Global Virtual Reality (VR) and Augmented Reality (AR) Technology for Healthcare Market – Industry Trends & Outlook
The global virtual reality (VR) and augmented reality (AR) technology for healthcare market was valued at US$ 3.57 Billion in 2023. The market size reached US$ 4.10 Billion in 2024 and is expected to reach US$ 15.06 Billion by 2033, growing at a CAGR of 15.4% during the forecast period 2025-2033.
The global virtual reality (VR) and augmented reality (AR) technology market for healthcare refers to the application of immersive digital technologies such as VR headsets, AR overlays, and mixed reality systems to enhance various aspects of medical practice. These technologies are used in medical training, surgical planning and navigation, patient treatment, rehabilitation, diagnostics, and remote consultations.
Key drivers include rapid technological advancements, increased healthcare digitalization, and rising demand for innovative solutions in medical education and training. The need for realistic, risk-free simulations to improve the skills of healthcare professionals, the growing adoption of telemedicine, and the rising prevalence of chronic and neurological diseases are major contributors.
The market is witnessing significant trends such as the integration of AI for personalized treatment, enhanced visualization in medical imaging, and the use of VR for preoperative planning and immersive therapy for neurological disorders. There is a surge in the development of VR-based medical training modules, remote surgical assistance, and real-time virtual consultations.
The adoption of wearable devices, advancements in AR/VR software, and the expansion of applications into mental health, pain management, and fitness are also shaping the market landscape. Furthermore, the emphasis on personalized healthcare and improved patient engagement is driving innovation in AR/VR solutions.
Global Virtual Reality (VR) and Augmented Reality (AR) Technology for Healthcare Market – Executive Summary
Global Virtual Reality (VR) and Augmented Reality (AR) Technology for Healthcare Market Dynamics: Drivers
Increasing usage of AR/ VR technologies in healthcare
The increasing usage of AR and VR technologies is a key driver propelling the global healthcare market for these solutions. Healthcare providers are adopting AR and VR to enhance clinical training, improve patient outcomes, and streamline procedures. These technologies enable immersive simulations for medical education, allowing practitioners to practice complex surgeries and procedures in a risk-free environment.
AR is also being used to overlay critical patient data and anatomical guidance during real surgeries, improving precision and reducing errors. VR, meanwhile, is transforming pain management, rehabilitation, and mental health therapy by providing interactive, patient-centered experiences that can be tailored to individual needs.
For instance, in April 2025, CADIS HealthTech introduced EziExpert, a cutting-edge telehealth platform that leverages both virtual and augmented reality for remote consultations. This innovative solution empowers connected healthcare assistants to act as true extensions of remote physicians, enabling more interactive, immersive, and effective virtual care experiences.
Growing adoption in rehabilitation and mental health
The growing adoption of AR and VR technologies in rehabilitation and mental health is a significant driver for the global healthcare market. In rehabilitation, these technologies are transforming physical and cognitive therapy by making exercises more engaging and interactive. VR-based interventions, such as gamified treadmill training, virtual object manipulation, and immersive daily activity simulations, have been shown to improve mobility, balance, and upper limb function in patients recovering from stroke, traumatic brain injury, and cerebral palsy.
In mental health, AR and VR are providing new, effective therapeutic options for conditions such as anxiety, phobias, post-traumatic stress disorder (PTSD), and chronic pain. VR exposure therapy allows patients to confront and manage triggers in a controlled, immersive environment, supporting better outcomes compared to traditional approaches.
For instance, in February 2025, Guidance launched to ensure the safety of digital mental health technologies, which include apps, AI-powered assessments, and virtual reality therapy. These technologies are increasingly being used by individuals and the NHS to support mental health care, especially as access to traditional services can be limited.
Global Virtual Reality (VR) and Augmented Reality (AR) Technology for Healthcare Market Dynamics: Restraints
High initial costs and infrastructure barriers
High initial costs and infrastructure barriers are significant restraints limiting the widespread adoption of AR and VR technologies in healthcare. The upfront investment required for high-quality hardware, such as headsets and compatible computers, can be substantial, often ranging from several thousand to tens of thousands of dollars per unit, depending on the complexity and quality of the system.
Infrastructure barriers compound these financial challenges. Many healthcare facilities lack the necessary technical infrastructure, such as dedicated treatment rooms, reliable high-speed internet, and robust IT support, to effectively implement and sustain AR/VR solutions. Integration with existing clinical workflows and electronic systems can be complex and resource-intensive, often requiring specialized technical expertise that may not be readily available.
