The Impact of the Top 3 Strategic Imperatives

Transformative Megatrends

WHY

• Technology innovations are converging with the healthcare information technology (IT) industry to develop applications for payers, providers, and patients using generative AI, the Internet of Medical Things (IoMT), and the cloud.
• Digital Health 4.0 aims to deploy these technologies by converging them and their benefits into one ecosystem.

FROST PERSPECTIVE

• The healthcare XR market will cover unaddressed market needs to implement Digital Health 4.0 by integrating digital health technologies such as generative AI, the Internet of Things (IoT), and the cloud into a single ecosystem.
• The investment landscape is currently limited. However, these solutions have applications for all stakeholders, and they represent an attractive field to explore, boost, and leverage benefits.

Disruptive Technologies

WHY

• The healthcare XR market is in an early stage of development. The industry shows promise for patients, providers, and payers thanks to its benefits and potentially scalable applications.
• Start-ups require consideration for their developing technology strategies, which include clinical trials, XR adoption, and challenging scenarios related to investments and expansions.

FROST PERSPECTIVE

• The integration of XR technologies can significantly enhance treatment, education, surgery, imaging, pharma, and biotechnology, providing innovative solutions that address current healthcare challenges.
• As the market matures, the potential for scalable applications will attract more investment and drive further innovation in the sector.

Competitive Intensity

WHY

• Nascent companies are entering the healthcare XR market, requiring adaptability, business understanding, innovation capability, attractiveness to investors and users, and speed to fill R&D gaps and meet needs. Completing clinical trials and meeting regulations are also necessary.

FROST PERSPECTIVE

• Each new competitor offers attractive technologies focusing on profitable applications with smart and expanded use cases that lower costs, increase XR technology adoption, and promote investments and acquisitions.
• To avoid being outcompeted by these nascent companies, traditional competitors and larger pharma and biotechnology firms will need to invest in XR technologies to improve process efficiency and save time and money without sacrificing product quality.
• The competitive landscape will continue to evolve, and firms that can quickly adapt and innovate will be better positioned to capture market share and drive the future of healthcare XR.

Growth Drivers:

• XR immersive training platforms provide healthcare professionals with risk-free practice environments for complex surgical procedures and emergency responses. Recognizing this potential, medical device manufacturers and pharmaceutical companies are investing in XR solutions to educate healthcare providers on new technologies and techniques.
• Market maturity comes with an emphasis on standardization, which can streamline the adoption and integration of XR solutions into existing healthcare systems.
• In the mid-term, XR will reduce costs by minimizing the need for physical materials and resources and decreasing the required time for training, processes, and outcomes, resulting in a more cost-effective relationship for companies.
• The growing clinical evidence for the effectiveness of XR solutions in healthcare and the increasing number of licensed/Food and Drug Administration (FDA)-approved solutions demonstrate the technology’s benefits and potential.

Growth Restraints

• The healthcare industry is traditionally conservative, and disruptive technologies can face resistance from established methods and processes. Without clear value propositions such as cost savings or speedier treatments, it can be challenging to justify the investments associated with XR implementation.
• The market has experienced the first generation of medical XR simulation, and the existing solutions are customized and have specific uses only for certain organizations, not the industry as a whole. The industry must demonstrate its solutions’ versatility to expand adoption and deployment.

Key Competitors

• Treatment and Care
  • Virtuleap
  • AppliedVR
  • Healion
  • XRHealth
  • Brain Power
  • MindMaze
  • Mynd VR
  • Rendered
  • View Mind
  • Gray Matters
  • Akili
  • RehabVR
  • Kaia Health
  • Mieron
  • Neuro Rehab VR

• Education and Training
  • Embodied Labs
  • Medical Health Scholars
  • Oxford Medical Simulation
  • SimX VR
  • Talespin
  • Virtual Medical Coaching
  • Level Ex
  • OAramaVR
  • Foretell Reality
  • InciteVR
  • FundamentalVR
  • Strivr
  • Mursion
  • Proxime
  • Engage
  • Lucid Reality Labs

• Surgery and Imaging
  • CareAR
  • Taqtile
  • Surgical Science
  • Medivis
  • Precision OS
  • Augmedics
  • EchoPixel
  • Surgical Theater
  • Magic Leap
  • Osso VR
  • Immersive Touch
  • Siemens Healthineers
  • Viatronix
  • Echopixel

• Pharma Applications and Biotechnology
  • Nanome ai
  • Jasoren
  • immerse.io
  • Apprentice.io
  • Fusion VR
  • PAS-X
  • Tulip
  • MasterControl
  • Emerson
  • Labster
  • Insite VR
  • Eye-Sync
  • Oxford VR
  • Stanford Virtual Heart