Towards Healthcare Research & Consulting

US AR and VR In Healthcare Market Impact of Regulatory Developments and Digital Health Policies

The U.S. AR and VR in healthcare market size was $0.94B in 2025 and is predicted to grow at a 25.08% CAGR during the forecast period. The market is forecasted to reach $8.81B by 2035. Growth factors like the rise in the healthcare IT ecosystem, increasing private investments, decreasing hardware costs, high telemedicine demand, the rise in medical training, and burgeoning mental healthcare drive the overall growth. Payal Rabde, a senior research analyst, has analyzed this market based on market outlook, AI integration, segmental analysis, top vendors, and developments. Her research is useful for healthcare providers, investors, medical product developers, and biotechnology firms for decision-making and competitive benchmarking. 

Last updated 12 October 2026   |   Primary source: Towards Healthcare, report 6362   |   Derived values are labelled
USD 0.94 Billion
Revenue, 2025
USD 8.81 Billion
Forecast, 2035
25.08%
CAGR, 2025-2035
United States
Report Coverage

U.S. AR and VR In Healthcare Market Size, Key Players with Growth and Forecast

The U.S. AR and VR in healthcare market size reached US$ 0.94 billion in 2025 and is anticipate to increase to US$ 1.17 billion in 2026. By 2035, the market is forecasted to achieve a value of around US$ 8.81 billion, growing at a CAGR of 25.08%.

U.S. AR and VR In Healthcare Market Size is USD 1.17 Billion in 2026.

The U.S. AR and VR in healthcare market is growing because these technologies are presently employed in different healthcare applications, involving surgery or pre-surgery planning and navigation, performing medical care processes before the surgery, visualizing multifaceted anatomy to support physicians during operations physical therapy, and rehabilitation, and also supporting patients in managing their chronic health conditions efficiently.

Key Takeaways

  • U.S. AR and VR in healthcare industry poised to reach USD 1.17 billion by 2026.
  • Forecasted to grow to USD 8.81 billion by 2035.
  • Expected to maintain a CAGR of 25.08% from 2026 to 2035.
  • The global AR and VR in healthcare market is set to grow from USD 3.81 billion in 2026 to USD 27.98 billion by 2035, at a CAGR of 24.81%.
  • By application type, the surgical training segment dominated the U.S. AR and VR in healthcare market by 40% in 2025.
  • By application type, the mental health therapy segment is expected to be the fastest growing at a notable CAGR during the forecast period.
  • By technology type, the augmented reality segment dominated the market by 50% in 2025.
  • By technology type, the virtual reality segment is expected to be the fastest-growing during the forecast period. 
  • By end user, the hospitals segment dominated the market by 40% in 2025.
  • By end user, the clinics segment is expected to be the fastest growing during the forecast period.
  • By user type, the healthcare professionals segment dominated the global AR & VR in healthcare U.S. AR and VR in healthcare market by 50% in 2025.
  • By user type, the researchers segment is expected to be the fastest growing during the forecast period.

What are AR and VR in the healthcare market?

The U.S. AR and VR in healthcare market in healthcare is rapidly growing, driven by the increasing adoption of these technologies in various applications, including medical training, patient rehabilitation, surgical simulation, pain management, and mental health therapy. Recent developments in medical care, IT infrastructure, and increased venture capital investment, driven by various start-ups and government programs such as NIH and FDA initiatives, support AR/VR research. AR and VR are important innovations in immersive technology.

  • Growing Remote Healthcare:- The rise in telehealth interactions and the increasing virtual diagnosis of diseases increase the use of AR and VR. Growing remote mental therapy services and increasing at-home rehabilitation drive the growth.
  • Rise in Consumer Medical Devices:- The high commercialization of medical products and the expansion of home healthcare systems increase the use of AR and VR. The availability of FDA-authorized medical devices helps with the expansion.
  • Rise in Surgical Operations:- The focus on developing accurate surgical planning and the rise in endoscopic surgeries increase the use of AR and VR technologies. The growing number of robotic-assisted surgeries helps with the expansion.

U.S. AR and VR In Healthcare Market Outlook

  • Industry Growth Overview: Between 2025 and 2030, the market is expected to grow, driven by technological advancements, growing demand for better training, and applications in areas such as rehabilitation, pain management, and surgical planning.
  • Sustainability Trends: The major sustainability trends are immersive technologies that improve training, health, surgery precision, and patient care. Addressing their sustainability challenges is significant for responsible adoption and long-term viability.
  • Major Investors: Major investors include a mix of venture capital firms and large corporations, such as GSR Ventures, Eight Roads Ventures, and GT Healthcare Capital Partners.

What is the Role of AI in the Market?

