Virtual Reality In Healthcare Market Size, Share & Trends Analysis Report By Component, By Device (HMD, GTD, PWD), By Application (Patient Care Management, Rehabilitation & Therapy Procedure), By End-use, By Region, And Segment Forecasts, 2025 - 2030

VR In Healthcare Market Size & Trends

The global virtual reality in healthcare market size was estimated at USD 5.62 billion in 2024 and is expected to grow at a CAGR of 30.3% from 2025 to 2030. The market growth is primarily driven by the increasing adoption of VR technologies in medical training, surgical simulation, and patient care.

Growing demand for minimally invasive treatments and enhanced diagnostic tools has accelerated the use of virtual environments to improve procedural accuracy and patient outcomes. Advancements in hardware and software, including high-resolution headsets and AI-powered VR platforms, enhance realism and clinical efficacy. The growing focus on personalized medicine and remote patient monitoring is promoting the integration of VR into telehealth and rehabilitation programs, significantly contributing to the expansion of virtual reality in the healthcare market.

The availability of advanced VR hardware and software platforms is significantly influencing the growth of virtual reality in healthcare industry. Healthcare providers now have access to a wide range of immersive technologies such as VR headsets, motion tracking systems, and 3D simulation tools, allowing for enhanced medical training, surgical planning, and patient engagement. This flexibility enables institutions to experiment and identify the most effective VR applications for diagnostics, therapy, and education, thereby accelerating the adoption of virtual reality in clinical settings.

Additionally, the growing demand for remote healthcare solutions and telemedicine is propelling virtual reality in healthcare industry forward. VR facilitates remote diagnostics, virtual consultations, and tele-rehabilitation, allowing providers to extend care beyond traditional hospital settings. Aging global population and increasing pressure on healthcare systems, virtual reality is emerging as a cost-effective tool to enhance access, quality, and continuity of care.

Furthermore, the increasing prevalence of mental health disorders and the effectiveness of VR-based therapy are reshaping the healthcare landscape. Virtual reality is being widely adopted for the treatment of conditions such as PTSD, anxiety, and phobias by creating controlled, immersive environments for cognitive behavioral therapy (CBT) and exposure therapy. These innovative applications are improving patient outcomes by reducing the burden on healthcare professionals.

Moreover, government initiatives and rising investments in digital health technologies are presenting valuable opportunities for market expansion. Supportive regulatory frameworks, funding for healthcare innovation, and public-private partnerships are accelerating the development and deployment of VR solutions across hospitals, clinics, and academic institutions. This growing commitment to integrating advanced technologies into healthcare infrastructure is expected to remain a key driver of the virtual reality in healthcare market in the coming years.

Component Insights

The hardware segment dominated the market with a revenue share of over 47% in 2024, owing to increased demand for components such as head-mounted displays and smart glasses across healthcare settings amid the proliferation of telemedicine and virtual care. Moreover, they enable hands-free operation in surgical and non-surgical procedures using voice commands, allowing the clinicians to focus on patient care. These hardware components are useful in medical training as they simulate complex surgeries, more immersive enhancing training methods. The growing usability of these components is expected to drive segmental growth in the coming years.

The software segment is expected to witness a significant CAGR of over 33% from 2025 to 2030. This growth is driven by the increasing adoption of VR-based training, diagnostics, and therapeutic applications across healthcare institutions worldwide. Hospitals and medical training centers prioritize immersive, cost-effective simulation platforms, and the demand for advanced VR software solutions is accelerating. These platforms enable realistic surgical training, patient rehabilitation programs, and mental health treatments, enhancing outcomes while reducing risks. The need for scalable, customizable, and continuously upgradable VR content is positioning the software segment as a cornerstone of innovation in the virtual reality in healthcare industry.

Application Insights

The patient care management segment accounted for the largest revenue share in 2024, driven by the growing emphasis on enhancing patient experiences and outcomes. The increasing adoption of VR technologies in healthcare settings, patient care management applications are gaining traction as they offer immersive and personalized patient solutions, ranging from pain distraction therapies to anxiety reduction interventions. These factors collectively contribute to segmental growth.

The rehabilitation & therapy procedures goods segment is expected to witness the highest CAGR from 2025 to 2030. The growth of the segment can be attributed to the various advantages that VR provides when incorporated into the rehabilitation process of patients with certain conditions. It facilitates patient education, flexibility, motivation, and variability. It helps reduce medical costs for the healthcare system and ensures efficient use of resources according to the patient’s history and accessibility of data. The increasing usage of VR in treating neurological conditions, orthopedic conditions, and pediatric diseases is contributing to segmental growth.

