Healthcare Simulation Market

Market Overview

The global healthcare simulation market size was valued at USD 1.85 billion in 2022. It is projected to reach USD 6.82 billion by 2031, growing at a CAGR of 15.6% during the forecast period (2023-2031). 

Medical/healthcare simulation is a sophisticated approach for educating and training healthcare professionals using advanced educational technology. The term, according to the application, differs, such as simulation in healthcare, patient simulation, nursing simulation, surgical simulation, and clinical simulation. Most of the simulation is carried out through anatomical models comprised of different devices that include patient simulators, interventional/surgical simulators, endovascular simulators, ultrasound simulators, and others. These simulators offer substantial benefits over the conventional learning process. The challenges in the conventional learning approach are addressed by advanced medical simulators. Anatomical models and training services are largely deployed in hospitals and clinics across the globe, as well as institutes and research centers, to exercise the complex scenarios of operation on a real-life patient by first practicing them on a human-like model with interchangeable organs.

Market Dynamics

Global Healthcare Simulation Market Drivers

Rising Importance of Patient Safety

Increasing the use of simulation-based training and professional certification is a useful way to enhance patient outcomes and safety. As a result, the addressable market would be significantly bigger than it is now, which is primarily based on education. According to a WHO article from 2019, patient harm in healthcare is the 14th foremost cause of morbidity and mortality, accounting for about 2.6 million deaths annually in low- and middle-income countries. The most harmful mistakes involve diagnosis and medical care. Clinicians can develop the expertise, knowledge, and confidence necessary to increase patient safety in a risk-free setting by participating in simulation training. Additionally, the adoption of simulation training and products is favored by the Accreditation Council for Graduate Medical Education's shift toward outcome-based assessment with precise benchmarks to gauge and compare performance.

Increasing Demand for Precise Invasive Treatments

Surgeries require a lot of precision to perform safely without harming the patient in any way. With the geriatric population, the precision and skills for surgery are required even more. To perform the surgery safely, a surgeon requires a lot of practice to gain experience through surgical simulation equipment. The rising number of surgeries in several medical fields like cardiac, orthopedic, and neurology also requires high skills and precision by surgeons. Hence the number of surgical simulations is going to increase over the forecast period.

Global Healthcare Simulation Market Restraints

Inaccuracy with Manikins

Before working with actual patients, researchers and clinicians can test out new clinical procedures and improve their interpersonal and teamwork skills in a safe learning environment created by simulation in healthcare. Manikins are used in many simulation applications where it is possible to induce symptoms that respond to the simulated treatment. Models and instruments, however, are unable to accurately reflect human functioning because of how complex human systems are. Facilitators and simulation engineers must build and modify the simulation models to accurately represent a physiological response that is desired under particular conditions. It can be difficult to manipulate these systems to achieve the desired simulation goals. Simulators with a poor design could result in negative learning, which could ultimately result in future medical decisions being made incorrectly. These factors may have a restricted impact on the market expansion.

Global Healthcare Simulation Market Opportunities

Increasing Awareness of Healthcare Simulation

The players in the medical simulation market can expect to find tremendous growth opportunities in emerging nations like Brazil, India, China, and South Africa. Healthcare expenditures in low- and middle-income countries increased from 5.01% in 2011 to 5.32% in 2019, according to the World Bank Group. India and China have the largest patient bases and have more than half of the world's population. The main factors influencing the market growth in these nations are the expanding economies, increasing private investments, the untapped rural sector, growing incidences of non-communicable lifestyle-related diseases, growing emphasis on medical education, training, and research, and the rising number of academic medical institutions. Rising government spending on healthcare and expanding public-private partnerships in medicine, which create an ideal environment for the medical simulation market, are other factors driving the expansion of the healthcare sector in emerging nations. A number of fresh initiatives have been launched in developing nations to offer top-notch training facilities for medical professionals.

Regional Analysis

The global healthcare simulation market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America region is the highest contributor to the market and is anticipated to grow at a healthy CAGR during the forecast period. Various companies in the U.S. are exploring the potential applications of technology to develop and revamp the healthcare sector. Prominent vendors are actively incorporating computational modeling and simulation (CM&S) and analyzing different approaches to use it to facilitate safety and innovation in medical devices. The University of the Virgin Islands and CAMLS collaborate to launch the first medical simulation facility in 2022. Similar to CAMLS in Tampa, the St. Croix simulation facility has more than 21,000 square feet of trauma and hybrid operating theatres, 18 surgery skill lab sectors, four team training rooms, patient exam rooms, a dining room, and an auditorium. In addition to bringing conferences, training programs, and researchers, it is anticipated that the new facility will create 500 new jobs.

