Digital Twins in Healthcare Market by Component (Software, Services), Application (Personalized Medicine, Drug Discovery, Medical Education, Workflow Optimization), End User (Providers, Research & Academia, Payers), and Region - Global Forecast to 2028
The 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 new research study consists of an industry trend analysis of the market. The new research study consists of industry trends, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behaviour in the market. 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.
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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
|
Report Metric |
Details |
|
Market Revenue in 2023 |
$1.6 billion |
|
Projected Revenue by 2028 |
$21.1 billion |
|
Revenue Rate |
Poised to Grow at a CAGR of 67.0% |
|
Market Driver |
Increasing investments in digital twin technology by public and private entities |
|
Market Opportunity |
Increasing focus on cutting-edge real-time data analytics |
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
Frequently Asked Questions (FAQ):
What is the projected market revenue value of the global digital twins in healthcare market?
The global digital twins in healthcare market boasts a total revenue value of $21.1 billion by 2028.
What is the estimated growth rate (CAGR) of the global digital twins in healthcare market?
The global digital twins in healthcare market has an estimated compound annual growth rate (CAGR) of 67.0% and a revenue size in the region of $1.6 billion in 2023.
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This research study involved the extensive use of both primary and secondary sources. It involved the study of various factors affecting the industry to identify the segmentation types, industry trends, key players, the competitive landscape of market players, and key market dynamics such as drivers, opportunities, challenges, restraints, and key player strategies.
Secondary Research
This research study involved the wide use of secondary sources, directories, databases such as Dun & Bradstreet, Bloomberg Businessweek, and Factiva, white papers, annual reports, and companies’ house documents. Secondary research was undertaken to identify and collect information for this extensive, technical, market-oriented, and commercial study of the digital twins in healthcare market. It was also used to obtain important information about the top players, market classification, and segmentation according to industry trends to the bottom-most level, geographic markets, and key developments related to the market. A database of the key industry leaders was also prepared using secondary research.
Primary Research
In the primary research process, various supply side and demand side sources were interviewed to obtain qualitative and quantitative information for this report. Primary sources from the supply side included industry experts such as CEOs, vice presidents, marketing and sales directors, technology & innovation directors, engineers, and related key executives from various companies and organizations operating in the digital twins in healthcare market. Primary sources from the demand side included personnel from hospitals (small, medium-sized, and large hospitals), diagnostic centers, and stakeholders in corporate & government bodies.
A breakdown of the primary respondents is provided below:
*Others include sales managers, marketing managers, and product managers.
Note: Tiers are defined based on a company’s total revenue, as of 2020: Tier 1 = >USD 1 billion, Tier 2 = USD 500 million to USD 1 billion, and Tier 3 = <USD 500 million.
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Market Size Estimation
The total size of the market was arrived at after data triangulation through the two approaches mentioned below. After the completion of each approach, the weighted average of these approaches was taken based on the level of assumptions used in each approach.
Data Triangulation
The size of the market was estimated through segmental extrapolation using the bottom-up approach. The methodology used is as given below:
- Revenues for individual companies were gathered from public sources and databases.
- Shares of leading players in the market were gathered from secondary sources to the extent available. In some instances, shares of digital twins in healthcare businesses have been ascertained after a detailed analysis of various parameters, including product portfolios, market positioning, selling price, and geographic reach & strength.
- Individual shares or revenue estimates were validated through interviews with experts.
The total revenue in the digital twins in healthcare market was determined by extrapolating the Market share data of major companies.
Market Definition
According to the Digital Twin Consortium, a digital twin is a virtual representation of real-world entities and processes synchronized at a specified frequency and fidelity. This allows end users to monitor what is happening inside the physical asset in real-time. By providing a holistic view of real-time behavior in a real-world environment mapped to a constantly updated virtual model, digital twins make it possible to anticipate maintenance needs, optimize performance, and avoid costly failures.
Key Stakeholders
- Healthcare Providers
- Healthcare Vendors
- Technology Developers
- Patients
- Regulators and Policymakers
- Insurance companies and payers
- Academic Research Institutes
- Imagining and Diagnostic Labs
- Government Institutions
- Market Research and Consulting Firms
- Venture Capitalists and Investors
Global digital twins in healthcare market Size: Top-Down Approach
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Objectives of the Study
- To define, describe, and forecast the digital twins in healthcare market based on component, deployment, technology, application, end user, and region.
- To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the overall market
- To analyze opportunities in the market for stakeholders and provide details of the competitive landscape for market leaders
- To forecast the size of the market with respect to three geographic regions—North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW), which include regions such as Latin America and Middle East & Africa.
- To profile the key players and comprehensively analyze their core competencies and market shares
- To track and analyze competitive developments such as agreements, partnerships, collaborations, acquisitions, product/technology/service launches, and R&D activities of leading players
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per your company’s specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Geographic Analysis
- Further breakdown of the Rest of Europe Market into Denmark, Norway, and others
- Further breakdown of the Rest of Asia Pacific Market into Vietnam, New Zealand, Australia, South Korea, and others
Growth opportunities and latent adjacency in Digital Twins in Healthcare Market