United States Virtual Reality in Therapy Market Size, Share, and COVID-19 Impact Analysis, By Technology (Full Immersive VR, Semi-Immersive VR, and Non- Immersive VR), By Application (Phobia Treatment, Robotic Surgery, Visualization, Rehabilitation, Treatment of Post-Traumatic Stress Disorder, Treatment of Autism, and Surgery Simulation), and United States Virtual Reality in Therapy Market Insights, Industry Trend, Forecasts to 2035.

United States Virtual Reality in Therapy Market Insights Forecasts to 2035

• The USA Virtual Reality in Therapy Market Size is Expected to Grow at a CAGR of around 21.6% from 2025 to 2035.
• The United States Virtual Reality in Therapy Market Size is Expected to Hold a Significant Share by 2035.

According to a research report published by Spherical Insights & Consulting, The U.S. Virtual Reality In Therapy Market Size is Expected to hold a significant share By 2035, Growing at a CAGR of 21.6% from 2025 to 2035. The U.S. VR therapy market is growing due to rising acceptance of digital therapeutics, personalized treatment, and immersive patient engagement. VR aids exposure therapy by safely confronting fears. Broader adoption across therapeutic areas and government investment in healthcare infrastructure further drive market expansion, making VR a valuable tool in modern therapeutic practices.

Market Overview

The U.S. virtual reality (VR) in therapy market refers to the segment of healthcare that utilizes immersive VR technology to deliver treatments. These applications range from mental health interventions like exposure therapy and PTSD treatment to physical rehabilitation and pain management, enhancing patient outcomes through interactive, personalized, and controlled virtual environments. This surge is driven by the increasing prevalence of mental health disorders such as anxiety, post-traumatic stress disorder (PTSD), and phobias, coupled with the growing demand for non-invasive, patient-centric treatment options. VR therapy offers immersive, controlled environments that facilitate exposure therapy, pain management, and rehabilitation, enhancing patient engagement and outcomes. Strengths of the market include advancements in VR technology, making devices more affordable and user-friendly, and the integration of artificial intelligence (AI) to personalize therapeutic experiences. Opportunities lie in expanding applications across various therapeutic areas, integrating VR with telehealth services, and developing customized solutions for diverse patient populations. Government initiatives, such as funding from the Department of Veterans Affairs and the U.S. Food and Drug Administration's support for VR-based home healthcare prototypes, are further propelling market growth.

Report Coverage

This research report categorizes the market for the United States virtual reality in therapy market based on various segments and regions, and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United States virtual reality in therapy market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United States virtual reality in therapy market.

Driving Factors

The growing demand for innovative and effective treatment methods for mental health, neurological, and physical conditions, along with the increasing prevalence of disorders such as PTSD, anxiety, phobias, and autism, has led to wider acceptance of VR-based therapy. Advancements in VR technology, including improved hardware, haptic feedback, and real-time tracking, enhance patient engagement and therapeutic outcomes. Growing investments from both public and private sectors, along with expanding research validating VR’s effectiveness, support market growth. Additionally, rising awareness among healthcare professionals and patients about VR’s benefits in immersive therapy fuels its integration into mainstream treatment approaches.

Restraining Factors

The high equipment and development costs, limited reimbursement policies, and a lack of standardized protocols. Additionally, some patients may experience motion sickness or discomfort using VR. Resistance from traditional healthcare providers and limited technical expertise further hinder widespread adoption across clinical and therapeutic settings.

Market Segmentation

The United States virtual reality in therapy market share is classified into technology and application.

• The full immersive VR segment held a substantial share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The United States virtual reality in therapy market is segmented by technology into full immersive VR, semi-immersive VR, and non-immersive VR. Among these, the full immersive VR segment held a substantial share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is due to its ability to create highly realistic, engaging environments that enhance therapeutic outcomes. This technology offers deeper sensory experiences, making it especially effective in treating mental health conditions, phobias, and pain management, thus driving its wider adoption in clinical settings.

• The phobia treatment segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The United States virtual reality in therapy market is segmented by application into phobia treatment, robotic surgery, visualization, rehabilitation, treatment of post-traumatic stress disorder, treatment of autism, and surgery simulation. Among these, the phobia treatment segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is attributed to VR's proven effectiveness in exposure therapy. It allows patients to confront fears in a controlled, safe environment, leading to gradual desensitization. Its non-invasive nature and measurable outcomes make it a preferred tool for treating anxiety and phobias.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United States virtual reality in therapy market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• AppliedVR
• Osso VR
• ZSpace
• XRHealth
• Limbix
• Tripp
• Medivis
• BehaVR
• Firsthand
• Health Scholars
• EchoPixel
• Neuro Rehab VR
• Vital Start Health
• Corpus VR
• Innerworld
• Others

Recent Developments:

• In December 2023, XRHealth launched a comprehensive PTSD therapy package combining mindfulness, art therapy, CBT, exposure therapy, and EMDR using extended reality (XR). They opened a specialized PTSD treatment center in Tel Aviv to provide clinical care and training. This initiative aims to support trauma recovery and will soon expand to the U.S. and Europe.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the U.S., regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United States virtual reality in therapy market based on the below-mentioned segments

United States Virtual Reality in Therapy Market, By Technology

• Full Immersive VR
• Semi-Immersive VR
• Non-Immersive VR

United States Virtual Reality in Therapy Market, By Application

• Phobia Treatment
• Robotic Surgery
• Visualization
• Rehabilitation
• Treatment of Post-Traumatic Stress Disorder
• Treatment of Autism
• Surgery Simulation