Augmented and Virtual Reality in Healthcare Market - By Technology, By Component, By Application, By End Use - Global Forecast, 2025 - 2034

Augmented and Virtual Reality in Healthcare Market Size

The global augmented and virtual reality in healthcare market was valued at USD 3.9 billion in 2024. The market is anticipated to grow from USD 4.7 billion in 2025 to USD 30 billion in 2034, growing at a CAGR of 22.9% from 2025 to 2034, according to the latest report published by Global Market Insights Inc.

The substantial growth in the market is primarily fueled by rapid advancements in healthcare technology and digitization in enhancing medical training, diagnostics, and patient care into practical tools. In addition, the growing government initiative and rising healthcare expenditure are creating a supportive environment for innovation, driving its growth in the market. 
 

AR/VR technologies are being widely adopted in surgical planning, mental health, therapy, and rehabilitation, offering immersive, risk-free training and treatment experiences. AR overlays virtual information such as anatomical visuals or procedural guidance onto the real world, assisting in surgical planning, vein mapping, and remote consultations. On the other hand, VR immerses users in simulated environments, driving applications like surgical simulations, chronic pain alleviation, post-traumatic stress disorder (PTSD) therapy, and targeted physical rehabilitation. Leading companies such as CAE Healthcare, Intuitive Surgical, Koninklijke Philips, GE HealthCare, and Siemens Healthineers dominated through continual innovation, broad deployment, and strategic investments.
 

Wider digitization in the healthcare ecosystem, coupled with an uptick in digital health spending by hospitals and outpatient centers, combine to create an immersive intervention that enhances clinical outcomes while lowering expenses, contributing to augmented and virtual reality in healthcare market expansion. In addition, the concurrent expansion of public policies and regulatory frameworks further widens exposure and amplifies the adoption. For instance, in July 2024, the Government of Karnataka and Meta boarded a project called ‘Digital Nagrik Program’ to encourage 1 lakh teachers and 10 lakh students with digital safety and AR-VR skills by 2025. This initiative aimed to expand awareness of digital safety and immersive technology trends. As educational institutions and healthcare providers are actively utilizing these tools to accelerate market penetration and drives innovation in the market.
 

The augmented and virtual reality market is primarily classified into augmented reality (AR) and virtual reality (VR) technologies that are seamlessly integrated into hardware, software, and services. These technologies create an immersive digital experience through the projection of virtual objects in the real world (AR) or the simulation of completely fictitious worlds (VR). Further, the associated integration of artificial intelligence (AI) in healthcare and regulatory support positions AR/VR as a transformative tool in modern healthcare delivery.
 

Augmented and Virtual Reality in Healthcare Market Trends

• The AR/VR platforms create realistic, risk-free spaces for practicing surgery, diagnosing conditions, and educating patients. This has led to a significant boost in clinical outcomes, which in turn has accelerated their acceptance in medical procedures. Additionally, the rising interest in non-invasive, drug-free options for mental health and chronic pain management is pushing the demand for VR-based therapies.
   
• A noteworthy study featured in the Harvard Business Review examined a clinical validation study at UCLA’s David Geffen School of Medicine. The findings revealed that participants who underwent VR training on the Osso VR platform showed an impressive 230% improvement in surgical performance compared to those trained through traditional methods. This figure underscored the transformative potential of VR in enhancing clinical skills and procedural accuracy. As immersive platforms become more embraced and accessible in medical education, they are expected to play a pivotal role in shaping the future of healthcare delivery and professional training.
   
• Further, the expanding emphasis on telemedicine and remote care further stimulates market growth. This allows enhancing patient engagement and treatment outcomes while reducing travel infrastructure.
   
• Moreover, rapid advancements in AR/VR hardware and software, such as smart glasses, lightweight headsets, and AI-powered platforms, make these technologies more affordable, scalable, and user-friendly, fueling their adoption across hospitals, academic institutions, and other healthcare settings. For example, Apple Vision Pro provided a highly immersive and interactive 3D environment, allowing the surgeons to visualize complex anatomical structures with unprecedented clarity.  The procedure was performed at Pristyn Care in New Delhi. It included a sleeve gastric bypass and a Single Anastomosis Duodenal-Ileal (SADI) procedure. The successful integration of Apple Vision Pro into bariatric surgery marked a significant milestone in the transformation of the AR/VR industry.
   
• Together, these trends are reshaping healthcare delivery, training, and patient engagement, positioning AR/VR as essential tools in the global healthcare systems.
   

Augmented and Virtual Reality in Healthcare Market Analysis

The global market was valued at USD 2.5 million in 2021. The market size reached USD 3.3 billion in 2023, from USD 2.9 billion in 2022.
 

