Building Twin Market by Offering (Software Solutions, Services), Application (Facility Management, Predictive Maintenance, Safety & Security Management, Energy Management), End User (Commercial, Industrial) and Region - Global Forecast to 2029
[231 Pages Report] The global building twin market size is projected to grow from USD 2.1 billion in 2024 to USD 13.3 billion by 2029 at a CAGR of 44.7% during the forecast period. The growth of the building twin market is driven by the growing focus on predictive maintenance and government initiatives for digitization. In addition, advancements in AI & ML powered prediction and growing preference towards smart cities generate opportunities within the building twin market.
Building Twin Market Forecast to 2029
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Building Twin Market Dynamics
Driver: Growing focus on predictive maintenance
The increasing emphasis on predictive maintenance serves as a pivotal driver for the building twin. market, revolutionizing how buildings are managed and maintained. Traditionally, building. Maintenance relied on reactive repairs, addressing issues only after they occurred. This reactive. approach is not only costly but also disrupts building operations. Predictive maintenance offers.a. paradigm shift by aiming to anticipate equipment failures before they happen. Predictive. maintenance. leverages advanced technologies such as IoT sensors, data analytics, and artificial. intelligence-to-monitor the performance-of-building-systems-and-equipment-in-real-time. By-creating. a-building-twin, organizations-can-simulate-and-predict maintenance-needs-accurately. This proactive. the approach allows facility managers to anticipate equipment failures before they occur. minimizing downtime, reducing repair costs, and optimizing operational efficiency. Building-twins-enable. continuous monitoring and analysis of critical parameters such as energy usage, environmental conditions, and equipment performance. Insights derived from these digital replicas empower decision-makers to. implement preventive measures, schedule maintenance activities more efficiently, and allocate. resources-effectively.
Restraint: Susceptibility of building twin technology to cyberattacks
Adopting digital technologies, such as cloud computing, big data, the Internet of Things (IoT), and artificial intelligence, is becoming increasingly prevalent across various business domains. Digital twin technology integrates IoT sensors and other digital tools to create virtual replicas of physical assets. This interconnectedness creates vulnerabilities that malicious actors could exploit, potentially leading to serious consequences. A successful cyberattack on a building twin could disrupt critical building operations. Hackers might gain control of building systems, manipulating temperature controls, lighting, or even security measures. Furthermore, the data collected by building twins is often sensitive, containing information on occupant behavior, energy use patterns, and security protocols. A data breach could compromise this sensitive information, posing substantial privacy and security risks.
Opportunity: Advancements in AI & ML powered predictions
The rapid advancements in artificial intelligence (AI) and machine learning (ML) are creating significant opportunities for the building twin market. Al and ML technologies enhance the capabilities of building twins by enabling more accurate and sophisticated predictive analytics. These technologies allow building twins to analyze vast amounts of data from various sensors and systems in real time, identifying patterns and anomalies that would be impossible for humans to detect. This predictive capability can forecast equipment failures, optimize energy usage, and improve maintenance schedules, leading to increased efficiency and reduced operational costs. For instance, Al-driven predictive maintenance can anticipate when a piece of equipment is likely to fail, allowing for pre-emptive repairs that prevent downtime and extend the lifespan of building systems. Moreover, ML algorithms can continually learn and adapt from new data, refining their predictions and making building operations progressively more efficient. This dynamic adaptability makes Al and ML indispensable tools in maximizing the potential of building twin technology, driving the market forward by offering enhanced performance, cost savings, and sustainability benefits.
Challenge: Complexities associated with integrating large amounts of data
The key challenge facing the building twin industry is effectively managing the large volumes of data generated by these systems. Building twins rely on continuous data from numerous sensors and devices throughout buildings, measuring things like temperature, humidity, energy use, occupancy, and equipment performance. Managing and integrating this data is complex due to its sheer quantity and variety. It requires strong systems for processing and storing data. Additionally, the data needs to be standardized and made consistent to ensure accuracy in building twin models. This often involves using advanced analytics and complex algorithms to analyze raw data and derive useful insights.
Building Twin Market Ecosystem
Facility Management Segment to hold the largest share of the building twin market during 2024–2029.
The facility management application is expected to account for the largest size of the building twin market during the forecast period. The segment's leadership is driven by its critical role in optimizing building performance and efficiency. It enables real-time monitoring, and proactive management of building systems, utilizing advanced data analytics and IoT technologies. This approach reduces operational costs, prolongs the lifespan of building assets, and enhances overall operational effectiveness. Moreover, businesses increasingly adopt building twins to streamline maintenance workflows, ensure compliance with regulations, and improve occupant comfort and safety. As a result, the facility management segment is becoming pivotal in advancing modern building management practices.
Software Solutions segment to dominate the market during the forecast period.
