Major Report Maps UK’s Extended Reality (XR) Health Market
XR Health Alliance is proud to acknowledge the publication of the “UK Extended Reality Health Market Assessment & Deep Dive Report,” a landmark national research report commissioned by the University of Liverpool. This comprehensive study marks a pivotal moment for the UK’s Extended Reality (XR) health sector, as it delivers the first in-depth mapping of organizations actively developing and deploying XR technologies -including Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR) – within the UK healthcare landscape.
The findings offer critical insights for policymakers, NHS leaders, industry innovators, and researchers, providing a blueprint for scaling the adoption of immersive technologies to address mounting pressure on healthcare services.
The report is available via the XRHA website: www.xrhealthuk.org
Key Findings: Adoption Trends and Barriers
The study, which builds on the recommendations of the 2021 XR Health Alliance report, assessed the breadth of XR adoption across the NHS, universities, and industry, benchmarking the UK’s competitive position globally.
- Sectoral Divide: XR is actively moving from early-stage research into clinical adoption. Universities are leading the way, with over 60% reporting XR use, compared to roughly 30% of NHS Trusts. While the private sector is driving innovation, its activity is dominated by micro-companies facing significant challenges in scaling solutions into healthcare systems.
- Primary Applications: The most common uses for XR are workforce education and training, followed by mental health, physiotherapy, and rehabilitation. Strong evidence is emerging for applications in depression, anxiety, and cognitive rehabilitation, though areas like dementia, PTSD, and substance misuse remain underserved.
- Accelerators & Roadblocks: Targeted public funding, such as the £20 million Mindset XR program, is accelerating growth. However, persistent barriers include limited procurement pathways, regulatory uncertainty, fragmented evidence generation, and a lack of sustainable funding models within the NHS.
- Global Standing: The UK is recognized internationally for its strength in combining creative industries with research and innovation. Despite uneven adoption levels, the overall trajectory indicates growing maturity and influence in the global XR healthcare field.
Actionable Recommendations: A Blueprint for Growth
The report outlines six strategic recommendations to unlock the full potential of XR for the NHS and the UK economy:
- Develop a National XR Strategy for Healthcare: Establish a unified strategy to reduce fragmentation in funding and adoption, ensuring alignment with NHS strategic priorities and updating procurement systems (like the NHS Dynamic Procurement System and G-Cloud) to include XR solutions.
- Deploy XR to Advance NHS Strategic Priorities: Embed XR into “Virtual Wards” and “Hospital to Home” models to support the shift from hospital to community-based care, enhance preventive health, and drive the transition from analogue to digital, tech-enabled care pathways.
- Strengthen Evidence Generation and Trust: Invest in rigorous clinical trials, health economic analyses, and a platform to accelerate compliance and evidence generation. This is crucial for demonstrating both clinical efficacy and cost-effectiveness to NHS providers.
- Expand XR Infrastructure and Ecosystems: Develop XR Labs and NHS XR Centers of Excellence to foster co-design, evaluation, and implementation, and encourage innovation in underrepresented clinical areas.
- Improve Funding and Scaling Pathways: Introduce phased funding models that support long-term sustainability and standardize reimbursement pathways across NHS regional bodies (Integrated Care Boards) to streamline adoption.
- Policy Integration, Regulation, and Scaling: Ensure XR adoption is supported by clear policy, robust governance, and integrated into NHS operational planning to address population health needs and deliver productivity gains.
Executive Commentary
Dr. Annemarie Naylor MBE, Director of HealthTech and Innovation Growth at the University of Liverpool, commented: “This report moves beyond speculation to provide a substantiated map of genuine XR adoption in UK healthcare. It is a critical piece of work that speaks to the University of Liverpool’s determination to tackle the health challenges our communities face. We are proud to partner on this study, which delivers not just an analysis of the XR market, but a practical blueprint for policymakers and decision-makers to shape and grow this transformative sector.”
The “UK Extended Reality Health Market Assessment & Deep Dive Report” was commissioned by the University of Liverpool’s Civic Health Innovation Labs (CHIL) and led by the XR Health Alliance in collaboration with the University of Nottingham’s NIHR MindTech Research Centre. This work is part of the University of Liverpool’s Civic HealthTech Innovation Zone (CHI-Zone), funded by the Liverpool City Region Life Sciences Innovation Zone Program.
Ross O’Brien from the XR Health Alliance said: “The XR Health Alliance is committed to the adoption of immersive technology in healthcare, and has been working to bridge the often siloed communities. We’re so thrilled to be able to undertake this research alongside our phenomenal research partners at the University of Liverpool’s Civic Health Innovation Zone (CHI- Zone) and Mindtech. The UK continues to incubate leading worldwide talent across immersive storytelling and healthcare, and this report shines a light on both what fantastic exists, and proposes next steps.”