Based on technology, the market is classified into augmented reality (AR) and virtual reality (VR). The augmented reality segment dominated the market and was valued at USD 2.9 billion in 2024 due to its wider range of practical applications, seamless integration into existing systems, and easy accessibility through commonly used devices such as smartphones and tablets.
 

• AR technology is a widely utilized tool commonly integrated into portable devices, enabling broad application across industries such as healthcare, retail, manufacturing, and training.
   
• It is particularly effective for virtual product try-ons, interactive learning, remote assistance, and real-time data visualization, enhancing productivity and clinical experience.
   
• Its hands-free functionality allows the user access to real-world applications and can be utilized without any movement, making it a suitable tool across the field-based settings, indicating broader adoption and higher usage.
   
• For instance, new data reported by Thrive Analytics and ARtillery Intelligence, 2024 highlighted that nearly 35% of the U.S. adult consumers use mobile-AR, up from the 32% in the previous year. Among these, approximately 46% of consumers are weekly engaged with high frequency, while 80% are engaged monthly. This figure reflects the growing ease and familiarity with the AR technology, indicating a mature and receptive user base. This encourages companies and healthcare providers to invest in AR solutions, attracting a large customer base.
   
• On the other hand, the VR segment is projected to experience significant growth driven by rising demand for immersive training, therapy, and physical therapy across healthcare, education, and remote care applications.
   

Based on the component, the global augmented and virtual reality in healthcare market is categorized into hardware, software, and services. The hardware segment dominated the market with 53.9% market share in 2024 due to its essential role in providing immersive experiences.
 

• The hardware includes the product such as smart glasses, head-mounted displays, and haptic feedback systems that are crucial in providing realistic simulations and interactive environments for various clinical procedures.
   
• The growing advancements in 5G and edge computing have increased hardware capabilities, enabling real-time data processing and cloud-based applications. This encourages healthcare providers to adopt AR/VR technologies, witnessing the hardware segment's prominence in the market.
   
• Additionally, the segment growth is further fueled by expanding demand for high-performance, user-friendly, and portable hardware, resulting in continuing innovation, making these tools more accessible and effective. For instance, according to an update by the Food and Drug Administration (FDA), as of September 2024, a total of 69 medical products were authorized that were integrated with AR/VR. The growing number of authorizations indicates the revolutionary shifting trend towards immersive technology, solidifying its demand in the market.
   
• On the other hand, the software segment is projected to experience significant growth due to the rising demand for immersive training, remote care therapy, thereby increasing its integration into clinical and educational settings.
   

Based on the application, the global augmented and virtual reality in healthcare market is divided into surgery, training and education, behavioural therapy, medical imaging, and other applications. The surgery segment dominated the market in 2024 and is anticipated to witness growth at a CAGR of 25.2% due to its transformative impact of AR/VR on surgical planning, training, and execution.
 

• The growing adoption of robotic-assisted surgeries and expanding AR/VR integration into operating rooms allows surgeons to visualize complex anatomical structures in 3D, enhancing precision and reducing risks during procedures, expanding its adoption in the market.
   
• These tools allow the improved performance of minimally invasive surgeries by overlaying critical data in real time, improving outcomes and patient safety. This marked the high acceptance of the AR/VR technologies in the surgical procedures.
• Further, VR-based simulations offer immersive training environments for medical professionals, allowing them to practice techniques without risk to patients.
   
• As healthcare providers are seeking innovative solutions to improve surgical efficiency and accuracy, the surgery segment continues to lead the way in AR/VR applications.
   

Based on the end use, the global augmented and virtual reality in healthcare market is classified into academic institutions, hospitals, clinics/dentists, and other end users. In 2024, the hospitals segment held the highest market share and is expected to showcase significant growth over the analysis period to reach USD 15.3 billion by 2034 due to their extensive adoption of advanced technologies across hospitals.
 

• Hospitals are using AR/VR solutions to enhance clinical outcomes and allow remote consultations and virtual patient monitoring, making healthcare more accessible and efficient.
   
• In addition, the huge spending and advanced infrastructure in large hospitals enable them to implement AR/VR technologies on a large scale. This growing adoption of AR/VR technologies is solidifying their dominance in the market.
   

In 2024, North America accounted for 42.6% of the market share in the global augmented and virtual reality in healthcare market and is anticipated to witness high growth during the forecast timeframe.
 

• The region’s advanced medical infrastructure, strong research and development investments, and early adoption of innovative technologies have solidified its position in the market.
   
