Healthcare Digital Twins Market Size, Share & Trends Analysis Report By Component (Software, Services), By Application (Personalized Medicine, Drug Discovery & Development), By End Use, By Region, And Segment Forecasts, 2025 - 2030

Healthcare Digital Twins Market Trends

The global healthcare digital twins market size was estimated at USD 902.59 million in 2024 and is projected to grow at a CAGR of 25.9% from 2025 to 2030. In healthcare, digital twins are utilized to generate digital replicas or models that mirror different elements of healthcare data, encompassing the hospital setting, human biological functions, and laboratory outcomes. The representations help to improve efficiency, anticipate future demand, and optimize costs. These factors are expected to drive the demand for this technology in the coming years.

Digital twins are facilitating the transformation of the healthcare sector by embracing a real-time, integrated, and interactive approach for effective interventions, data capturing, and offering real-time data-backed feedback. The rising adoption of sensors, medical records, wearables, and mobile applications in the healthcare industry to track patient data is anticipated to drive the demand for this technology. The information produced by these applications can be utilized to create simulations for evaluating pharmaceuticals and medical equipment. In April 2023, Accenture made a strategic investment in Virtonomy, a company specializing in data-driven simulations that utilize existing patient information and digital twin technology to accelerate the market introduction of life-saving medical devices through Accenture Ventures. Accenture’s investment enables Virtonomy to enhance its offerings to medical technology (MedTech) firms worldwide and drive the future of medical device innovation.

The rising adoption of this technology in the healthcare sector and the positive approach of healthcare professionals towards the adoption of the technology are anticipated to drive market growth. For instance, according to an article by AI Multiple, dated May 2022, 66% of healthcare professionals expect increasing investments in digital twins, which in turn helps to improve the performance of healthcare organizations, personalization of medicine, provide customizations, and enable the development of new devices and medications. Technology has a tremendous opportunity for the development of personalized medicine based on the genetic makeup, behavior, and anatomy of an individual.

Increasing funding from the government and non-government organizations for the development of digital twins is fostering its growth. In November 2024, Pulse, a health technology startup in the Web3 space, announced that it had successfully closed its pre-seed funding round, raising USD 1.8 million. The round was co-led by Collab+Currency and Lemniscap, with contributions from Delphi Digital and Lattice Fund, and it also garnered interest from prominent angel investors, including Anatoly Yakovenko, a co-founder of Solana, and Santiago R Santos.

In addition, in October 2024, more than USD 6 million in research funding was granted by the U.S. National Science Foundation, in partnership with the National Institutes of Health (NIH) and the Food and Drug Administration (FDA), to support seven projects focused on the creation of digital twins. These are dynamic virtual models of physical objects or processes intended for application in healthcare and biomedical research. Such initiatives are driving the healthcare digital twins industry growth.

Market Concentration & Characteristics

The healthcare digital twin industry is experiencing significant innovation, fueled by rapid advancements in artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), and cloud computing. Digital twins in healthcare represent a major transformation in how medical data is utilized. They enable the creation of virtual replicas of patients, medical devices, healthcare systems, and even entire hospitals. These innovations facilitate real-time monitoring, personalized treatment, and predictive analytics, all of which are revolutionizing patient care and improving operational efficiency.

The healthcare digital twins industry is characterized by a medium level of merger and acquisition (M&A) activity, facilitating access to complementary technologies and distribution channels to capture a larger market share. For instance, in March 2024, Capgemini, a consulting firm specializing in management and technology-based in France, reached an agreement to purchase the digital twin professional services division of Unity Technologies, a video game engine developer located in San Francisco. Following this acquisition, Capgemini plans to expand a variety of in-demand solutions for clients across multiple industries, including aerospace, automotive, healthcare, manufacturing, energy, and retail.

Digital twin solutions in healthcare must adhere to various privacy, security, and safety standards to ensure that patient data is handled responsibly and ethically. Regulations such as the Health Insurance Portability and Accountability Act (HIPAA) in the U.S. and the General Data Protection Regulation (GDPR) in Europe play a crucial role in governing how sensitive patient data is collected, stored, and shared. These regulations impact the development and deployment of healthcare digital twins by requiring that any patient information used to create digital replicas must be anonymized or protected to maintain confidentiality and prevent misuse.

Several market players are expanding their business by launching new solutions in the market to expand their product portfolio. For instance, In September 2023, Dassault Systèmes introduced an ‘Emma’ avatar for its digital twin technology to enhance awareness around health research. A digital twin of a person is a virtual representation created to precisely mirror the attributes of the real individual. ‘Emma’ has recorded her involvement in current research trials and medical advancements on LinkedIn.

Companies are implementing various strategies, such as distribution agreements, geographic expansion, and new product development, to improve their market penetration. In November 2023, Twin Health, a startup located in the research park of IIT Madras, created a technique to track a person’s health metrics by generating a digital twin.

