The giant investment bank Goldman Sachs is predicting that the global market for virtual reality (VR) and augmented reality (AR) in healthcare will reach $5.1 billion by 2025 and be used by some 3.4 million people.
In this article we’ll summarise the findings of the report and explain how they came to their conclusion.
The report outlines several use-cases for VR and AR within healthcare, including:
- As a tool to aid Doctors and other medical professionals with day-to-day tasks
- For physical therapy and to treat phobias and anxiety
- Increasing access to Doctors through virtual visits
The market size calculations are based solely on Doctors and EMTs using specialised VR and AR software.
As a comparison to aid the calculations, the Goldman researchers looked at the cost of specialised CAD (computer aided design) software used by engineers and architects.
This type of specialised software currently costs $1000 – $5000 dollars per year, and with an estimated 800,000 and 3.4 million EMTs and physicians using the software by 2020 and 2025 respectively, the market size predictions are $1.2 billion in 2020 and $5.1 billion by 2025.
The report also includes some very interesting statistics on the VR/AR industry as a whole:
- $3.5 billion has been invested by venture capitalists into VR/AR in the last 2 years
- 121 countries tuned in to watch the VR stream by CNN of the first Democratic Presidential debate
- 2 million Google Cardboard (head mounted VR displays) have been distributed since launch
- 48 hours is how long it took Samsung’s Gear VR to sell out on Amazon and Bestbuy
- 770,000 Virtual Boy VR devices sold by Nintendo back in 1995
- 200,000 developers have registered to create VR games for the Oculus platform
There is almost no doubt that the VR/AR industry is going to be huge and will disrupt many well-established industries as it continues to grow.
Healthcare is a sure candidate for this disruption and only time will tell just how accurate the researchers at Goldman turn out to be.