• In addition, the wide adoption of AR/VR technologies across hospitals and academic institutions for surgical planning, medical training, and patient rehabilitation further contributes to the regional growth in the market.
   
• Moreover, the presence of key players and supportive government initiatives further drives growth, making the region a hub for AR/VR healthcare innovation and development.
   

In 2024, the U.S. augmented and virtual reality in healthcare market accounted for USD 1.5 billion in revenue, up from USD 1.3 billion in 2023, and is anticipated to grow at a CAGR of 25.3% between 2025 and 2034.
 

• U.S. leadership is asserted due to its advanced healthcare infrastructure, robust investment in digital technologies, and early adoption of advanced digital solutions across the healthcare sector.
   
• In addition, supportive regulatory policies, technology advancements, and the presence of major tech companies further accelerate innovation in the country.
   
• For instance, in March 2023, SimX signed a partnership agreement with the U.S. Air Force (USAF) to expand the AR/VR training capability in healthcare with the funding of USD 750,000 from the USAF’s Small Business Innovation Research (SBIR) program. This VR capability aimed to train the aeromedical evacuation personnel and USAF’s Critical Care Air Transport Teams (CCATT) to expand its accessibility across the aeromedical sector, fueling the market growth.
   
• Moreover, high healthcare spending and evolving regulatory support encourage the development of innovative, safe, and effective medical devices, including AR/VR, integrated further contribute to the U.S.'s dominant market position.
   

Germany is poised to achieve significant growth in the European augmented and virtual reality in healthcare market.
 

• Germany’s growth is supported by growing aging population, increasing chronic disease prevalence, strong government support through initiatives like the Digital Healthcare Act, contributing to the rising adoption of immersive technologies.
   
• In addition, the increasing AR/VR tool integration in clinical and educational settings further fuel the market growth. For example, German hospitals and medical institutions are rapidly adopting AR/VR for surgical training, rehabilitation, diagnostics, and patient engagement, supported by active research and development and collaborations with tech leaders. For instance, in August 2021, Fresenius Medical Care used the Stay Safe MyTraining VR technology to train patients to perform peritoneal dialysis at home in Germany. The training was conducted to complement traditional in-clinic training by providing patients with a virtual environment to practice and reinforce the necessary skills for peritoneal dialysis (PD). This growing utilization of VR tools signified the growing implementation of immersive tools across healthcare sectors in Germany, strengthening the market growth. These factors collectively positioned Germany as a central hub for AR/VR healthcare innovation in Europe.
   

The Asia Pacific augmented and virtual reality in healthcare market is anticipated to witness significant growth over the analysis timeframe.
 

• The Asia Pacific is rapidly transforming into one of the most vibrant and rapidly expanding virtual and augmented reality markets. Growth is fueled by various factors such as increasing smartphone penetration, higher demand for digitization, and favorable government support for technology adoption in sectors like healthcare, education, manufacturing, and retail.
   
• In addition, the growing popularity of online learning, gaming, and commerce in the region is driving the adoption of AR/VR solutions into everyday consumer and business processes at a rapid pace.
   
•  With growth in infrastructure and digital learning, the Asia Pacific is projected to grow at a significant rate in the global market.
   

China is anticipated to hold a significant position in the Asia Pacific augmented and virtual reality in healthcare market.
 

• China's leadership is driven by its strong regulatory support and rapid technological adoption scenario. For example, programs like Health China 2030 and the National AI Development Plan are accelerating the integration of AR/VR into clinical practice, medical education, and patient care witnessing the strong hold on digitization in the country.
   
• In addition, the growing implementation of AR-assisted surgery systems across China-based hospitals in cities such as Beijing and Shanghai and benefit from 5G-enabled smart hospitals and VR-based diagnostics contribute to market demand.
• This growth is further supported by China's aging population, increasing healthcare demand, and investments in digital infrastructure, positioning the country as a regional leader in AR/VR healthcare innovation.
   

Brazil is projected to witness significant growth in the Latin American augmented and virtual reality in healthcare market in the coming years.
 

• Brazil's projected growth is driven by increasing digital health initiatives and rising demand for advanced medical technologies.
   
• This growth is supported by government programs such as the Brazilian Digital Health Strategy (2020-2028) and the Connected SUS Program, which aim to modernize healthcare infrastructure and promote digital transformation.
   
• Additionally, increasing investment in Brazil’s healthcare sector for enhancing surgical training, diagnostics, and patient care, with the hardware segment contributing significantly to market revenue. These advancements position Brazil as a key player in Latin America’s AR/VR healthcare landscape.
   

Saudi Arabia is anticipated to grow in the Middle East and African augmented and virtual reality in healthcare market.
 

