Digital Twin Market Size, Share, and Trends

Updated on : Oct 22, 2024

Digital Twin Market Size & Share

The global digital twin market Size is expected to reach USD 110.1 billion by 2028 from USD 10.1 Billion in 2023, growing at a CAGR of 61.3% during the forecast period from 2023 and 2028.  

Many companies have started implementing Digital Twin in their ecosystem. Recently, BMW and Renault have implemented digital twins in their manufacturing ecosystem, which helps create efficient manufacturing processes.The digital twin is not confined to a specific industry but is used to monitor and manufacture jets to manage smart cities. So, the scope and application of digital twins are vast.

As the technology improves and matures, it may find more applications in different industries i.e. beyond the manufacturing ecosystem. Improving the supply chain, reducing operational costs, increasing demand from the healthcare industry, and adopting predictive maintenance are some factors helping grow the digital twins market. Complexity in terms of data collection and issues related to cyber threats are factors that are hampering the growth of the digital twin industry.

Digital Twins Market Forecast to 2028

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Digital Twin Market Trends

Driver: Growing focus on predictive maintenance

Digital twins for predictive maintenance are employed widely across several industries. Predictive maintenance using digital twins means gathering live sensor data to understand how well a product, process, or system works. This information is then patterned against past records of how severely things have gone wrong. Users can learn from this to know when maintenance will be needed. Besides predicting what might break, this technology has a few other ways to ensure maintenance works better.

Moreover, digital twins allow the calculation of maintenance-related key performance indicators and forecast how machines perform under different conditions. Digital twins act like real-time models that show precisely how a product, process, or system is doing. They help us simulate and predict how things will work under different conditions, like how long they've been running, harsh conditions they've faced, or temperature changes.

Restraint: High investments associated with the implementation of digital twin technology

The global market for digital twin solutions is constrained in its growth by the significant investment needed. Setting up digital twins and related technologies like smart automation, connected control, computer-aided design (CAD), product lifecycle management (PLM), 3D CAD, manufacturing process management (MPM), model-based system engineering (MBSE), manufacturing operations management (MOM), enterprise resource planning (ERP), and augmented reality (AR), virtual reality (VR), and extended reality (XR) requires substantial investment. When organizations need additional infrastructure and supporting technology, the expenses for implementing a digital twin can increase significantly, making it costly. However, these higher costs can also motivate manufacturers to embrace the technology.

Opportunity: Rising trend of 3D modeling and scanning across industries

IIoT combines machines, human input, and advanced analytics in industrial processes, connecting devices through communication technology. This setup lets systems monitor, collect, exchange, and analyze data, offering insights that enhance decision-making. IIoT spans the entire lifecycle of systems or products, serving as a powerful tool for businesses to analyze performance indicators and identify areas for improvement or upgrades.

In the long run, the lessons and suggestions derived from digital twins are anticipated to generate significant opportunities for innovation and growth. Also, when digital twins are combined with monitoring how products perform in the field, businesses can always see how products are used compared to how they were designed. This approach gives immediate feedback to improve designs. It speeds up product development and lowers costs by reducing the time and money spent on making and testing real prototypes.

Virtual models of products or processes also help experts from different fields collaborate better during development. For instance, mechanical engineers, software developers, and designers can work together on the same digital twin. Using digital twins and IoT, teams can predict production issues and solve them before they affect manufacturing, making operations more efficient.

Challenge: Lack of skilled workforce and awareness regarding cost benefits offered by digital twins

Companies require implementation plans and significant investments to integrate digital twins into product management. Due to the innovation of the technology and the considerable changes it involves, end users are still determining the economic benefits, investment requirements, and future cost savings.

Understanding how much a digital twin can do is tricky, making it hard to use everywhere. Making a digital twin for things like equipment or processes needs a mix of technologies and skills and people who know how to use the newest equipment and software.

The digital revolution quickly changes the skills required in every part of business, from development to sales and marketing. Companies need new hires with advanced qualifications to handle data-driven processes and improve efficiency. This creates a gap between experienced employees and new hires. Industries face a dual challenge: adopting new technologies while finding skilled workers to use them. This dynamic environment presents both opportunities and challenges for businesses adapting to the digital age.