The software solutions segment to hold the largest size of the building twin market during the forecast period. The growth is fueled by advancements in cloud computing, IoT, and artificial intelligence, which greatly enhance how building twin technologies operate. These software solutions enable real-time data analysis, predictive maintenance, and effective building operations management, all essential for boosting efficiency and reducing costs. The increasing adoption of digital transformation and smart building technologies further drives this trend. Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) models provide scalability, flexibility, and cost-effectiveness, allowing organizations to efficiently handle building data, optimize resource use, and achieve sustainability goals. This shift highlights the pivotal role of software solutions in innovating modern building management practices.
Commercial end user industry to dominate the market during the forecast period.
The Commercial end user industry is expected to account for the largest share of the building twin market during the forecast period. It is expected to grow at a significant CAGR from 2024 to 2029. Commercial entities, including office buildings, hospitals, and hotels, are increasingly adopting building twin technologies to enhance operational efficiency, reduce costs, and improve sustainability efforts. Building twins offer significant advantages, such as real-time monitoring, predictive maintenance, and optimized space utilization. These advantages are particularly valuable for commercial settings that streamline operations and enhance tenant experiences. Moreover, compliance with regulatory standards and the growing focus on environmental sustainability further propel the adoption of building twins in commercial properties. The integration of IoT and AI technologies enables commercial enterprises to leverage advanced analytics and automation, thereby improving decision-making processes and operational outcomes. This capability is crucial for maintaining competitive advantage and meeting evolving customer expectations in the commercial real estate sector.
The Building Twin market in North America is expected to maintain the highest share during 2024–2029
North America is expected to hold the largest share of the building twin market throughout the forecast period. The region has embraced advanced technologies like IoT, AI, and cloud computing, which are crucial for building twin solutions. These technologies are supported by a strong infrastructure and a dynamic ecosystem of leading technology companies constantly innovating in building management. Additionally, North America's culture of innovation, with support from major tech firms and top academic institutions, drives ongoing advancements in building twin technologies. This includes enhancements in real-time monitoring, predictive maintenance, and advanced data analytics, which are essential for modern building management practices. Moreover, the region's diverse industry landscape across commercial and industrial provides tailored building twin solutions that cater to specific market needs. This diversity fuels market growth and adoption across various applications, cementing North America's global leadership in the building twin market.
Building Twin Market by Region
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Key Market Players
The building twin companies have implemented various types of organic and inorganic growth strategies, such as product launches, product developments, partnerships, and collaborations, to strengthen their offerings in the market. The major players are Microsoft (US), Siemens (Germany), Amazon (AWS) (US), Dassault Systèmes (France), Robert Bosch GmbH (Germany), ANSYS, Inc (US), IBM (US), Autodesk Inc. (US), SAP (Germany), Oracle (US), and Bentley Systems, Incorporated (US). The study includes an in-depth competitive analysis of these key players in the building twin market with their company profiles, recent developments, and key market strategies.
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Report Metric |
Details |
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Market size available for years |
2020—2029 |
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Base year |
2023 |
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Forecast period |
2024—2029 |
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Units |
Value (USD Million/Billion) |
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Segments Covered |
Offering, Application, End User, and Region |
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Geographic regions covered |
North America, Europe, Asia Pacific, and Rest of the World |
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Companies covered |
Key players in the building twin market are Microsoft (US), Siemens (Germany), Amazon (US), Dassault Systèmes (France), Robert Bosch GmbH (Germany), ANSYS, Inc (US), IBM (US), Autodesk Inc. (US), SAP (Germany), Oracle (US), and Bentley Systems, Incorporated (US) —a total of 25 companies. |
Building Twin Market Highlights
This report categorizes the building twin market based on offering, application, end user, and region.
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Subsegment |
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Recent Developments
- In April 2024, Siemens Smart Infrastructure has introduced Electrification X to change aging electrification infrastructure. As the latest addition to the Siemens Xcelerator portfolio, Electrification X builds upon the success of Building X and Gridscale X. This continuously evolving, dynamic, open, and interoperable portfolio facilitates seamless digital transformation of electrification infrastructure across commercial, industrial, and utility applications. By leveraging Electrification X, customers can access a range of IoT SaaS offerings and software solutions designed to enhance energy efficiency, enable e-mobility, and optimize industrial energy systems.
- In April 2024, Autodesk, Inc. announced an interoperability agreement with the Nemetschek Group aimed at enhancing open collaboration and efficiencies within the architecture, engineering, construction, and operations (AECO) and media and entertainment (M&E) industries. This optimization of workflows will facilitate smoother data transfer across various cloud platforms and desktop applications, ensuring critical details reach the right people at the right time. Powered by Autodesk Platform Services (APS)—a suite of open APIs and web services—this interoperability enables Nemetschek's dTwin, Bluebeam Cloud, BIMcloud, and BIMplus to connect seamlessly with Autodesk's industry clouds, including Forma, Fusion, Flow, and design solutions.
- In January 2023, Dassault Systèmes and IBM signed a memorandum of understanding to extend their collaboration, combining Dassault Systèmes’ 3DEXPERIENCE platform and virtual twin technology with IBM’s solutions for asset management, resource optimization, environmental risk management, and ESG governance. They will focus on developing joint offerings for owners and operators of water and energy distribution, energy transmission projects, wind farms, airports, and datacenter-focused IT infrastructure projects
Critical Questions: FAQs:
What is a building twin?
