Healthcare Digital Twins Market Size, Share & Trends Analysis Report By Type (Process & System Digital Twin, Product Digital Twin), By Application (Personalized Medicine, Drug Discovery), By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global healthcare digital twins market size was estimated at USD 572.4 million in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 25.6% from 2023 to 2030. In healthcare, digital twins are employed to create digital simulations or models that replicate various aspects of healthcare information, including hospital environment, human physiology, and lab results. The representations help to improve efficiency, anticipate future demand, and optimize costs. The aforementioned factors are anticipated to drive the demand for the technology during the forecast period.

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. However, despite the diverse uses of digital twins, their integration into the healthcare field is still in its early stages.

The adoption of this technology in the healthcare sector and the positive approach of the healthcare professionals towards the adoption of the technology is anticipated to drive the 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.

The rising number of security breaches in healthcare institutions and the high investments required to support the infrastructure of the technology are some of the restraining factors for the market. For instance, according to an article by Consulting Engineer, the cost of a digital twin for a Grade A commercial building of about 60,000 sq. m. can cost USD 1.2 to 1.7 million; the costs rise to USD 3 to 4.2 million for complex and larger facilities measuring 200,000 sq. m. This is anticipated to hamper the market growth during the forecast period.

The COVID-19 pandemic had a positive impact on the market. Digital twins have been adopted by healthcare facilities after the pandemic to optimize workflows and predict the efficiency of the facilities to deal with the increased patient inflow that was observed during the pandemic. Pharmaceutical companies leveraged the technology to develop vaccines to keep up with the increased demand. The digital twins were used to develop live replicas of the physical processes in the vaccine process to improve the efficiency of the processes.

Type Insights

Based on type, the process & system digital twin segment dominated the market in 2022 with a revenue share of 65.7%. Factors such as the use of artificial intelligence, virtual reality, and mixed reality to optimize processes are expected to contribute to market growth. Process & system digital twins allow the doctors to work on holograms, which helps them work in both virtual and physical models. The holograms receive data from all the processes representing the entire system.

The product digital twin segment is anticipated to grow at a CAGR of 28.7% in 2022. Rising demand for electronic manufacturing devices and IoT sensors across the healthcare sector are some of the key factors anticipated to drive the demand for the products during the forecast period. Product digital twins provide a virtual representation of the product that helps to understand the characteristics and performance of the product in a simulated environment. The use of this technology eliminates the need for multiple prototypes, reduces the development time, and improves the quality of the manufactured products.

Application Insights

In terms of application, the asset and process management segment held the largest revenue share of 35.4% in 2022. Factors such as increasing adoption by the hospitals and healthcare facilities to make an informed decision about the assets that need maintenance or repairs have led to a large share. The technology also helps to create digital records of the physical assets through which the members in the facility can ensure the assets are being used to their optimum functionality.

The drug discovery segment is anticipated to witness the fastest CAGR of 29.9% during the forecast period. Digital twins are used by pharmaceutical companies to improve and streamline manufacturing processes and for drug development. The technology provides real-time data about each process and enables the manufacturers to make changes in manufacturing steps to improve the process efficiency. Moreover, the pharmaceutical companies used the digital twin technology during the pandemic to accelerate the development of vaccines using the real-time data provided by the digital twin technology. These factors are anticipated to drive the segment growth during the forecast period.

End-use Insights

In terms of end-use, the hospitals and clinics segment held the largest revenue share of 32.6% in 2022. 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 to identify challenges that may occur in the future.

The Clinical Research Organizations segment is estimated to witness the fastest CAGR of 26.3% during the forecast period. Clinical Research Organizations perform precise R&D functions for biotech and pharmaceutical functions. This technology helps these organizations test the dosage and efficiency of the drugs on the twins before the actual trials have been conducted; this is anticipated to reduce the time and costs required for the trials while maintaining regulatory compliance. For instance, AI models trained on historical data are being used by companies to create digital twins that can predict the patient’s outcome over the trial if they were treated with the current standard of care compared to a placebo.

Regional Insights

North America dominated the market in 2022 with the largest revenue share of 46.2%. 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 the technology in the region.

Asia Pacific is estimated to witness the fastest CAGR of 29.3% during 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. For instance, according to an article by AUManufacturing, of the IoT devices used in various industries, 30.3% of the IoT devices are used in healthcare. The IoT devices have varied applications in healthcare, which range from serving as a safety measure for personal records to portable health monitoring.

Key Companies & Market Share Insights

Rising competition in the market owing to innovative product offerings by key players and the entry of newer players, along with the increasing number of startups, has led to high market growth. Various regulatory norms and favorable initiatives by governments for boosting digital health are also impacting the competitive landscape.

Moreover, key players in the market are adopting various strategies such as mergers & acquisitions, collaborations, partnerships, and collaborations to strengthen their geographical presence and expand their customer base. For instance, in January 2023, Microsoft, Schneider Electric, and Emirates Health Services collaborated to develop and launch EcoStruxure for Healthcare. It is a digital twin solution capable of enhancing energy efficiency for hospitals and healthcare operational performance by 30% across the UAE. Similarly, in June 2023, Unlearn and QurAlis Corporation entered into a collaboration. This collaboration aims to use Unlearn’s artificial intelligence digital twins in clinical trials of QurAlis for amyotrophic lateral sclerosis therapies. Some prominent players in the global healthcare digital twins market include:

• Atos

• Microsoft

• Philips Healthcare

• PrediSurge

• Unlearn AI

• QiO Technologies

• Verto Healthcare

• Dassault Systems (3DS System)

• ThoughWire

• Faststream Technologies

• Twin Health.

Healthcare Digital Twins Market Report Scope

Global Healthcare Digital Twins Market Report Segmentation

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

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

  • Process & System Digital Twin

  • Product Digital Twin

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

  • Asset and Process Management

  • Personalized Medicine

  • Drug Discovery

  • Others

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

  • Clinical Research Organizations (CRO)

  • Hospitals and Clinics

  • Research & Diagnostic Laboratories

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Singapore

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • UAE

    • Saudi Arabia