Home > Reports > Digital Twin Market Analysis, Outlook, Share to [2023-2031]

Digital Twin Market

Digital Twin Market: Information by Type (Digital Twin Prototype, Digital Twin Instance), Solution (Component, Process), End-User (Energy & Utilities), and Region — Forecast till 2031

Published On : 18 Mar, 2020
Updated On : 28 Nov, 2022
Table of Content Download Sample

Market Snapshot

Base Year:
2022
Study Period:
2021-2031
CAGR:
38.8 %
Fastest Growing Market:
Asia Pacific
Largest Market:
North America

The global digital twin market was valued at USD 9.7 billion in 2022. It is projected to reach USD 185.78 billion by 2031, growing at a CAGR of 38.8% during the forecast period (2023–2031). A digital twin represents a physical object that can also refer to a system created to analyze and research the object's actual behavior under various conditions. It is primarily used to test changes that will later be made to the actual equipment. The object whose digital twin is to be created can range in size from a small object to a city. There are many benefits to the idea of a digital twin. It provides a current perspective to lower maintenance costs and product defects. The phrase "digital twin" is broken down into three categories: "digital twin prototype," "digital twin instance," and "digital twin aggregate" (DTA). Utilizing a digital twin boosts productivity and increases product reliability. It uses data modeling and 3D graphics to create a replica of real-world scenarios. The concept of a digital twin is quickly becoming an Industry 4.0 technology. A digital twin is possible at the component, asset, system, and process levels.

Get more information on this report Download Sample Report

Market Dynamics

What Are The Primary Factors Driving The Market For Digital Twin?

Supply Chain Efficiency is Improved by the Use of Digital Twins in Manufacturing Sectors

Unplanned downtime & production waste are issues that significantly impact manufacturers. Manufacturers are looking for a system to identify potential flaws and malfunctions to avoid further losses. The benefit of using a digital twin is that it can help to cut down on extra expenses and to manufacture time. By examining and changing the physical design of the prototype, Digital Twin assists engineers in improving a product's performance at every stage of the design process. With the aid of a digital twin, engineers can simulate the digital prototype they have created and quickly and inexpensively change the prototype's design at any point in the design process. According to reports from Service Max, a service execution management company, 82 percent of the organizations have dealt with the issue of unplanned downtime & production waste for three years running with an average loss of USD 2 million.

Monitoring Risk and Calculating Test Probabilities

Implementing digital twin technology can help a company identify test probabilities and monitor risk. For instance, research and analysis have revealed a stunning 40% increase in companies or businesses using the digital twin process. The digital twin gives manufacturers a continuous, end-to-end view of the processes and bottlenecks in the supply chain, allowing them to address problems more quickly and with fewer staff members. These twins gather data to aid in spotting any potential issues that may arise during delivery. A digital cargo twin, for instance, will rely on data gathered from sensors that transmit updated data throughout the shipment. The analysis of this data can then be used to identify performance problems and delivery bottlenecks.

What Are The Main Factors That Will Slow Down The Market For Digital Twin?

High Implementation Costs of the Digital Twin Technology

Implementing Digital Twin technology in a company comes at a hefty cost. The high implementation costs hamper the global digital twin market's expansion. It costs money to implement digital twins and related technologies like product lifecycle management (PLM), 3D CAD, manufacturing operations management (MOM), manufacturing process management (MPM), computer-aided design (CAD), enterprise resource planning (ERP), model-based system engineering (MBSE), and augmented reality (AR), virtual reality (VR), and extended reality. If the company or organization lacks the necessary support infrastructure and technological foundation, producing and implementing a digital twin technology will cost more money. So, an obstacle to adopting Digital Twin technology by organizations is the high cost of implementation.

What Are The Future Opportunities For Digital Twin?

Growing Attention to the Cutting-Edge Analytics of Real-Time Data

A complete manufacturing facility, an assembly line, particular components, or a team of workers can all be represented by digital twin technology. After careful analysis, it was discovered that approximately 75% of companies using or attempting to use IoT already use Digital Twin or plan to do so within the next 12 months to produce solutions. Digital Twin technology can generate solutions based on various information sources and data. Data analytics is the cornerstone of the entire Digital Twin technology. A key aspect of digital twin technology is its ability to model and observe objects. Real-time data analysis is reflected in the digital twin feature. The functionality of the Digital Twin technology within a company or organization is improved by real-time data analytics. Digital twins and analytics offer more precise diagnostic, optimal, and predictive operations once they are established.

Segmental Analysis

The digital twin market is segmented by type, solution, and end user.

By Type Analysis

Based on type, the global market is bifurcated into digital twin prototype, digital twin instance, and digital twin aggregate.

The digital twin prototype segment is the highest contributor to the market and is expected to grow at a CAGR of 39.48% during the forecast period. The physical asset's prototype is called DTP. It resembles an asset creation recipe. Depending on the circumstance, the prototypes will include details about the physical characteristics, qualities, operating conditions, bill of materials, part numbers, and more. A Digital Twin Prototype is the foundation and platform for the Digital Twin coupled to the physical entity through, for example, IoT and live sensor data. It is a great way to facilitate communication between product developers and end users from the idea and design phase to commissioning. The ability to change the parameters and operating conditions of various components while watching the system's response in real-time is provided by using the Digital Twin Prototype.

