Digital Twin Market by Type (System Digital Twin, Product Digital Twin, and Process Digital Twin), Industry (Aerospace & Defense, Automotive & Transportation, Home & Commercial, Healthcare, Energy & Utilities, Oil & Gas, Agriculture, Telecommunication, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2030

Global Digital Twin Market Analysis

The global digital twin market size is predicted to garner a revenue of $1,25,717.4 million in the 2021–2030 timeframe, growing from $6,500.3 million in 2021, at a healthy CAGR of 39.48%. 

Market Synopsis

The integration of digital twin technology with technologies such as IoT, machine learning, and cloud computing is expected to boost market growth even further. Companies are deploying Internet of Things & AI technologies to gather and process behavioral information from data IoT devices & connected products that can then be applied to the digital twin model to copy the performance and usage of the existing device. This enables engineers and designers to monitor product performance, identify issues, and make predictions iterations of common issues. The implementation of these technologies also assists organizations in improving operations and system productivity, ultimately improving product performance.

However, due to a lack of skilled labor, large initial investments are required for installation, as well as high maintenance expenditures, and this factor is limiting market growth in the forecast years.

According to the regional outlook, the Asia-Pacific digital twin market is expected to create massive growth opportunities for market investors.

Digital Twin Overview

A digital twin is a virtual machine dynamic representation that provides real-time online equivalent of a physical object or process. It uses simulation models to profile, predict, and optimize the performance of industrial assets through the use of data and intelligence. Since it enables the automatic vehicle control and monitoring of industrial assets & processes such as product development, design & manufacturing planning, investment performance management, business & operation optimization, and so on, the digital twin is an important component of the Industrial Internet of Things.

A digital twin is a visual depiction that behaves as the digital counter - part of the physical object or process in real time. Although this idea first was proposed by Michael Grieves of the University of Michigan in 2002, the very first practical meaning of digital twin was developed by NASA inside an effort to improve physical model simulation of space probe in 2010. Digital twins are indeed the result of continuous innovation in brand engineering and manufacturing activities. Product drawings and engineering specifications managed to evolve from hand-drawn to computer-aided drafting/design to model-based systems engineering.

COVID-19 Impact on Digital Twin Market

The novel COVID-19 pandemic is expected to have a positive impact on the global digital twin market share growth. During the pandemic, major manufacturers used a variety of strategies, including product launches and product enhancements, as well as R&D investments, to increase their market share in the overall marketplace. General Electric, for example, released new versions of Proficy Analytics Solutions, Proficy SCense 8.0, and Proficy Sensor Health in November 2020. These applications are based on digital twin technology. The company aimed to deliver innovative solutions for efficient operations, improve product quality, increase safety, and reduce downtime through this strategy. This factor is expected to increase demand for digital twins and fuel market growth during the emergency period.

Due to novel coronavirus's rapid spread, the health and pharmaceutical businesses are at the frontline of COVID-19 combat. A digital twin is useful for monitoring a patient's condition, the impact of tablet devices, and other parameters. Some industry players have taken the opportunity to combat the coronavirus disease outbreak by offering various solutions.

Rising Adoption of Digital Twin Technology by Several Industry Verticals is the Major Driving Factor for the Growth of the Digital Twin Market Size

Digital twin is a digital representation of non-living and living physical objects such as things, people, processes, and so on. It is used to examine operations and gain insights into critical processes. Because of these advantages, there is an increase in demand for digital twins from end-use industries, which is a major driving factor for market growth in the forecast period. According to a published data in 2020, approximately 75% of enterprises worldwide will be completely virtualized by 2027. Digital twin technology is already being used in a variety of industries, including automotive, construction, and manufacturing. Furthermore, companies in these industry verticals are constantly utilizing digital twin systems and technologies to estimate the performance of physical assets and identify where the modifications are needed.

The foundation of digital twin technology is data & analytics. The ability to monitor a real-world object, including the ability to request or receive messages about particular events that occur, as well as the ability to represent a physical image which contains data such as identity, duration, situation, and occurrences, implying that model equates to a unique physical object, all are crucial parts of digital twins, that also represent real-time analysis of data and thus drive this same global digital twin market revenue. Therefore, all such aspects and developments are projected to gain traction for digital twin.

