Virtual Reality (VR) in Healthcare Market (Updated Version Available)

Key Market Overview:

Virtual Reality (VR) in Healthcare Market is estimated to reach over USD 7634 Million by 2030 from a value of USD 652 Million in 2022, growing at a CAGR of 32% from 2023 to 2030.

Virtual reality (VR) is a simulated three-dimensional computer-generated environment experienced through special equipment, such as VR headset, gloves, and other VR components. VR technology generates an intractable and explorable virtual environment. Virtual environment is generally created using computer graphics. Additionally, users movements and actions are tracked and processed in real-time, allowing movement and interaction in the virtual world.
VR technology have crucial applications in healthcare industry. VR is widely used in training and education of medical students. Moreover, VR technology is also used to simulate emergency situations for surgeons to practice in VR\'s safe environment in order to gain practical skills and raise competence without actually risking human life.

Virtual Reality (VR) in Healthcare Report Coverage:

Report Attributes	Report Details
Study Timeline	2017-2030
Market Size in 2030 (USD Million)	USD 7634 Million
CAGR (2022-2030)	32 %
Base Year	2022
By Component	Hardware, Software, and Services
By Technology	Full-Immersive, Semi-Immersive, and Non-Immersive
By Application	Training and Education, Surgery, Patient Care Management, Rehabilitation & Adjunctive Therapy, Pain Management & Physical Therapy, and Medical Device Marketing
By End Use	Hospitals & Surgical Centers, Research Organizations & Pharma Companies, Government & Defense medical Institutions, Research & Diagnostics Laboratories, and Others
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	Visualise Creative Limited, Surgical Theater, Inc, Osso VR, Oxford Medical Simulation, ImmersiveTouch, Medical Realities, AppliedVR, XRHealth, FundamentalVR, HaptX, and Psious

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Market Dynamics:

Driver:

Virtual Reality application in medical training is one of the major drivers of VR technologies\' demand in the healthcare sector. VR\'s interactive digital models offer students and educators an advanced method for visualizing human anatomy that is significantly superior to traditional methods such as learning through diagrams and books. Additionally, VR models are capable of replicating clinical examinations, such as OSCE (objective structured clinical examination), enabling student\'s evolution in more practical manner. Furthermore, VR is used to simulate surgical procedures with no risk to actual patient\'s life making medical training with VR safer, efficient, and cost-effective.

Restraint:

Prolonged use of virtual reality (VR) has potential side effects, including simulation sickness or cybersickness, headaches, and eye strain. Cybersickness is related to conflicting sensory inputs that cause health implications such as nausea, vomiting, dizziness, and other symptoms. Moreover, after use-effects, such as delays in sensory and motor adaptation of the real-world causing coordination and situational instability. Cybersickness due to prolonged use of VR is a major restraint hindering large scale adoption of VR technologies in healthcare functions. Furthermore, health implication due to use of VR in medical emergency could have sever effects.

Opportunities:

Integration of VR technology with surgical robots could be one of the major opportunities in coming years. Use of Virtual reality (VR) with surgical robots allows surgeons to perform small, precise movements with the robotic arm that are challenging to operate manually. Additionally, VR can enable remote telesurgery, which involves a surgeon operating on a patient located at a different physical location. This means that the surgeon can perform the procedure from a separate location than the patient. Adoption of robotics in healthcare industry will likely fuel the demand for VR technologies in coming years.

Virtual Reality (VR) in Healthcare Market Segmentation:



By Component:

On the basis of component VR technology is divided into Hardware, software and Service. By revenue the hardware segment accounted for largest market share. Healthcare industry has applications of multiple VR devices including VR HMD (Head Mounted Displays) headsets in training. Motion tracking sensors are used in rehabilitation and physical therapy procedures, and VR caves. VR CAVE (Cave Automatic Virtual Environment) are fully immersive virtual rooms that allow multiple users to experience virtual environment simultaneously. VR caves are used in healthcare for team training, surgical planning, and research functions.
Moreover, software segment is estimated to showcase substantial market growth over the forecasted period. With rising applications of VR technologies in medical education and training the demand for sophisticated software is on the rise.