End-use Insights

The hospitals & clinics segment accounted for the largest revenue share in 2024, primarily due to the growing integration of virtual reality (VR) technologies across core medical procedures and patient care services. Hospitals and clinical settings are increasingly adopting VR for medical training, surgical simulation, pain distraction therapies, and patient education, enabling safer and more effective healthcare delivery. The ability of VR systems to support physical rehabilitation, mental health therapy, and exposure treatments through interactive, software-based simulations is gaining strong traction. These advancements are significantly improving clinical outcomes and operational efficiencies, thereby driving segmental growth.

The research organizations & pharma companies segment is expected to witness the highest CAGR from 2025 to 2030. This growth can be attributed to the increased adoption of VR solutions across these organizations to create virtual environments for patient trials, facilitating the testing of drugs in more realistic settings. VR plays a crucial role in drug development as it can simulate molecular structures, enabling researchers to better understand the drug's interactions with its targets. Such vital applications of VR technology are expected to drive the segment’s growth over the forecast period.

Device Insights

The head-mounted display (HMD) segment accounted for the largest revenue share in 2024, owing to extensive adoption across various healthcare applications such as surgical training, pain management, physical therapy, and mental health treatment. HMDs offer immersive and realistic 3D visualization, enabling medical professionals and students to practice complex procedures in a risk-free environment, significantly enhancing learning outcomes and procedural accuracy. The growing emphasis on minimally invasive surgeries and the demand for efficient training tools amid healthcare staff shortages are further accelerating the deployment of HMDs. These factors collectively contribute to the segment’s dominance and continued growth within the virtual reality in healthcare industry.

The gesture-tracking device (GTD) segment is expected to witness the highest CAGR from 2025 to 2030, owing to the important advantages offered by this technology. In the healthcare sector, this technology is being increasingly adopted in rehabilitation processes as it can track patients’ recovery by monitoring their hand movements and helping them regain motor skills. In surgical procedures, GTD allows surgeons to manipulate medical images and access patient data without physically touching a screen or keyboard.

Regional Insights

North America virtual reality in healthcare market accounted for the largest share of over 36% in 2024, primarily driven by the region’s advanced healthcare infrastructure and rapid technological adoption. The increasing prevalence of chronic conditions and mental health disorders is fueling demand for immersive VR-based therapies and pain management tools. The presence of leading tech companies and healthcare innovators in the U.S. and Canada is further enabling cutting-edge research and development in VR applications. Growing awareness among healthcare providers and patients about the benefits of VR in surgical training, rehabilitation, and cognitive therapy continues to drive market growth across the region.

U.S. Virtual Reality In Healthcare Market Trends

The U.S. virtual reality in healthcare market is expected to grow at a CAGR of over 26% from 2025 to 2030, driven by the country’s strong focus on innovation and integrating advanced technologies in medical training and patient care. The widespread adoption of VR for surgical simulations, pain management, and mental health therapy is reshaping clinical practices nationwide. Government support for digital health initiatives and funding for research and development is accelerating the deployment of immersive technologies in healthcare settings.

Europe Virtual Reality In Healthcare Market Trends

The Europe virtual reality in healthcare is expected to grow at a CAGR of over 30% from 2025 to 2030, driven by the increasing adoption of advanced healthcare technologies and streamlined clinical workflows is a trend. European countries are investing heavily in digital health infrastructure, driven by government support and funding for innovation in medical training and therapy. The rising demand for minimally invasive procedures and personalized medicine is further encouraging the use of VR-based simulation and planning tools. The emphasis on enhancing medical education and reducing healthcare costs through virtual training platforms is critical in driving market growth across Europe.

The UK virtual reality in healthcare market is expected to grow at a significant rate in the coming years. The country benefits from a well-established healthcare infrastructure and a strong focus on technological innovation within the National Health Service (NHS). The UK government’s continued investments in digital health transformation, such as NHSX initiatives, are accelerating the adoption of immersive technologies like virtual reality for medical training, patient rehabilitation, and mental health therapies.

Germany virtual reality in healthcare market is fueled by the country’s advanced healthcare infrastructure and early adoption of digital technologies, which collectively drive the demand for virtual reality in healthcare. Germany's focus on enhancing medical training and education encourages the use of VR-based simulations for surgical practice and anatomy learning. The country’s aging population and growing prevalence of chronic diseases are prompting healthcare providers to explore immersive therapy and pain management solutions using VR.

Asia Pacific Virtual Reality In Healthcare Market Trends

Asia Pacific virtual reality in healthcare market is expected to grow at a CAGR of over 33% from 2025 to 2030, driven by the increasing burden of chronic diseases, rising demand for advanced surgical training tools, and the region’s growing focus on digital health transformation. Strong government backing for digital innovation and public-private partnerships across the region is accelerating the integration of virtual reality technologies into mainstream healthcare services.

