Virtual Reality (VR) in The Healthcare Market Report: Trends, Forecast and Competitive Analysis to 2031

The future of global virtual reality (VR) in the healthcare market looks promising with opportunities in the research and diagnostic, laboratories, hospitals & clinics, research organizations, and pharmaceutical company markets. The global virtual reality (VR) in the healthcare market is expected to reach an estimated $5.3 billion by 2031 with a CAGR of 9.1% from 2025 to 2031. The major drivers for this market are the growing health condition prevalence, rising demand for innovative and increasing adoption, and expansion of wearable technology.

• Within the application category, patient care management will remain the largest segment over the forecast period due to the increasing adoption of augmented reality and virtual reality in healthcare therapies and rehabilitation.
• Within the end use category, hospitals & clinics will remain the largest segment due to the growing usage of virtual reality in hospitals by surgeons to assist them during surgeries.
• In terms of regions, North America will remain the largest region over the forecast period due to the existence of a large number of healthcare facilities and the availability of advanced healthcare infrastructure in the region.

Emerging Trends in the Virtual Reality (VR) in the Healthcare Market

Virtual reality (VR) in the healthcare market is undergoing several changes that influence and shape its applications. With the improved availability of mature technologies, trends such as more immersive training methods, individualized treatment for patients, incorporation of artificial intelligence into processes, an increase in telehealth services, and high cost-effectiveness have emerged.

• Advancements in Immersive Training: Immersive training using virtual reality (VR) is gaining prevalence in the field of medicine as an improvement over traditional training methods. Brain surgery simulations sometimes include virtual scenarios where patients undergo surgeries. This trend improves skills acquisition, procedural knowledge, and overall competency, ensuring that healthcare providers are well-prepared and patients do not suffer from poor healthcare delivery.
• Personalized Patient Therapies: Increasingly, such patient therapies are provided through virtual reality, which offers an individualized approach to treatment. Each set of VR games and scenarios can be designed for a specific patient, providing particular movement exercises, mental health treatments, or pain reduction techniques. Patients experience this as an enhancement of their treatment, as the various modes of rehabilitation are matched with their exact requirements, thereby improving health and garnering satisfaction.
• Integration with Artificial Intelligence (AI): As a new trend, the addition of virtual reality (VR) and computational power is enhancing what VR systems can do. AI models are also used to analyze data developed from VR treatments and make recommendations, predict patient behavior, or schedule therapeutic sessions. Such integration enhances the effectiveness and invasiveness of VR applications, optimizing the treatment of various diseases and improving therapy in the health sector.
• Expansion into Telemedicine: The extension of VR into telemedicine practices exemplifies the solutions offered. Remote counseling and therapy sessions are now more efficient than ever using this technology. The patient is in a virtual setting where they can communicate with the healthcare practitioner to receive diagnoses, treatment, and follow-ups. It has also been found that this trend will enhance healthcare services, especially in hard-to-reach regions, thus improving the overall efficiency of telehealth services.

Virtual reality (VR) in the healthcare space is seeing emerging trends such as improved immersive training, personalized therapy, incorporation of AI, development of telemedicine, and more cost-effective approaches. These changes are consistent with the increasing use of VR technology in improving medical education, treating patients, and conducting medical interventions. Over time, these trends will trigger more innovations and the adoption of VR technologies in healthcare, making it more efficient and affordable.

Recent Developments in the Virtual Reality (VR) in the Healthcare Market

The virtual reality (VR) in the healthcare market has significantly improved with various new expansions and ideas in many applications. These improvements are reshaping the fields of surgical education, patient care, and rehabilitation. Recent developments include the use of VR for the education and training of surgeons, new methods for pain relief, a focus on patient treatment with VR, improvements in rehabilitation, and the application of VR for telemedicine consultations.

• Integration of VR for Surgical Training: Important discoveries have been made in the application of VR in nursing procedures related to surgical operations since surgical nursing involves very active practice. CneVR, an interactive team training platform, allows surgeons to rehearse complex procedures through an interactive 3-D environment, significantly lowering the risk of error due to the inclusion of numerous exercises. This development positively impacts the education and training of surgeons, contributing to the readiness of medical professionals and successful patient outcomes.
• Advancements in Pain Management Therapies: D-Zowned is a spine and musculoskeletal rehabilitation clinic with an address in Fort Greely, Alaska. Recent trends in pain management therapies have witnessed new developments in virtual reality that fully distract patients to manage pain. Goals achieved by VR systems include creating virtual worlds that assist in controlling chronic pain and even reducing the use of opioid medication. These advancements provide a non-invasive approach to alleviating pain, thereby enhancing existing pain relief policies and boosting the comfort of patients undergoing therapy.
• Use of VR for Mental Health Treatment: Virtual reality is regarded as an auxiliary treatment for patients with mental disorders, providing more effective therapeutic experiences. Applications include virtual reality games used in exposure therapy, particularly for PTSD and other anxiety disorders, allowing patients to control their environment and confront their fears. This advancement increases the effectiveness of treatment for patients suffering from mental health issues by providing unique pathways for therapy.
• Improvements in Rehabilitation Processes: Advancements in processes are positively changing how rehabilitation is conducted via an engaging approach to physical therapy. Some features of gyrokinesis include VR systems now involved in physical activities toward patient recovery, incorporating exciting interactive games. These advancements have made rehabilitation processes entertaining and effective through dedicated exercise interventions that can be adjusted according to the patient’s exercise tolerance, thereby maximizing recovery.

