Digital Twin Market By Enterprise (Large Enterprises, Medium Enterprises, Small Enterprises), By Industry (Infrastructure, Retail, Agriculture, Oil and Gas, Aerospace, Telecommunication, Automotive and Transportation, Energy and Utilities, Healthcare, Other Industries), By Application (Product Design, Product Development, Inventory Management, Predictive Maintenance, Performance Monitoring, Business Optimization, Other Applications), Global Report by Size, Industry Analysis & Forecast, 2021 - 2030.

Industry Report and Statistics (Facts & Figures) - Number of Industrial Users, Investment Opportunities, Software Installations & Demand by Industry Verticals & Application

The global digital twin market will witness a robust CAGR of 40.1%, valued at $6.30 billion in 2021, expected to appreciate and reach $131.09 billion by 2030, confirms Strategic Market Research. North America accounted for a sizeable market share of over 35% in 2021. Digital Twin is a virtual representation that is created to faithfully represent a physical object. The object being researched, such as a wind turbine, is equipped with various sensors connected to key functioning regions. These sensors generate information about various performance characteristics of the physical device, including environmental conditions, energy output, temperature, etc. After generating the information, the processing system applies it to the digital copy. After receiving this information, the virtual model can investigate performance problems, run simulations, and produce potential enhancements to produce useful insights that can later be applied to the original physical device. The Digital twin model can be extensively used in the following applications: the Automotive Industry, power-generation equipment, manufacturing operations, structures, and their systems, healthcare devices, and urban planning. The applications of Digital Twin act as one the significant drivers in the global market. For instance, from a report published by International Energy Agency, it can be stated that the renewables share in the field of global power generation was approximately 29 percent in the year 2020, which was around 3% more than that in 2019.  This is solely due to the implementation of Digital Twin technology in the field of power generation. The developments which are going on in the field of the digital twin are a direct result of ongoing innovation in simulation technology and process industries. Engineers have shifted from hand-drawn to computer-aided drafting/design for product drawings and engineering specifications.

 

 

Key Industry Drivers - Increasing demand for Digital Twin in Simulation, Sustainability, Military & Defence sector.

• The digital twin market is driven by the increasing demand for simulation, which allows organizations to analyze complex systems, mitigate risks, accelerate innovation, reduce costs, enable training and skill development, and facilitate remote monitoring and operation. The simulation market is growing with a CAGR of 14.01%, poised to reach $40.12 Bn by 2030. Digital twins provide an ideal platform for simulation, allowing organizations to analyze performance metrics, identify bottlenecks, and optimize processes. This adoption is particularly valuable in aerospace, energy, and healthcare industries, where failures or errors can have severe consequences. The demand for cost reduction and operational efficiency further drives the adoption of digital twins for simulation. The UK Atomic Energy Authority (UKAEA) has recently collaborated with Intel & Dell to build a digital twin of the UK's STEP prototype fusion power plant. The project will use a supercomputer based on Intel technologies and 4th generation Intel Xeon processors on Dell PowerEdge Servers. The simulation will use Intel's Data Center GPU Max Series chips for increased power and compatibility with alternative silicon.

 

• The growing demand for sustainability drives the digital twin market as businesses strive to minimize environmental impact, reduce resource consumption, and improve overall efficiency. Digital twins enable organizations to achieve sustainability goals by optimizing energy usage, integrating renewable energy sources, supporting sustainable design and product lifecycle management, and promoting smart cities and urban sustainability. By creating virtual replicas of urban infrastructure, digital twins enable efficient resource allocation, traffic flow optimization, and reduced energy consumption. They also allow carbon footprint monitoring and reduction by capturing data from various sources and simulating carbon emissions. Additionally, digital twins facilitate regulatory compliance by providing accurate and real-time data on environmental performance, streamlining data collection, analysis, and reporting processes. Overall, the increasing demand for sustainability drives the adoption of digital twins.

 

• Digital twin technology is a market driver in the military and defense sector, offering numerous benefits such as realistic training, simulation, maintenance, and decision-making. These capabilities enable realistic training and simulation, efficient maintenance, mission planning, and command decision support. They also help address system integration and interoperability challenges, enabling better situational awareness and intelligence analysis. Additionally, digital twins provide a secure environment for cybersecurity testing and training, enabling proactive identification and mitigation of cybersecurity risks. The Capgemini Research Institute reports that aerospace and defense investment in digital twins has increased by 40%, accounting for 2.7% of revenues. This growth is driven by growing confidence in technology's benefit across the value chain, sustainability goals, and digital transformation. Overall, digital twins drive the adoption of these technologies, enhancing operational readiness, decision-making, and effectiveness in military operations.

