Augmented Reality And Virtual Reality In Healthcare Market Size to Reach USD 23.11 Billion by 2034
The augmented reality and virtual reality in healthcare market size was exhibited at USD 4.85 billion in 2024 and is projected to hit around USD 23.11 billion by 2034, growing at a CAGR of 16.9% during the forecast period 2025 to 2034.
The augmented reality (AR) and virtual reality (VR) market in healthcare is witnessing significant growth due to increasing technological innovations and the digital transformation of the medical field. These immersive technologies are reshaping the way healthcare is delivered, particularly in areas such as medical training, patient treatment, surgical planning, diagnostics, and rehabilitation.
AR technology enhances the user’s perception of the real world by overlaying digital content—such as images, sounds, and data—onto the physical environment, enabling interactive and real-time experiences. VR, on the other hand, immerses users in fully virtual environments, ideal for simulating medical procedures and creating safe, controlled training settings.
Key factors fueling market expansion include rising healthcare expenditures, supportive government initiatives, and the growing demand for advanced visualization tools in surgical and educational applications. Medical professionals are increasingly adopting AR and VR solutions to improve precision, enhance learning experiences, and increase patient engagement.
The integration of AR and VR in healthcare is revolutionizing traditional practices by offering innovative, cost-effective, and risk-free solutions. As the technology continues to evolve, its adoption is expected to deepen across hospitals, research centers, medical schools, and rehabilitation facilities, driving long-term growth in the global healthcare industry.
Increasing Use in Medical Education and Training
Rising Adoption in Surgical Planning and Visualization
Growth in Remote Healthcare and Telemedicine
Development of AR and VR-Based Rehabilitation Solutions
Integration with Artificial Intelligence (AI)
Advancements in Wearable AR/VR Devices
Increased Investment and Collaborations
| Report Coverage | Details |
| Market Size in 2025 | USD 5.67 Billion |
| Market Size by 2034 | USD 23.11 Billion |
| Growth Rate From 2025 to 2034 | CAGR of 16.9% |
| Base Year | 2024 |
| Forecast Period | 2025-2034 |
| Segments Covered | Component, Technology Type, Region |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Regional scope | North America; Europe; Asia Pacific; Latin America; MEA |
| Key Companies Profiled | CAE Healthcare Inc.; Siemens Healthineers; Koninklijke Philips N.V.; Hologic, Inc.; EON Reality, Inc.; Intuitive Surgical Operations, Inc.; GE HealthCare; Layar.eu; WorldViz, Inc.; TheraSim, Inc. |
In 2024, the hardware segment led the AR and VR healthcare market, accounting for the largest revenue share of 68%. Devices such as head-mounted displays, smart glasses, and 3D sensors made up a significant portion of this segment. Head-mounted devices and smart glasses are extensively used in areas including surgical training, diagnostics, telementoring, and simulation. The widespread commercialization and high adoption of AR/VR hardware, especially in developed markets, are driving this dominance. Companies continue to invest in improving these devices to enhance their healthcare applications.
The services segment is anticipated to witness the highest compound annual growth rate (CAGR) over the forecast period. The intricate nature of AR and VR technologies requires skilled expertise for deployment, system integration, customization, support, and ongoing maintenance in healthcare settings. Additionally, many healthcare providers need tailored AR/VR solutions that align with existing systems such as imaging equipment. The rising use of these technologies in medical training and simulation has led service providers to expand offerings in training and simulation development. Continuous support, software updates, and scalable solutions offered by vendors also play a key role in boosting adoption and demonstrating tangible ROI for healthcare institutions.
By technology, the augmented reality segment held the largest market share of 60% in 2024. This is largely due to its expanding use in surgical planning, minimally invasive procedures, and other medical fields. The ongoing technological evolution and the demand for simplifying complex medical tasks have fueled the uptake of AR. Companies developing AR solutions are increasingly collaborating with local partners to broaden product reach and roll out new innovations. For instance, in April 2024, AR smart glasses maker Vuzix teamed up with telemedicine provider VSee to create AR-enabled smart glasses for virtual healthcare.
North America held the largest share of global revenue 40% in the AR and VR healthcare market in 2024. Factors such as advanced adoption rates, robust R&D investments, and favorable government programs are supporting market expansion. The region also sees a growing number of complex surgical procedures, further driving demand for immersive technologies.
United States Trends
The U.S. dominated the North American AR and VR healthcare market in 2024, supported by multiple solution launches, government backing, technological developments, and the presence of key industry players. In March 2024, SimX joined forces with the U.S. Air Force (USAF) to develop a new AR/VR-based training platform with $750,000 in funding from the USAF’s SBIR (Small Business Innovation Research) program. This initiative aims to train AE (Aeromedical Evacuation) teams and CCATT (Critical Care Air Transport Teams).
Europe Trends
Europe's AR and VR healthcare market is poised for substantial growth during the forecast timeline, driven by supportive policies and public investments. For instance, the VReduMED project, launched in April 2024 with approximately $2.3 million in funding from the European Regional Development Fund (ERDF), aims to bridge cooperation between medical tech companies—particularly SMEs—and healthcare education by introducing VR as a tool for more engaging and high-quality care training.
In Germany, the market recorded a considerable revenue share in 2024, thanks to the increasing use of VR for medical training. For example, in August 2021, Fresenius Medical Care adopted stay safe MyTraining VR to train patients in peritoneal dialysis procedures.
The United Kingdom is projected to experience significant growth during the forecast period, driven by rising investments and initiatives supporting immersive technology in healthcare. In March 2024, students at the University of Birmingham were given access to mixed and virtual reality training modules developed by the RESILIENCE Centre, simulating pharmaceutical manufacturing environments in near-real-life settings.
Asia Pacific Trends
The Asia Pacific region is expected to register the fastest growth in the AR and VR healthcare market during the forecast period. This is due to increasing public awareness and ongoing improvements in healthcare infrastructure. Emerging economies like India and China are becoming major hubs for outsourcing the development and deployment of AR and VR healthcare solutions.
In Japan, the market had the highest regional share in 2024, driven by rising investments in healthcare-focused AR/VR firms. For instance, in August 2024, Asteria Corporation invested in Holoeyes, Inc., a startup specializing in VR medical software services.
India’s AR and VR healthcare market is also set to expand considerably over the forecast timeline. In June 2024, a hospital in Kerala implemented AR and VR technologies for applications such as diagnostics, patient care, research, and medical education.
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2034. For this study, Nova one advisor, Inc. has segmented the Augmented Reality And Virtual Reality In Healthcare Market
By Component
By Technology Type
By Regional
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
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Additional Countries (Apart
From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers