Global Augmented Reality (AR) in Healthcare Market Size

Augmented Reality (AR) in Healthcare Market Analysis

The Global Augmented Reality in Healthcare Market size is estimated at USD 1.19 billion in 2024, and is expected to reach USD 3.94 billion by 2029, growing at a CAGR of 26.99% during the forecast period (2024-2029).

Covid-19 has significantly impacted augmented reality in the healthcare market due to the rise in the adoption of AR in healthcare. According to the study published in Informatics in Medicine Unlocked, titled 'Applications of virtual and augmented reality in infectious disease epidemics with a focus on the COVID-19 outbreak' in April 2021, major infectious disease pandemics frequently cause public health, economic, and societal difficulties. As two unique technologies, virtual reality (VR) and augmented reality (AR) has been employed in numerous domains for disaster emergency management. Such a rise in the adoption of augmented reality during the pandemic is expected to drive market growth.

The major factors driving the growth of this market include the rise in the adoption of augmented reality in healthcare, an increase in investments in augmented reality, a rise in the number of AR startup companies, and a rise in advancements in technology, among others.

According to the news published in April 2022, augmented reality is a growing trend in telemedicine, and the incorporation of augmented reality (AR) into telemedicine has the potential to revolutionize the way doctors and healthcare professionals diagnose and prescribe appropriate therapy. Many countries, however, have yet to fully exploit the potential of augmented reality, either due to a lack of knowledge or acceptance concerns. Such rising applications of AR in healthcare will lead to a rise in the adoption of AR in healthcare, driving the market growth.

The rise in investments to develop augmented reality products is further expected to drive the growth of the market studied due to the rise in the entry of novel AR products in the market, thereby driving the sale driving the market growth. For instance, in January 2022, A group of healthcare companies was given early access to Magic Leap's second-generation augmented reality headset. SentiAR, for example, makes software that allows doctors to examine a 3D representation of a patient's heart while operating on it. Brainlab, for example, wants to make its Mixed Reality Viewer software compatible with Magic Leap.

In addition, the rising launch of augmented reality healthcare products in the market is expected to drive the market further. For instance, in August 2020, FusionVR released augmented reality (AR) solutions for the pharmaceutical and healthcare industries to revolutionize healthcare manufacturing. Such launches will lead to a rise in the adoption of AR products in pharmaceutical manufacturing to deliver on quality, efficiency and productivity, driving market growth.

However, the high cost of augmented reality products and data security concerns related to AR products are the factors expected to hinder market growth.