Global Mental Health Visual Simulation Technology (VST) or Virtual Reality Exposure Therapy (VRET) Market Research Report Segmented by Components (Virtual Reality Headset, Virtual Reality Earphones, Virtual Reality Software & Modules, Virtual Reality Workstation, Virtual Reality Position Tracker/ Sensors, Biofeedback Monitor, and Others); By Applications (Mental Disorder & Addiction Management, Stroke Management, Pediatric Management, Education & Medical Training, and Others); By End-User (Hospitals & Healthcare Institutions, Therapy Clinics & Surgical Centers, Research & Training Organizations, and Others); and Region- Size, Share, Growth Analysis | Forecast (2024 2030)

Global Mental Health Visual Simulation Technology (VST) or Virtual Reality Exposure Therapy (VRET) Market Size (2024 – 2030)

According to the most recent analysis conducted by Our Research, the Global Market for Virtual Reality Exposure Therapy in the context of Mental Disorders attained a valuation of USD 126.47 Million and is anticipated to reach a market size of USD 168.68 Million by the conclusion of 2030. Across the forecast duration spanning 2024-2030, the market is expected to register a Compound Annual Growth Rate (CAGR) of 4.2%.

Virtual reality exposure treatment (VRET) is a form of technology-assisted exposure therapy designed to mitigate the intensity of stress responses associated with situations, thoughts, or memories evoking anxiety or fear. This innovative technology has emerged over the past decade, witnessing significant transformations in the market due to advancing technologies and heightened awareness. The ongoing progress in research, collaborations, and investments indicates a promising and substantial growth trajectory for the market.

Key Market Insights:

In 2020, reports indicated a 300% surge in teletherapy and virtual mental health services. During the pandemic, heightened awareness of mental health led to a 20% increase in the adoption of mental health apps post-pandemic. Projections for the post-pandemic behavior treatment industry estimate a market value of $187.4 billion by 2025, suggesting a widespread global use of VR for exposure therapy within the next five years. Over the last five years, there has been significant advancement in understanding mental health, with approximately 90% of companies estimated to offer mental health services for their employees. Concerns about data security and privacy, affecting various industries including hospitals and mental health service centers, prompted enhancements to the Health Insurance Portability and Accountability Act (HIPAA). The integration of Internet of Things (IoT) and Artificial Intelligence (AI) in the healthcare sector is anticipated to address these challenges.

Mental Health Visual Simulation Technology (VST) or Virtual Reality Exposure Therapy (VRET) Market Drivers:

The benefits associated with mental health visual simulation technology and virtual reality exposure therapy are propelling market expansion.

Mental Health Visual Simulation Technology (VST) and Virtual Reality Exposure Therapy offer numerous advantages, including tailored treatment plans, a sense of control for patients, drug-free interventions, a safe training environment, cost-effectiveness compared to alternative treatments, and the flexibility for patients to continue treatment at home using VR apps, encouraging long-term usage of treatment plans. Recognizing its crucial role, licensed professionals and healthcare sectors are actively incorporating new technology, contributing to market growth.

Technological advancements have been instrumental in fostering market growth.

Firstly, VST or VRET proves to be a valuable tool for individuals dealing with agoraphobia, panic disorder, social anxiety, and post-traumatic stress disorder (PTSD). It can monitor heart rate variability and other biometrics, along with relevant visual cues. Secondly, brain wave technology has emerged as a helpful aid, analyzing electrical impulses based on the individual's emotions or activities. Thirdly, Transcranial Magnetic Stimulation (TMS) offers a non-invasive therapy for depression or anxiety, lasting 20-30 minutes with minimal side effects. Numerous promising technologies are anticipated to positively impact the market.

Mental Health Visual Simulation Technology (VST) or Virtual Reality Exposure Therapy (VRET) Market Restraints and Challenges: Technical issues, physical and psychological effects, and ethical dilemmas pose significant obstacles to market growth.

Hardware and software glitches stemming from the equipment used represent a major hindrance to market progression. Additionally, the high cost and potential incompatibility of these components with individuals may limit widespread adoption. Some studies suggest side effects such as nausea, eye strain, dizziness, and headaches, which, although limited in evidence, can impede progress. Malfunctions and false environments could trigger psychological conditions in users, leading to severe consequences. Furthermore, ethical concerns related to scenario creation may face resistance from the public.

