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The digital twin market in healthcare and pharmaceutical industry is estimated to be around USD 1 billion in 2022 and is growing at a healthy compounded annual growth rate (CAGR) of 30% during the forecast period.
The research and development behind a new drug is reported to require, on an average, an investment of nearly USD 1 billion. At present, over 90% of the drug candidates fail across different stages of clinical trials, leading to significant financial losses for developers. In recent years, with the introduction of industry 4.0 technologies, such as augmented reality, big data, internet of things (IoT) and virtual reality, the digital twin technology has emerged as a promising approach to mitigate a number of the aforementioned healthcare related concerns. Digital Twins refer to the virtual model of a physical object, process or service; such models are able to replicate real-life processes in order to collect real-time data to predict their performance. Further, digital twins have been shown to pace up the clinical trials and simulate studies for a larger population, in much quicker timelines. In fact, a group of researchers engaged in the classification of drug risks using digital twins claim that an extended version of the model could help save up to USD 2.5 billion spent on design and testing new drugs. Several digital twins have been found to be reliable in the diagnosis / treatment of various diseases and are, hence, expected to reduce the excessive cost spent on false medical diagnosis. It is worth mentioning that, on an annual basis, medical errors are expected to lead to a loss of nearly USD 20 billion in the US. Therefore, digital twins are believed to have the potential to enable significant cost savings. As a result, about 15% of organizations that implement IoT projects have already started using digital twin platforms, while over 60% of the firms are either planning or in the process of establishing digital twin technology in their processes, in the near future.
The Digital Twin Market, Distribution by Therapeutic Area (Cardiovascular Disorders, Metabolic Disorders, Orthopedic Disorders, and Other Disorders), Type of Digital Twin (Process Digital Twin, System Digital Twin, Whole Body Digital Twin and Body Part Digital Twin), Area of Application (Asset / Process Management, Personalized Treatment, Surgical Planning, Diagnosis and Other Applications), End Users (Pharmaceutical Companies, Medical Device Manufacturers, Healthcare Providers, Patients and Other End Users) and Key Geographical Regions (North America, Europe, Asia, Latin America, Middle East and North Africa, and Rest of the World): Industry Trends and Global Forecasts, 2022-2035 report features an extensive study of the market size, market trends and market forecast offering an informed opinion on the likely adoption of digital twins in the healthcare industry, during the forecast period 2023-2035. The market research report answers several key questions related to the digital twin market.
Digital twin technology companies are currently engaged in the development of products which are intended for numerous applications, such as asset / process management, personalized treatment and surgical planning. There are several marketed digital twin solutions available for adoption by the end-users, mainly provided by AI companies. However, a few big pharma companies are also working on developing digital twin applications for in-house use. As an example, Takeda launched a digital twin for Crohn’s disease, which will help the physicians find the best treatment option for Crohn’s patients. Based on our market research, majority of the digital twin platforms employ the use of artificial intelligence, followed by virtual reality. In addition to the already marketed platforms, the industry will witness the launch of several innovative digital twin solutions specifically designed for use in the healthcare and pharmaceutical industry during the forecast period.
A majority of digital twin solutions are focused on empowering cardiovascular research and treatment. These digital cardiac twins are supporting both personalized treatment as well as surgical planning. According to the World Health Organization (WHO), cardiovascular diseases are the leading cause of death across the world. With an estimated 244.1 million people living with ischemic heart disease and 89.1 million cases of stroke in 2020 alone , the need for improving the disease management strategies will drive the adoption of cardiac digital twin solutions during the forecast period, supporting the market growth.
However, companies are also evaluating digital twins for indications beyond cardiovascular diseases as well. More recently, Twin Health announced positive results from the clinical trial of its digital twin solution for diabetes management. According to the published results, 95% of the 199 enrolled diabetes patients saw their HbA1C levels drop below 6.5% after six months of the clinical trial initiation. The North America based developer of whole body digital twin solution has also raised funds through four funding rounds, to scale the development of its digital twin technology.
