Virtual Reality Exposure Therapy for Mental Disorders Market Research Report - Segmented by Technology (Head-Mounted Technology, Gesture-Tracking Technology, Others); Application (Post-Traumatic Stress Disorder (PTSD), Phobias, Anxiety Disorders, Addictions, Others); End User (Mental Health Institutions, Hospitals, Clinics, Rehabilitation Centers, Others); and Region - Size, Share, Growth Analysis | Forecast (2023 2030)

Market Size and Overview:

The Global Virtual Reality Exposure Therapy for Mental Disorders Market is anticipated to register a valuation of USD 121.37 Million in 2022, with projections indicating an increase to USD 168.68 Million by the year 2030. The market is expected to experience a Compound Annual Growth Rate (CAGR) of 4.2% during the forecast period spanning from 2023 to 2030.

Virtual Reality Exposure Therapy (VRET) represents a technologically integrated form of exposure therapy for individuals aiming to alleviate the intensity of stress responses associated with situations, thoughts, or memories causing anxiety or fear. This treatment exposes individuals to PTSD triggers within a safe and controlled environment. Instances like military-related combat or severe car accidents, which make it challenging to revisit traumatic events, can be safely replicated through VRET, providing an environment simulating real-life experiences. Evidence suggests that VRET may effectively address PTSD symptoms, as demonstrated by persisting effects observed at three-month and six-month follow-up appointments. A randomized controlled clinical trial further validated these outcomes, revealing reduced symptoms of PTSD, depression, and rage among patients receiving VRET. The study concluded that VRET is most effective when combined with other conventional treatment methods, although additional research is warranted despite promising preliminary findings.

Market Drivers for Global Virtual Reality Exposure Therapy for Mental Disorders:

The rising incidence of mental disorders among individuals is fuelling the growth of the global virtual reality exposure therapy for mental disorders market.

The escalating incidence of mental disorders among individuals is propelling the expansion of the global market for virtual reality exposure therapy for mental disorders. The prevalence of mental health issues, such as PTSD, clinical depression, and anxiety disorder, has risen due to heightened stress in daily life arising from demanding work and personal responsibilities. Consequently, there is an increased demand for innovative and effective treatments, including virtual reality exposure therapy (VRET), within clinics and hospitals worldwide.

Increasing government investments in healthcare infrastructure is another factor contributing to the growth of the global virtual reality exposure therapy for mental disorders market.

The growth of the global virtual reality exposure therapy market is further supported by increased government investments in healthcare infrastructure. Recognizing the potential benefits of VRET for patients diagnosed with mental health illnesses, governments globally are investing significantly in the development and implementation of mental health services. Furthermore, major players in the sector are making substantial investments to expand their service base, contributing to the growing demand for VRET treatment.

Challenges in the Global Virtual Reality Exposure Therapy for Mental Disorders Market:

The global market for virtual reality exposure therapy for mental disorders is grappling with challenges, notably a scarcity of proficient professionals trained in VRET and limited research on VRET treatment. The effective implementation of VRET necessitates trained professionals with a sophisticated understanding of virtual reality (VR) technology, its associated software, and appropriate therapeutic interventions. While numerous studies have been conducted on VRET for specific mental disorders such as PTSD and depression, additional research is imperative to validate its efficacy across a broader spectrum of mental health conditions and establish usage protocols. Consequently, these challenges act as impediments to the expansion of the global virtual reality exposure therapy for mental disorders market.

Opportunities in the Global Virtual Reality Exposure Therapy for Mental Disorders Market:

A significant opportunity in the global virtual reality exposure therapy for mental disorders market lies in the substitution of traditional treatments with VRET. The incorporation of virtual reality in treatments has the potential to substantially reduce hospital costs. As evidenced by a clinical trial, the implementation of a VR rehabilitation program in an ongoing setting resulted in higher expense reduction per patient compared to conventional treatments.

COVID-19 Impact on the Global Virtual Reality Exposure Therapy for Mental Disorders Market:

The COVID-19 pandemic exerted a considerable impact on the global virtual reality exposure therapy for mental disorders market. Stringent lockdowns, travel restrictions, and social distancing measures across multiple nations impeded manufacturing capacities, resulting in a shortage of skilled workforce. Disruptions in supply chains and the distribution of goods and services delayed the research and development of virtual reality exposure therapy, adversely affecting its implementation for the treatment of mental disorders. However, amidst the challenges posed by the pandemic, there was an increased demand for VRET as individuals experienced mental health disorders, contributing positively to the market's growth.