The integration of AI drives U.S. AR and VR in healthcare market growth, as AI-driven technology supports real-time data interpretation in AR/VR platforms, enhancing clinical decision-making and targeted treatment. This merging is gaining traction in education and medical care alike, as seen in cross-industry collaboration. Artificial intelligence (AI) is a significant and disruptive area of the healthcare industry, with the potential to essentially transform the practice of medicine and the delivery of healthcare. AR and VR techniques allow healthcare professionals to provide more modified, efficient, and patient-driven care.

For Instance,

  • In July 2025, DataArt, a global software engineering firm specializing in data, analytics, and AI solutions, announced its partnership with the German Lab E GmbH to launch a groundbreaking virtual reality (VR) platform for psychotherapists. The innovative system enables immersive, clinically relevant exposure therapy experiences for supporting treatment of anxiety, stress, depression, and other mental disorders, representing a significant advancement in digital mental health solutions.

Quick Facts Table

Table Scope
Market Size in 2026 USD 1.17 Billion
Projected Market Size in 2035 USD 8.81 Billion
CAGR (2026 - 2035) 25.08%
Historical Data 2020 - 2023
Base Year 2025
Forecast Period 2026 - 2035
Measurable Values USD Millions/Units/Volume
Market Segmentation By Application, By Technology, By End-Use, By User Type
Top Key Players CAE Healthcare, GE Healthcare, Philips Healthcare, Microsoft, Siemens Healthineers, Intuitive Surgical, Psious, MindMaze, Virtualis, Oxford VR, Medivis, Health Scholars, Vicarious Surgical, Touch Surgery

Segmental Insights

By Application

U.S. AR and VR In Healthcare Market By Application, (Surgical Training) Segment Dominates by 40% in 2025.

Why the Surgical Training Segment Dominated the Market?

By application, the surgical training segment led the U.S. AR and VR in healthcare market by 40% in 2025, as this technology offers an entirely immersive digital environment. AR overlays digital data over the physical world. The applications of VR for training surgical professionals have predominantly lowered the expenses and time of training sessions. AR/VR training suites permit surgeons to train for longer durations and enhance precision repeatedly. AR and VR technologies support healthcare professionals to better appreciate structures in real or virtual space, making the transition from learning to clinical environments easier. AR VR in training is used to make simulations where training is safe and free of penalties.

On the other hand, the mental health therapy segment is projected to experience the fastest CAGR from 2025 to 2034. Through immersive exposure to VR and AR technology, auditory and visual environments are applied to reassure patients that they're in a harmless place while exposing them to their fears. AR/VR technology allows remote therapy, making quality mental healthcare available to patients in rural regions. Using VR in the treatment of mental disorders offers safe and controlled exposure to worrying stimuli, personalized and flexible strategies to treatment, and the capability to create realistic simulations of shocking situations.

By Technology Type

Segment Share (%)
Augmented Reality 50%
Virtual Reality 30%
Mixed Reality 20%

Why the Augmented Reality Segment Dominated the Market?

By technology type, the augmented reality segment is dominant in the U.S. AR and VR in healthcare market by 50% in 2025, as AR assists in surgery management and patient treatment, and supports explaining complex healthcare conditions to patients and their relatives. Augmented reality is exceptional and supportive in medicine because it combines virtual images with the real world, including real people and objects. With advanced technology, AR supports clinicians in better understanding human anatomy while improving chances for international physician partnerships.

The virtual reality segment is expected to experience the fastest growth from 2025 to 2034, driven by this technology used in healthcare facilitates communication, improve patient experiences, and enhances overall quality of life. Integrating VR with therapies, medications, and treatments yields promising results in real-time patient care and chronic treatment plans. An important advantage of VR technology in medical care is its ability to reduce pain perception. VR technology is becoming an effective device for pain management, offering distraction and relief during healthcare procedures.

By End-user

Why is the Hospitals Segment Dominant in the Market?

By end-user, the hospitals segment led the U.S. AR and VR in healthcare market by 40% in 2025, as AR and VR technologies predominantly enhance surgical precision and safety. By using these technologies, physicians can access real-time, three-dimensional visualizations of the patient's anatomy during surgery. AR and VR technologies improve the effectiveness of healthcare systems and optimize workflows. Technologies such as AR and VR support in healthcare imaging and diagnostics by offering advanced visualization. These technologies drive partnership in multidisciplinary teams, enabling better decision-making and treatment management.

The clinics segment is projected to experience the fastest CAGR from 2025 to 2034, as AR and VR offer interactive and immersive learning experiences that can transform the way training is delivered. Augmented reality in medical care is broadly used for doctor and patient education, simulation of disease, surgical visualization, and in complex care scenarios. Surgeons leverage healthcare device augmented reality to access 3D overlaps of veins, diagnostic data, and organs, improving healthcare precision.

By User Type

Why is the Healthcare Professionals Segment Dominant in the Market?

By user type, the healthcare professionals segment led the U.S. AR and VR in healthcare market by 50% in 2025, as it enhances medical care precision, access to care. Both augmented reality (AR) and virtual reality (VR) provide major advantages for medical care professionals, from improving medical training to enhancing diagnostic accuracy and patient care. AR displays 3D anatomical models, CT scans, and other patient information directly into the patient's body during a procedure.