Component Insights

Based on components, the software segment led the market with the largest revenue share of 78.8% in 2024 and is anticipated to register at the fastest CAGR of 26.3% over the forecast period. Increasing platform launches and approval are fostering healthcare digital twins industry growth. In May 2024, Twin Health revealed that it is broadening the reach of its whole-body digital twin AI platform, which has been shown to assist members in attaining remission from type 2 diabetes and reducing their reliance on medications to tackle the issues surrounding obesity and weight loss. In addition, healthcare providers are increasingly using simulation software to model disease progression, predict outcomes, and personalize treatment plans, making software a crucial enabler of precision medicine. Furthermore, the rise of cloud computing also plays a significant role in boosting the growth of digital twin software.

The services segment is anticipated to witness at a lucrative CAGR over the forecast period, owing to the increasing demand for consulting, implementation, and maintenance services associated with deploying digital twin technologies in healthcare settings. Moreover, the growing complexity of healthcare operations, coupled with the need for personalized medicine and improved treatment outcomes, is fueling the demand for segmental growth. In addition, integration services are crucial for ensuring that digital twin systems connect smoothly with existing infrastructure, such as hospital information systems (HIS), electronic health records (EHRs), and medical devices.

Application Insights

Based on application, the personalized medicine segment led the market with the largest revenue share of 27.4% in 2024. The increasing emphasis on research and development for personalized medicine is fueling market growth. For instance, In January 2022, a project led by Indiana University utilized digital twins to create a self-learning system aimed at personalized melanoma treatment. In addition, an increasing shift towards precision medicine across the globe is driving the demand for digital twins. Moreover, digital twin technology allows for the creation of detailed and dynamic models of a patient's biological systems. This technology provides a clearer understanding of how specific treatments or interventions may impact the individual. By utilizing these patient-specific digital models, healthcare providers can predict disease progression, optimize treatment plans, and identify potential risks before they arise.

The medical device design and testing segment is anticipated to witness at the fastest CAGR growth over the forecast period. Advancements in digital twin technology enable real-time simulation and modeling of medical devices, thereby boosting segment growth.Moreover, the integration of AI and machine learning with digital twin models accelerates the identification of design flaws and enables predictive maintenance. In addition, digital twins enable the creation of patient-specific models, allowing manufacturers to design devices tailored to an individual’s anatomy, health status, and treatment needs. Such factors are driving segmental expansion.

End Use Insights

Based on end use, the providers segment led the market with the largest revenue share of 36.2% in 2024. Digital twins are used in healthcare facilities to optimize hospital staff and detect bed shortages. This enables the staff to make informed decisions, which helps increase resource utilization efficiency while reducing costs. For instance, IBM Process Mining software generates a digital twin that can be used to create replicas of businesses in healthcare facilities and run simulations in order to identify challenges that may occur in the future. Increasing adoption of strategic initiatives by market players is accelerating the healthcare digital twins industry growth. In December 2022, Strasys and Silico entered into a partnership to provide digital twins of complete hospitals and healthcare systems, aiming to enhance decision intelligence.

The pharma & biopharma segment is anticipated to witness at the fastest CAGR over the forecast period. The increasing demand for faster, more cost-effective drug development, as well as the growing focus on personalized medicine, is escalating market growth. Furthermore, digital twins can be used to simulate patient responses to treatments, optimize dosage levels, and identify the most effective therapies for specific genetic profiles or conditions thus, boosting market growth.

Regional Insights

North America healthcare digital twins market is dominated with the largest revenue share of 46.8% in 2024. Factors such as the high adoption rate of digital and automation solutions in healthcare facilities across the region are some of the key factors driving the market growth in the region. The presence of key players in the region, such as Microsoft, IBM Corporation, and IQVIA, is anticipated to boost the adoption of the technology. Further, the availability of digital infrastructure in the region due to lucrative funding and favorable government initiatives are key factors that are anticipated to drive the demand for technology in the region.

U.S. Healthcare Digital Twins Market Trends

The U.S. healthcare digital twins market is accounted for the largest market share in North America in 2024, owing to the combination of advanced technological infrastructure, strong healthcare innovation, and substantial investment in healthcare research and development. Moreover, increasing launches of products are anticipated to spur healthcare digital twins industry growth. In May 2021, Q Bio, a company based in Redwood City, CA, introduced its "digital twin" platform, which is the first technology designed to capture and monitor an extensive baseline of patient health within a scalable virtual model.

Europe Healthcare Digital Twins Market Trends

The Europe healthcare digital twins market is anticipated to register at a significant CAGR during the forecast period, due to the region's strong focus on healthcare innovation, digital transformation, and government support. For instance ,the European Virtual Human Twins Initiative is a European Union framework that facilitates the development and implementation of advanced virtual human twin solutions in healthcare and well-being.