Recent Developments in the Global Virtual Reality Exposure Therapy for Mental Disorders Market:

• In December 2022, BehaVR and OxfordVR, organizations specializing in virtual reality (VR)-based mental and behavioral health, announced their merger. This strategic move, supported by an initial USD 13 million in Series B funding led collectively by Optum Ventures and Oxford Science, aims to enhance their capabilities in the field.
• In March 2022, Neuton Health Co. Ltd. received class II medical device approval from China's NMPA for its virtual reality (VR)-based therapy for acrophobia. Developed in collaboration with the Shanghai Mental Health Center, the therapy, known as Specific Fear Rehabilitation Training Software, is recognized as the world's first VR device approved for a specific phobia.
• In March 2022, Incannex Healthcare Limited, a clinical-stage pharmaceutical company, signed a license agreement with Monash University to develop a novel treatment combining psychedelics and Virtual Reality (VR) technology. This marks the initiation of a second program for clinical psychedelic therapy, allowing Incannex to develop a new treatment for severe forms of one or more anxiety disorders using its VR therapy tool in conjunction with a psychedelic drug.

Global Virtual Reality Exposure Therapy for Mental Disorders Market Segmentation:

By Technology:

• Head-Mounted Technology
• Gesture-Tracking Technology
• Others

The market is segmented by technology into Head-Mounted Technology, Gesture-Tracking Technology, and Others. In 2022, the head-mounted technology segment dominated the market, holding the highest market share. This growth is attributed to the immersive experience and real-life environment that head-mounted technology provides to patients, enhancing the efficacy of exposure therapy. Additionally, the convenience and affordability of head-mounted technology, compared to other VR-based devices, contribute to its accessibility for both patients and medical professionals.

By Application:

• Post-Traumatic Stress Disorder (PTSD)
• Phobias
• Anxiety Disorders
• Addictions
• Others

The market is categorized by application into Post-Traumatic Stress Disorder (PTSD), Phobias, Anxiety Disorders, Addictions, and Others. In 2022, the post-traumatic stress disorder (PTSD) segment emerged as the leading category, holding the highest market share. This growth is linked to the increasing incidence of PTSD among military veterans and the general population exposed to traumatic life events. VRET treatment is recognized as an effective therapy for PTSD, enabling patients to confront and gradually overcome their traumatic experiences within a safe and controlled virtual environment.

By End User:

• Mental Health Institutions
• Hospitals
• Clinics
• Rehabilitation Centers
• Others

Based on end users, the market is segmented into Mental Health Institutions, Hospitals, Clinics, Rehabilitation Centers, and Others. In 2022, the segment of mental health institutions claimed the highest market share. This growth is attributed to the abundance of resources and infrastructure related to mental health illnesses, facilitating the implementation of VRET treatment in these institutions.

Global Virtual Reality Exposure Therapy for Mental Disorders Market Segmentation: By Region

• North America
• Europe
• Asia-Pacific
• The Middle East & Africa
• South America

The market is geographically segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. In 2022, North America dominated the global virtual reality exposure therapy for mental disorders market, holding the largest share. This growth is driven by the awareness among patients and medical professionals regarding the advantages of VRET for mental health illnesses. Government investments in healthcare infrastructure further contribute to the region's growth. North America is home to key market players, including Virtually Better, Limbix, AppliedVR, XR Health, and Neuro Rehab VR. Asia-Pacific is anticipated to be the fastest-growing region during the forecast period, propelled by the increasing prevalence of mental health disorders in countries such as China, India, Indonesia, and Bangladesh. The region's status as the headquarters for major electronic component manufacturing companies is expected to enhance awareness and adoption of VRET treatment.

Global Virtual Reality Exposure Therapy for Mental Disorders Market Key Players:

• Mimerse (Sweden)
• MindMaze (Switzerland)
• Oxford VR (United Kingdom)
• Neuro Rehab VR (United States)
• Virtually Better (United States)
• Limbix (United States)
• AppliedVR (United States)
• Amelia Virtual Care (Spain)
• C2Care (France)
• XRHealth (United States)