment in real-time. The growing incorporation of the Industry 4.0 paradigm into the healthcare industry is expected to make the entire industry more advanced and intelligent as augmented and virtual reality systems are expected to deploy self-monitoring and analytic capabilities to drive operational efficiencies. By integrating augmented and virtual reality systems into healthcare processes, connections within the system can create feedback loops. It provides a way to collect data and gain insights through IIoT-enabled distributed analytics to improve the efficiency and productivity of critical processes. Therefore, the emergence of Industry 4.0 is expected to spur the growth of the market during the forecast period. 

Major Virtual Reality Market in Healthcare Market Challenge

Infrastructural and integration issues are challenging the virtual reality (VR) market in healthcare market growth. One of the major challenges hindering the growth of the market is the infrastructure and integration issues faced by healthcare industry processes. Effective implementation of virtual reality solutions requires access to high-speed, high-bandwidth internet. Issues such as lack of connectivity, lack of power, and slow networks can cause system downtime and impact business productivity. This is a key challenge for the effective implementation of advanced systems in the healthcare industry, especially in developing countries such as China, India, and Japan. Additionally, different virtual reality technologies have their own configuration, leading to integration problems within the system. As a result of these integration issues, consumers are expected to face interoperability issues. 

Additionally, every upgrade to augmented and virtual reality systems brings its own set of interoperability issues. Critical to the healthcare industry, the pharmaceutical supply chain is complex, involving disparate hardware, legacy systems, and data management, making system integration across the supply chain extremely complex. Therefore, the implementation of virtual reality in healthcare is hampered by various infrastructure and system integration issues, which is expected to slow down the growth of the virtual reality (VR) market in healthcare sector during the forecast period.

What is the Fastest-Growing Segments in the Virtual Reality Market in Healthcare Market?

The virtual reality (VR) market in healthcare share growth by the software segment will be significant during the forecast period. The software segment of the market includes various software applications and platforms used to create, develop and deliver virtual reality experiences for medical purposes. This segment is expected to grow significantly due to the increasing adoption of virtual reality technology in healthcare. Virtual reality software is used for various healthcare applications such as medical training, patient education, treatment, and surgical simulation. Virtual reality software enables medical professionals to create immersive experiences that can simulate complex medical scenarios and deliver personalized medical training. The software can also be used to visualize complex medical data such as medical images and patient records. 

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The software segment was valued at USD 494.24 million in 2017 and continued to grow until 2021. Companies such as Mindmaze offer virtual reality software that can be used to treat patients with neurological disorders by creating virtual environments that challenge the patient's cognitive and motor skills. Virtual reality software can also be used to educate patients and improve patient outcomes. Patients can use virtual reality software to know their health status, understand their treatment options, and visualize treatment plans. For example, companies such as Psious offer virtual reality software that can be used to treat mental disorders such as anxiety and phobias. The software creates a virtual environment that simulates a patient's fears, allowing them to face their fears in a controlled and safe environment. Hence, this segment is expected to contribute significantly to the growth of the virtual reality (VR) market in healthcare during the forecast period.

Which are the Key Regions for the Virtual Reality Market in Healthcare Market?

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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the virtual reality (VR) market in healthcare during the forecast period.

Virtual reality in the North American healthcare sector is primarily driven by the advanced and mature technology landscape across the healthcare industry. This growth is also driven by factors such as rising healthcare costs and increasing digitization in North America. Urbanization and increasing disposable income in North American countries are expected to increase the adoption of virtual reality solutions across the region, driving the growth of the market during the forecast period. One of the most important factors behind the increasing adoption of virtual reality in healthcare is the delivery of quality, convenient services and realistic experiences for patients and healthcare professionals. Today, the rapid increase in investment and innovation is one of the major factors driving the adoption of virtual reality systems to modernize the entire healthcare infrastructure. 

The COVID-19 outbreak had a positive impact on the growth of the market in the healthcare sector in 2020. Healthcare providers increasingly turned to virtual reality technology to provide remote patient care, telemedicine services, and virtual consultations. Virtual reality technology is also being used to create virtual training environments for medical professionals, allowing education and training to continue remotely. Several North American countries have been forced to implement strict lockdowns and refuse physical interaction to contain the spread of COVID-19. This increased the demand for virtual reality in healthcare, which positively impacted the growth of the market in 2020. In 2021, a massive vaccination campaign restarted several business and industrial activities, increasing demand for virtual reality solutions in several industries, including healthcare. 

Key Virtual Reality Market in Healthcare Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Virtual Reality Market in Healthcare Market Customer Landscape

Who are the Major Virtual Reality Market in Healthcare Market Vendors?

Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the virtual reality (VR) market in healthcare.

Alphabet Inc: The company offers different types of virtual reality services such as Google Cardboard in the healthcare sector.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Augmedix Inc
• BioflightVR
• CAE Inc.
• Dassault Systemes SE
• Eon Reality Inc.
• Firsthand Technology Inc.
• GE Healthcare Technologies Inc.
• HTC Corp.
• Intuitive Surgical Inc.
• Koninklijke Philips NV
• Medical Realities Ltd.
• Meta Platforms Inc.
• MindMaze SA
• Samsung Electronics Co. Ltd.
• Siemens AG

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

The virtual reality market in healthcare market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Component Outlook (USD Million, 2017 - 2027)
  • Software
  • Services

• End-user Outlook (USD Million, 2017 - 2027)
  • Research and diagnostics
  • Hospitals and clinics
  • Others

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Virtual Reality Market in Healthcare Market Scope
Report Coverage	Details
Page number	153
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 32.85%
Market growth 2023-2027	USD 9,019.06 million
Market structure	Fragmented
YoY growth 2022-2023(%)	32.46
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 36%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading vendors, market positioning of vendors, competitive strategies, and industry risks
Key companies profiled	Alphabet Inc., Augmedix Inc, BioflightVR, CAE Inc., Dassault Systemes SE, Eon Reality Inc., Firsthand Technology Inc., GE Healthcare Technologies Inc., HTC Corp., Intuitive Surgical Inc., Koninklijke Philips NV, Medical Realities Ltd., Meta Platforms Inc., MindMaze SA, Samsung Electronics Co. Ltd., Siemens AG, Sony Group Corp., Teladoc Health Inc., XRHealth USA Inc., and Psico Smart Apps SL
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Virtual Reality Market in Healthcare Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the virtual reality market in healthcare market between 2023 and 2027
• Precise estimation of the size of the virtual reality market in healthcare market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of virtual reality market in healthcare market vendors

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