Global Virtual Reality (VR) and Augmented Reality (AR) Technology for Healthcare Market Dynamics: Opportunities
Expansion of personalized rehabilitation and therapy
The expansion of personalized rehabilitation and therapy represents a major opportunity for the global AR and VR healthcare market. AR and VR technologies enable highly individualized treatment plans by allowing clinicians to tailor exercises, simulations, and therapeutic environments to each patient’s unique needs, medical history, and progress.
Moreover, AR and VR facilitate remote and home-based rehabilitation, making it possible for patients to access high-quality therapy outside traditional clinical settings. This is particularly valuable for individuals with mobility challenges or those living in rural or underserved areas, as it reduces barriers to care and allows for continuous monitoring and adjustment of therapy plans.
As healthcare systems increasingly shift toward value-based care and patient-centered models, the ability to deliver personalized, data-driven rehabilitation and therapy through AR and VR is expected to drive demand and open new revenue streams for technology providers. Ongoing advancements in wearable devices, AI integration, and real-time data analytics will further enhance the precision and effectiveness of personalized therapy, solidifying AR and VR’s role as transformative tools in modern healthcare.
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Global Virtual Reality (VR) and Augmented Reality (AR) Technology for Healthcare Market - Segment Analysis
The global virtual reality (VR) and augmented reality (AR) technology for healthcare market is segmented based on component, technology, application, end-user, and region.
Technology:
The augmented reality technology segment is expected to hold 56.4% of the global virtual reality (VR) and augmented reality (AR) technology for healthcare market in 2024
The augmented reality (AR) technology segment in the healthcare market is experiencing rapid growth, driven by its expanding applications and technological advancements. AR technology is being increasingly adopted in healthcare because it enhances the visualization of complex medical data, such as CT and MRI scans, by overlaying stereoscopic projections during surgeries.
The AR technology segment is poised for even greater expansion due to rising demand for innovative, cost-effective, and patient-centered healthcare solutions. The growing prevalence of chronic diseases, an aging global population, and the need for efficient clinical workflows are all contributing to increased AR adoption.
Furthermore, trends such as AR-based diagnostic imaging, AR wearables for health monitoring, and integration with electronic health records (EHR) are expected to shape the future of this market. As healthcare systems worldwide continue to digitize, AR is set to play a pivotal role in improving patient outcomes, operational efficiency, and overall quality of care.
For instance, in March 2024, the IIT Madras Pravartak Technologies Foundation partnered with VyVoxel International, a global leader in AR/VR/MR technologies, to launch a comprehensive online course in AR/VR programming. This 60-hour program is designed to equip students with essential skills for the fast-evolving fields of Augmented Reality and Virtual Reality, covering key tools such as Unity 3D, C# programming, Vuforia, and the XR Interaction Kit.
Also, in March 2025, Pixee Medical, recognized as a global leader in augmented reality (AR) navigation technologies for orthopedic surgery, launched its advanced AR solution—Knee+ NexSight—for total knee arthroplasty (TKA) in the U.S. market, debuting at the American Academy of Orthopedic Surgeons (AAOS) annual meeting. These factors have solidified the segment's position in the global virtual reality (VR) and augmented reality (AR) technology for healthcare market.
Global Virtual Reality (VR) and Augmented Reality (AR) Technology for Healthcare Market – Geographical Analysis
North America is expected to hold 47.6% of the global virtual reality (VR) and augmented reality (AR) technology for healthcare market in 2024
One of the primary drivers is the region’s advanced healthcare infrastructure and its early adoption of digital technologies. North America, particularly the United States, possesses a mature ecosystem that enables the swift integration and scaling of AR/VR solutions across clinical environments. This is further supported by the presence of leading VR and healthcare technology companies, which accelerate the development and commercialization of new applications.
The growing demand for advanced medical training and improved surgical precision is another major driver. AR and VR enable immersive simulations for medical education, allowing practitioners to visualize complex anatomical structures in 3D and practice procedures in risk-free environments. These technologies also enhance surgical planning and navigation, reducing medical errors and improving patient outcomes.
The integration of AR/VR with other advanced technologies, including artificial intelligence (AI), the Internet of Things (IoT), and 5G connectivity, is further expanding the capabilities of these platforms. This convergence enables real-time patient monitoring, data-driven personalized care, and immersive teleconsultations, making healthcare delivery more precise and responsive.
For instance, in April 2024, the FDA launched the "Home as a Health Care Hub" initiative, a forward-looking program that leverages augmented reality (AR) and virtual reality (VR) collectively called extended reality (XR) to transform the home into an integral part of the healthcare system, with a strong focus on advancing health equity.
Also, in May 2024, AppliedVR, a leader in immersive therapeutics, launched its flagship RelieVRx prescription device into the workers’ compensation sector. RelieVRx is the first FDA-authorized, comprehensive virtual reality treatment designed specifically for chronic lower back pain. Thus, the above factors are consolidating the region's position as a dominant force in the global Virtual reality (VR) and augmented reality (AR) technology for healthcare market.
