Digital Twins in Healthcare Market: Industry Outlook
Digital Twins in Healthcare Market reached US$ 1.72 billion in 2024 and is expected to reach US$ 12.41 billion by 2033, growing at a CAGR of 24.9% during the forecast period 2025-2033.
The global digital twins in healthcare market is experiencing rapid growth as a result of increasing investments in digital twin technologies, the rise of personalized medicine, and the demand for improved patient outcomes. Digital twin technology, which creates a digital replica of a physical entity or system, has gained prominence in healthcare by allowing real-time monitoring, simulation, and prediction of patient-specific health data. These innovations offer significant improvements in diagnostics, surgical planning, disease management, and overall patient care.
The healthcare industry is undergoing a transformation, where traditional methods are being replaced by advanced digital technologies such as artificial intelligence (AI), the Internet of Things (IoT), and big data analytics. The integration of digital twins into this ecosystem further enhances the potential for predictive analytics, real-time monitoring, and personalized treatment, which in turn drives efficiency and reduces costs.
North America is projected to maintain a dominant position in the global digital twins in healthcare market, driven by significant product launches, advanced technological infrastructure, and large investments in the digitization of healthcare. The region ranks among the foremost proponents in the global digital twins in healthcare market. AI capabilities aid in engendering the adoption of digital twins in personalized medicine, predictive analytics, and real-time patient monitoring.
Executive Summary
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Digital Twins in Healthcare Market Dynamics: Drivers & Restraints
Driver: Rising technological advancements
Artificial Intelligence (AI) enables the analysis of vast amounts of healthcare data and generates predictive models based on patient data. By combining these technologies with digital twins, healthcare providers can simulate and predict health outcomes, optimize treatments, and make data-driven decisions that improve patient care.
For instance, in February 2025, Dassault Systèmes announced that a beta test is underway to evaluate a new generation of the Living Heart model that can be highly customized for individual patients or patient populations. Dassault Systèmes enters the next phase of its living heart project with AI-powered virtual twins.
The integration of IoT with digital twins enhances remote patient monitoring, allowing for timely intervention and reducing the burden on hospitals. As IoT devices become more sophisticated, digital twins will play an increasingly important role in preventive care and health management.
Cloud-based platforms significantly reduce the cost and complexity of implementing digital twin solutions, particularly for small to mid-sized healthcare organizations. The scalability and flexibility of cloud technology also support the widespread adoption of digital twins, enabling healthcare systems to process and analyze data more effectively.
Restraint: Data privacy and security concerns
Digital twins in healthcare require the aggregation of large volumes of sensitive patient data. This includes personal health information, genetic data, and real-time monitoring data from wearables and sensors. Healthcare providers must comply with strict regulations like the Health Insurance Portability and Accountability Act (HIPAA) in the U.S. or the General Data Protection Regulation (GDPR) in the EU, which impose rigorous standards for handling and safeguarding patient data.
Healthcare systems are frequent targets of cyberattacks because they store a wealth of valuable personal data. If the data involved in digital twin models is compromised, it could lead to significant privacy breaches, identity theft, and even manipulation of healthcare outcomes. The interconnected nature of digital twin systems, including sensors, wearables, cloud storage, and analytics platforms, makes them vulnerable to hacking attempts.
For instance, according to the HIPAA Journal, in August 2023, 23 million breached healthcare records were reported. Over the past 12 months, an average of 9,989,003 healthcare records were breached each month. In the year to August 31, 2024, there have been 491 data breaches of 500 or more records, and at least 58,668,002 records are known to have been breached. The average breach size in 2024 is currently 119,487 records, and the median breach size is 4,109 records.
Digital Twins in Healthcare Market Segment Analysis
The global digital twins in healthcare market is segmented based on offering, technology, application, end user, and region.
Product Type
The software segment from the product type is expected to hold 77.5% of the digital twins in the healthcare market.
Digital Twin software is a set of tools and platforms used to create, manage, and utilize virtual replicas, offering simulation, analysis, and monitoring capabilities.
The growth of the software segment is attributed to several factors such as advancements in artificial intelligence (AI) and machine learning (ML), software for real-time simulation, predictive analytics, and personalized treatment plan generation. Increased demand for remote patient monitoring and telemedicine is also creating demand for software-driven digital twin solutions that integrate wearable devices with electronic health records (EHRs) to generate digital twins.
Moreover, Investment in healthcare and government initiatives to improve the digital health infrastructure is accelerating the adoption of digital twin software across hospitals, research institutions, and pharmaceutical companies.
