Global AR/VR Medical Simulation Market

Global AR/VR Medical Simulation Market Executive Summary

The global AR/VR medical simulation market was valued at around $2.2 Bn in 2022 and is projected to reach $7.8 Bn in 2030, exhibiting a CAGR of 17.1% during the forecast period. The medical simulation market using AR/VR is growing continuously due to the advantages it has to offer such as the ability to create highly accurate simulations of clinical scenarios, an immersive and realistic training environment, increasing demand for minimally invasive procedures and natural interactions with virtual objects and environments.

The US is one of the top adopters of AR/VR in healthcare and medical schools are increasingly using these technologies for providing medical training. Around 63% of medical institutions globally are known to use VR for training. For instance, the Johns Hopkins School of Nursing has been using VR training at all levels of training, including prelicensure and doctorate nursing. Resuscitation, allergic reactions, postsurgical management, acute-care management, and pediatric critical care are the major focus areas in VR training. The prime advantage of this training is the freedom it offers to practice an exercise multiple times which is not possible in the traditional cadaver or bio skills lab.

In Europe, the Society for Simulation in Europe (SESAM) is a healthcare simulation organization aimed at promoting and endorsing the application of simulation in healthcare. It organizes yearly events like the SESAM Simulation Meeting to exhibit cutting-edge medical simulation products and offer a forum for industry experts to exchange their expertise.

Market Dynamics

Market Growth Drivers

• Rising Prevalence of Chronic Diseases: Diseases like heart disease and cancer are responsible for around 38% of deaths globally, which makes chronic diseases one of the major causes of death. The growing demand for medical simulation is being driven by its potential to be used in the training of medical professionals for disease diagnosis and treatment globally.

• Increasing use of AR/VR Technology in Healthcare: Hospitals and other healthcare institutions globally are increasingly utilizing AR/VR technology for purposes such as training, patient care, research, and various other applications. Examples of medical simulation in training include the application of VR in laparoscopic surgery training for medical students at the University of California and the training offered by Stryker Corporation to surgeons on the use of its knee replacement system.

• Increasing Need for Patient Safety: More than 10% of patients still experience harm due to safety lapses in their medical care, and on a global scale, inadequate care leads to over 3 million deaths annually. A study published in 2023 by the Agency for Healthcare Research and Quality (AHRQ) claims that medical simulation can reduce medical errors by 50%. The potential of AR/VR to reduce the possibility of medical mistakes is driving its demand globally.

• Growing Need for Top-Notch Medical Education: The need for top-notch medical education is rising as medical procedures and technologies are becoming more complicated. Training with AR and VR can be more immersive and interesting which can enhance learning results.

Market Restraints

• High Cost: Setting up a medical simulation training center requires significant investment with different fixed and variable costs involved. The global estimated cost for a high-end surgical simulator falls within the range of $50,000 to $90,000. Additionally, expenses such as the cost of AR/VR headsets and software on a global scale may hinder the adoption of these technologies by certain healthcare companies.

• Absence of Standardization: Medical AR/VR simulations are not yet standardized. As a result, healthcare businesses may find it challenging to select and apply the best solutions. Establishing and maintaining consistent, dependable standards is crucial to guarantee the quality and efficacy of medical simulation training.

• Lack of Standardization: The regulatory environment for medical simulation differs across countries and regions, leading to obstacles in adoption and standardization. This absence of standardized practices can pose challenges for healthcare institutions and medical professionals in adopting and integrating medical simulation technologies.

Competitive Landscape

Key Players

• CAE Inc.
• Gaumard Scientific Co
• Kyoto Kagaku Co., Ltd.
• Laerdal Medical AS
• Limbs & Things Ltd.
• Mentice AB
• SimforHealth
• Simulab Corporation
• Surgical Science Swed
• Simulaids, Inc.

Notable Recent Updates

October 2023: CAE Inc. has officially confirmed a finalized deal to sell CAE's Healthcare division to Madison Industries, based in Chicago, for a total enterprise value of $311 Mn.

June 2023: On June 23, a partnership was announced between SimX, a virtual reality (VR) medical simulation platform, and Laerdal Medical, a provider of simulation-based training in the areas of resuscitation, patient care, and emergency care training. This partnership has the potential to significantly contribute to the AR/VR medical simulation market globally.

August 2022: On August 11, Fundamental VR which is an immersive simulation platform for the healthcare and medical industries raised $20 Mn in a funding round to accelerate skill-transfer and surgical proficiency through VR applications.

Healthcare Policies and Regulatory Landscape

US Food and Drug Administration (FDA): Devices classified as medical devices and medical simulation software are governed by the Food and Drug Administration (FDA) in the USA. Certain AR/VR applications may require FDA approval or authorization depending on their intended usage. This covers all applications directly related to patient care or treatment, as well as surgical simulators and diagnostic tools.

Health Canada: Health Canada regulates medical devices in Canada under the Medical Devices Regulations guided by the Food and Drugs Act. The regulations cover aspects like classification, manufacturer obligations, fees, labeling, licenses, incident reporting, and recalls.

European Medicines Agency (EMA): Holds regulatory duties for medical devices in Europe. As per the existing legislative framework for medical devices, the EMA primarily offers scientific opinions to notified bodies through consultation procedures.