Digital Twins in Healthcare Market

Digital Twins in Healthcare Market Size, Share & Trends

The size of global digital twins in healthcare market in terms of revenue was estimated to be worth $1.6 billion in 2023 and is poised to reach $21.1 billion by 2028, growing at a CAGR of 67.0% from 2023 to 2028. The comprehensive research encompasses an exhaustive examination of industry trends, meticulous pricing analysis, patent scrutiny, insights derived from conferences and webinars, identification of key stakeholders, and a nuanced understanding of market purchasing dynamics.

The rising demand of technologically advanced solutions and the growing emphasis of digital twin technology supporting various healthcare applications are some of the critical factors offering opportunities to the market. However, lack of technical expertise and data management issues are key factors challenging the growth of the market.

Digital Twins in Healthcare Market Trends

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Digital Twins in Healthcare Market Dynamics

Driver: Increasing investments in digital twin technology by public and private entities

In recent years, there has been a growing interest in digital twin technology, it is a concept that involves creating a virtual replica of a physical object, system, or process. Technology has a wide range of applications across industries, including manufacturing, healthcare, construction, and infrastructure management. As a result, both public and private entities have been increasing their investments in digital twin technology, recognizing its potential to drive innovation and improve operational efficiency. 'Digi Twins' is a European flagship project launched in 2018 with over 200 partners from 32 countries working together. These partners include universities, research institutes, hospitals, and technology companies. Key partners involved in the project include Siemens, Philips, Fraunhofer Institute, Technical University of Munich, Imperial College London, Karolinska Institute. It has received USD 1,180 million in funding over 10 years. This project aimed to develop personalized healthcare and prevention strategies based on the idea of a 'virtual patient'. Similarly, in October 2021, Twin Health, a company that makes technology called Whole Body Digital Twin to improve healthcare, received USD 140 million in Series C funding. Unlearn is a company from the US that created a machine-learning platform called DiGenesis. The investments made by both public and private sectors will help accelerate the development and adoption of digital twins’ technology. Creating new opportunities in the healthcare industry will boost the market growth in the coming years.

Restraint: Managing data quality and privacy issues and high implementation costs

Technology that involves collecting and analyzing sensitive data has concerns about data quality and privacy. Data is collected from multiple sources, including electronic health records, wearables, and other medical devices. Then it is integrated into the digital twins in a consistent, reliable, and secure way. Without high-quality data, the accuracy and reliability of the digital twin are compromised, which can impact patient care and treatment outcomes. Another critical concern is data privacy. To avoid privacy issues, organizations should adopt robust data governance frameworks and security protocols to ensure the accuracy, reliability, and security of patient data.

Implementing digital twins’ technology can be costly due to acquiring the necessary hardware, software, and data storage systems. As technology matures and becomes more widely adopted, it is expected that costs may decrease over time. The aforementioned factors are expected to impact market growth to a certain extent.

Opportunity: Increasing focus on cutting-edge real-time data analytics

Digital twins generate vast amounts of data that can be analyzed in real-time to provide insights into patient health, resource utilization, and operational efficiency. For example, a hospital's digital twins can collect and analyze real-time data from various sources, including medical devices, electronic health records, and IoT sensors, to detect potential equipment failures, predict patient outcomes, and identify areas of operational inefficiency. Real-time data analytics can also help healthcare providers make informed treatment plans, resource allocation, and patient care decisions. The base of the complete digital twins technology is data analytics. Once established, digital twins and analytics will provide more accurate diagnostics, and optimal and predictive operations. These advancements have facilitated digital twins technology in healthcare, which is expected to create potential in the coming years.

Challenge: Lack of technical expertise and data management issues

Implementing and maintaining digital twin technology in healthcare requires specialized skills and knowledge in areas such as data science, software engineering, and machine learning. Adapting to this nascent technology is challenging, especially in the healthcare field, with large unstructured data repositories. Without enough skilled professionals to design, implement, and maintain digital twins’ technology, healthcare organizations may face delays, higher costs, and limited access to the benefits of this technology. To address this challenge, healthcare organizations can invest in training and education programs for their existing workforce and collaborate with academic institutions to develop specialized training programs to meet the growing demand for skilled professionals in this field.