Industrial Digital Twin Market Shaping the Future of Manufacturing

The industrial digital twins market is rapidly expanding as manufacturers increasingly adopt digital replicas of physical assets to enhance operational efficiency, predictive maintenance, and real-time monitoring. By creating virtual models that simulate real-world systems, companies can optimize performance, reduce downtime, and make data-driven decisions to improve product quality and reduce costs.

The integration of IoT, AI, and machine learning technologies is further fueling the growth of the digital twin market, enabling more accurate simulations and deeper insights into system behavior. As industries like automotive, aerospace, and energy seek smarter solutions to stay competitive, the industrial digital twins market is set to revolutionize the manufacturing landscape, offering vast opportunities for innovation and growth in the coming years.

Digital Twin Market Ecosystem

This section describes the digital twin ecosystem and the deployment of digital twin solutions in different end-user industries, along with the impact of associated technologies on the digital twins market.

Digital Twin Market Segmentation

Predictive Maintenance Segment to hold the largest share of the digital twin market during 2023–2028

The predictive maintenance application is expected to account for the largest share of the digital twinsmarket during the forecast period. Predictive maintenance offers substantial benefits in terms of cost savings, operational efficiency, and equipment uptime. Companies worldwide use digital twins for predictive maintenance; for instance, recently, rolls-royce, an automotive manufacturer, utilized digital twins to enhance engine efficiency, resulting in savings of 22 million tons of carbon emissions.

Additionally, digital twins help Rolls-Royce improve maintenance, reducing customer interruptions. Moreover, factory manufacturing users use real-time sensor data and past performance to check equipment health and predict problems. This proactive method helps them plan maintenance, cutting down on unexpected downtime and repair costs. Further, Advances in AI make predictive maintenance with digital twins more effective and accurate.

Automotive & transport industry to dominate the market during the forecast period

The automotive & transportation industry is expected to account for the largest share of the digital twin market during 2023-2028. The automotive & transport industry operates with a highly interconnected and complex supply chain involving several components, suppliers, and manufacturing processes. Digital twins offer a real-time and comprehensive view of the entire supply chain, enabling better analysis, monitoring, and optimization of operations. This capability increases efficiency, improves overall supply chain management, and reduces downtime.

Several Auto players have already adopted digital twin technology. BMW Group recently planned to use digital twin technology in its new iFactory production lines. These will aid in producing the upcoming 'Neue Klasse' electric vehicle series, planned for release in 2025, incorporating advanced digital assembly techniques. BMW plans to implement Digital Twins worldwide across its 31 production and assembly sites to boost efficiency and streamline production processes.

Moreover, digital twins offer significant benefits throughout the product lifecycle in the automotive and transportation sectors. From design and prototyping to maintenance, manufacturing, and end-of-life, digital twins provide valuable insights into maintenance requirements, product performance, and potential improvements. This approach allows manufacturers to optimize processes, enhance product quality, and deliver better customer experiences.

Digital Twin Market Regional Analysis

The Digital Twin market in North America is expected to maintain the highest share during 2023–2028

North America is expected to hold the largest share of the digital twins market throughout the forecast period. Technological developments in aerospace, manufacturing, and automotive sectors in countries such as the U.S., Mexico, and Canada augment production line effectiveness. North America is a major hub for technological innovations and an early adopter of new technologies.

The presence of major regional players also boosts the demand and awareness regarding the digital twin technology. The move to automated production and ongoing investments in research and development to spur innovation in industrial processes are key drivers of North America's prosperity.

In addition, the US government recently proposed a USD 285 million funding plan for studying "digital twin" chips in 2024. The funding aims to enhance semiconductor technology research further while increasing digital twin chips' performance and efficacy. They assist companies in realizing the full potential of digital twin technology and offer them a solid basis for their desire for it. The region's strong focus on the industrial and manufacturing sectors accounts for its leadership in the digital twins market.

