Virtual Reality for Rehabilitation Market Research Report - Segmented By Type (Cognitive Rehabilitation, Neurorehabilitation, and Physical Rehabilitation); End-User (Homecare Settings, Hospitals, Rehabilitation Centers, and Clinics); and Region - Size, Share, Growth Analysis | Forecast (2023 2030)

Market Size and Overview:

In 2022, the Global Virtual Reality for Rehabilitation Market was valued at $135.2 million, and is projected to reach a market size of $371.03 million by 2030. Over the forecast period of 2023-2030, market is projected to grow at a CAGR of 13.45%.

Virtual reality (VR) technology plays a significant role in the healthcare sector, aiding in diagnosis and treatment across surgery, rehabilitation, and counseling. It establishes an immersive three-dimensional environment, enabling realistic simulations of diverse scenarios. In rehabilitation, VR proves beneficial for patient movement and exercise, offering opportunities beyond conventional physical therapy. Patients can actively participate in the virtual environment, diverting attention from physical discomfort and enhancing goal achievement. This technology brings advantages such as flexibility, patient education, motivation, transparent data storage, accessibility, reduced medical costs, and optimized resource utilization. VR facilitates the simulation of real-life activities, assisting stroke patients in enhancing self-care skills and fostering a motivational environment for consistent movement practice. In pain management, VR aids in overcoming sensations of pain, potentially reducing the need for painkillers. In cancer rehabilitation, VR contributes to pain reduction while enhancing memory, vision, and overall well-being. Immersive distraction interventions, like VR rehabilitation, create therapeutic settings, making chemotherapy more tolerable.

Global Virtual Reality for Rehabilitation Market Drivers:

The surge in the number of individuals with disabilities is propelling the expansion of the global virtual reality for rehabilitation market.

While many enterprises leverage virtual reality as an engaging marketing tool, the technology holds practical potential to enhance and support individuals with disabilities in their recovery, exploration, and various activities. It also aids businesses in better understanding the needs of disabled individuals, fostering greater inclusion. According to the World Health Organization (WHO), approximately 15% of the global population lives with some form of disability, with 2–4% facing significant challenges in functioning. As individuals age, disabilities become more prevalent, affecting about two in five adults aged sixty-five and older. A key advantage of virtual rehabilitation for disabled individuals is the ability to engage in a variety of activities on a simulator, largely free from the constraints imposed by their disability and in a safe environment. Hence, this factor propels the demand for virtual reality for rehabilitation.

Increasing government investments in healthcare infrastructure represent another factor contributing to the growth of the global virtual reality for rehabilitation market.

Governments worldwide are increasingly recognizing the potential benefits that virtual reality brings to the recovery of individuals with disabilities. Consequently, substantial investments are being made in the development and implementation of virtual reality solutions within healthcare facilities. This, too, contributes to driving demand for the global virtual reality for the rehabilitation market.

Global Virtual Reality for Rehabilitation Market Challenges:

The global virtual reality for rehabilitation market faces challenges, primarily concerning the presence of alternative technologies. Virtual reality (VR) is not the sole prevailing technique aiding patient recovery in the market. The existence of other technologies providing effective recovery options is constraining the market's growth during the forecast period. Alternative, more natural, and affordable recovery methods are also impeding the market's growth.

Global Virtual Reality for Rehabilitation Market Opportunities:

The substitution of conventional rehabilitation methods with VR-based rehabilitation presents a lucrative opportunity in the global virtual reality for rehabilitation market. The incorporation of virtual reality into rehabilitation methods tends to significantly reduce hospital costs. Clinical trials have shown that implementing a VR rehabilitation program in an ongoing setting result in higher expense reduction per patient compared to conventional methods.

Global Virtual Reality for Rehabilitation Market Segmentation:

Market Segmentation: By Type

• Cognitive Rehabilitation
• Neurorehabilitation
• Physical Rehabilitation

The category experiencing significant growth in the global virtual reality for rehabilitation market, with a projected CAGR of around 25% throughout 2022–2030, is Neurorehabilitation and Cognitive Rehabilitation. This growth is primarily attributed to the increasing prevalence of neurological disorders such as brain strokes, Parkinson's disease, multiple sclerosis, cerebral palsy, and spinal cord injuries. Additionally, the growing public awareness of various neurorehabilitation approaches contributes to this trend. The adoption of digital rehabilitation facilitates patient engagement in cognitive rehabilitation activities, including exercises like exergames, particularly enhancing executive functions in older adults.

Market Segmentation: By End-User

• Homecare Settings
• Hospitals
• Rehabilitation Centers and Clinics

Rehabilitation centers and clinics played a significant role in contributing over 40% of the revenue to the market in 2022. This substantial contribution is attributed to the direct engagement of patients with coaches at rehabilitation facilities and clinics. Such direct interaction facilitates a smoother adaptation to digital rehabilitation methods, thereby increasing the likelihood of successful recovery.

Market Segmentation: By Region

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

The North American market is witnessing growth, driven by the presence of key players such as Neuro Rehab VR, AppliedVR, Limbix, Virtually Better, and Virtual Rehab. The region benefits from a well-developed healthcare infrastructure and various insurance policies supporting digital rehabilitation, contributing significantly to market growth. Meanwhile, Europe emerges as the fastest-growing region in the VR for rehabilitation market, primarily due to the increasing incidence of disability cases in the region.

COVID-19 Impact on the Global Virtual Reality for Rehabilitation Market:

The global virtual reality for rehabilitation market experienced a notable surge in demand amid the COVID-19 pandemic. As individuals diagnosed with COVID-19 faced healthcare challenges and witnessed shifts in their medical care landscape, rehabilitation emerged as a critical component during periods of quarantine. Innovative strategies were developed to ensure uninterrupted treatment, aid in the return to normal life, and improve overall well-being. Virtual reality games demonstrated potential in enhancing functionality, cognition, and patient satisfaction, empowering individuals to actively manage their healthcare journey. The immersive experiences created by visually and audibly stimulating virtual environments have been harnessed for rehabilitation purposes. However, further research is imperative to comprehensively understand the technology's potential benefits. Beyond the pandemic, the virtual rehabilitation market is anticipated to grow, driven by increasing patient numbers and the continuous pursuit of an enhanced quality of life.

Global Virtual Reality for Rehabilitation Market Recent Developments:

In December 2022, the merger of BehaVR and OxfordVR, organizations specializing in virtual reality (VR)-based mental and behavioral health, was announced. The merger was supported by an initial USD 13 million in Series B funding led by Optum Ventures and Oxford Science Enterprises, with participation from entities such as Chrysalis Ventures, Thornton Capital, Accenture Ventures, and Confluent Health.

In March 2022, Neuton Health Co. Ltd. received class II medical device approval from China's NMPA for its virtual reality (VR)-based therapy designed for acrophobia.

In March 2022, Incannex Healthcare Limited, an Australia-based clinical-stage pharmaceutical company focusing on the development of unique medicinal cannabis medical products and psychedelic medicine therapeutics, disclosed the signing of a license agreement with Monash University, a leading Australian university. The agreement aims to develop a novel treatment combining psychedelics and Virtual Reality (VR) technology.

Key Players:

• MindMaze (Switzerland)
• Neuro Rehab VR (United States)
• Oxford VR (United Kingdom)
• AppliedVR (United States)
• Limbix (United States)
• Virtually Better (United States)
• MIRA Rehab Limited (United Kingdom)
• Virtual Rehab (United States)
• XRHealth (United States)
• C2Care (France)