By Solution Analysis

Based on the solution, the global market is bifurcated into components, processes, and systems.

The process segment is the highest contributor to the market and is expected to grow at a CAGR of 40.1% during the forecast period. Adopting a digital twin for designing workflows within an organization, supply chain procedures, innovative city initiatives, and warehouse procedures, among other applications, can be credited with this growth. Organizations are enhancing coordination across all departments to streamline workflow procedures and lower operational costs. With the aid of digital twin technologies, businesses can create workflow structures that improve supplier and departmental collaboration and customer engagement.

By End Users Analysis

Based on end users, the global market is bifurcated into aerospace & defense, automotive & transportation, home & commercial, healthcare, energy & utilities, oil & gas, and others.

The automotive & transportation segment is the highest contributor to the market and is expected to grow at a CAGR of 39.2% during the forecast period and more than 19.00% of the total revenue, which was the largest revenue share. This is due to using electric vehicles (EVs), lean manufacturing, and expanding simulation technology. The use of digital twin technology by engineers in the automotive industry enables them to collect operational and behavioral data about the vehicle, enabling further improvements in automobile design and cost optimization. This technology is also anticipated to become more widely used due to upcoming trends in the automotive sector, such as shared mobility, electrification, and autonomous and connected vehicles.

Regional Analysis

The global digital twin market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Digital Twin Market Regional Analysis

Regional Growth Insights Request Sample Pages

North America Dominates the Global Market

North America is the most significant shareholder in the global digital twin market and is expected to grow at a CAGR of 38.8% during the forecast period. The U.S. and Canada are included in the analysis of the digital twin market in North America. Due to the early adoption of technology in the region and the presence of essential software companies, North America is anticipated to dominate the global twin market during the forecast period. Some of the top global market players are based in the U.S., Canada, and Mexico, and they have embraced large-scale cloud technologies and are staying current with advancements. It is anticipated that some small-scale industries still using legacy systems will experience sluggish growth. However, due to its dominance in almost all industries, North America has emerged as one of the first regions to use digital twin technology to boost productivity. Regarding supporting emerging technologies like digital twins, the regions have some of the most sophisticated infrastructures, which is the main factor in the technology's widespread adoption.

Asia Pacific is expected to grow at the fastest CAGR of 42.1% during the forecast period. The Asia Pacific digital twin market analysis includes China, India, Japan, Australia, and the rest of Asia Pacific. The developed manufacturing and automotive sectors in nations like China, India, Japan, and South Korea are to blame for this region's expansion. The development of smart cities throughout the region and the high demand for consumer goods is also driving the regional market. The area has developed into one of the top technology experts in the global market due to quick technological advancements and fruitful trials. In recent years, manufacturing lines and downstream operations have improved due to the development of various software and the deployment of automation solutions. These developments have positively impacted the development of the digital twin market in the Asian region due to the region's robust economic growth and the large number of vendors offering digital twins.

Competitive Landscape

The global digital twin market’s major key players are General Electric, IBM, PTC, Microsoft Corporation, Siemens AG, Ansys, SAP, Oracle, Robert Bosch, and SWIM.AI

Recent Developments by Key Players

  • November 2022, To significantly increase the scope and interoperability of infrastructure data that engineering firms and owner-operators can use to create and leverage digital twins in design, construction, and operations workflows, Bentley Systems, Inc., a provider of infrastructure engineering software, has announced new capabilities of its iTwin Platform.
  • October 2022, Through the launch of its open digital business platform Siemens Xcelerator, Siemens is driving the digital transformation of economies. The platform aims to simplify digitalization quicker and more widely by combining a broad, carefully-curated portfolio with a robust partner ecosystem and developer marketplace.

Global Digital Twin Market: Segmentation

By Type

  • Digital Twin Prototype
  • Digital Twin Instance
  • Digital Twin Aggregate

By Solution

  • Component
  • Process
  • System

By End User

  • Aerospace & Defense
  • Automotive & Transportation
  • Home & Commercial
  • Healthcare
  • Energy & Utilities
  • Oil & Gas
  • Others

By Regions

  • North America
  • Europe
  • Asia-Pacific
  • LAMEA
Report Metric Details
Market Size USD 185.78 in Billion By 2030
CAGR CAGR 38.8%
Historical Data 2020-2021
Base Year 2022
Forecast Period 2023-2031
Forecast Units Value (USD Million)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered by Type (Digital Twin Prototype, Digital Twin Instance), End-User (Aerospace and Defense, Home and Commercial, Healthcare)
Geographies Covered North America, Europe, Asia-Pacific, LAME and Rest of the World
Key Companies Profiled/Vendors General Electric, IBM, PTC, Microsoft Corporation, Siemens AG, Ansys, SAP, Oracle, Robert Bosch, and SWIM.AI, and among others
Key Market Opportunities Increasing Prevalence Of The Technology Industry Enhances The Expansion Of The Digital Twin Market Share
Price Starts From
$4250

Purchase Benefits

  • Eligible for a free updated report next year
  • Completely customizable scope
  • 30% discount on your next purchase
  • Dedicated account manager
  • Query resolution within 24 hours
  • Permission to print the report

As featured on :