• Saudi Arabia is anticipated to grow steadily, driven by strong government support, digital transformation, and rising healthcare demands. Under Vision 2030, the Saudi government is investing heavily in modern healthcare infrastructure, innovation hubs, and digital health technologies to revolutionize medical services. This strategic initiative stimulates market growth.
   
• Key growth areas include surgical training, patient treatment, and rehabilitation, where immersive technologies are enhancing precision, reducing recovery times, and improving patient outcomes.
   
• Saudi Arabia’s leadership in adopting AR/VR positions it as a regional hub for healthcare innovation.
   

Augmented and Virtual Reality in Healthcare Market Share

The top 5 players, like CEA Healthcare, GE HealthCare, Koninklijke Philips N.V., Siemens Healthineers, and Intuitive Surgical, hold nearly 63.4% market share of the global augmented and virtual reality healthcare market. Leaders have established a robust clinical presence with innovative, regulatory-friendly platforms for surgical planning, training, and real-time navigation and are well entrenched in hospitals, academic institutions, and surgery centers of North America, Europe, and Asia.

Their sustained efforts towards innovation, cross-industry partnerships, and pioneer status in this niche space have helped them capture a strong position in both hardware-based and software-based AR/VR solutions.
 

Augmented and Virtual Reality in Healthcare Market Companies

A few of the prominent players operating in the augmented and virtual reality in healthcare industry include:

• AppliedVR
• Augmedics
• Augmedix
• Bioflight VR
• CAE Healthcare
• FundamentalVR
• GE HealthCare
• Health Scholars
• HoloAnatomy
• Intuitive Surgical
• In vivo
• Koninklijke Philips N.V.
• Medical Augmented Intelligence
• Medivis
• MindMaze
• Mobiliya
• OSSO VR
• Proprio Vision
• SentiAR
• Siemens
• Surgical Theater
• Vicarious Surgical
• Virtual Reality Medical Center (VRMC)
• VRHealth
• XR Health
   
• CEA Healthcare

CEA Healthcare leads the augmented and virtual reality in healthcare market with a share of 17.2% in 2024. CEA Healthcare excels in immersive medical training and simulation, offering AR/VR platforms tailored for surgical planning and therapy. Its strength lies in combining clinical realism with user-friendly interfaces, enabling healthcare professionals to practice multifaceted procedures safely and effectively across various specialties.
 

• GE HealthCare

GE HealthCare offers an OmnifyXR Interventional Suite, which integrates real-time imaging with AR for enhanced precision in radiology. Its collaboration with MediView XR reflects a commitment to intuitive visualization and real-time collaboration for advanced clinical decision-making.
 

• Koninklijke Philips N.V.

Koninklijke Philips N.V. leverages AR/VR to improve patient monitoring, diagnostics, and surgical guidance. Its focus on expressive innovation and integration with smart devices enables seamless clinical workflows. Philips’ global reach and strong research and development make it a leader in scalable, immersive healthcare solutions.
 

Augmented and Virtual Reality in Healthcare Industry News

• In May 2025, Surgical Theater launched a 360° AR solution in Toronto at the AATS conference with Magic Leap One. The solution enables patient-specific anatomy models to be explored jointly by surgeons and patients through collaborative decision-making and improved patient satisfaction. This significantly improved Surgical Theater's value proposition by providing an interactive, personalized anatomy model for visualization for improved communication and interaction with patients.
   
• In April 2024, Osso VR introduced Osso Health, an Apple Vision Pro surgical training app. The app enables users to explore and engage with high-fidelity procedural workflows like total knee replacement and carpal tunnel release to provide more immersive training on the latest spatial computing devices. The introduction of Osso VR's surgical simulator application on Apple Vision Pro greatly extended the reach of the company by introducing high-fidelity, immersive simulation to a mass audience of healthcare professionals through next-generation spatial computing technology.
   
• In June 2023, Amrita Hospital extended its reality ecosystem by leveraging AR, VR, and mixed reality (MR) technologies to significantly enhance capabilities in patient care, medical training, and research. The integration of this advanced technology in clinical practice marked a major milestone in the Indian digital healthcare industry. 
   

The augmented and virtual reality in healthcare market research report includes in-depth coverage of the industry with estimates and forecasts in terms of revenue in USD million from 2021 - 2034 for the following segments:

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Market, By Technology

• Augmented reality
• Virtual reality

Market, By Component

• Hardware
• Software
• Services

Market, By Application

• Surgery
• Training and education
• Behavioral therapy
• Medical imaging
• Other applications

Market, By End Use

• Academic institutions
• Hospitals
• Clinics/dentists
• Other end use

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE