Metaverse in Healthcare Market

Metaverse in Healthcare Market Size, Share & Trends

The size of global metaverse in healthcare market in terms of revenue was estimated to be worth $9.5 billion in 2023 and is poised to reach $79.6 billion by 2028, growing at a CAGR of 52.9% from 2023 to 2028. The comprehensive research encompasses an exhaustive examination of industry trends, meticulous pricing analysis, patent scrutiny, insights derived from conferences and webinars, identification of key stakeholders, and a nuanced understanding of market purchasing dynamics.

The global metaverse in healthcare solutions market is expected to grow significantly in the coming years. The growth in this market is primarily be attributed to the increasing adoption of extended reality technology in healthcare sector, improved patient centric care, improved patient outcome, demand for healthcare cost reduction, accuracy of diagnosis and minimized errors and increasing the use of AR platforms to perform complex surgical procedures with higher precision and flexibility. On the other hand, the high cost of implementation, data privacy and security concern, health and mental issues from excessive use are expected to hamper the growth of this market during the forecast period.

Metaverse in Healthcare Market Trends

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Metaverse in Healthcare Market Dynamics

Driver: Increasing adoption of mixed reality for performing minimally invasive surgeries

In the healthcare industry, mixed reality (MR) is being used for the first time to convey important information to operating surgeons via a hands-free interface. MR helps healthcare providers simplify medical procedures while also keeping patients safe. One of the important sectors for the introduction of MR is healthcare, which includes surgical simulation, phobia therapy, robot training, and expert training, among other things.

Minimally invasive surgeries with the assistance of robots can help doctors perform complex procedures with greater precision and flexibility. Surgeons must be extremely accurate, focused, and analytical during medical procedures. They must assess several elements in order to make sound decisions during surgery. And the time window that medical practitioners are given to save a patient's life is sometimes only a fraction of a second. Mentioned below are a few examples of how the use of MR will make an impact in the healthcare industry:

• Real-time diagnostics
• Image-guided surgery
• Improving patient experience
• Empowering healthcare professionals

For instance, MR glasses can be used to overlay digital images on a patient's body, allowing a medical practitioner to perform real-time analysis. Patients can also use these devices to view their scans in real-time to gain a better understanding of their physical condition, if necessary. Some of the recent developments in the field of metaverse include:

• In May 2020, ThirdEye (US), a leader in AR and MR enterprise solutions, partnered with NuEyes (US), a pioneer in the field of low-vision technology. With this partnership, NuEyes introduced Pro 2, which employs ThirdEye's lightweight X2 MR Glasses to help patients with visual loss.
• Using AR and MR, AccuVein (US) enabled healthcare personnel to quickly see patients' veins. When using an AccuVein device for pre-insertion testing, doctors can quickly identify ideal vein targets. This not only improves first-time success and decreases escalation calls but also helps guarantee that catheters endure the duration of therapy.

Increasing use of digital twins

In healthcare, digital twins can be used to generate models that can be used for simulations and insights. It can be offered as an online healthcare service that collects data from patient records as well as real-time information from wearables to correlate data from patients, doctors, hospitals, and drug and device makers. The immersive and 3D visualization capabilities of the metaverse will allow the digital twin to be used to improve the creation of tailored medicine as well as the performance of medical equipment and healthcare organizations.

Four technologies are used in digital twins to develop visual representations; acquire, store, and analyze data; and deliver important insights. These technologies are the Internet of Things (IoT), extended reality (XR), the cloud, and artificial intelligence (AI).

Restraint: Data privacy and security concerns

The increasing use of automated healthcare technologies offers greater reach and efficiency in healthcare delivery but has high-security risks due to the broader access offered. Cybercriminals frequently target the healthcare industry with cyberattacks to exploit and manipulate information to their benefit. Furthermore, as the number of patients increases, so does the volume of patient data. Despite the initial findings of metaverse applications being encouraging, a significant impact of metaverse technologies has not been witnessed yet. The growing public awareness of data privacy issues has put pressure on countries to enact stricter privacy legislation. However, developing technologies such as the metaverse, VR, and AR will make enforcing data privacy legislation more difficult in the future.

Multisensory experiences in the metaverse will broaden the scope of data privacy beyond traditional data points to include emotional, biometric, and physiological data, implying that users will be tracked at a forensic level. This will make enforcing data privacy regulations even more difficult. To begin with, it is uncertain if current data privacy standards, other than the GDPR (general data protection regulation), are legally applicable to emerging technologies. Although present regulations handle billions of data points given by users and tech corporations, the metaverse and similar technologies will provide companies with trillions of more intrusive data points. When it comes to enforcing data privacy regulations, there is currently a dearth of resources, which will only grow with the wider adoption of the metaverse in the healthcare industry.