The researchers' segment is projected to experience the fastest CAGR from 2025 to 2034, as AR/VR simulations make interactive and immersive learning experiences, improve skill development, enhance knowledge retention, and increase employee engagement. AR and VR technologies provide an engaging, effective, and interactive strategy for employee development. These technologies make a more significant and impactful research environment by submerging learners in realistic imitations and offering hands-on experiences.

Global AR and VR in Healthcare Market Growth

The global AR and VR in the healthcare market size was calculated at USD 3.05 billion in 2025, to reach USD 3.81 billion in 2026 is expected to be worth USD 27.98 billion by 2035, expanding at a CAGR of 24.81% from 2026 to 2035. The advent of advanced technologies, the burgeoning healthcare sector, and increasing investments drive the market. 

AR and VR in Healthcare Market Size 2026 - 2035

State-Level Insights

California

California is a key contributor to the market. The increasing broadband investments and the expansion of AI developers increase the use of AR and VR in healthcare. The rise in medical extended reality and the massive expansion of digital therapeutics help drive growth. The rapid development of medical software and increasing surgical training boost the overall growth.

New York

New York is rapidly expanding in the market. The scaling of digital health models and the rising development of mental health apps increase the use of AR and VR. The preference for continuous patient care and the transition to contactless learning help with the expansion. The presence of leading research hospitals and the availability of head-mounted medical devices support the overall growth.

Texas

Texas is growing in the market. The rise in 5G-based ambulances and the growing health-tech startups increase the use of AR and VR. The growing remote team partnerships and increasing surgical visualization increase adoption of AR and VR. The growing private-equity investments in AR and VR healthcare systems and exploding medical training boost the overall growth.

Top Vendors and their Offering

  • MediSim VR: In October 2025, MediSim VR launched Uttarakhand's first Center of Excellence in AI and VR-based Medical Simulation at HIMS. This pioneering initiative reflects India's progressive approach to integrating immersive technologies into healthcare education and directly supports the transformational vision outlined in the National Education Policy (NEP).
  • XRHealth: In February 2025, XRHealth, a pioneer in therapeutic virtual reality (VR), mixed reality (MR), and extended reality (XR) solutions, announced that it acquired the immersive, digital therapeutics company RealizedCare, further advancing AI-powered, value-based care in healthcare. With this acquisition, XRHealth solidifies its position as the largest AI-driven therapeutic XR platform worldwide.

Top Companies in the U.S. AR and VR In Healthcare Market

  • CAE Healthcare
  • GE Healthcare
  • Philips Healthcare
  • Microsoft
  • Siemens Healthineers
  • Intuitive Surgical
  • Psious
  • MindMaze
  • Virtualis
  • Oxford VR
  • Augmedics
  • Surgical Theater
  • EchoPixel
  • Medivis
  • Health Scholars
  • Vicarious Surgical
  • Touch Surgery
  • Propio Vision
  • Immersive Touch
  • OSSO VR
  • SentiAR
  • Medical

Recent Developments in the U.S. AR and VR In Healthcare Market

  • In June 2023, Immersive technologies such as Augmented Reality (AR) and Virtual Reality (VR) are helping to transform the healthcare industry. Delivering faster and more effective training, diagnoses, and surgical operations.
  • In June 2025, HealthpointCapital, the leading private equity firm focused exclusively on musculoskeletal healthcare, announced the acquisition of a majority stake in ImmersiveTouch, Inc. ImmersiveTouch's ImmersiveView platform is a patented, proprietary Virtual Reality (VR) and Augmented Reality (AR) software solution for surgical planning, navigation, and patient-customized surgical guides.

Segments Covered in the Report

By Application

  • Surgical Training
  • Patient Education
  • Pain Management
  • Physical Rehabilitation
  • Mental Health Therapy

By Technology

  • Augmented Reality
  • Virtual Reality
  • Mixed Reality

By End-Use

  • Hospitals
  • Clinics
  • Medical Schools
  • Research Institutions

By User Type

  • Healthcare Professionals
  • Patients
  • Medical Students
  • Researchers

FAQ

Finding : The U.S. AR and VR in healthcare market is expected to grow from $1.17 billion in 2026 to around $8.81 billion by 2035 with 25.08% CAGR

Finding : Key trends include the use of VR for mental health therapy, immersive surgical training, and AI-enabled medical visualization

Finding : Some key players include Surgical Theater, EchoPixel, Medivis, Health Scholars, and Vicarious Surgical.

Meet the Team

Aditi Shivarkar

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Reviewed By

Aditi Shivarkar is a seasoned professional with over 14 years of experience in healthcare market research. As a content reviewer, Aditi ensures the quality and accuracy of all market insights and data presented by the research team.

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