Emerging trends in virtual reality (VR) in the healthcare market are greatly impacting patient-oriented medical activities such as training and education, pain management, treatment of mental health disorders, rehabilitation, and provision of remote consultations. Furthermore, these advances will enhance the effectiveness of medical procedures, provide more treatment options, and improve patient health.

Strategic Growth Opportunities for Virtual Reality (VR) in the Healthcare Market

Virtual reality (VR) in the healthcare market is one of the emerging sectors with various applications offering several strategic growth opportunities. In particular, opportunities include the improvement of surgical education, entry into psychotherapeutic techniques, further development in pain relief, increased activity in remote counseling, and the creation of individualized rehabilitation programs.

• Prospects for Enhancement of Surgical Training: Enhancing surgical training through VR presents a significant growth opportunity. Modern VR training systems offer high-fidelity environments for mastering complicated surgical operations, resulting in better professional training for surgeons and higher effectiveness in patient treatment. The integration of VR surgical trainers can improve surgical education, reduce surgical errors, and enhance overall surgical practice performance.
• Expansion into Mental Health Therapies: There is a tantalizing growth opportunity in expanding mental health therapies using VR. This includes deploying VR applications for treating mental health disorders, such as exposure therapy and cognitive behavioral therapy, which help address conditions like PTSD and depression through innovative methods. This growth opportunity allows for the development of new therapeutic models that widen the scope of treatment approaches, improving the quality of mental healthcare for patients.
• Advancements in Pain Management: Advancements in VR for pain management present a strategic growth opportunity as they enhance people’s well-being by providing non-pharmaceutical means of relieving pain. For example, VR can immerse participants in interactive activities that help manage their pain by focusing on gameplay, even for patients who have been maintained on opioid medications. This opportunity assists in allocating more resources toward the creation of new pain relief technologies, meeting the rising demand for effective and safe pain relief.
• Growth in Remote Consultation Services: The growth in remote consultation services using VR technology is a critical area of development aimed at improving healthcare access. For instance, VR allows patients to attend appointments through virtual reality, where various healthcare consultants conduct telemedicine sessions. This growth opportunity increases the efficacy of remote care provision, enhances patient participation in the healthcare system, and improves service coverage, especially in hard-to-reach regions.

Further strategic growth opportunities in the virtual reality (VR) in the healthcare market include body mapping and spatial tracking for surgical training and practices, remote and local psychological treatments, use of VR and body mapping for pain relief applications, consultations, and application of technology in exercise therapy, among others. These opportunities synthesize growing trends related to the utilization of VR technology in various health aspects and patient acceptance.

Virtual Reality (VR) in the Healthcare Market Drivers and Challenges

The development of virtual reality (VR) in the healthcare market is subject to several drivers and challenges that affect its expansion and evolution. Key drivers include technological innovations, increasing needs for interactive learning and treatment management, supportive regulatory frameworks, increased investment in healthcare technologies, and expectations for better quality of care. Challenges include high development costs, regulatory hurdles, data privacy concerns, technological limitations, and market adoption barriers.

Factors driving the virtual reality (VR) in the healthcare market include:

• Technological Advancements: Technological advancement is a key factor in the growth of the VR healthcare industry. The development of VR equipment, computer programs, and hands-on technology provides significant improvements in VR use in clinical environments. Such developments facilitate more effective tools for immersive engagement, enhance therapeutic approaches, and create new areas of function. Staying current with technology is essential for market expansion and maintaining a competitive edge.
• Increased Demand for Immersion Training and Therapy: The growing appetite for immersive training and therapy stimulates the VR healthcare industry. Both medical professionals and patients are seeking more advanced interactive training and treatment facilities. VR applications in surgical training, mental illness treatment, and rehabilitative therapies meet the evolving needs of healthcare delivery and enhance daily patient care.
• Supportive Regulatory Environments: Supportive regulatory environments are important for the rapid growth of the VR in the healthcare market as they help draft and enforce policies for the use of VR devices. Regulatory support ensures that VR technologies are safe, effective, and of high quality, making it easier for companies to introduce their products to the market. Adhering to regulations is essential for receiving consent and gaining trust from health specialists and patients.

