Healthcare Simulation Market By Product (Anatomical Models, Web-Based Simulation, Medical Simulation Software, Simulation Training Services), End User (Academic Institutes, Hospitals, Military Organizations, Other) and Region (North America, Europe, Asia Pacific, Middle East and Africa, and South America) Global Forecast 2022 to 2032

The healthcare simulation market is expected to grow tremendously over the next years with a CAGR of 14.5% over the forecast period. The market players are well-positioned to enjoy this growth by diversifying and optimizing their product portfolio in order to become an increasingly attractive supplier of the medical simulation equipment. The 4 most important companies account for 29% of the market for simulators, while the training market is even more fragmented.

A snapshot of happenings in the healthcare simulation market:

• Vast majority of the competitors are pure-plays, although most products across companies compete directly, some manufacturers focus on specific unexplored surgical procedures
• Innovative products and the companies brand awareness are regarded as key decision drivers for end users, although cost also plays a big role
• New players are providing stiff competition to the dominant existing players
• Strategically, companies are increasingly focusing on product launches, collaborations and partnerships and joint ventures to seize market share
• Players are trying to seize opportunities through partnerships with the medical device manufacturers

The use of simulation products & services is majorly driven by advancements in medical technology. Moreover, healthcare education is also an important aspect determining sales of the majority of product and services segment. Advanced medical procedures and medical devices such as intra cardiac echocardiography, mechanical ventilation enhancements, and cardiac assist devices all necessitate advanced training solutions, such as simulation, for customer training and internal product development. Certification agencies and regulatory authorities are becoming progressively stringent in requesting that clinicians be trained before implementing new disruptive technologies, an undertaking for which simulation is a right fit.

High-fidelity simulators is another segment set to grow at a highest CAGR through 2025. Examples include CAE Inc.’s high-fidelity childbirth simulator, “Lucina” intended to offer extraordinary realism for simulated scenarios for both rare maternal emergencies and normal deliveries. The company’s portfolio also includes turnkey solutions, project management and professional services for healthcare simulation programs. They collaborate with medical device companies and scientific societies to develop innovative and custom training solutions. Since September 2017, in collaboration with the American Society of Anesthesiologists, CAE Inc. released the first three modules for Anesthesia SimSTAT, a virtual healthcare training environment for practicing physicians. This new platform offers continuing medical education for Maintenance of Certification in Anesthesiology and has allowed CAE Inc. to increase access to simulation-based clinical training among the anesthesia community.

In 2018, North America was the largest market for healthcare simulation and is anticipated to retain its position by 2025. Improving patient safety and outcomes is one of the key reasons driving growth in this region.

According to a study by patient-safety researchers published in the British Medical Journal in May 2016, medical errors are the third-leading cause of death in U.S. hospitals and the World Health Organization reported in 2018 that there is a 1 in 300 chance of being harmed during health care. Training using simulation can help clinicians gain confidence, knowledge and expertise for improving patient safety in a risk-free environment. As the Medicare and Medicaid reimbursement structure in U.S. hospitals shifts from being based solely on quantity of services to the quality of services (value-based care), including safety and patient outcomes, it is expected that more hospitals will implement simulation-based training to improve performance and reduce the risk of medical errors. Simulation is a required or recommended element in a growing movement towards High Stakes Assessment and Certification. Examples in the U.S. include MOCA, Fundamentals of Laparoscopic Surgery and Advanced Trauma Life Support. Moreover, the Accreditation Council for Graduate Medical Education is evolving towards outcome-based assessment with specific benchmarks to measure and compare performance which favors the adoption of simulation products and training.