Virtual Reality (Vr) In Healthcare Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, Canada - Size and Forecast 2024-2028

Virtual Reality in Healthcare Market Size 2024-2028

The Virtual Reality in Healthcare market size is forecast to increase by USD 25.31 billion, at a CAGR of 50.22% between 2023 and 2028. Market expansion relies on multiple factors, notably the increasing demand for healthcare services driven by demographic shifts and rising health consciousness. Moreover, advancements in healthcare technology have led to improved quality of products and services, enhancing patient outcomes and satisfaction. Virtual reality (VR) is emerging as a transformative tool in healthcare, offering innovative solutions for medical training, patient education, and therapeutic interventions. Its immersive capabilities enable realistic simulations and experiences, leading to enhanced learning outcomes and improved patient engagement. As healthcare providers increasingly recognize the benefits of VR technology, its adoption is expected to accelerate, further driving market growth. By leveraging these factors, the healthcare industry is poised for continued expansion, with VR playing a pivotal role in shaping the future of healthcare delivery and patient care.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

By Deployment

The market 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, including 3D animation software, 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 647.20 million in 2018. Companies such as Mindmaze offer virtual reality software that can be used to treat patients with neurological disorders by creating virtual environments for neurodiagnostics 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.

By Region

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Europe is estimated to contribute 33% 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 (VR) in healthcare is witnessing significant growth, particularly in the content creation market. The ability to generate realistic and interactive simulations for medical training and therapy sessions is driving demand. Data analytics plays a crucial role in VR healthcare applications, enabling the collection, processing, and interpretation of patient data for personalized treatment plans. System capabilities, such as high-resolution graphics and real-time rendering, are essential for creating immersive experiences. Payload capabilities, including the integration of sensors and advanced imaging technologies, including breast imaging technologies, expand the functionality of VR systems in healthcare. These advancements are revolutionizing the industry, offering new opportunities for diagnosis, treatment, and research.

Market Dynamics and Customer Landscape

In the market, devices and software like PlayStation Headset and Microsoft HoloLens 2 are revolutionizing patient care and medical training. Leveraging advancements in the gaming industry and entertainment industry, virtual reality (VR) offers immersive experiences for virtual training and medical simulations. These technologies integrate computer hardware with sophisticated gesture recognition systems and embedded electronic components, enhancing precision in procedures. Widely adopted in the military sector and consumer sector, VR has found applications in the training sector and education sector, improving learning outcomes. With growing adoption in retail and gaming, VR solutions like HMDs, HUDs, and OLED displays pave the way for innovative healthcare interventions. Virtual Reality (VR) in healthcare enhances engineering and maintenance, assists in designing and simulation events, and supports workers and employees with VR projectors and projectors. This technology revolutionizes medical training, patient care, and therapeutic interventions, offering immersive experiences for improved outcomes in the healthcare sector.

Key Market Driver

Growing demand for healthcare services is notably driving 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.

Additionally, 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 Market Trends

The advent of Industry 4.0 is a key trend influencing the 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.

Further, 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 Market Challenge

Infrastructural and integration issues are challenging 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.

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.

Market Customer Landscape

Who are the Major Market Players?

Market players are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence market.

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 companies, 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.

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Component Outlook 
  • Software
  • Services

• End-user Outlook 
  • Research and diagnostics
  • Hospitals and clinics
  • Others

• Region Outlook
  • 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

Market Analyst Overview:

Amid the coronavirus outbreak, the healthcare sector embraces advanced hardware like head-mounted displays and gesture tracking devices integrated with powerful processors to enhance medical training and patient care. These technologies, originally developed for commercial industries and aerospace and defense, are now revolutionizing healthcare by offering immersive experiences for training, diagnosis, and treatment planning. With applications in enterprise settings, real estate, and geospatial mining, VR systems demonstrate their versatility, while their content creation capabilities and system and payload capabilities ensure their effectiveness in addressing various healthcare challenges with precision and innovation.

Further, innovative processor technology has spurred collaborations between automobile companies and healthcare providers, introducing VR applications for diagnostics and therapy. Head mounted displays provide immersive experiences for medical training, while display walls facilitate collaborative analysis of patient data. The content creation market drives the development of tailored VR solutions, leveraging advanced system capabilities to deliver realistic simulations and treatment scenarios. Through these advancements, VR technology is revolutionizing healthcare, enhancing medical education, diagnosis, and treatment planning with unprecedented levels of immersion and precision.

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

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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