Virtual Reality in Healthcare Market Trends

Growth Drivers  

• Healthcare quality improvement & clinical outcomes: Numerous studies supported by the AHRQ have shown that clinical training and simulations based on the virtual reality (VR) environment improve diagnostic accuracy and care transitions. For instance, the advancement of virtual patient simulations improved diagnostic reasoning in medical students and clinicians while increasing the completeness and accuracy of differential diagnoses. These findings reflect a predominant trend in which a better quality of healthcare prompts these institutions' clinicians to use VR to provide safer and effective training.

• Government R&D investments: In 2023, the AHRQ Digital Healthcare Research program allocated USD 44 million toward digital health projects involving optimizing clinician judgment and safety workflows. Such funding enables VR innovation around quality, and thus demonstrates that clinical-scale VR is moving forward for design and integration. Government research on telehealth shows unequal access for rural and underserved populations. These unmet needs give us an opportunity for growth going forward in new solutions.

Historical Patient Growth Data: VR in Healthcare Users (2010–2020)

Feasibility Models for VR in Healthcare Expansion

Challenges

• Pricing restraints & affordability: One-third of the global population reports having no broadband, which limits the ability to access VR remotely. VR hardware (headsets, sensors) and software development (custom medical applications) can be expensive. Many healthcare providers where healthcare investment and technology are still emerging have difficulty justifying the upfront costs. In hospitals, budget constraints often favor the purchase of essential medical equipment rather than emerging technologies such as VR.
• Regulatory delays and price caps: Regulations can require particular elements of VR healthcare devices and software to be approved. The processes for seeking approval can be lengthy, particularly for VR applications, which can result in a delayed product launch. Delays in approvals lead to a delayed time to market, which increases costs for developers.