By Technology:

On the basis of technology the VR technology market is divided into full-immersive, semi-immersive, and non-immersive. The full immersive technology type VR accounted for largest market share. The full immersive VR technology generate most realistic virtual experience and imagery. Therefore, full immersive technology is preferred during training and surgical planning. Moreover, full immersive technology is also expected to showcase fastest CAGR over the forecasted period. As full immersive technology will likely be integrated with surgical robots in coming years.

By Authentication Technology:

On the basis of authentication technology smart parcel lockers are categorized into RFID, bio metric, pin code, card key, and smartphone based. In the year 2022 the pin code authentication technology accounted for majority market share. Pin code authentication offers enhanced security and is simple to use.
Moreover, the smartphone based authentication segment is expected to showcase significant growth over the forecasted period. Rising number of smart locker manufacturers are developing smartphone based apps for authentication functions. Authentication by smartphone is quick and convenient. Technologies such as access through mobile OTP (One Time Password) are estimated to propel the growth of smartphone authentication segment.

By Application:

According to applications the VR market is divided into training and education, surgery, patient care management, rehabilitation & adjunctive therapy, pain management & physical therapy, and medical device marketing. Training and education application accounted for the largest market share in the year 2022. Use of VR in training and education has several advantages over traditional methods. Such as allowing students to interact with virtual patients, practice surgical procedures, and learn to diagnose and treat a range of medical conditions without involvement of real patients.
For instance, Singapore General Hospital (largest hospital in Singapore) announced in February 2023 the hospital is shifting to the gamified VR nurse training model in order to enhance nurses training.

Furthermore, the surgery application segment is expected to showcase substantial market growth over the forecasted period. With advancements in robotics the applications of robots in clinical surgery are on the rise. Currently surgeons utilize VR technologies to gain better situational awareness while controlling a robotic device to perform surgery. VR integrated robots for surgery could lead to reduced risks of complications and faster procedures. The use of a robotic device also allows for greater precision during surgery.

By end use:

According to end use the virtual reality (VR) in healthcare market is divided into hospitals & surgical centers, research organizations & pharma companies, government & defense medical institutions, research & diagnostics laboratories, and others. By revenue hospitals & surgical centers segment accounted for largest market share in the year 2022. Hospitals and surgical centers are using VR for various functions including medical training, physical and psychological therapy, and patient care management. According to Cedars-Sinai Health System more than 200 hospitals in U.S. are using VR technologies of healthcare functions as of 2022.
The hospitals & surgical centers segment is also expected to showcase highest CAGR over the forecasted period. Substantial advancements are the field of surgical robotics is anticipated to fuel the demand for VR technologies in coming years. As VR technologies are crucial for situational assessment while operating surgical robots.

By Region

The regional segment comprises of Europe, Asia Pacific, North America, the Middle East & Africa, and Latin America. The North America accounted for largest market share in the year 2022. United States had highest healthcare spending with average of USD 12,308 per person in the year 2021 according to Organization for Economic Co-operation and Development. Massive healthcare industry in U.S. fueled the demand for VR technologies in this region. Additionally, North America region is leading the market in technological advancements in VR technologies owing to presence of key market players.



Furthermore, the Asia Pacific region is estimated to showcase sizeable growth CAGR over the forecasted period. Exponential growth in healthcare industry is countries such as China, India and others is projected to propel the demand for VR technologies in this region. For instance, government of India (GOI) allocated USD 10.6 billion for healthcare in 2022-23 budget which was 16.5 % more than previous year. Developments of healthcare sector in Asia Pacific region will likely positively impact the demand for healthcare VR technologies.

Virtual Reality (VR) in Healthcare Market Competitive Landscape:

The report on Virtual Reality (VR) in Healthcare Market presents a comprehensive analysis of macroeconomic factors such as market dynamics, SWOT analysis, segmental analysis and others. In terms of market players, the data is related to business collaborations, mergers and acquisitions, product innovations, and strategies adopted by competitors. These factors are studied to offer an insightful understanding of current market circumstances. Following are the major market players that comprise the latest market concentration–

• Visualise Creative Limited
• Surgical Theater, Inc
• Osso VR
• Oxford Medical Simulation
• ImmersiveTouch
• Medical Realities
• AppliedVR
• XRHealth
• FundamentalVR
• HaptX
• Psious

Recent Developments

• December 2022- BehaVR and OxfordVR, two digital therapeutic companies, announced the merger and will operate under the BehaVR brand to provide a range of virtual reality-based treatments for mental and behavioral health.