Mental Health Visual Simulation Technology (VST) or Virtual Reality Exposure Therapy (VRET) Market Opportunities:

Ongoing research and developmental activities aimed at enhancing the technology present abundant opportunities for the sector. Increased investments and funds are being allocated to foster market growth. Emerging technologies like computational mood alteration, neurofeedback, and eye tracking are poised to exhibit significant potential. Growing acceptance of medical innovations and willingness to undergo these treatments among the public mark a substantial milestone for the industry. VR-delivered therapy, as observed in clinical studies, offers a positive and pleasant experience, acting as a distraction from anxiety and distress. Government initiatives, youth interest in pursuing careers, and increased prominence contribute to a noteworthy flourishing of the industry.

Mental Health Visual Simulation Technology (VST) or Virtual Reality Exposure Therapy (VRET) Market Segmentation: By Components

• Virtual Reality Headset
• Virtual Reality Earphones
• Virtual Reality Software & Modules
• Virtual Reality Workstation
• Virtual Reality Position Tracker/ Sensors
• Biofeedback Monitor
• Others

In terms of components, the virtual reality headset emerges as the largest and fastest-growing market category throughout the forecast period. The VR headsets play a significant role in treatment by providing a realistic three-dimensional (3D) experience through computerized technology. The ongoing development of cost-effective and wireless VR headsets is expected to drive demand further. Additionally, enhancing compatibility and usability of VR headsets with smartphone apps for treating severe mental disorders are poised to contribute to market growth, with this category commanding a share exceeding 30% of the overall market.

Mental Health Visual Simulation Technology (VST) or Virtual Reality Exposure Therapy (VRET) Market Segmentation: By Applications

• Mental Disorder & Addiction Management
• Stroke Management
• Pediatric Management
• Education & Medical Training
• Others

Regarding applications, mental disorder and addiction management represent the largest and fastest-growing segment. Presently, over 44 million individuals suffer from various mental illnesses, including addiction to substances, eating disorders, and self-esteem issues. Despite these challenges, a growing number of individuals are openly addressing their conditions through counseling and therapy sessions, contributing to the substantial profits in the VRET market. The experience, satisfaction, and non-invasive nature of VRET procedures play a crucial role in this market segment.

Mental Health Visual Simulation Technology (VST) or Virtual Reality Exposure Therapy (VRET) Market Segmentation: By End User

• Hospitals & Healthcare Institutions
• Therapy Clinics & Surgical Centers
• Research & Training Organizations
• Others

Concerning end users, hospitals and healthcare institutions are witnessing significant growth, attributed to well-equipped resources, trained experts, and infrastructure. The surge in the number of admitted patients further propels this growth, with hospitals and healthcare institutions holding a share of more than 60%. Therapy clinics and surgical centers are experiencing rapid growth as specialized facilities offering exceptional treatments and services, representing an estimated share of about 25-30%.

Mental Health Visual Simulation Technology (VST) or Virtual Reality Exposure Therapy (VRET) Market Segmentation: Regional Analysis

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

Regionally, North America stands as the largest market, benefiting from a developed economy, the presence of key players, and technological advancements, contributing to a share of around 40-45%. Asia Pacific is the fastest-growing region, with countries like China, Japan, and India at the forefront. Factors such as rising funds, governmental involvement, research activities, and improving healthcare facilities contribute to the substantial growth, accounting for a total share of around 20-22%.

COVID-19 Impact Analysis on the Global Mental Health Visual Simulation Technology (VST) or Virtual Reality Exposure Therapy (VRET) Market:

The pandemic had a positive impact on the market, with lockdowns and social isolation prompting increased awareness of mental health issues. Remote therapy witnessed a surge, and investments were directed toward improving mental health. Research and development activities saw an upswing, resulting in a reported 30-50% reduction in Post Traumatic Stress Disorder (PTSD) through VRET.

Latest Trends/ Developments:

Companies in this market are striving for higher market share through strategies such as acquisitions, partnerships, and investments. Significant investments in technology improvement, along with competitive pricing, have spurred government engagement and market expansion.

Discussions and trials to implement VST and VRET in educational institutions, corporate offices, government agencies, and the military are underway. The younger generation's efforts to destigmatize mental health have led to an extension of applications into various sectors. Psychologists and educational experts are emphasizing the normalization of therapy in educational institutions from a primary level, backed by increased focus on research and development initiatives to enhance human understanding.

Key Players:

1. Oculus (A subsidiary of Meta)
2. Psious
3. Limbitless Solutions
4. AppliedVR
5. VRTÜL
6. Mimerse
7. Virtually Better, Inc.
8. Psylaris
9. VRHealth
10. Virtro Entertainment

• In April 2023, XRHealth and Amelia Virtual Care announced their merger under the XRHealth brand, aiming to create an end-to-end product addressing various aspects of virtual reality healthcare delivery.
• In December 2020, BehaVR and OxfordVR merged to form the largest virtual reality healthcare delivery platform, raising a total of 13 million USD for this purpose.