Asia Pacific is expected to hold 20.9% of the global virtual reality (VR) and augmented reality (AR) technology for healthcare market in 2024
Asia-Pacific is experiencing a technological boom, with significant investments from both the government and private sectors directed toward healthcare innovation. Countries like China, Japan, and India are leading in adopting and developing VR and AR for medical training, patient care, and mental health therapies. National policies, such as those in China, are actively promoting the growth of digital health technologies and expanding the market scale for VR and AR in healthcare.
The region’s vast and aging population is driving demand for accessible, affordable, and high-quality healthcare. VR and AR technologies are being leveraged to expand medical training opportunities and deliver specialized care to remote and underserved communities. These solutions help bridge gaps in healthcare access and quality, which is especially important as Asia-Pacific faces a rapidly increasing elderly demographic.
There is a growing preference for non-invasive and innovative treatment options in the region. VR and AR offer alternatives for pain management, rehabilitation, and therapy that are less invasive and more engaging for patients.
The adoption of AR and VR is being accelerated by the convergence with other digital health trends, such as big data analytics, cloud computing, and the Internet of Things (IoT). The region’s rapidly improving IT infrastructure, growing internet penetration, and rollout of high-speed 5G networks are making it easier to deploy advanced AR/VR solutions in healthcare settings, further enhancing their effectiveness and reach.
For instance, in January 2025, the Indian Institute of Technology Delhi (IIT Delhi) launched a six-month Executive Programme in Virtual and Augmented Reality under its Continuing Education Programme (CEP). This blended learning course is tailored for professionals and recent graduates, equipping them with advanced knowledge and practical skills in AR and VR technologies.
Also, in February 2024, MediThinQ, a pioneering Korean startup, became the first Asian company to globally launch extended reality (XR) wearable surgical displays designed for use in live surgeries. These innovative devices, such as Scopeye and MetaSCOPE, present critical surgical information directly in front of the surgeon’s eyes, eliminating the need to look away at external screens.
Global Virtual Reality (VR) and Augmented Reality (AR) Technology for Healthcare Market – Competitive Landscape
The major global players in the virtual reality (VR) and augmented reality (AR) technology for healthcare market include F. Hoffmann-La Roche Ltd, CAE Inc., EON Reality, Inc., InfiVR Solutions, Vection Technologies, Siemens Healthcare S.A.E., Fundamental Surgery, Koninklijke Philips N.V., Novac Technology Solutions, and Softeq Development Corp., among others.
Global Virtual Reality (VR) and Augmented Reality (AR) Technology for Healthcare Market – Key Developments
In May 2025, UAE-based startup X-Technology launched an immersive virtual reality (VR) platform designed to enhance emotional and cognitive well-being in clinical and rehabilitation environments. The platform integrates neuroscience, psychology, and AI to deliver tailored VR programs for patients dealing with cancer, Alzheimer’s, trauma, and chronic stress, and is intended for use in hospitals, wellness centers, and home care settings.
In April 2025, Pixee Medical, a leader in augmented reality (AR) navigation for orthopedic surgery, received FDA 510(k) clearance for its innovative AR guidance system called Knee+ NexSight. This clearance means the device has been reviewed by the U.S. Food and Drug Administration and found to be safe and effective for clinical use in the United States.
In March 2024, Siemens Healthineers launched Cinematic Reality, an app designed for the Apple Vision Pro that enables surgeons, medical students, and patients to view immersive, interactive holograms of the human body created from medical scans within their real-world environment.
Global Virtual Reality (VR) and Augmented Reality (AR) Technology for Healthcare Market – Scope
Metrics | Details | |
CAGR | 15.4% | |
Market Size Available for Years | 2022-2033 | |
Estimation Forecast Period | 2025-2033 | |
Revenue Units | Value (US$ Bn) | |
Segments Covered | Component | Hardware, Software, Services |
Technology | Augmented Reality, Virtual Reality | |
Application | Surgical Applications, Simulation & Diagnostics, Wound Care Management, Physical Therapy & Rehabilitation, Training & Medical Education, Virtual Reality Exposure Therapy (VRET), Others | |
End-User | Hospitals & Specialty Clinics, Surgical Diagnostic Centers, Others | |
Regions Covered | North America, Europe, Asia-Pacific, South America, and the Middle East & Africa | |
The global virtual reality (VR) and augmented reality (AR) technology for healthcare market report delivers a detailed analysis with 70 key tables, more than 65 visually impactful figures, and 173 pages of expert insights, providing a complete view of the market landscape.
