Virtual Reality in Healthcare Market Analysis | 2023-2028

Market Insights

"The virtual reality in healthcare market was estimated at USD 425.23 million in 2022 and is likely to grow at a CAGR of 31.39% during 2023-2028 to reach USD 2203.63 million in 2028".

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Market Dynamics

Introduction

Virtual reality is poised to transform the healthcare industry. It enables the integration of IT solutions in healthcare by changing how patients are treated. It also aids in medical training, medical marketing, surgical procedures, and disease awareness. When combined with other techniques such as MRI/CT scans, virtual reality can be a powerful diagnostic tool. Furthermore, it aids in the treatment of panic attacks and anxiety; cognitive distraction methods, as well as virtual reality, aid in the treatment of pain.

COVID-19 Impact

During the pandemic, the healthcare industry's demand for virtual reality tools skyrocketed. Its implementation allowed medical personnel to comprehend and investigate the impact of the new strain. The technology provided medical professionals with real-time radio graphical insights, demonstrating the disease's impact on patients' bodies. The majority of COVID-recovered patients have Post-Intensive Care Syndrome. In such a case, virtual reality technology can assist patients in recovering from the syndrome through virtual rehab sessions.

Market Drivers

The virtual reality in healthcare market is driven by a host of factors, some of which are noted below:

Increase in the incidence of neurological disorders, Increase in demand for innovative diagnostic techniques, Increase in awareness of the benefits of virtual reality technologies, Recent advancements in information technology, such as advanced computers, laptops, internet connectivity, and mobile applications, High treatment costs, user data privacy concerns, and lack of access to virtual reality technology in developing economies, On the contrary, the increased use of VR in advanced dental procedures and cancer therapies are driving the market growth.

Challenges:

• Cost: Virtual Reality headsets and other hardware can be expensive, which can make it difficult for healthcare providers to afford them.
• Technology limitations: The current state of Virtual Reality technology is not yet advanced enough to provide a fully immersive experience. This can make it difficult for some patients to become engaged in Virtual Reality therapy.
• Acceptance: There is still some resistance to the use of Virtual Reality in healthcare among some patients and healthcare providers. This is due to a lack of understanding of the technology and its potential benefits.
• Safety: There are some concerns about the safety of Virtual Reality, particularly in the context of medical applications. For example, there have been reports of users experiencing nausea, dizziness, and headaches after using Virtual Reality headsets.
• Regulation: There is currently no clear regulatory framework for Virtual Reality in healthcare. This can make it difficult for healthcare providers to adopt Virtual Reality technology.

Opportunities:

• Medical training: Virtual Reality can be used to create realistic simulations of surgical procedures or other medical tasks. This can help trainees to develop their skills and knowledge in a safe and controlled environment.
• Pain management: Virtual Reality can be used to distract patients from pain by immersing them in a virtual environment. This can be a helpful tool for managing pain during surgery, childbirth, or other medical procedures.
• Mental health: Virtual Reality can be used to treat a variety of mental health conditions, such as anxiety, depression, and post-traumatic stress disorder. VR can be used to create exposure therapy simulations, which can help patients gradually confront their fears in a safe and controlled environment.
• Patient education: Virtual Reality can be used to create interactive educational experiences that can help patients understand their condition and treatment options. This can be a helpful tool for improving patient compliance and outcomes.

Trends:

Increasing Wearable Technology is Fueling Market Growth: Wearable technology is revolutionizing healthcare by making it more convenient and affordable. The integration of virtual reality with wearable devices, such as fitness trackers and goggles, is expected to enhance industry development. Virtual reality headsets can also treat mental health issues like depression instantly, providing patients with a safer environment. This integration with wearable devices will enable real-time medical insights, increasing market revenue in the future.

Segments Analysis

By End Users Type

"The Hospitals and Clinics segment accounted for the largest market share in 2022".

• The market has been bifurcated into Hospitals and Clinics, Research Laboratories, and Other End Users.
• Because of an increase in the use of virtual reality for surgeons to assist them during surgeries in hospitals worldwide, the increased use of virtual reality in neurological disorders and cancer treatments in hospitals is expected to drive demand for the market.

Regional Analysis

"The market is expected to be dominated by North America".

• The VR market for healthcare in terms of revenue is expected to remain dominant during the forecast period. Furthermore, the increase in private and government funding for developing these technologies in the healthcare sector, as well as the availability of advanced healthcare infrastructure in the region, is driving the growth of the market.

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Key Players

The following are the key players in the Virtual Reality in Healthcare Market (arranged alphabetically).

• 3D Systems (US)
• Atheer (US)
• Augmedix (US)
• CAE Healthcare (US)
• DAQRI (US)
• Firsthand Technology (US)
• Google (US)
• HTC (Taiwan)
• Medical Realities (UK)
• Microsoft (US)
• Mindmaze (Switzerland)
• Oculus VR (US)
• Philips Healthcare (Netherlands & US)
• Psious (Spain)
• Siemens Healthineers (Germany)
• VirtaMed (Switzerland)
• Virtually Better (US)

There is stiff competition in the market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate their VR applications by offerings on the basis of their quality and their penetration in the target and emerging markets. Also, there have been some major development strategies adopted by key players in the industry in recent years, which significantly influenced the competitive dynamics. For example:

On 27 March 2023, Royal Philips launched Philips Virtual Care Management, a flexible solution offering flexible services to help health systems, providers, payers, and employer groups connect with patients remotely. This can reduce hospital staff pressure and improve chronic disease management, ultimately lowering care costs.

On 10 March 2022, HTC VIVE, a leading VR platform, will showcase unique experiences at South By Southwest 2022, partnering with MyndVR and Holoride. The company will participate in panels on VR entertainment, health, gaming, and human interaction. VIVE ORIGINALS will introduce the world premiere of the first VR concert experience on BEATDAY and screen "The Sick Rose" on VIVE Focus 3.

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the dynamics and will enable strategic decision-making for the existing players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.
• We conducted more than 10 detailed primary interviews with companies across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

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Company Profiling

• Detailed profiling of additional market players (up to 3 players)
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Competitive Benchmarking

• Benchmarking of key players on the following parameters: Technology portfolio, geographical reach, regional presence, and strategic alliances.

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