 

Restraints - Increasing concern for data security associated with IoT and cloud platforms is hindering the market.

• The digital twin market is rapidly growing due to advancements in IoT and cloud computing technology. These virtual replicas enable real-time monitoring, analysis & optimization of physical assets, products, or processes. However, concerns about data security and privacy have become significant restraints. Data vulnerability, privacy concerns, compliance with regulations, integration complexity, and trust and reliability concerns are all critical challenges. Digital twins generate vast amounts of data from sensors, devices & systems connected to the Internet, which can lead to unauthorized access, data theft/data manipulation. Compliance with GDPR in Europe and CCPA in the USA regulations be complex and expensive, requiring dedicated resources and expertise. To address these challenges, the digital twin market needs to focus on robust security measures, including end-to-end encryption, secure data transmission & storage, access controls, authentication mechanisms & adherence to industry best practices. Collaboration between stakeholders, such as technology providers, regulators, and industry standards bodies, is crucial in establishing comprehensive security frameworks and guidelines for the digital twin ecosystem.

 

Opportunities - Increasing Focus on Cutting-edge Real-Time Data Analytics

• Real-time data analytics provides an opportunity for the digital twin market. The real-time data analytics market is growing with a robust CAGR of 28%, poised to reach $50 Bn by 2030. A digital twin refers to a replica of a physical object, process, or system that undergoes regular updates using real-time data. Real-time data analytics allows organizations to gain immediate insights & make informed decisions based on data. Integrating technologies like AI, IoT, ML & data analytics offers several benefits, including predictive analytics, problem resolution, iterative optimization, and data-driven decision-making. As organizations continue to adapt to real-time data analytics & the potential of digital twins, the demand for these solutions is expected to grow.

 

 

Market Analysis Of Different Segments Covered in the Report

Based on Enterprise:

• Large Enterprises

• Medium Enterprises

• Small Enterprises

 

Based on Industry:

• Infrastructure

• Retail

• Agriculture

• Oil and Gas

• Aerospace

• Telecommunication

• Automotive and Transportation

• Energy and Utilities

• Healthcare

• Other Industries

 

Based on Application:

• Product Design 

• Product Development

• Inventory Management

• Predictive Maintenance

• Performance Monitoring

• Business Optimization

• Other Applications

 

Regional Coverage Analysis

North America

• Mexico

• United States of America

 

Europe

• France

• Germany

• UK

• Rest of Europe

 

APAC

• India

• China

• South Korea

• Japan

• Rest of Asia Pacific

 

Latin America

• Brazil

• Mexico

• Rest of Latin America

 

Rest of the World

• South America

• Middle East

• Africa

 

 

Enterprise Analysis & Insights

The North America had led the global Digital Twin market for medium and small enterprises in the year 2021. North America is expected to rule the global market for small and medium enterprises throughout the forecasted period, that is, 2020-2030. The North American sector is expected to grow at the greatest annual growth rate. After thorough analysis and research, it can be concluded that the military and aerospace industries' share of the North American digital twin industry will increase by more than 30% between 2020 and 2030. North America is the prime hub or rather the home of different manufacturers as well as suppliers. The names of such notable organizations are Amazon (ASW) (US), Microsoft (US), General Electric, and IBM (US). These notable organizations were one of the early implementors and users of the Digital Twin technology in the  United States of America. In the North American region, the National Aeronautics and Space Administration was the one who pioneered the adoption and implementation of the digital twin. Aerospace firms such as Boeing (US), Bell Flight (US), Lockheed Martin (US), and Bye Aerospace (US) are concentrated in the area. Microsoft Corporation, in the month of November of 2020, collaborated with Social Alpha to accelerate the growth of health tech start-ups. These organizations regularly invest in digital twin technology and conduct extensive R&D with the technology to optimize their production, lower operational costs, and reduce downtime. Reports conclude that the firms or organizations that have already implemented Digital Twin technology have reduced operational costs and downtime by approximately 30%.

 

Industry Analysis & Insights

The industry section categorizes the digital twin market into infrastructure, retail, agriculture, oil & gas, aerospace, telecommunication, automotive & transportation, energy & utilities & healthcare. The automotive & transportation segment dominates the digital twin market with a revenue share of 25%, poised to reach $32.77 Bn by 2030. The automotive & transportation segment dominates the digital twin market due to its complex and interconnected nature, high reliance on technology and data, and potential for significant cost savings, efficiency improvements, and performance enhancements. Digital twins are virtual replicas or simulations of physical assets, processes, or systems that enable real-time monitoring, analysis, and optimization. Technologies like IoT, AI, and data analytics enable manufacturers to create virtual prototypes of vehicles, components, or subsystems, enabling comprehensive testing, analysis, and optimization before physical manufacturing. Connected & autonomous vehicles (CAVs) generate vast amounts of data from sensors like cameras, radar, lidar & GPS. Digital twins can integrate this data and create a comprehensive virtual representation that simulates the vehicle's behaviour, driving conditions, and responses to different scenarios, enhancing safety and reliability. Supply chain optimization is also valuable in the automotive and transportation industry, as digital twins help analyze and optimize material flow, reduce lead times, and improve overall supply chain efficiency. Fleet management and optimization are also enabled by digital twins, enabling fleet operators to optimize routes, reduce fuel consumption, improve driver safety, and enhance overall operational efficiency.

 

Application Analysis & Insights

During the stipulated period, the digital twin market for product design & development applications is anticipated to be dominated by the Aircraft production sector. Additionally, between the years 2020 and 2030, it is anticipated that the aircraft sector will expand by a high CAGR. Along with cloud computing, machine learning, artificial intelligence, and the internet of things, the digital twin technology is one of the developing technologies and is used in the development application, product design, and in robotic process automation. The capital required for designing and developing real aircraft parts is very high. The use of Digital Twin technology in R&Ds solely aims to better the development and designing techniques used by the engineers. For instance, as implied in a report published by Boeing, the company has been able to employ the digital twin asset creation approach to achieve up to a 40% improvisation in the quality of the parts & systems it uses to construct commercial and military aircraft. The aircraft sector utilizes digital twin modeling techniques to build a model for information so that the cost involved in that industry can be minimized. A new milestone in the D328eco production process is achieved by Deutsche Aircraft in collaboration with Umlaut, which is a part of Accenture. The collaboration resulted in digitization and 3D modeling of the wing spar box, which supports the leading and trailing edges of the wings. 

 

Digital Twin Market Report Coverage

Report Attribute	Details
Forecast Period	2021 - 2030
The market size value in 2021	USD 6.30 Billion
The Revenue forecast in 2030	USD 131.09 Billion
Growth rate	40.1%
The base year for estimation	2021
Historical data	2017 - 2020
Quantitative units	Revenue in $ million/billion and CAGR from 2021 to 2030
Report Coverage	Competitive landscape, Revenue Forecast, company ranking, trends, and growth factors,
Segments Covered	Enterprise, Application, Industry, Region
Regional scope	Europe, Asia Pacific, North America, Rest of the World
Country scope	US, Canada, Mexico, Germany, UK, France, Rest of Europe, China, Japan, India, South Korea, Africa, Brazil, Middle East, Rest of Latin America, Rest of Asia Pacific
Key companies profiled	ABB, Dassault Systems, Siemens, General Electric, Hexagon AB, IBM Corp., SAP, Microsoft Corp., AVEVA Group plc,

 

Global Digital Twin Market Competitive Landscape Analysis

Companies are investing in product research, developments, and process automation due to the fierce competition among market leaders to introduce cutting-edge & novel items. Additionally, several automakers are implementing digital twin technology by utilizing interactive dashboards for cars on their websites, allowing customers to personalize their cars whenever they like. This aids businesses in understanding consumer behavior and modifying current models. Businesses implement tactics to seize new market opportunities and target new clients by creating personalized products. For instance, Dassault Systèmes and Renault Group established cooperation in December 2021. The alliance sought to create programs for new vehicles and mobility services utilizing Dassault Systemes' 3DEXPERIENCE platform in the cloud. Renault Group would use the technology to manage its product configurations' virtual twins. In the target industry, there are significant companies, and the names of those significant players in the market are mentioned below:

 

• ABB

• Siemens

• Oracle Corporation

• General Electric

• IBM Corporation

• Bosch

• SAP

• Dassault Systemes

• Microsoft Corporation

• AVEVA Group plc

• Hexagon AB

 

 

Recent Developments:

• On June 2023, NEXSYS-ONE, a global leader in cloud-based enterprise software solutions, and vHive, a leading digital twin software solution, partnered to provide integration options between their products, enhancing customers' experience by providing one source of truth of asset data. This will improve time to revenue, prevent revenue leakage, and reduce costs. The integration will simplify telecos and towercos digital transformation journey by enhancing asset representation, analytics, and insights. NEXSYS-ONE's TOWER-ONE, ASSET-ONE, and TASK-ONE modules will offer value-added features, such as tower management functionality, visual asset registration, fault diagnostics, and troubleshooting. The partnership will accelerate the implementation of new technologies, co-location processes, and ongoing maintenance work. These services will be available globally for operators, towercos, system integrators, and businesses supporting telecom networks and renewable energy infrastructure.