The Germany healthcare digital twins market is anticipated to register at a considerable CAGR during the forecast period. The growing collaboration among market players is escalating market growth. In November 2022, Gerresheimer AG, a prominent supplier of healthcare products and drug delivery systems for the pharmaceutical, biotech, and cosmetics industries, and Merck KGaA, located in Darmstadt, Germany, collaborated to create a digital twin solution aimed at enhancing traceability and confidence in critical phases of the pharmaceutical supply chain.

The UK healthcare digital twins market is anticipated to register at a considerable CAGR during the forecast period.Increasing research and development activities, along with a rise in product approvals, are driving market growth. For instance, in May 2024, a team of interdisciplinary researchers plans to create and test the first "digital twin" heart models for a group of chronically ill NHS patients. This initiative aims to determine if these models can enhance monitoring and ultimately improve patient care.

Asia Pacific Healthcare Digital Twins Market Trends

The healthcare digital twins market in Asia Pacific is anticipated to register at the fastest CAGR over the forecast period. Rising investments by venture capitalists, private investors, and non-profit organizations in AI-based technology are anticipated to drive market growth in the region. Moreover, the rising penetration of IoT devices in the region is anticipated to drive the demand for the market during the forecast period.

The Japan healthcare digital twins market is anticipated to register at a considerable CAGR during the forecast period. Growing adoption of inorganic and organic strategies are supplementing market growth. In September 2023, the National Center for Neurology and Psychiatry in Japan formed a partnership with NTT Corporation to create brain bio-digital twin technology aimed at identifying and mitigating mental health disorders.

Latin America Healthcare Digital Twins Market Trends

The healthcare digital twins market in Latin America is anticipated to witness at a steady CAGR during the forecast period. Countries such as Brazil, Mexico, and Argentina are investing in digital health initiatives. These initiatives include expanding electronic health records (EHRs) and telemedicine services, which form a foundation for adopting digital twin technology.

The Brazil healthcare digital twins market is anticipated to register at a considerable CAGR during the forecast period. Brazil's healthcare system is undergoing modernization through initiatives like the expansion of digital health records and telemedicine, thereby escalating market growth.

Middle East & Africa Healthcare Digital Twins Market Trends

The healthcare digital twins market in the Middle East and Africa is expected to grow at a lucrative CAGR during the forecast period. The growing adoption of digitalization in the healthcare industry is supplementing regional growth. In November 2024, ZainTECH, the comprehensive digital solutions provider for Zain Group, partnered with Tencent Cloud, a worldwide technology leader, aimed at enhancing digital transformation efforts throughout the Middle East and North Africa (MENA) by incorporating Tencent Cloud's advanced Digital Twin technology into ZainTECH's enterprise solutions.

The South Africa healthcare digital twins market is anticipated to register at a considerable CAGR during the forecast period. South Africa has a rapidly growing private healthcare sector that is increasingly investing in digital health technologies to optimize patient care and reduce costs. This growth will drive the demand for healthcare digital twins.

Key Healthcare Digital Twins Company Insights

Key participants in the healthcare digital twins industry are focusing on developing innovative business growth strategies in the form of product portfolio expansions, partnerships & collaborations, mergers & acquisitions, and business footprint expansions.

Recent Developments

• In May 2024, Ontrak Inc., a prominent healthcare company utilizing AI and advanced technology, announced the introduction of its Mental Health Digital Twin (MHDT) technology. This state-of-the-art development in the delivery of mental health care effectively combines human compassion with data-informed insights to offer individualized, accurate, and efficient support for those facing mental health difficulties.

• In February 2024, the AI firm Unlearn obtained USD 50 million in a Series C funding round led by Altimeter Capital to enhance clinical research through digital twin technology. The company planned to utilize the funding to further its goal of employing AI to minimize trial and error in healthcare.

• In December 2023, the digital metabolic care company Twin Health reported that it has successfully raised USD 50 million in funding, two years subsequent to obtaining USD140 million in Series C funding. The company planned to utilize these funds to enhance its Whole Body Twin Technology, which is designed to prevent and reverse metabolic diseases.

Healthcare Digital Twins Market Report Scope

Global Healthcare Digital Twins Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research, Inc. has segmented the global healthcare digital twins market report based on the component, application, end use, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Software

  • Services

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Personalized medicine

  • Healthcare workflow optimization & Asset Management

  • Medical Device Design and Testing

  • Drug Discovery & development

  • Surgical planning and medical education

  • Others

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Providers

  • Pharma & Bio Pharma Companies

  • Medical Device Companies

  • Research & Academia

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Spain

    • Italy

    • France

    • Denmark

    • Norway

    • Sweden

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Thailand

    • South Korea

  • Latin America

    • Brazil

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait