Digital Twin Market Size, Share & Industry Trends Growth Analysis Report by Application (Predictive Maintenance, Business Optimization, Performance Monitoring, Inventory Management), Industry (Automotive & Transportation, Healthcare, Energy & Utilities), Enterprise and Geography - Global Growth Driver and Industry Forecast to 2028
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 twin 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 Twin 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.
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 twin 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 twin market 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 twin 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 twin 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 twin market with their company profiles, recent developments, and key market strategies.
Digital Twin Market Report Scope
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Report Metric |
Details |
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Estimated Market Size |
USD 10.1 Billion in 2023 |
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Projected Market Size |
USD 110.1 billion by 2028 |
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Growth Rate |
CAGR of 61.3% |
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Market size available for years |
2019—2028 |
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Base year |
2022 |
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Forecast period |
2023—2028 |
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Units |
Value (USD Million/Billion) |
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Segments Covered |
Enterprise, Application, Industry, 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 digital twin market are General Electric (US), Microsoft (US), Siemens (Germany), Amazon Web Services (US), ANSYS (US), Dassault Systèmes (France), PTC (US), Robert Bosch (Germany)-a total of 25 companies. |
Digital Twin Market Highlights
This report categorizes the Digital twin market based on enterprise, application, industry, and region.
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Segment |
Subsegment |
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By Enterprise: |
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By Application: |
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By Industry: |
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By Region: |
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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.
Frequently Asked Questions (FAQ):
What is a digital twin?
A digital twin is an innovative concept that includes creating a virtual depiction or digital counterpart of a physical process, object, or system. It involves capturing real-time data from numerous sources, such as sensors and devices, and consuming this information to shape a simulation that precisely reflects the physical entity's characteristics, behavior, and performance.
What is the current size of the global digital twin market?
The global digital twin market is estimated to be around USD 10.08 billion in 2023 and is projected to reach USD 110.05 billion by 2028 at a CAGR of 61.3%.
Who are the top players in the digital twin market?
The major vendors operating in the digital twin market include General Electric (US), Microsoft (US), Siemens (Germany), Amazon Web Services (US), ANSYS (US), Dassault Systèmes (France), PTC (US), Robert Bosch (Germany).
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 industries in which digital twins are used?
Significant industries for digital twin are Automotive & Transportation, Infrastructure, Healthcare, Energy & Utilities, and Aerospace.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
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The study involves four major activities for estimating the size of the digital 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 digital 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 digital 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.
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
A digital twin is a virtual replica or digital copy of a physical object, process, or system. It serves as a digital counterpart that accurately captures the essential characteristics and behaviors of the real-world entity. Digital twins utilize advanced technologies such as sensors, data analysis, and simulations to collect real-time data from their physical counterparts. This data is then used to create and maintain an up-to-date digital representation that closely resembles the behavior of the actual object or system. The primary purpose of digital twins is to provide valuable insights and drive operational improvements in business. By analyzing the digital twin, organizations can gain a deeper understanding of how the physical entity will perform, identify opportunities for enhancement, and test different strategies or scenarios before implementing them in the real world. Digital twins find applications in a wide range of industries, such as manufacturing, healthcare, transportation, energy, and construction.
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 digital twins across various industries such as the aerospace, automotive & transportation, energy & utilities, oil & gas, infrastructure, healthcare, agriculture, retail, telecommunications, and other industries (semiconductors, chemicals, paper & pulp, and food & beverages)
Study Objectives:
- To define, describe, and forecast the digital twin market size, by industry, application, and enterprise, in terms of value
- To describe and forecast the size of the digital 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 digital 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 digital twin market
- To analyze opportunities for stakeholders by identifying high-growth segments of the digital 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, cooperation, alliances, collaborations, agreements, contracts, and investments), and others (expansions) in the digital 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
Generating Response ...
Growth opportunities and latent adjacency in Digital Twin Market
Understanding the potential of digital twins for creative industries and the environmental movement.