Challenges in virtual reality (VR) in the healthcare market include:

• Need for Improved Patient Outcomes: Improved patient outcomes are driving the adoption of VR technologies in healthcare. VR is beneficial for providing enhanced training, greater efficiency in therapies, and optimal rehabilitation, leading to better patient care and recovery. The demand for improved clinical results has made the integration of VR technologies a priority in enhancing healthcare delivery.
• High Development Costs: High development costs are significant barriers in the VR healthcare market. The research, delivery, and manufacturing of VR technology can be costly, impacting profitability and limiting market entry. Substantial business capital is needed, particularly for developing and marketing new VR solutions.
• Regulatory Hurdles: Regulatory barriers challenge the acceptance and use of VR technologies. Navigating these complex requirements and seeking approvals can be time-consuming and resource-intensive, delaying product launches and increasing market entry challenges. Companies must keep track of regulatory updates and employ effective strategies when engaging with regulatory agencies to enhance market access.

The virtual reality (VR) in the healthcare market is characterized by various drivers and challenges, including technological changes, growing demand for immersive solutions, favorable market regulations, increased investments, and the need to improve patient outcomes. Challenges include high development costs, barriers to innovation and growth, privacy issues, and technological challenges that constrain market development.

List of Virtual Reality (VR) Companies in the Healthcare Market

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies virtual reality (VR) companies in the healthcare market cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the virtual reality (VR) companies in the healthcare market profiled in this report include:

• Koninklijke Philips
• Samsung Electronics
• EON Reality
• CAE Healthcare
• Oculus Rift
• Medical Realities
• XRHealth USA
• Amelia
• HTC Corporation
• Sony Corporation

Virtual Reality (VR) in the Healthcare by Segment

The study includes a forecast for the global virtual reality (VR) in the healthcare market by component, application, end use, and region

Component [Analysis by Value from 2019 to 2031]:

• Hardware
• Software
• Content

Application [Analysis by Value from 2019 to 2031]:

• Patient Care Management
• Education & Training
• Fitness Management
• Pharmacy Management
• Surgery
• Pain Management
• Rehabilitation and Therapy Procedures
• Post-Traumatic Stress Disorder

End Use [Analysis by Value from 2019 to 2031]:

• Research and Diagnostics
• Laboratories
• Hospitals & Clinics
• Research Organizations
• Pharmaceutical Companies

Region [Analysis by Value from 2019 to 2031]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country-Wise Outlook for the Virtual Reality (VR) in the Healthcare Market

Technological changes in virtual reality (VR) in the healthcare market continue to rise. The growth of VR and its applications in various sectors is notable in many countries, including the United States, China, Germany, India, and Japan, where VR technologies are increasingly used in surgical education, physical rehabilitation, and psychological treatments.

• United States: In the U.S. market, VR is developing and being utilized in surgical training, pain control, and mental health. Advanced medical centers conduct complex operations with the assistance of VR alongside traditional surgeries. Additionally, VR is employed for chronic pain treatment and for addressing mental health issues such as post-traumatic stress disorder (PTSD) and anxiety, utilizing reconstructive methods and providing supportive therapeutic spaces for recovery.
• China: China has made advances in the application of virtual reality in rehabilitation and medical education. In physical therapy, VR aids patient recovery by providing interactive virtual exercises. In medical education, VR replicates complex processes, enhancing the training of medical practitioners. These improvements result from government programs and increased expenditure on healthcare technology aimed at improving medical utilities and patient treatment.
• Germany: Germany’s interest lies in applying virtual reality for planning surgical procedures and patient care. VR generates detailed replicas of body structures to prepare for surgical interventions, enhancing procedural outcomes. Development of VR technology in Germany is also influenced by an effective healthcare system and active research initiatives.
• India: There is increasing acceptance of VR technology for medical training and rehabilitation in India. The use of VR simulations is becoming common among patients, as it realistically represents situations and enhances practitioners' skills. In physical rehabilitation, VR provides virtual activities for patients. There is also a growing focus on using VR for treating mental disorders, such as depression and anxiety, where technology might improve current therapies.
• Japan: In Japan, various VR innovations aimed at pain control, recovery, and education are advancing the field. The country is applying virtual reality to develop facilities for pain relief and to facilitate recovery from injuries. In medical procedures, VR simulators enhance the skills and knowledge required for surgical tasks. Japan’s technology and health research are improving VR capabilities for treatment and training.

Features of virtual reality (VR) in the global healthcare market

• Market Size Estimates: Virtual reality (VR) in the healthcare market size estimation in terms of value ($B).
• Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
• Segmentation Analysis: Virtual reality (VR) in the healthcare market size by component, application, end use, and region in terms of value ($B).
• Regional Analysis: Virtual reality (VR) in the healthcare market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different components, applications, end uses, and regions for global virtual reality (VR) in the healthcare market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape of global virtual reality (VR) in the healthcare market.
• Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

This report answers the following 11 key questions:

Q.1. What are some of the most promising, high-growth opportunities for global virtual reality (VR) in the healthcare market by component (hardware, software, and content), application (patient care management, education & training, fitness management, pharmacy management, surgery, pain management, rehabilitation & therapy procedures, and post-traumatic stress disorder), end use (research and diagnostics, laboratories, hospitals & clinics, research organizations, and pharmaceutical companies), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?