US AR/VR Medical Simulation Market Analysis

US AR/VR Medical Simulation Market Analysis Executive Summary

The US AR/VR medical simulation market was valued at around $0.9 Bn in 2022 and is projected to reach $2.7 Bn in 2030, with a 15.3% CAGR. 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 by far the largest market, accounting for more than 40% of the worldwide medical simulation market

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. VR-based training can improve the pass rate for tasks trained with VR by up to 31% compared to conventionally trained groups. 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.

Market Dynamics

Market Growth Drivers

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

• Increasing use of AR/VR Technology in Healthcare: Hospitals and other healthcare institutions are increasingly utilizing AR/VR technology for reasons like training, patient care, and research, along with other uses in the US. An example includes the use of VR in laparoscopic surgery training for medical students in the University of California. Another example includes the training provided by Stryker Corporation to surgeons about using its knee replacement system

• Patient Safety: A study published in 2023 by the Agency for Healthcare Research and Quality (AHRQ) claims that medical simulation has the ability to reduce medical errors by 50%. The potential of AR/VR to reduce the possibility of medical mistakes is driving its demand in the US

• 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 has the ability to enhance learning results.

Market Restraints

• High Cost: Setting up a medical simulation training center in the US requires significant investment with different fixed and variable costs involved. The cost of a high-end surgical simulator in the US is estimated to be in the range of $50,000 to $90,000. Also, other expenses like the cost of AR/VR headsets and software in the US may prevent certain healthcare companies from adopting them.

• Absence of Standardization: The absence of standardization in medical AR/VR simulations and the limited ability of current technology to provide realistic touch sensations pose challenges. Healthcare businesses may struggle to select the best solutions due to the lack of standardization, while the perceived realism of modern VR falls short in meeting the precision needed for hands-on medical teaching, making added costs less justified.

Competitive Landscape

Key Players

• CAE Inc.
• Gaumard Scientific Col
• Surgical Theater
• Osso VR
• SimX
• Surgical Science
• Simulab Corporation
• SimforHealth

Notable Recent Updates

June 2023: 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 in the US.

November 2022: Gaumard Scientific Co. introduced its cutting-edge patient simulator, HAL® S5301, at Emory University's Nell Hodgson Woodruff School of Nursing's advanced simulation and learning center. This marks the inaugural commercial deployment of HAL S5301, with shipments commencing across the US.

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 US. 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 Insurance Portability and Accountability Act (HIPAA): It governs the usage of patient data and private health information. All healthcare AR/VR applications must adhere to stringent data security and privacy regulations so as to preserve patient confidentiality

Clinical Laboratory Improvement Amendments (CLIA): Medical simulation-related clinical laboratories might have to adhere to CLIA regulations. This is especially true if they handle human specimens for training and diagnosis.

Accreditation Bodies: Medical simulation programs used in educational institutions and healthcare facilities need to follow the rules set by accrediting organizations such as the Commission on Accreditation of Healthcare Simulation Programs (CAHSP) and the Accreditation Council for Graduate Medical Education (ACGME).

Educational Accreditation: Accreditation requirements set by educational organizations such as the Commission on Collegiate Nursing Education (CCNE) for nursing programs and the Liaison Committee on Medical Education (LCME) for medical schools have to be followed by academic institutions involved in medical education using AR/VR technology.