High implementation cost

The healthcare industry needs to invest heavily to successfully and effectively integrate the metaverse into its processes. To reap the benefits of the metaverse, technological infrastructure must be upgraded, particularly in underdeveloped economies. This would necessitate huge infrastructure investment. Everything from an unbroken high-speed (5G) internet connection to advanced gadgets such as wearables requires a large investment. For a better experience, the metaverse incorporates technologies such as AR, VR, AI, HMDs, blockchain, IoT, and several other technologies. As a result, the development cost of the metaverse is bound to be high. The cost of constructing a metaverse varies depending on the features desired, the technology stack necessary, and the size and experience of the team. According to a report published by QSS Technosoft (US), the cost of building a metaverse in 2023 might range between USD 25,000 to USD 1 million. For healthcare, the cost of developing metaverse software is projected to be between USD 80,000 and USD 1 million. Its cost varies according to the complexity of the virtual environment and the number of medical procedures that can be simulated.

Opportunity: Increasing use of metaverse in medical education and training

The market for metaverse in education is expected to grow at a significant rate in the coming years. The application of XR in education has a promising future, and EdTech companies have an attractive opportunity to flourish in the metaverse. Leading market players are entering the ecosystem and embracing digital transformation, which is propelling market growth. XR technologies are significantly changing medical education, such as surgical training, medical test visualization, medical therapies, and drug development. Their key advantages include ease of use and convenience. Some of the key benefits of metaverse in medical training are as follows:

• Metaverse increases the effectiveness of on-the-job and on-campus training by imitating real-life scenarios, thus allowing students to learn more quickly and confidently. It also gives feedback and evaluates skill development.
• Employing digital twin technology to create test dummies can provide insights into a patient's response to therapies, surgical results, potential difficulties with medical products, and other aspects. XR enables medical students to practice in a simulated environment for extensive surgical education at a fraction of the cost of operating on cadavers.
• The customized content captured with XR can be used as desired. Live broadcasting of lectures allows for real-time interaction with lecturers.
• Using VR will aid in the execution of practical processes that are too dangerous or expensive to realistically model. It promotes correct conceptual understanding while remaining in a risk-free environment.
• XR transforms invasive surgeries by allowing doctors to film themselves executing medical procedures. Surgeons may visualize the patient's anatomy, including bones and tissue, before making an incision by superimposing AR and VR-based models on the patient.
• A large amount of data gathered in the metaverse will aid in decision-making and lessen the cognitive burden.
• Some of the recent developments in the metaverse education sector are as follows:
• In December 2022, Wolters Kluwer Health (Netherlands), a major global provider of healthcare information and point-of-care solutions, partnered with BioDigital XR (US). This collaboration will provide immersive, safe-to-fail environments with both VR and AR solutions to students throughout the healthcare landscape to enrich their learning curricula.
• In December 2021, Global Healthcare Academy (India), India's first Healthcare EdTech academy and a pioneer in value-added healthcare training solutions, partnered with 8chili (US) to bring healthcare training and medical education to the metaverse. The collaboration has already released more than 200 hours of VR content in a variety of subspecialties, such as dentistry, oral and maxillofacial surgery, orthopedics, skull base, spine, neurology, ENT, paramedics, nursing, and oncology.
• In November 2021, Novarad Corporation (US), a pioneer in the creation of medical imaging software, launched one of its AR software for higher education, which will be accessible at a significantly reduced cost to academic institutions. By displaying a 3D holographic view of any donor study performed with a CT machine using a Microsoft HoloLens 2 headset, the OpenSight Augmented Reality System for Education will anchor itself in classrooms to provide students and teachers with an immersive and participatory experience.

Challenge: HIPAA regulations for healthcare metaverse

The US healthcare system is overseen by complex state and federal legislation, including HIPAA (Health Insurance Portability and Accountability Act) requirements. HIPAA compliance is established as a standardized way for safeguarding sensitive patient data and medical records, including PHI and ePHIs. HIPAA prohibits the random distribution of patient information without patient consent.

The metaverse has the potential to provide a wide range of healthcare services, from mental health therapy to dermatology appointments. The regulations involved will depend on how services are delivered, as well as how they are funded and paid for. For example, services billed to Medicaid or Medicare must adhere to regulations that may not apply to services paid for in cash. Some technology platforms are being developed to accept cryptocurrency payments for health services provided in the metaverse. The compatibility of current regulatory and payer systems with cryptocurrency payments is a grey area, especially given the cryptocurrency movement's emphasis on deregulation and decentralization.

Also, it is unclear how healthcare practitioners are licensed in the metaverse. Licensing and enforcement can also take place at the state level. It remains to be seen how state licensure rules translate to the metaverse and to what degree, if any, states impose or construct licensure-related legislation in the metaverse. To keep patients safe from data breaches and to regulate licensing, every model of technology must update its HIPAA rules. As the metaverse evolves, it is critical to remember that it is a collection of platforms, each with its own set of rules and regulations. To achieve comprehensive compliance, healthcare organizations will need to stay up to date on recent developments.