Japan virtual reality in healthcare market is gaining traction, fueled by the country’s strong technological infrastructure and advanced medical research capabilities. Japan’s rapidly aging population is a significant driver, prompting the adoption of VR-based rehabilitation. Japan’s leadership in robotics and imaging technologies enhances the development of VR surgical simulators and diagnostic tools, improving precision and patient outcomes. The demand for minimally invasive procedures and personalized patient care is further encouraging hospitals and medical institutions to invest in VR platforms that offer immersive training, therapy, and mental health applications.

China virtual reality in healthcare market is rapidly expanding. The country’s growing investment in digital healthcare infrastructure and emphasis on advanced medical technologies are key drivers of this market. China’s rising burden of chronic diseases is creating demand for innovative, patient-centric treatment solutions, where VR plays a critical role. The integration of 5G and AI with VR platforms further enhances real-time simulation and remote healthcare delivery, strengthening the country’s position as a leader in digital health transformation.

Key Virtual Reality In Healthcare Company Insights

Some key players operating in the market include Google LLC and Microsoft, among others

• Google LLC is a global technology leader known for its innovations in artificial intelligence, cloud computing, and immersive technologies. In the healthcare sector, the company has leveraged its VR platforms, such as Google Cardboard and Daydream, to support medical training, patient education, and mental health therapy. Through initiatives under Google Health, the company integrates VR and AI solutions to enhance diagnostics, telemedicine, and personalized care. Google’s expansive digital ecosystem and strategic partnerships with leading healthcare institutions make it a key player in accelerating the adoption of virtual reality in healthcare worldwide.

• Microsoft Corporation is a major player in the virtual reality in healthcare market, offering advanced mixed reality solutions through its HoloLens platform. Integrated with the Azure cloud ecosystem, Microsoft provides immersive tools for surgical simulation, anatomy learning, rehabilitation, and remote medical collaboration. The company collaborates with hospitals, universities, and medical technology providers to develop scalable VR applications aimed at improving healthcare delivery and medical education. Its strong focus on digital transformation and healthcare innovation positions Microsoft as a global leader in this rapidly evolving field.

Osso VR, Inc. and XRHealth Inc. are some emerging market participants in the virtual reality in healthcare market.

• Osso VR, Inc. is an emerging virtual reality in healthcare company specializing in surgical training and assessment. It offers a fully immersive, hands-on training platform designed to improve the proficiency of medical professionals through interactive VR simulations. The company combines data-driven performance analytics, gamification elements, and realistic scenarios to support continuous learning and skill development. Osso VR’s solutions are used by leading hospitals, surgical centers, and medical device companies, enabling scalable and standardized training across geographies. Its innovative approach to medical education positions it as a rising player in the evolving VR healthcare landscape.

• XRHealth Inc. is an innovative virtual reality in healthcare company that delivers remote therapy solutions using immersive VR environments. The company develops FDA-registered applications for physical therapy, cognitive rehabilitation, stress management, and chronic pain relief. XRHealth’s platform allows real-time clinician monitoring and data tracking, enhancing patient engagement and treatment outcomes. It also supports telehealth integration, making virtual care accessible across diverse populations. With its commitment to blending clinical expertise with cutting-edge VR technology, XRHealth is emerging as a transformative force in digital healthcare delivery.

Recent Developments

• In April 2025, HTC Corporation launched the Vive Medical VR system, a cutting-edge solution designed specifically for physical therapy and rehabilitation. The system integrates immersive virtual reality environments with biometric feedback to enhance patient engagement and accelerate recovery times in clinical settings. This launch underscores HTC’s commitment to advancing healthcare through innovative VR technologies and improving therapeutic outcomes.

• In March 2025, Koninklijke Philips N.V. announced the integration of virtual reality technology into its ultrasound training solutions. This initiative aims to provide medical professionals with immersive, hands-on experiences through a virtual platform to enhance diagnostic skills and improve procedural efficiency. The company plans to leverage VR to offer more effective and interactive training programs, thereby advancing education and patient care in the healthcare industry.

• In March 2025, CAE Inc. announced the launch of its next-generation virtual reality medical training simulator. The new simulator features enhanced graphics and multiuser capabilities designed to support collaborative surgical education in remote settings. This development aims to improve the accessibility and effectiveness of medical training by leveraging advanced VR technology to connect healthcare professionals globally.

Virtual Reality In Healthcare Market Report Scope

Global Virtual Reality In Healthcare Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest technological trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global virtual reality in healthcare market report based on component, device, application, end-use, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software

  • Services

• Device Outlook (Revenue, USD Million, 2018 - 2030)

  • Head-Mounted Display (HMD)

  • Gesture-Tracking Device (GTD)

  • Projectors & Display Wall (PDW)

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Pain Management

  • Education & Training

  • Surgery

  • Patient Care Management

  • Rehabilitation & Therapy Procedures

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Hospitals & Clinics

  • Research Organizations & Pharma Companies

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa (MEA)

    • Saudi Arabia

    • South Africa