A Building Twin is an advanced technology that creates a detailed virtual replica of a physical building, continually updated with real-time data from sensors and other sources. This digital model offers valuable insights and analytics, helping stakeholders optimize every phase of a building's lifecycle. It allows for accurate visualization and testing of design options during design and construction, ensuring projects remain on schedule and within budget. Once operational, the digital twin enhances facilities management by monitoring performance, predicting maintenance needs, and boosting energy efficiency. It also aids in space optimization, emergency preparedness, and sustainability efforts, leading to better decision-making, cost savings, and improved building performance.
What is the current size of the global building twin market?
The global building twin market is estimated to be around USD 2.10 billion in 2024 and is projected to reach USD 13.34 billion by 2029 at a CAGR of 44.7%.
Who are the top players in the building twin market?
The major vendors operating in the building twin market include Microsoft (US), Siemens (Germany), Amazon (US), Dassault Systèmes (France), Robert Bosch GmbH (Germany), ANSYS, Inc (US), IBM (US), Autodesk Inc. (US), SAP (Germany), Oracle (US), and Bentley Systems, Incorporated (US), among others.
Which major countries are considered in the North American region?
The report includes an analysis of the US, Canada, and Mexico countries.
Which are the major end user industry in which building twin are used?
Significant industries for building twins are commercial and industrial.
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The study involves four major activities for estimating the size of the building twin market. Exhaustive secondary research has been conducted to collect information related to the market. The next step has been validating these findings, assumptions, and sizing with the industry experts across the value chain through primary research. Both top-down and bottom-up approaches have been employed to estimate the overall size of the building twin market. After that, market breakdown and data triangulation procedures have been used to determine the extent of different segments and subsegments of the market.
Secondary Research
Secondary sources in this research study include corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers, certified publications, articles from recognized authors; directories; and databases. The secondary data has been collected and analyzed to determine the overall market size estimations, further validated by primary research.
Primary Research
In the primary research process, several sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information about this report. Several primary interviews have been conducted with market experts from both demand and supply sides across four major regions—North America, Europe, Asia Pacific, and the Rest of the World. This primary data has been collected through questionnaires, emails, and telephonic interviews. Approximately 60% of the primary interviews have been conducted with the demand side and 40% with the supply side. This primary data has been collected mainly through telephonic interviews, which accounted for 80% of the total primary interviews. Additionally, questionnaires and emails were used to collect the data.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the complete market engineering process, both top-down and bottom-up approaches have been implemented, along with several data triangulation methods, to estimate and validate the size of the building twin market and other dependent submarkets listed in this report.
- The key players in the industry and markets have been identified through extensive secondary research.
- Both the supply chain of the industry and the market size, in terms of value, have been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Global Building Twin Market Size: Bottom-Up Approach
Global Building Twin Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size, the total market has been split into several segments. To complete the overall market engineering process and arrive at exact statistics for all segments, the market breakdown and data triangulation procedures have been employed wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. The market has also been validated using both top-down and bottom-up approaches.
Market Definition
Building twin, or digital twin for buildings, is a virtual representation of a physical building or facility that integrates real-time data from sensors, IoT devices, and other sources. This digital replica enables comprehensive monitoring, analysis, and management of the building's operations and performance throughout its lifecycle. Building twin technology allows stakeholders such as facility managers, engineers, and designers to simulate scenarios, optimize energy usage, predict maintenance needs, and enhance operational efficiency. By leveraging advanced analytics and simulation capabilities, building twins support informed decision-making, improve sustainability efforts, and streamline building management practices effectively.
Key Stakeholders
- Government bodies and policymakers
- Industry organizations, forums, alliances, and associations
- Market research and consulting firms
- Raw material suppliers and distributors
- Research institutes and organizations
- Analysts and strategic business planners
- End users of building twins
Study Objectives:
- To define, describe, and forecast the building twin market size by offering, application, and end user, in terms of value
- To describe and forecast the size of the building twin market across four regions, namely, North America, Europe, Asia Pacific, and the Rest of the World, along with their respective country-level market sizes, in terms of value
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the market growth
- To provide a detailed overview of the process flow of the building twin market
- To strategically analyze micromarkets1 for individual growth trends, prospects, and contributions to the overall market size
- To study the complete value chain of the building twin market
- To analyze opportunities for stakeholders by identifying high-growth segments of the building twin market
- To strategically profile the key players and comprehensively analyze their market positions in terms of their ranking and core competencies2
- To analyze competitive developments, such as product launches, deals (mergers, acquisitions, partnerships, collaborations, agreements, contracts, and investments), and others (expansions) in the building twin market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
- Product matrix that gives a detailed comparison of the product portfolio of each company
Company Information
- Detailed analysis and profiling of 25 market players
Growth opportunities and latent adjacency in Building Twin Market