Virtual Reality Therapy Post-Traumatic Stress Disorder (PTSD) Global Market Report 2025

The virtual reality therapy post-traumatic stress disorder (PTSD) market size has grown exponentially in recent years. It will grow from $1.35 billion in 2024 to $1.66 billion in 2025 at a compound annual growth rate (CAGR) of 22.8%. The growth during the historic period can be attributed to increasing awareness of mental health and psychological well-being, greater adoption of immersive therapies, rising demand for alternative treatment methods, expansion of clinical research initiatives, and growing government and defense funding for veteran mental health.

The virtual reality therapy post-traumatic stress disorder (PTSD) market size is expected to see exponential growth in the next few years. It will grow to $3.73 billion in 2029 at a compound annual growth rate (CAGR) of 22.4%. The growth during the forecast period can be attributed to the increasing integration of artificial intelligence in therapy platforms, rising demand for personalized treatment approaches, expansion of telehealth and remote therapy services, growing investments by healthcare providers, and increasing acceptance of virtual reality therapy within mainstream psychiatry. Key trends expected during the forecast period include technological advancements in 3D visualization and haptic feedback, innovations in artificial intelligence and machine learning applications, progress in cloud computing-based therapy delivery, research and development in immersive treatment protocols, and increasing collaborations between healthcare institutions and virtual reality technology companies.

The increasing prevalence of mental health issues is expected to drive the growth of the virtual reality therapy post-traumatic stress disorder (PTSD) market in the coming years. Mental health issues refer to conditions that affect an individual’s emotional, psychological, and social well-being, influencing how they think, feel, and behave in everyday life. The rise in mental health disorders is largely attributed to growing stress and pressure resulting from modern lifestyle demands. Virtual reality therapy for PTSD offers immersive and controlled environments that help patients confront and process traumatic experiences, thereby reducing symptoms and enhancing overall mental health. For example, in October 2023, the Australian Bureau of Statistics (ABS), a government statistical agency in Australia, reported that approximately 43 percent of the population had experienced a mental illness at some point, while 21.5 percent reported symptoms of mental illness within the past 12 months. Therefore, the increasing prevalence of mental health issues is fueling the expansion of the virtual reality therapy post-traumatic stress disorder (PTSD) market.

Major companies in the virtual reality therapy post-traumatic stress disorder (PTSD) market are focusing on developing advanced solutions, including AI-powered VR platforms that personalize exposure therapy, track patient progress in real time, and improve treatment outcomes for individuals affected by trauma-related disorders. AI-powered VR solutions refer to virtual reality systems that use artificial intelligence to tailor therapeutic experiences, analyze patient responses, and optimize treatment results in real time. For instance, in May 2025, X-Technology, a technology startup based in the United Arab Emirates, launched an AI-powered VR platform across the MENA region to support emotional and cognitive health in clinical and rehabilitation environments. This innovation provides immersive VR therapy programs designed for PTSD, trauma recovery, stress, and cognitive decline, allowing patients to access treatment in hospitals, wellness centers, or at home without requiring extensive physical infrastructure or travel. Integrated with AI and clinician-guided modules, it enables customization of therapeutic settings, real-time adjustment of exposure intensity, and continuous monitoring of patient responses, all without the need for new hardware installation at each site.

In February 2025, XRHealth Inc., a United States-based company offering telehealth medical and therapeutic treatments through a virtual clinic, acquired RealizedCare for an undisclosed amount. This acquisition expands XRHealth’s virtual reality therapy capabilities for post-traumatic stress disorder, allowing the company to provide more comprehensive, immersive, and evidence-based treatment solutions to patients and veterans. RealizedCare is a United States-based digital therapeutics company specializing in immersive and evidence-based solutions for mental and behavioral health.

Major players in the virtual reality therapy post-traumatic stress disorder (PTSD) market are Ellie Mental Health PLLP, Wounded Warrior Project Inc., MindMaze SA., XRHealth Inc., Canvas Health, AppliedVR Inc., Healium XR. LLC., Mieron Inc., SimX Inc., VREX Immersive Inc., MyndVR Inc., Foretell Reality LLC., PsyTechVR Ltd., Virtually Better Inc., Oxford VR Ltd., TheraVR Inc., oVRcome Ltd., Firsthand Technology Inc., Wundrsight Health Inc., PsyCurio GmbH.

North America was the largest region in the virtual reality therapy post-traumatic stress disorder (PTSD) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in virtual reality therapy post-traumatic stress disorder (PTSD) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the healthcare sector, particularly in the supply of critical medical devices, diagnostic equipment, and pharmaceuticals. Hospitals and healthcare providers are facing higher costs for imported surgical instruments, imaging equipment, and consumables such as syringes and catheters, many of which have limited domestic alternatives. These increased costs are straining healthcare budgets, leading some providers to delay equipment upgrades or pass on expenses to patients. Additionally, tariffs on raw materials and components are disrupting the production of essential drugs and devices, causing supply chain bottlenecks. In response, the industry is diversifying sourcing strategies, boosting local manufacturing where possible, and advocating for tariff exemptions on life-saving medical products.

The virtual reality therapy post-traumatic stress disorder (PTSD) market research report is one of a series of new reports that provides virtual reality therapy post-traumatic stress disorder (PTSD) market statistics, including the virtual reality therapy post-traumatic stress disorder (PTSD) industry global market size, regional shares, competitors with the virtual reality therapy post-traumatic stress disorder (PTSD) market share, detailed virtual reality therapy post-traumatic stress disorder (PTSD) market segments, market trends, and opportunities, and any further data you may need to thrive in the virtual reality therapy post-traumatic stress disorder (PTSD) industry. This virtual reality therapy post-traumatic stress disorder (PTSD) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Virtual reality therapy for post-traumatic stress disorder (PTSD) is a treatment approach that utilizes immersive virtual environments to help patients safely confront and process traumatic experiences. It allows controlled exposure to triggers within a therapeutic setting, gradually reducing fear and anxiety. By integrating realistic simulations with psychological techniques, it aids emotional regulation and promotes faster recovery from post-traumatic stress disorder.

The primary components of virtual reality therapy for post-traumatic stress disorder (PTSD) include hardware, software, and services. Hardware consists of the physical equipment used in VR therapy, such as headsets, motion sensors, and controllers, which create immersive virtual environments for treatment. The therapy types encompass exposure therapy, cognitive behavioral therapy, stress inoculation training, and others. The technologies employed include 3D visualization, haptic feedback, gesture tracking, eye tracking, artificial intelligence, machine learning, and cloud computing. Major applications involve military trauma, civilian trauma, phobias, and others, with the main end users being hospitals and clinics, military and defense organizations, research institutions, and academic centers.

The countries covered in the virtual reality therapy post-traumatic stress disorder (PTSD) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The virtual reality therapy post-traumatic stress disorder (PTSD) market includes revenues earned by entities through virtual group therapy meetings, remote therapy monitoring, virtual reality biofeedback training, virtual reality (VR)-based sleep improvement programs, and trauma memory reconstruction exercises. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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