Double-Digit Growth Ahead for Healthcare Augmented/Virtual Reality Market

A 35 percent annual growth is a likely reality this decade for the healthcare augmented reality and virtual reality sector.

The global market is estimated to reach $39.08 billion by 2030, driven by rising demand for advanced diagnostic technologies, Kenneth Research data shows. Statistics from the World Health Organization (WHO) indicate there were 10 million cancer-related deaths in 2020. The most common causes of cancer deaths that year were lung cancer (1.8 million), colon and rectum cancer (935,000), liver cancer (830,000), stomach cancer (769,000), and breast cancer (685,000). Moreover, in the year 2019, around 17.9 million people died from cardiovascular diseases, which represented 32 percent of all deaths worldwide.
  
The need for accurate diagnostics, backed by the increasing prevalence of chronic diseases globally, is increasing at a significant pace. Aided by growing health expenditures—which reached 9.85 percent (as a share of GDP) in 2018, up from 9.13 percent in 2008 (World Bank figures)—research and development in healthcare has witnessed significant growth over the past few years. In addition, with the advent of information technology, the use of advanced technologies such as augmented reality and virtual reality in combination with other industrial sectors including healthcare, has proven beneficial for healthcare professionals. Such a factor is therefore anticipated to drive the market growth. The global healthcare augmented reality & virtual reality market was valued at  $2.01 billion in the year 2020, and is expected to grow 35 percent annually through 2030.
 
Besides diagnosing disease, augmented reality and virtual reality in healthcare is also used for providing medical training to healthcare professionals, as these tools allow clinicians to re-create real-world images of anatomical structures in a virtual manner. Owing to the surge in the number of applicants admitted in medical schools worldwide, the demand for these advanced tools in healthcare is anticipated to increase, and in turn, drive the market growth. According to Association of American Medical Colleges (AAMC) statistics, the number of applicants admitted to the medical schools in the United States increased from 36,083 applicants in the 1980-81 academic year to 62,443 applicants in the 2021-22 academic year.
 
The global healthcare augmented reality and virtual reality market is segmented by region: North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Amongst the market in these regions, North America registered the largest revenue ($868.4 million) in 2020, and is projected to reach $16 billion by the end of 2030. The market in the region is further segmented by country into the United States and Canada. The U.S. market is projected to garner the largest revenue ($1.26 billion) by the end of this year, while the market in Canada is projected to expand the most (35.6 percent) over the next eight years.
 
On the other hand, the market in Europe is projected to hold the second-largest revenue $10.78 billion by the end of 2030. The market in the region was valued at $563.9 million in 2020. By country, the market in the region is segmented into Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, and the Rest of Europe. The German market registered the largest revenue ($135.6 million) in 2020, and is expected to reach $2.5 billion by the end of 2030. The market in Russia is expected to have the highest annual growth rate (38.2 percent) over the next eight years.
 
The global healthcare augmented reality and virtual reality market is segmented by end-user into hospitals and other medical facilities, research organizations and pharmaceutical companies, diagnostics laboratories, and others. Out of these, the hospitals and other medical facilities segment generated the largest revenue ($1.02 billion) in 2020 and is expected to reach $20.66 billion by the end of 2030. North America is projected to take the lion’s share of revenue ($8.48 billion) by the end of 2030, up from $442.9 million in 2020. Europe had the largest revenue total in 2020 ($287.6 million) and is expected to reach $5.71 billion by the end of 2030.
 
The global healthcare augmented reality and virtual reality market is segmented by application into surgery, fitness management, patient care management, pharmacy management, medical training and education, and others. The medical training and education segment is projected to register the largest value ($10.62 billion) by the end of 2030. In 2020, the segment was worth $544.6 million. North America recorded the largest revenue ($234.5 million) in 2020, and is expected to reach $4.33 billion by the end of 2030. On the other hand, in Asia Pacific, the segment is anticipated to have the largest revenue ($2.35 billion) by the end of 2030, up from $105.6 million in 2020.