Digital Twin technology, an innovation that creates virtual models of physical objects, processes, or services, is rapidly gaining traction in the healthcare and pharmaceutical sectors. According to recent market insights, this market was valued at approximately $1 billion in 2022 and is growing at a healthy compound annual growth rate (CAGR) of 30%, according to Roots Analysis.
Research and development for new drugs demand an average investment of nearly $1 billion. With over 90% of drug candidates failing at various clinical testing stages, this results in substantial financial losses. Digital Twin technology has the potential to reduce these financial setbacks and enhance the efficiency of clinical trials. Additionally, Digital Twins can help cut down the exorbitant costs resulting from incorrect medical diagnoses.
Applications in Healthcare
Digital Twins are being utilized across various therapeutic areas, including cardiovascular disorders, metabolic disturbances, and orthopedic disorders. They are also employed in diverse processes such as personalized treatment, surgical planning, and diagnosis.
Interestingly, pharmaceutical giants like Takeda have also embraced the technology. Takeda, for instance, launched a Digital Twin for Crohn’s disease to aid physicians in determining the most effective treatment option for patients.
Regional Growth
While North America and Europe are competing for the largest market share, Europe, through government initiatives like that from the European Medicines Agency (EMA), is positioned favorably for quicker growth.
The burgeoning interest in the Digital Twin market is underscored by investments nearing $6 billion over the past two years. Key players like Babylon Health and Certara lead in terms of fundraising, mainly due to their IPOs in 2021.
Collaborative activity in the industry has seen a rise of over 15% in the last three years, with Digital Twin startups crafting innovative solutions for the healthcare and pharmaceutical sectors.
Recent Developments
In 2023, companies like Accenture and UCB made significant strides in the Digital Twin market. Accenture strategically invested in Virtonomy to assist medical technology firms in accelerating the time-to-market for medical devices using Digital Twin technology. UCB partnered with Aitia to amalgamate UCB’s expertise with Aitia’s groundbreaking Digital Twin solutions.