A number of digital twin solutions have been found reliable in several healthcare applications, such as diagnosis, health monitoring and medical training. However, more recently the application of digital twin technology in the area of manufacturing and clinical trials has generated a lot of attention. In October 2022, Sanofi announced its plans to optimize its vaccine manufacturing process through use of Dassault Systèmes’ digital twin platform. The digital twin technology will be implemented at Sanofi’s Evolutive manufacturing plants in France and Singapore. Another vaccine manufacturer, GSK collaborated with Siemens and Atos in 2020 to pilot a digital twin for its entire vaccine manufacturing process. All these efforts have been driven by the need to speed vaccine manufacturing, that was created by COVID-19.
At the same time, digital twin solutions are also supporting clinical trials. Digital twins leverage artificial intelligence and machine learning to accelerate and transform clinical trial studies. Unlearn.AI, a start-up, has developed digital twin models, which are currently used by several pharmaceutical companies in order to accelerate clinical trial timelines. One such partnership was with Merck KGaA in February 2022 with the aim to accelerate immunology trials. Such innovative applications of the digital twins will lead to consistent market growth during the forecast period.
It is also important to note that, over the past few years, there has been acceptance of the digital twin technology in healthcare. For instance, in September 2022, European Medicines Agency (EMA) released a favorable qualification opinion for TwinRCT™ solution, for implementation in AI-generated prognostic digital twins being evaluated in phase II and phase III clinical trials. The implementation of North America based Unlearn.AI’s digital twin solution is likely to help reduce the sample size in phase 2 and 3 clinical trials. Such government initiatives reflect their faith in the work of digital twin companies to support the drug development efforts. These developments will support the digital twin market growth in Europe at a compounded annual growth rate (CAGR) higher than North America during the forecast period.
The growing interest in digital twin market can be validated from the fact that, in the last two years, close to USD 6 billion has been invested by several investors based across the globe, in companies engaged in the development or those offering digital twins. Majority of the funds have been raised through venture rounds. In terms of the amount of funds raised, Babylon Health and Certara are the leading digital twin companies, essentially owing to their IPOs in 2021.
Interestingly, the partnership activity in the industry has also witnessed a growth rate of over 15%, in the past three years. Consistent support from the venture capital firms will ensure the development of digital twins for healthcare industry. Additionally, the digital twin startups are catering to the growing needs of their healthcare and pharmaceutical clients and are coming up with innovative software’s helping the industry from creating digital twins of patient anatomies to predicting disorders in individuals based on DNA-based digital twin.
Several recent developments have taken place in the field of digital twin market. We have outlined some of these recent initiatives below. These developments, even if they took place post the release of our market report, substantiate the overall market trends that have been outlined in our analysis.
|Digital Twin Market Segments
2022 – 2035
Market Size 2022
Cardiovascular Disorders, Metabolic Disorders, Orthopedic Disorders, Other Disorders
Type of Digital Twin
Process Digital Twin, System Digital Twin, Whole Body Digital Twin, Body Part Digital Twin
Area of Application
Asset / Process Management, Personalized Treatment, Surgical Planning, Diagnosis, Other Applications
Pharmaceutical Companies, Medical Device Manufacturers, Healthcare Providers, Patients, Other End Users
Key Geographical Regions
North America, Europe, Asia, Latin America, Middle East and North Africa, Rest of the World
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The report features an in-depth analysis, highlighting the capabilities of various stakeholders engaged in digital twin industry. Amongst other elements, the report includes:
The opinions and insights presented in the report were influenced by discussions held with multiple stakeholders in this industry. The report features detailed transcripts of interviews held with several industry stakeholders.
All actual figures have been sourced and analyzed from publicly available information forums and primary research discussions. Financial figures mentioned in this report are in USD, unless otherwise specified.