Digital Twin Market Statistics by Region

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Top Digital Twin Companies - Key Market Players

The digital twin players 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:

• General Electric (US),
• Microsoft (US),
• Siemens (Germany),
• Amazon Web Services (US),
• ANSYS (US),
• Dassault Systèmes (France),
• PTC (US), and
• Robert Bosch (Germany).

The study includes an in-depth competitive analysis of these key players in the digital twins market with their company profiles, recent developments, and key market strategies.

Digital Twin Market Report Scope

Digital Twin Market Highlights

This report categorizes the Digital twins market based on enterprise, application, industry, and region.

Recent Developments in Digiral Twin Industry

• 19th Oct 2023, The Sovereign Manufacturing Automation for Composites CRC (SoMAC), in collaboration with the University of NSW and Omni Tanker, is advancing composites manufacturing through the creation of a 'digital twin' of Omni Tanker's production plant. This digital twin operates alongside the physical plant, enabling virtual testing of various production methods for efficiency improvements before implementation in the real world. The digital twin facilitates process optimization, layout planning, and targeted automation investments, preparing Omni Tanker for future growth and serving as a springboard for Industry 4.0 advanced manufacturing in Sydney.
• 17th Oct 2023, Leucine, a startup, secured $7 million in series A funding to expand its AI-generated digital twin platform aimed at assisting drug manufacturers in streamlining regulatory compliance by replacing paper-based records and legacy systems. Leucine's platform acts as a digital twin of a drugmaker's production floor, employing AI to digitize manufacturing workflows and enhance compliance, speed, and cost-effectiveness.
• 13th Oct 2023, NTT DATA's Innovation Center is dedicated to leveraging Digital Twins in the industrial metaverse to create new business opportunities through client collaborations, such as developing virtual data center replicas and enhancing product configurators for automotive and manufacturing clients. This technology optimizes performance, efficiency, and safety, particularly in remote control and maintenance scenarios, ultimately leading to flexible and resource-efficient production environments.
• 10th Oct 2023, LocLab, a part of Hexagon, has introduced LocLab Cloud, utilizing HxDR, a secure cloud-based platform for 3D digital twins. This open platform allows partners to upload, access, and share their digital 3D content, enhancing data integration from various systems. Users can efficiently manage assets, optimize processes, conduct simulations, and gain insights, all within an intuitive 3D environment accessible from various devices. Powered by HxDR, LocLab Cloud offers an end-to-end solution for data-enriched digital twins, facilitating predictive maintenance, sustainability analysis, and improved decision-making, with real-time updates from on-site sensors.
• 8th Oct 2023, January AI is introducing its digital twin technology, which utilizes continuous glucose monitoring (CGM) data and AI, to food companies seeking to transform product development. This technology helps consumers make informed dietary choices by predicting their metabolic responses to different foods. Food companies like Nestlé are exploring this innovation to create specialized, nutritious products for specific populations. By using digital twins, January AI enables the food industry to optimize the glycemic response, taste, and texture of foods at scale, potentially revolutionizing product development and promoting healthier options.
• 3rd Oct 2023, ConocoPhillips, a Houston-based hydrocarbon exploration and production company, is embracing digital twin technology to enhance safety and efficiency in its operations. With its Global Digital Twin Program, ConocoPhillips is working towards portfolio-wide adoption, achieving up to four times ROI and expanding its use cases to boost creativity and further digital transformation.
• 26th Sept 2023, Nemetschek Group, with its array of software brands, is facilitating the AEC industry's digital transformation by offering solutions for creating seamless digital twins. Digital twins bridge gaps in massive AEC projects, enabling real-time data access, better decision-making, and improved project planning, ultimately reducing costs and minimizing errors. The use of OPEN BIM and Building Lifecycle Intelligence fosters collaboration and ensures real-time data accessibility, transforming the construction industry. Several real-world projects, including a children's hospital in Norway and the Köhlbrand Bridge in Germany, highlight the benefits of connected Nemetschek solutions and digital twins for predicting issues, improving efficiency, and enhancing safety.

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