Metaverse in Healthcare Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of metaverse healthcare Solutions. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Microsoft (US), NVIDIA Corporation (US), XRHealth (US), CAE Inc. (Canada), Koninklijke Philips N.V. (Netherlands), ImmersiveTouch, Inc. (US), Wipro (India), Siemens Healthineers AG (Germany), Medtronic plc (Ireland), GE HealthCare (US), Intuitive Surgical (US), 8Chili, Inc. (US), MindMaze (Switzerland), AccuVein, Inc. (US), EON Reality (US), Brainlab AG (Germany), Novarad Corporation (US), Oodles Technologies (India), CMR Surgical (UK), Merative (US), BioflightVR (US), WorldViz, Inc. (US), Google (US), Oculus (Meta Platforms, Inc.) (US), and Augmedics (US).

Software to register the highest growth in the component segment of metaverse in healthcare industry in 2022.

On the basis of component, the software segment of the metaverse in healthcare market is expected to grow at the highest CAGR during the forecast period. The large share of this segment is attributed to the increased adaptation of AR/VR software in the healthcare industry and the significant rise in investments made in software development.

Medical education and surgery training accounted for the largest share off the metaverse in healthcare industry during forecast period based on application

Based on application, the medical education and surgical training segment accounted for the largest share of the metaverse in healthcare market. The large share of this segment can be attributed to factors such as the increasing budget of hospitals to improve the quality of care provided and reduce the cost of care.

The augmented and virtual reality segment accounted for the largest share of the metaverse in healthcare industry in 2022

Based on technology, the metaverse in healthcare market is segmented into augmented and virtual reality, mixed reality, artificial intelligence, blockchain, digital twin, Internet of Things, and medical wearables. The augmented and virtual reality segment accounted for the largest share of the market in 2022. The large share of the augmented and virtual reality segment can be attributed to the growing adoption of VR and AR in the healthcare industry, improved patient outcomes, and the growing focus on enhancing medical training, reducing costs, increasing accessibility, improving patient engagement, and driving innovation.

Healthcare providers is the highest growing end user segment of the metaverse in healthcare industry by end users market

Based on end user, the healthcare providers segment of the metaverse in healthcare market is expected to grow at a significant CAGR during the forecast period. The large share of this segment can be attributed to the rising need for an efficient healthcare system, growing patient volume, increasing number of hospitals and ambulatory care centers, growth in telehealth, and the rising adoption of metaverse technology in healthcare.

North America accounted for the largest share of the metaverse In healthcare industry during the forecast period.

In 2022, North America accounted for the largest share of the market, followed by Europe, Asia Pacific, Middle East & Africa and Latin America. The adoption of metaverse solutions for healthcare applications is expected to be the highest in North America (compared to other regions). North America is the leading market in terms of developing cutting-edge technologies used in display devices.

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The products and services market is dominated by a few globally established players such Microsoft (US), NVIDIA Corporation (US), XRHealth (US), CAE Inc. (Canada), Koninklijke Philips N.V. (Netherlands), ImmersiveTouch, Inc. (US), Wipro (India), Siemens Healthineers AG (Germany), Medtronic plc (Ireland), GE HealthCare (US), Intuitive Surgical (US), 8Chili, Inc. (US), MindMaze (Switzerland), AccuVein, Inc. (US), EON Reality (US), Brainlab AG (Germany), Novarad Corporation (US), Oodles Technologies (India), CMR Surgical (UK), Merative (US), BioflightVR (US), WorldViz, Inc. (US), Google (US), Oculus (Meta Platforms, Inc.) (US), and Augmedics (US).

Scope of the Metaverse in Healthcare Industry

The study categorizes the metaverse in healthcare market to forecast revenue and analyze trends in each of the following submarkets.

By Component

• Introduction
• Software
• Hardware
  • AR Devices
  • VR Devices
  • MR Devices
  • Displays
• Services

By Technology

• Introduction
• Augmented/ Virtual reality.
• Mixed Reality
• Artificial Intelligence
• Blockchain
• Digital Twin
• IoT
• Medical Wearables

By Application

• Digital therapeutics
• Medical diagnostics
• Telehealth And Telemedicine
• Medical Education and Surgery Training
• Drug Discovery and Personalised Medicine
• Other Applications

By End Users

• Introduction
• Healthcare Providers
• Payers
• Patients
• Pharma and Biopharma Medtech Companies
• Other End Users

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • RoE
• Asia Pacific
  • Japan
  • China
  • RoAPAC
• Latin America
• Middle East & Africa

Recent Developments of Metaverse in Healthcare Industry:

• In March 2023 NVIDIA Corporation (US) partnered with Microsoft (US) , This collaboration will help connect Microsoft 365 applications and NVIDIA Omniverse to digitalize their operations, engage in the industrial metaverse, and train advanced models for generative AI and other applications
• In February 2023, Wipro (India) launched Decentralized Identity and Credential Exchange (DICE) ID, which enables the insurance and verification of tamper-proof, self-verifiable digital credentials for current or potential healthcare or financial service providers, as well as educational institutions.
• In November 2022, GE Healthcare (US) collaborated with MediviewXR(US) . This collaboration was aimed at developing the OmnifyXR medical imaging system.

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