AR & VR in Healthcare Market Size 2021-2028 – Increased Application of AR & VR in Mental Health Treatment

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Growing demand for innovative diagnostic techniques for the treatment of complicated diseases is driving the growth of the market

NEW YORK, NY, USA, April 22, 2022 / — The global market size for AR and VR in healthcare is expected to reach USD 11.49 billion in 2028 and register a CAGR of 24.3% over the forecast period, according to the latest Reports and Data report. Rapid digitalization and increasing government initiatives for the modernization of the healthcare industry are driving the market revenue growth.

Adoption of augmented reality and virtual reality in healthcare is growing as more healthcare organizations prepare to upgrade their digital solutions with advanced technologies to improve analytics health care data and procedures. The implementation of advanced technologies has enabled healthcare organizations to connect with patients during the COVID-19 pandemic, providing them with remote and personalized care. These technologies provide feasible solutions to various healthcare challenges like the problem of precision surgeries and offer many advantages for its implementation in medical education and general diagnosis.

Virtual reality and augmented reality technology are used by healthcare companies to improve consumer experiences by effectively engaging customers in healthcare operations. This will drive the growth of the AR & VR healthcare market in the coming years. For example, healthcare companies and their customers can organize the sequence of procedures and observe the results using VR applications for aesthetic medicine and orthodontics. Healthcare professionals in the field of ophthalmology can provide their patients with an application that helps patients perform eye screening and rapid diagnosis. There is vision training software proven to improve vision in adult amblyopia, eye disease and visual impairment. Patients and their families gain a better understanding of the problem and will be more involved in their treatment.

However, some factors such as lack of expertise in deploying AR & VR solutions and high cost of installation are hampering the market revenue growth.

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Some highlights of the report

In October 2021, Sumitomo Dainippon Pharma Co. announced that it had signed a partnership agreement with BehaVR, which is a US-based behavioral health company, for the development and commercialization of general wellness products and digital therapies. virtual reality-based prescriptions for the treatment of major mental disorders. health disorders. Sumitomo will provide funding for the development and commercialization of three innovative virtual reality-based therapies for generalized anxiety disorder, social anxiety disorder and major depressive disorder.

The hardware segment accounted for the largest share of revenue in 2020. AR and VR hardware like smart glasses, head-mounted displays, 3D sensors saw increased adoption as this technology improves clinical outcomes and helps deliver advanced care. The high rate of adoption of AR & VR hardware devices in developed countries is driving the revenue growth of the segment.

Augmented reality is increasingly being used in healthcare for minimally invasive surgery and surgical preparation. Growing demand to reduce the complexity of medical procedures and advancements in technology are resulting in increased adoption of augmented reality technology. As augmented reality matures and becomes user-friendly and affordable, more healthcare organizations are adopting it as an important tool for educating, communicating, and engaging patients.

There is vast potential for AR & VR application in medical imaging at different stages such as diagnosis, detection and treatment. AR & VR can be used for tumor imaging during chemotherapy. The use of AR and VR technologies in imaging applications can offer information about changes in tumor size and track its growth during treatment. 3D imaging with AR and VR can improve visualization of tumors and other additional details such as microcalcification which is a tiny abnormal deposit of calcium salts.

The hospital segment accounted for a significant portion of revenue in 2020. AR and VR tools are rapidly being adopted in hospitals for diagnosis, surgeries, post-operative services, and other medical training procedures. Various hospitals are integrating advanced digital devices to gain efficiency and reduce overall costs over the forecast period. Government initiatives to modernize hospitals in developing countries are also driving the segment’s revenue growth.

Due to improved healthcare infrastructure, the Asia-Pacific market is expected to grow at the fastest revenue CAGR during the forecast period. Emerging technological advancements in information technology and government support for the integration of these technologies in the medical field contributes the significant share of market revenue.

Companies profiled in the global market report include Microsoft Corporation, Mindmaze, Psious, Medical Realities, Firsthand Technology, Augmedix, Inc., Siemens Healthineers, Philips Healthcare, GE Healthcare, and FundamentalVR.

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The report also offers detailed information on market segmentation based on type, application and regional bifurcation:

Augmented Reality and Virtual Reality (AR & VR) in Healthcare Market Segmentation:

Components Outlook (Revenue, USD Billion; 2018-2028)


Technology Outlook (Revenue, USD Billion; 2018-2028)

Augmented reality
Head-mounted display (HMD)
Portable device
Virtual reality
Head-mounted display (HMD)
Gesture Trackers
Projectors and display walls

Application Outlook (Revenue, USD Billion; 2018-2028)

Simulation & diagnostics
Patient Care Management

End-Use Outlook (Revenue, USD Billion; 2018-2028)

Hospitals & Clinics
Surgical centers
Research organizations

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Regional outlook:

North America
The rest of Europe
Asia Pacific
South Korea
Rest of APAC
Latin America
Rest of LATAM
Middle East and Africa
Saudi Arabia
United Arab Emirates
South Africa
Rest of MEA

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