Digital Twin in Healthcare Market Ecosystem

The ecosystem market map of the overall market comprises the elements present in this market and defines these elements with a demonstration of the bodies involved. It includes products and services. The manufacturers of various products include the organizations involved in the entire process of research, product development, optimization, and launch. The services are offered to end-users by vendors either directly or in collaboration with a third party.

Research and product development includes in-house research facilities, contract research organizations, and contract development and manufacturing organizations, which play a key role in outsourcing services for product development.

Source: Secondary Literature, Interviews with Experts, and MarketsandMarkets Analysis

Personalized Medicine segment of Digital Twins in Healthcare Industry is expected to register the significant share by the application during the forecast period

The personalized medicine segment of Digital Twins in Healthcare Market is expected to register a significant share by the application during the forecast period. The growth of personalized medicine is driven by its ability to improve treatment efficacy, minimize adverse effects, and enhance patient outcomes. Advancements in genomics, molecular diagnostics, and precision medicine have further fueled the demand for digital twin solutions in personalized medicine, leading to significant market growth.

Healthcare Providers segment accounted for a considerable share in the digital twins in healthcare industry, by the end user in 2022

In 2022, the healthcare providers segment accounted for a significant share of the digital twins in healthcare market. The large share of this segment can be attributed to the enhanced diagnostic capabilities of the hospitals enabling more precise disease diagnosis, better and in-time medications, data-driven decision-making, and the increasing adoption of telehealth & telemedicine in healthcare.

North America dominated the digital twins in healthcare industry in 2022

North America accounted for the largest share of the digital twins in healthcare market. The large share of North America can be attributed to the increasing government funding & investments for digital twin and a growing number of digital twin companies catering to the healthcare industry in the region.

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Prominent companies in this market include Siemens Healthineers AG (Germany), Dassault Systèmes (France), Microsoft (US), Koninklijke Philips N.V. (Netherlands), Faststream Technologies (US), Twin LTD (US), IBM (US), NVIDIA Corporation (US), GE Healthcare (US), NUREA (France), ANSYS, Inc. (US), Rescale, Inc. (US), Predictiv (US), Verto Health (Canada), PrediSurge (France), Qbio (US), Virtonomy GmbH (Germany), Unlearn AI (US), Atos SE (France), ThoughtWire (Canada), Amazon Web Services, Inc.(US), Oracle(US), PTC (US), SAP (Germany), Sim and Cure (France).

Scope of the Digital Twins in Healthcare Industry

The study categorizes the digital twins in healthcare market to forecast revenue and analyze trends in each of the following submarkets:

By Component

• Software
• Services

By Application

• Drug Discovery & Development
• Personalized medicine
• Surgical Planning and Medical Education
• Medical Device Design and Testing
• Healthcare Workflow Optimization & Asset Management
• Others

By End User

• Pharma & Bio-pharma companies
• Research & Academia
• Providers
• Medical device Companies
• Others

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • RoE
• Asia Pacific
  • Japan
  • China
  • RoAPAC
• Rest of the World

Recent Developments of Digital Twins in Healthcare Industry

• In April 2023, Oracle (US) collaborated with Deloitte (UK), This collaboration focuses on modernizing electronic health records, optimizing operations, and leveraging AI-driven insights to deliver a patient-centric, future-ready healthcare delivery system. By combining Deloitte's industry expertise with Oracle's technology portfolio, they aim to meet the evolving needs of the healthcare industry and improve operational efficiency.
• In July 2022, PTC (US) formed an allince with Schaeffler (Germany), through this, Schaeffler will use PTC technologies to create an integrated, end-to-end IT landscape as part of a new strategic alliance. PTC's efforts to further develop and evolve market-specific standard solutions to better satisfy the demands of automotive and industrial companies would benefit from Schaeffler's input. The new partnership will expand on Schaeffler's strong twenty-year relationship with PTC, which began with Schaeffler's adoption of PTC's CAD and PLM products. These tools are critical for introducing and developing Schaeffler's digital twin initiatives and visualizing 3D models (such as those utilized in augmented reality projects).
• In March 2022 Microsoft (US) partnered with Johnson & Johnson (US), This collaboration aims to develop a new digital surgical platform using Azure Digital Twins technology which will enable surgeons to create a digital twin of a patient's anatomy to plan and practice surgeries

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