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Lack of Skilled Workforce is the Major Restraint for Digital Twin Market Growth

Huge initial investments are required for installation along with high maintenance expenditure required due to lack of skilled workforce, and this factor is limiting the growth of digital twin market size in the forecast years.

Rapidly Growing Implementation of Advanced Technologies to Cater Humankind Needs is likely to Drive Digital Twin Market Demand in Future

The adoption of digital twin technology in several industries, including automotive, manufacturing, energy & utilities, and others, is expected to generate ample growth opportunities for the market in the coming years. During the coronavirus crisis, for example, increasing adoption of digital twin technology by scientists and healthcare professionals to create innovative platforms that can improve care delivery through effective patient monitoring is expected to drive market growth in the coming years.

Market vendors are forming an alliance and partnering to integrate their 3D printing skills with digital twin technology, with the goal of lowering industrial and assembly costs. Manufacturers can achieve expected and tests on the digital twin utilizing software such as Siemens NX and Netfabb, eliminating the need for multiple physical prototypes. Manufacturers can track and trace the conditions inside a 3D printer while it is producing a part using sensor data. The digital twin grows more complete with each new layer and data source added. Thus, such factors create an opportunity to gain major pull in the coming years for digital twin market.

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Global Digital Twin Market, by Type

Based on type, the digital twin market has been segmented into system digital twin, product digital twin, and process digital twin of which system digital twin sub-segment is expected to have the dominant share during the forecast period.

Global Digital Twin Mar ket Share, by Type, 2021

Source: Research Dive Analysis

Global system digital twin sub-segment is expected to garner the dominant market share during the timeframe. This dominance is primarily due to the extensive use of system digital twin type by several industries such as automotive, manufacturing, oil & gas, energy & utilities, and other verticals to identify new revenue producing opportunities through cost reduction and customer service enhancement. All such factors are expected to promote the adoption of system digital twin growth during the forecast period.  

Global Digital Twin Market, by Industry

Based on industry, the digital twin market has been sub-segmented into aerospace & defense, automotive & transportation, home & commercial, healthcare, energy & utilities, oil & gas, agriculture, telecommunication, and others of which automotive & transportation sub-segment is expected to have the dominant share during the forecast period.

Global Digital Twin Market Share, by Industry, 2021

Source: Research Dive Analysis

Global automotive & transportation sub-segment is expected to garner dominant share in the timeframe. This dominance in the overall market is largely due to the widespread use of digital twin technologies in the automotive and transportation sectors for creating digital models of connected vehicles. Furthermore, mass production, globalization, and lean adoption are major factors influencing automotive industry players to adopt innovative technologies such as AI, digital twins, IoT, and others in order to meet customer demands. These factors are expected to drive market growth in the coming years. All such factors are expected to promote the adoption of digital twin by large enterprises during the forecast period.

Global Digital Twin Market, Regional Insights:

The digital twin market was inspected across North America, Europe, Asia-Pacific, and LAMEA.

 Global Digital Twin Market Size & Forecast, by Region, 2021-2030 (USD Million)

Source: Research Dive Analysis

The Market for Digital Twin in Asia-Pacific to Garner the Fastest Growth

Asia-Pacific digital twin market is anticipated to be the fastest growing region market by 2030. There is an increasing demand for digital twins in several industries, including automotive, manufacturing, and other verticals, in order to reduce labor costs. For example, NTT data, a Japanese multinational system integration company, proposed the "Digital Twin Computing Initiative" in 2019, which is a platform to unite high precision digital information reflecting the real world in order to synthesize diverse virtual worlds. The company hopes to increase the demand for its products in the global market by developing new services based on customer needs. This factor is expected to drive market growth in the Asia-Pacific region in the coming years.

Competitive Scenario in the Global Digital Twin Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading digital twin market players are ProfitWell, BlueSnap, Databox, Payfirma, Yapstone, CashNotify, HiPay Intelligence, PaySketch, Revealytics, and RJMetrics.