A New Journey in Healthcare with Augmented Reality and Virtual Reality

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4Q 2018 | IN-5284

In healthcare—a market in which it is notoriously difficult to operate—the beginning of Augmented Reality (AR) can be seen. An AR system from imaging company Novarad was just recently approved by the U.S. Food and Drug Administration (FDA), a milestone for novel AR tech in the market. In accordance with ABI’s latest research in AR and MR devices and enterprise verticals for 3Q 2018, total AR-related revenue in the healthcare market today is estimated at US$116 million and is expected to reach US$10.578 billion by 2023. This includes revenues from hardware, software, platforms and licensing, connectivity, Information Technology (IT) spending, and more. A greater number of companies—small- and medium-sized enterprises and tech leaders—are investing in software and hardware development for healthcare applications. Advancements in technology will provide novel and valuable opportunities in the healthcare sector for both enterprise and consumer applications, and more companies will continue to invest and embrace AR/Virtual Reality (VR) technology as a result. Use cases are becoming better understood as well; these cases explore consumer applications in therapy and general well-being, along with more professional applications for expert training/simulation.

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How the Future Is Shaped in Healthcare

NEWS


In healthcare—a market in which it is notoriously difficult to operate—the beginning of Augmented Reality (AR) can be seen. An AR system from imaging company Novarad was just recently approved by the U.S. Food and Drug Administration (FDA), a milestone for novel AR tech in the market. In accordance with ABI’s latest research in AR and MR devices and enterprise verticals for 3Q 2018, total AR-related revenue in the healthcare market today is estimated at US$116 million and is expected to reach US$10.578 billion by 2023. This includes revenues from hardware, software, platforms and licensing, connectivity, Information Technology (IT) spending, and more. A greater number of companies—small- and medium-sized enterprises and tech leaders—are investing in software and hardware development for healthcare applications. Advancements in technology will provide novel and valuable opportunities in the healthcare sector for both enterprise and consumer applications, and more companies will continue to invest and embrace AR/Virtual Reality (VR) technology as a result. Use cases are becoming better understood as well; these cases explore consumer applications in therapy and general well-being, along with more professional applications for expert training/simulation.

Applications and Use Cases Expand, Opening the Potential for Investment

IMPACT


In the summer of 2013, Google Glass was introduced to the market; it was quickly picked up in the healthcare sector to be used during serious surgeries and, more specifically, during operations that occurred in rural areas to enable doctors to remain in touch with other doctors across the world. Today we have new players in the industry that focus on application and hardware development for medical purposes. This enables consumers and medical players to select the most effective solutions in accordance with their needs and their budget. Another reason why this sector is flourishing is that AR/VR tools are not as expensive an investment as in the past. There are stronger guarantees of returns on investment, as these tools are able to reduce training, traveling, and administrative costs.

Today, the highest demand is seen in training and simulation use cases, and more specifically in enterprises and universities looking to replace or supplement traditional educational methods with interactive content. These applications often leverage real-time data and instructions to practitioners, boosting confidence for real patient cases. The technological advancements and the new players in the market enable businesses to select tailor-made solutions with hardware that they prefer. For example, CAE Healthcare has developed AR simulators compatible with Microsoft HoloLens, while OssoVR focuses on the VR side with surgical simulators utilizing a range of Head-Mounted Displays (HMDs). Another example is VRHealth’s virtual platform that covers both consumer and enterprise use cases by using Oculus devices. Apart from training, AR can give doctors hands-free interaction with the patient or supplement administrative work with similar hands-free data access. Augmedix, with Google Glass, offers an AR productivity platform to break the reliance on traditional computers and electronic healthcare records (HER). This allows doctors to focus more on their patients, as doctors will have real-time access to the patient’s information and history.

Another healthcare area that is steadily increasing is consumer applications and products that enable patients to monitor their well-being or to visualize the effects that an unhealthy lifestyle may have on their body and health. Virtual therapies can add further value and usability. For example, NuEyes, in collaboration with ODG smart glasses, supports individuals with low vision in their daily activities. Limbix VR and KORTEX both have a developed a range of virtual applications compatible with VR headsets for exposure therapy and therapeutic experiences. There is some activity in pure play healthcare glasses as well, as evidenced by Evena’s medical glasses that were developed specifically for clinical purposes.

Future Implications for the Healthcare Sector

RECOMMENDATIONS


The future outlook for AR/VR in healthcare is encouraging, as opportunities are increasing every year and the market is opening to new companies and investors. In accordance with ABI’s forecast, the gap between consumer and enterprise AR/VR use in healthcare will close. This highlights the fact that AR/VR is not necessarily a complicated tool for consumers—AR/VR has a strong potential in improving mobility disorders and in improving lives for individuals who suffer from phobias and traumas. The immersive technology is paramount to overcoming the issue directly. In addition, the high cost of the equipment will not be a barrier for the majority of consumers and enterprises, as we already have new players in hardware and software development and will undoubtedly have more entrants in the coming years. The future improvements in hardware manufacturing will alleviate form factor barriers (such as weight and comfort for HMDs), bringing greater practicality and ease of use.

There is no doubt that in healthcare, an error can cause irreversible effects. When dealing with a nascent technology like AR or VR, it is expected that some consumers or medical professionals may be reluctant in adopting this solution. Bureaucracy, government regulation, strict budgeting, and more can also delay adoption for transformative tech in healthcare, especially considering private and sensitive patient data. Consequently, a transfer in digital age requires system integration, well-planned strategy, and personnel training.

All in all, the promise of AR and VR in the medical sector outweighs the drawbacks for both consumers and businesses; it is now a question of the time line for adoption. There will be a steady movement toward digitization and new technology adoption that, in time, will transform the healthcare market.

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