Digital Twin Market Forecast & Growth Analysis | 2023-2028

Market Insights

The digital twin market was estimated at USD 10.36 billion in 2022 and is expected to grow at a CAGR of 44.01% during 2023-2028 to reach USD 92.44 billion in 2028.

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What is a digital twin?

Digital Twin refers to a replica or a digital avatar of a living or non-living physical object. It serves as a proxy for the current condition of anything it represents. This helps in attaining real-time data with which, one can see the current progress or bottlenecks and plan ways to resolve or improve them. When a twin of a physical product is created and displayed digitally, smart sensors are used to collect and create real-time representation from the real product to the digital twin. This transferred data not only replicates the physical product but also mimics its behaviour.

COVID-19 IMPACT

The COVID-19 pandemic has positively impacted the global digital twin market. During the pandemic, major manufacturers used a variety of strategies to increase their market share in the broader marketplace, including product launches, product improvements, and R&D spending.

Market Dynamics

The digital twin market is driven by several factors, one of which is the increased demand for predictive maintenance and asset optimization solutions across industries. Below given are a few more drivers -

• Increased demand for predictive maintenance – Digital twins are used to monitor and predict the performance of assets in different industries. This helps to prevent unplanned downtime and reduce maintenance costs. According to General Electric Power (GE), leveraging digital twin solutions can help in reducing reactive maintenance in less than 1 year by 40%, reduced time to achieve outcomes by 75%, and can save up to $11 million by detecting and preventing failures.
• Adoption of Industry 4.0 – The fourth industrial revolution is characterized by the use of advanced technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT). Digital twin technology plays a vital role in fulfilling various requirements of Industry 4.0, as they can be used to integrate and analyze data from these different technologies.
• Regulatory compliance requirements – In some industries, there are regulatory requirements that mandate the use of digital twins. For example, in the healthcare industry, digital twins can be used to simulate the performance of medical devices, which can help to ensure that they meet safety standards. The FDA approved the use of digital twins to simulate the performance of a new medical device, which helped to speed up the approval process.
• Growing Adoption in Multiple Industries: Owing to its benefits, digital twin technology has found applications across various industries, including manufacturing, healthcare, automotive, aerospace, energy, infrastructure, etc. This widespread adoption is driving market growth as more organizations recognize the benefits of digital twins in improving their operations, optimizing asset performance, and delivering better customer experiences.

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Segment Analysis

By Industry Type

The market is segmented as aerospace & defense, automotive & transportation, home & commercial, healthcare, energy & utilities, oil & gas, and others. The automotive & transportation industry has adopted this technology for a long time which is also a major reason for the dominance of this segment.

The automotive & transportation segment leads the market owing to its usage for designing, production, simulation, maintenance, repair, overhaul, and after-service. In 2022, the automotive and transportation segments will account for more than 15% of the market.

By Digital Twin Type

The process segment is expected to grow at the fastest rate, with a CAGR of more than 35% in 2022.

The market is segmented as product digital twin, process digital twin, and system digital twin. The system digital twin segment is expected to remain dominant during the next five years due to increasing demand for digital systems in various industries, as the system digital twin is a combination of both, product and process, and either of the tasks can be performed by system type.

Regional Insights

North America is estimated to be the largest market, whereas Asia-Pacific is estimated to be the fastest-growing with a CAGR of more than 40% in 2022, owing to the highly developed infrastructure in North America and the presence of a large number of digital twin providers in the region. The USA is not only a major country in North America but also in the world. China and India are the growth engines of the Asia-Pacific region.

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Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented into the following categories.

By Technology Type

• IoT & IIot
• Blockchain
• Artificial Intelligence and Machine Learning
• Augmented Reality, Virtual Reality, and Mixed Reality
• Big Data Analytics
• 5G

By Digital Twin Type

• Product Digital Twin
• Process Digital Twin
• System Digital Twin

By Industry Type

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

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Key Players

Some of the major digital twin manufacturers are-

• Ansys
• General Electric
• IBM
• Microsoft Corporation
• Oracle
• PTC
• Robert Bosch
• SAP
• Siemens AG
• SWIM AI Alubond U.S.A.

Recent News & Developments

In June 2023, Helixx selected Siemens digital-twin software to develop commercial EV manufacturing hubs. By utilizing Siemens's digital twin technologies, Helixx can integrate digital threads into its business model, reducing development costs and complexity by 20%.

In June 2023, SoftServe and Valeo partnered to utilize digital twin technology, powered by NVIDIA Omniverse, to enhance product design in the automotive industry. The digital replicas of Valeo's lighting products allow for quick customization and preview, reducing development time and enabling efficient collaboration with clients.

In June 2023, Hamad International Airport (HIA) won the ‘Most Innovative Airport Initiative Award’ at the Future Travel Experience (FTE) Innovate Awards event. The award recognises the groundbreaking Digital Twin platform that was introduced by HIA and highlights its transformative impact on airport management.

Spain’s first digital twin to be ready by 2023 end. Madrid-based TRAGSATEC has picked up Hexagon to build the country’s first digital twin that can aid environmental protection efforts in the Campo de Cartagena region. The 3D virtual model will inform decision-makers about the environmental issues that need immediate attention.

China delivers 1st 'floating oil factory' with digital twin technology in June 2023. Haiyang Shiyou 123 (Offshore Oil 123) ship is a floating production storage and offloading (FPSO) unit equipped with more than 8,000 sensors to monitor temperature, pressure, etc. This unit can process oil and gas on the sea, saving the process of piping from offshore rigs to onshore factories.

In October 2022, Microsoft and Capgemini unveiled ReflectloD, a cloud-native, serverless digital twin platform on Azure, aimed at enhancing operational efficiency, promoting intelligent industry practices, and delivering sustainable business value. ReflectloD empowers organizations to effectively manage standardized brownfields throughout their lifecycle, effectively meeting industry demands.

In June 2022, Adani Ports and Special Economic Zone Ltd (APSEZ) selected Mevea's next-generation training simulators to significantly enhance the efficiency and safety of its port equipment. These simulators, powered by physics-based digital twin technology, offer a unique approach in the market. They facilitate faster and more effective learning while adding a new level of realism to operator competence development. The contract covers training simulators for STS, RTG, and MHC cranes, customized to Adani's requirements for Hazira and Kattupalli Ports.

In April 2022, General Electric (GE) Research (US) and GE Renewable Energy (France) collaborated to develop advanced artificial intelligence (AI) and machine learning (ML) technology poised to transform the wind industry. This innovative solution uses a digital twin of the wind turbine logistics process to accurately predict and streamline logistics costs, potentially leading to a remarkable 10% reduction in global logistics expenses. By 2030, the wind sector could realize annual cost savings of up to USD 2.6 billion.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

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With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation

• Current market segmentation of any one of the technology types by industry type.

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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