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 The Use of Digital Twins in Manufacturing Sectors to Cut Costs and Enhance Supply Chain Efficiency

• The problems that significantly impact manufacturers are unplanned downtime & Production waste. The manufacturers are searching for a system that can predict potential flaws & malfunctions so that manufacturers can prevent more losses. The advantage of using digital twin is that it helps to reduce the extra cost and time needed at the manufacturing time. Digital Twin helps engineers improve a product's performance by analyzing and altering the physical design of the prototype, varying at every stage of the design process. Engineers can perform simulation on the digital prototype designed with the help of digital twin and can alter the design of the prototype at any time during the design process with much little effort & expense. From reports published by Service Max, a service execution management company, it can be concluded that approximately 82 percent of the organizations have faced the problem of unplanned downtime & production waste for consecutively three years with an average loss of USD 2 million dollars.

 

• Various industry-related processes, including performance management, configuration management, process control, simulation modeling, and asset management, can be benefitted through digital twin technology. For instance, from a survey, it can be concluded that approximately 75 percent of the executives working in the air force have agreed to use digital twin technology in the field of designing and modeling parts in the air force industry.

 

• The manufacturing sector is slowly taking its steps toward using Digital Twin technology, but the 2D designing process is still predominantly used in the construction sector. As a result of digital twin technology, off-site building and construction professionals now have clear on-site visualization of a specific project. McKinsey published a report stating that using digital twin technology can increase productivity in the building sector by 50 to 60 percent.

 

• Identifying test probabilities and monitoring risk can benefit an organization through implementing digital twin technology. For instance, through research and analysis, the number of firms or businesses using the digital twin process has increased by a spectacular percentage of around 40% from the year 2020 to 2022. The digital twin provides a continuous, end-to-end view of the supply chain's processes and bottlenecks, enabling manufacturers to address issues more quickly and with less human resources. These twins gather information to help identify any potential problems throughout the delivery process. For instance, a digital cargo twin will rely on information gathered from sensors that transmit updated data during the shipment. This data may then be examined to spot performance issues and delivery bottlenecks.

 

Restraints - High Costs Associated with the Implementation of Digital Twin Technology

• The cost of implementing Digital Twin technology in an organization is pretty high. High cost of implementation act as a barrier to the growth of the global digital twin market. Digital twins & 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)/extended reality requires very high capital for Implementation. The cost of producing and implementing a digital twin technology rises considerably and becomes more expensive if the organization or the firm lacks the necessary support infrastructure and technological foundation. Thus, the high cost of implementation is a barrier for organizations in implementing Digital Twin technology.

 

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

• The digital twin technology can represent a complete manufacturing plant, an assembly line, certain components, or a group of employees. After thorough analysis, around 75% of the firms using or trying to implement IoT already use Digital Twin or are planning to implement it within the time span of 1 year to produce solutions. There are numerous ways by which a Digital Twin technology can be used to generate solutions depending upon information sources & a wide range of data. The base of the complete Digital Twin technology is Data Analytics. The ability to model & monitor real-world objects is an important feature of digital twin technology. The digital twin feature reflects real-time data analysis. The real-time data analytics boosts the functionality of Digital Twin technology in a firm or an organization. Once established, digital twins and analytics provide more accurate diagnostic, optimal & predictive operations.

 

• The European Commission revealed its ambitions to create a digital twin of the planet, named Destination Earth, in the year 2022, working with the European Space Agency and other organizations. The main goal is to have a digital twin by the end of 2024 that will focus on floods, heatwaves & droughts in addition to natural disasters and provide analysis so that the nation can take actionable measures to save the lives of people and other living beings in the face of these escalating difficulties. After realizing the advantages of data analytics & AI, governments and organizations have started understanding the potential importance of digital twins.

 

 

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 transportation and automotive sector dominated the global industry and generated total revenue of more than 15% in the year 2021. Lean Manufacturing, the use of electric vehicles (EVs), and expanding the simulation technology act as a catalyst for the growth of the transportation and automotive sector in the global market. The use of digital twin technology in the automotive and transportation industries enables the engineers to collect operational and behavioral data about the vehicle, enabling options for future developments in designing and cost optimization techniques. This technology is also expected to become widely involved in this sector due to upcoming trends in the automotive and transportation sectors. For instance, Renault Group has adopted digital twin technology to build its vehicles to keep up with the rapid advancement of present and upcoming vehicles that now operate in a linked world, expanding technological complexity of vehicles, and the growing number of technical and legal requirements. Due to this, the downtime faced by the company has been reduced by 15% from the time of implementation of Digital Twin technology. The demand for 3D designing and printing technologies will act as a key driver for the growth of the automotive sector as the Digital Twin technology will handhold the sector in designing Real automotive parts and also in development as well as innovation in the manufacturing industry.

 

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 4.5 Billion
The Revenue forecast in 2030	USD 158.1 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:

• Roland Busch, CEO of Siemens, and Jensen Huang, founder, and CEO of NVIDIA, brought 175 years of industrial-technological leadership together with Silicon Valley magic on June 2022.  The reason for the partnership was to bring the Digital Twin technology within a suitable reach which was a primary reason why Siemens partnered with NVIDIA. The main motive for extending the partnership is to bring the real and virtual worlds together.

 

• The Grand Duchy of Luxembourg's Interdisciplinary Center for Security, Reliability, and Trust (SnT) and Infinite Reality (VR), the Metaverse entertainment and innovation firm, have agreed to collaborate on a worldwide, open metaverse. The key motive behind this collaboration is to make the open-metaverse a reality.

 

• To support its work with communities worldwide, the Digital Twin Consortium (DTC) collaborated with the Smart Cities Council (Council) on June 2022. Digital twin technology (DTC) is what creates awareness, adoption, interoperability, and development of the technology. The Council will keep spreading awareness of sustainability and resilience among cities. The partners intend to work together to inform local governments and towns about the capabilities of digital twins.

 

• Microsoft and Newcrest formed a strategic alliance in March 2022. In addition to working on digital twins and a sustainability data model, Newcrest's mining division would choose Azure as its preferred cloud provider globally. The development of a high-impact sustainability data model and the use of digital twins to enhance operational performance are two projects on which the two organizations are collaborating.

 

• Engineering simulations on the cloud will be transformed thanks to a strategic partnership established by ANSYS and Amazon Web Services in February 2022. The collaboration will enable the deployment of ANSYS products on AWS, improving the usability of simulation workloads while enabling scalability and flexibility with simple access to software and storage solutions from any web browser. The full AWS infrastructure, which subsumes services for computing, storage, the internet of things (IoT), digital twins, analytics, and machine learning, may be integrated by ANSYS.

 

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