The healthcare augmented & virtual reality market is anticipated to witness robust growth through 2027 primarily owing to surging technological adoption in the healthcare sector.

Augmented reality (AR) and virtual reality (VR) technologies have gained massive prominence in the medical industry in recent years, mainly backed by extensive research efforts across the field. Moreover, industry players are promoting technological integration for improved procedural efficiency in medical applications, which has been favorable for market penetration in key regions.

For instance, in August 2021, Rambam Healthcare Medical Center became the first medical center in Israel to use AR and VR technologies for planning and performing surgeries. The medical center announced that it would employ the technologies offered by Surgical Theater, the Israeli-American company. Surgical Theater’s extended reality (XR) platform was purposed to help experts at the neurosurgery and pediatric neurosurgery departments, enabling them to plan surgeries and leverage 3D technology to navigate rather than 2D CT and MRI scans.

Furthermore, companies have been adopting profitable strategic initiatives to enhance their product offerings, thereby propelling industry demand. To cite an instance, in July 2021, XRHealth, an XR and therapeutic applications specialist, announced a collaborative effort with Reducept, a digital health pioneer, to expand its offerings for VR therapy to patients for pain management. The VR technology offers exercises that train people experiencing chronic pain to assist them in gaining control over the pain, potentially reducing their need for medication.

For in-depth assessment, the healthcare augmented & virtual reality market has been segmented based on technology, component, application, end-use, and region. On the basis of technology, the market has further been divided into augmented reality and virtual reality. The virtual reality sub-segment was valued at about USD 466.9 billion in 2020 and is estimated to grow at a substantial pace over 2021-2027.

In terms of component, the healthcare augmented & virtual reality market has been segregated into software, hardware, and services. In 2020, the hardware sub-segment accounted for a market share of around 54.2% and is projected to reach a sizable revenue by the end of 2027.

From the application perspective, the healthcare augmented & virtual reality market has been bifurcated into training & education, behavioral therapy, medical imaging, surgery, and others. The behavioral therapy sub-segment contributes to a significant revenue share in the market and is calculated to exhibit more than 35.6% CAGR over the analysis timeframe.

With respect to end-use, the market has been categorized into hospital, academic institute, clinics/dentist, and others. In 2020, the clinics/dentist sub-segment held a notable market share and is expected to surpass a valuation of USD 3.5 billion by 2027, expanding at a stable CAGR through the study timeline.

In the regional landscape, Latin America accounted for approximately 4.0% of the healthcare augmented & virtual reality market in 2020 and is projected to garner lucrative revenue gains by the end of 2027. Meanwhile, the MEA healthcare augmented & virtual reality market is speculated to showcase steady growth through 2027, progressing at nearly 28.1% CAGR over the forecast period.