For instance, in February 2025, HEALWELL AI, a healthcare AI company, introduced new Digital Twin functionality on its VS Data-as-a-Service Platform. A Digital Twin is a virtual representation of a healthcare system or facility, allowing analysis and prediction without directly manipulating operations. This technology provides a comprehensive, real-time view of healthcare facility operations, transforming the way facility managers and decision-makers approach the complexities of healthcare environments.
Digital Twins in Healthcare Market Geographical Analysis
North America dominated the global digital twins in healthcare market with the highest share of 56.81% in 2024
North America is projected to maintain a dominant position in the global digital twins in the healthcare market, driven by significant product launches, advanced technological infrastructure, and large investments in the digitization of healthcare. Advanced AI and ML capabilities aid in the adoption of digital twin technology in personalized medicine, predictive analytics, and real-time patient monitoring.
Increased government initiatives promoting digital healthcare, rising adoption of EHR applications, and growing demand for precision medicine are other growth factors driving the market. Innovators are actively involved in developing advanced digital twins for a plethora of applications.
For instance, in May 2024, Ontrak Inc., a leading AI-powered healthcare company, launched its Mental Health Digital Twin (MHDT) technology, which combines human empathy with data-driven insights to provide personalized, precise, and effective care for individuals struggling with mental health challenges.
Moreover, in February 2024, Unlearn, an AI company, secured a $50M Series C round led by Altimeter Capital, along with Radical Ventures, Wittington Ventures, Mubadala Capital, Epic Ventures, and Necessary Venture Capital. The funding will help Unlearn advance AI to eliminate trial and error in medicine by investing in its people, data, engineering capabilities, and R&D initiatives.
Asia-Pacific is the global digital twins in healthcare market with a market share of 12.42% in 2024
The digital twins market in the Asia-Pacific region is rapidly evolving, particularly in the healthcare sector, where the technology is driving significant advancements in personalized medicine, patient monitoring, and treatment optimization.
With increasing healthcare demands and the adoption of advanced technologies, digital twins are providing healthcare professionals with valuable tools to enhance patient care, streamline operations, and improve outcomes.
The use of digital twin technology in healthcare is still in its early stages, but is expected to grow substantially as it becomes more integrated into clinical practices and research. Through partnerships and collaborations, the companies are developing solutions to transform and help healthcare.
For instance, in November 2024, Fujitsu developed a digital twin solution called Policy Twin, which uses machine learning and generative AI to simulate the social impact of local government healthcare policies. The product identifies measures to reduce costs and improve preventive healthcare outcomes. Field tests have shown that it can identify policy candidates that double cost savings and health improvements.
Digital Twins in Healthcare Market Key Players
The major global players in the digital twins in healthcare market include Dassault Systèmes, Brainlab AG Twin Health, Virtonomy GmbH, Predisurge, GE Healthcare, Owkin, Inc., Ontrak Health, Decision Lab Ltd., and Altis Labs, Inc., among others.
Key Developments
In February 2025, Dassault Systèmes enters the next phase of its living heart project with AI-powered virtual twins. The company announced the beta test at its 3DEXPERIENCE World event in Houston and explored expanding virtual twin applications to other organs to address a wider range of medical challenges.
In February 2025, HEALWELL AI Inc. announced that its subsidiary, VeroSource Solutions Inc., unveiled new Digital Twin functionality on its proprietary VS Data-as-a-Service Platform. With the ability to provide a comprehensive, real-time view of healthcare facility operations, the new Digital Twin technology is transforming the way facility managers and decision-makers approach the complexities of healthcare environments.
In September 2024, Proprio announced that its innovative surgical guidance platform, Paradigm, reached a significant milestone with 50 successful surgeries completed. The Proprio Paradigm platform is a new sensing modality aiding surgeons in the operating room while recording data to fuel a breakthrough digital twin capability - essentially modeling the potential results of key decisions.
Market Scope
Metrics | Details | |
CAGR | 24.9% | |
Market Size Available for Years | 2022-2033 | |
Estimation Forecast Period | 2025-2033 | |
Revenue Units | Value (US$ Bn) | |
Segments Covered | Offering | Software, Services, Hardware |
Application | Treatment Planning, Drug Discovery and Development, Diagnostics, Patient Monitoring, Healthcare Facility Management, Others | |
Technology | Virtual Reality (VR), Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), Augmented Reality (AR), Others | |
End User | Hospitals and Clinics, Pharmaceutical and Biotechnology Companies, Academic and Research Institutes | |
Regions Covered | North America, Europe, Asia-Pacific, South America, and the Middle East & Africa | |