 

• On June 2023, Honeywell has recently unveiled Digital Prime, an innovative digital twin solution platform that aims to revolutionize the management of process controls and industrial systems. The platform is hosted in the cloud, allowing users, particularly those in the oil and gas industry, to perform frequent testing while minimizing the need for reactive maintenance interventions. The platform will become available in November and aims to provide industrial businesses with dependable and efficient cloud-based testing capabilities in real time. Digital Prime offers a state-of-the-art "lab system as a service" that consistently adapts to accommodate modifications in the production environment. This service provides users with a dependable digital twin that ensures optimal reliability. The platform enables users to manage changes effectively, conduct factory acceptance tests, and enhance project execution and training without causing disruptions to normal production system operations.

 

• On June 2023, Wegaw was granted a Swiss Accelerator Grant of CHF 1.4 million by Innosuisse. This funding will advance geospatial digital twin technology development, specifically for near-real-time monitoring of snow, glaciers, and water resources. This technology aims to offer unparalleled precision in predicting future water and energy availability. The government of Switzerland is partnering with Wegaw to strengthen energy generation and forecasting capabilities. The project will collaborate with Hydrique and Mitta to develop a precise digital replica of water, glacier, and snow resource datasets. The objective is to create a highly sophisticated snow, glacier, and water forecasting tool to empower Swiss companies, utilities, and public agencies to enhance their energy generation, trading pricing strategies, and water demand management.

 

• On June 2023, DataMesh integrated its digital twin and XR applications, such as DataMesh Director, with AR glasses like the Lenovo ThinkReality A3. The goal is to make digital twins more accessible to frontline workers and creators in North America and beyond, addressing workflow challenges in training, planning, and everyday operations. DataMesh is displaying its FactVerse applications at AWE USA 2023, focusing on Training, Experience, Monitoring and Control, and Simulation (TEMS) scenarios. The FactVerse enterprise metaverse platform strives to enhance everyday operations and foster enterprise motivation by offering a seamless plug-and-play experience for frontline employees.

 

• On June 2023, LlamaZOO is excited to announce the release of the beta version of its cutting-edge digital twin editing software known as Clarity Digital Twin. This innovative software can generate highly immersive replicas of various physical assets. The software analyzes data from multiple sources, including satellite imaging and physical mapping, to create 3D replicas for efficient data visualization. It can be used in numerous industries, including industrial management and land-based decision-making. ClarityDT offers various applications, such as land and project planning, ecological disaster visualization, and climate resiliency assessment. Applications are now open for industrial and land-based resource operators, and the platform will be available globally in the first half of 2024.

 

• On June 2023, The Safety, Infrastructure & Geospatial division of Hexagon, in collaboration with Fujitsu Limited, has recently unveiled their joint efforts in developing digital twin applications. These applications are specifically designed to forecast and address the occurrence of natural disasters and traffic accidents, aiming to enhance safety and mitigate potential risks. The objective of this partnership is to establish cities that are resilient and capable of withstanding disasters. This will be achieved by integrating Fujitsu's advanced computing and software technologies with Hexagon's M.App Enterprise, a real-time geospatial application. The integrated solution utilizes digital rehearsal technology to analyze and validate potential disaster threats and determine the most effective preparedness measures in advance. The application is designed to represent areas that experience high levels of traffic accidents visually. It analyzes various factors such as traffic volumes, road design, and signage. Based on this analysis, the application offers recommendations for mitigating traffic accidents. These recommendations align with the Road Safety Toolkit developed by the International Road Assessment Programme (iRAP). Fujitsu and Hexagon will proceed with ongoing field trials involving customers in the administrative, municipal, and transportation sectors. These trials aim to facilitate decision-making processes for urban environmental optimization.

 

Various Devices that Market Leaders are Manufacturing

Name	Feature	Key Player
Azure Digital Twins	You may construct a digital representation of things, locations, business processes, and people in the real world using the Azure Digital Twins Internet of Things (IoT) platform. Gain knowledge that will enable you to improve goods, streamline processes and cut costs while delivering ground-breaking consumer experiences.	Microsoft Corporation
IBM Digital Twin Exchange	For businesses managing corporate-wide digital assets with tools like IBM Maximo enterprise asset management, the IBM Digital Twin Exchange is a useful resource.	IBM Corporation
Bosch IoT Things	It is an open-source platform with the help of which different devices communicate efficiently & directly over an API. Authentication mechanism, as well as security, is also supported by this platform.	Bosch