Europe is anticipated to witness dynamic growth in the market during the forecast period. Simulation-based education (SBE) is progressively becoming an integral aspect of post-graduation in Europe's medical education. Moreover, it is aided by national policies and literature bodies, due to which the adoption rate is gaining an impetus, especially in European countries, as the U.K. is pioneered in anesthetics and surgical training. The Society for Simulation in Europe (SESAM) is an organization for healthcare simulation that promotes and supports the use of simulation in healthcare for training and research purposes.  In 2020, VirtaMed introduced a new method for providing medical training with the most up-to-date healthcare simulation solutions. The first mobile surgical simulation lab in Switzerland made a three-month tour, providing university hospitals with risk-free training.

Asia-Pacific is anticipated to witness significant growth in the market during the forecast period. Medical education has been increasingly relying on simulation technology for the past few years to aid the growth of practical learning knowledge that imparts controlled and safe practice opportunities. Even though Japan has slightly more numbers of advanced simulation centers, the demand for healthcare medical simulation is comparatively high in China, accounting for more numbers of adoption rates in hospitals/clinics and military organizations. China has spent money to build a 15-km-long Beijing International Medical Centre that houses a medical university, a business school of medicine, an international nursing hospital, a center for training in medical simulation, and a national center for clinical drug testing research. By the time it is finished in 2023, this top-notch project will be the biggest medical facility in the world. Medical professionals will be trained at this center in complex and advanced medical procedures using simulation labs.

The LAMEA region is anticipated to witness moderate growth in the global healthcare simulation market during the forecast period. The number of healthcare professionals is rising exponentially in light of the incorporation of the latest technologies in the medical sector and sufficient allocated funds from the government concerning the population's health. In October 2022, The College of Medicine at Ajman University (AU) launched a Healthcare Simulation and Clinical Competence Center (HSCCC), increasing the number of doctors, nurses, and students who will be able to practice their skills in a cutting-edge learning setting. The new 220-square-meter center, which is housed in the College of Medicine, aims to be the most sophisticated center of excellence for the development of clinical competency in the area.

Segmental Analysis

The global healthcare simulation market is segmented by product type, sales channel, and end-user.

Based on product type, the global market is bifurcated into anatomical models, web-based simulation, medical simulation software, and simulation training services.

The anatomical models segment is the highest contributor to the market and is anticipated to grow at a healthy CAGR during the forecast period. An increase in the number of shocked patients in Intensive Care Units (ICU) and critical emergencies has urged the need for an expedited and precise treatment solution to avoid organ decline or patient death. As the new treatments cannot directly be tested on real patients, incorporating models that mimic human-like bodily functions has been the most common and preferred practice lately. This has led to significant growth in the adoption rate of anatomic models in recent years.

The web-based simulation segment is anticipated to witness a higher CAGR. Web-based simulation is an emerging area of investigation in the simulation industry that includes simulation software, performance recording software, and virtual tutors. Flourishing cloud technologies are foreseen to bring in abundant opportunities for server-side simulation approaches. Medical simulation software is extensively utilized by healthcare facilities to train professionals through the use of advanced educational technology. The progress in imaging technologies has enabled trainees and professionals to capture automated and accurate 2D/3D images using standard CT or MRI, eventually boosting the demand for simulation training practices in the healthcare industry.

Based on the sales channel, the global market is bifurcated into direct and distribution channels.

The distribution channel segment is the highest contributor to the market and is anticipated to grow at a healthy CAGR during the forecast period. An increasing number of mergers and acquisitions, manufacturers following inorganic strategies, and the growing number of middlemen in the market are anticipated to significantly generate revenue for the distributor channel segment.

The direct segment is anticipated to grow at a significant rate. If the number of consumers is small, the manufacturer prefers selling simulation products directly to the customer. Direct sales are typically preferred for industrial purpose as it suits consumer preferences.

Based on end-user, the global market is bifurcated into hospitals and clinics, military organizations, and academic institutes and centers.

The academic institutes and centers segment is the highest contributor to the market and is anticipated to grow at a healthy CAGR during the forecast period due to the demand for testing real-life scenarios before having to operate drastically increased. For instance, using PBPK modeling, the NIDDK investigated the effects of decreased kidney function on the pharmacokinetics of drugs that are eliminated really by organic anion transporters.

The hospital and clinics engagement segment is anticipated to grow at a significant rate due to a gradual shift in emphasis toward advanced learning, the development of cutting-edge simulation-based technologies, full use of simulation models during medical procedures, increased emphasis on reducing errors, and the affordability of procedural training for doctors.

Recent Developments

• November 2022, Gaumard Scientific Inc. announced the first installation of the HAL® S5301 conversational robotic patient simulator at Emory nursing learning center.
• October 2022, Intelligent Ultrasound announced BodyWorks Eve for novice users to train them in ultrasound skills. Bodyworks Eve is a female patient simulator that is incredibly realistic for use in interactive Point of Care Ultrasound scenario training.