Digital twin technology involves creating a digital replica or simulation of a physical object, process, system, or entity using sensor data to simulate behaviors and predict performance. This facilitates optimization and predictive maintenance, ultimately enhancing productivity and reducing downtime across various sectors.
The primary types of digital twin technology include product digital twins, process digital twins, system digital twins, asset performance digital twins, and others. Product digital twins are virtual replicas of physical objects that capture their design, structure, and behavior. They find applications in predictive maintenance, product design and development, supply chain optimization, remote monitoring and control, and performance enhancement, among others. These applications cater to diverse industries such as manufacturing, energy and utilities, transportation and logistics, healthcare, among others.
The digital twin technology market research report is one of a series of new reports from The Business Research Company that provides digital twin technology market statistics, including digital twin technology industry global market size, regional shares, competitors with a digital twin technology market share, detailed digital twin technology market segments, market trends and opportunities, and any further data you may need to thrive in the digital twin technology industry. This digital twin technology market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The digital twin technology market size has grown exponentially in recent years. It will grow from $11.24 billion in 2023 to $14.97 billion in 2024 at a compound annual growth rate (CAGR) of 33.2%. The growth observed during the historic period can be attributed to several factors, including the proliferation of big data, the implementation of smart manufacturing techniques, the expansion of IoT and cloud-based platforms, and increased adoption of digital transformation initiatives.
The digital twin technology market size is expected to see exponential growth in the next few years. It will grow to $47.40 billion in 2028 at a compound annual growth rate (CAGR) of 33.4%. The anticipated growth in the forecast period can be attributed to several factors, including the increasing adoption of IoT devices, a rise in cyber-attacks, the growing popularity of autonomous and connected vehicles, increasing demand for remote monitoring solutions, and rising investment in smart city initiatives. Major trends expected during this period include advancements in technology, the utilization of 3D modeling and scanning techniques, adoption of augmented reality (AR) and virtual reality (VR) technologies, reliance on cloud-based platforms, and integration with IoT systems.
The projected increase in the adoption of IoT devices is expected to drive the expansion of the digital twin technology market in the coming years. IoT devices, including sensors, actuators, and appliances, are specialized hardware devices that communicate wirelessly with networks to collect, exchange, and process data. The growing demand for IoT devices is fueled by factors such as improved connectivity, digital transformation, enhanced convenience and efficiency, as well as heightened safety and security measures. These devices gather real-time data on various parameters such as temperature, pressure, and usage patterns, which are then utilized by digital twins to generate virtual models. With continuous data streaming, digital twins offer real-time monitoring capabilities, enabling businesses to optimize operations and proactively address challenges. For example, according to a report by the GSM Association in May 2022, the number of connections on the Internet of Things (IoT) is projected to exceed 23 billion by 2025, compared to 15.1 billion in 2021, underscoring the significant role of IoT device adoption in propelling the digital twin technology market.
Key players in the digital twin technology market are concentrating on the development of next-generation technological solutions, such as AI-enabled digital twin platforms, to digitize and analyze critical infrastructure assets. AI-enabled digital twin platforms integrate artificial intelligence (AI) capabilities into the creation and management of digital twins, enhancing their functionalities. For instance, Looq AI, a US-based software company, introduced its AI-enabled digital twin technology, the Looq platform, in March 2024. This platform serves as a comprehensive solution for surveyors, engineers, contractors, and asset owners to digitally map infrastructure assets with survey-grade precision in minutes. The Looq platform, driven by a handheld ‘Q’ camera, combines high-resolution cameras, survey-grade GPS, and an AI processor to provide extensive coverage and quick data gathering capabilities. This platform offers an end-to-end workflow for project teams to engage with digital twins and AI-derived data for engineering, surveying, analysis, and coordination purposes.
In October 2023, Clockworks Analytics, a US-based SaaS startup specializing in building operating system monitoring, acquired digital twin assets from Animated Insights for an undisclosed sum. This acquisition aims to enhance Clockworks Analytics’ capabilities in the digital twin domain, particularly in 3D digital twin visualization and device monitoring technology, thereby consolidating its position as a comprehensive provider of digital twin solutions for the built environment. Animated Insights, based in the US, is known for its digital twin technology offerings.
Major companies operating in the digital twin technology market are Microsoft Corporation, Siemens AG, General Electric Company, Amazon Web Services Inc., International Business Machines Corporation, Oracle Corporation, Schneider Electric SE, Honeywell International Inc., SAP SE, ABB Limited, NTT DATA Corporation, Infosys Limited, Emerson Electric Co., Dassault Systemes, Hexagon AB, Autodesk Inc., ANSYS Inc., PTC Inc., Bosch Global Software Technologies Private Limited, AVEVA Group Limited, Bentley Systems Incorporated, TIBCO Software Inc., L&T Technology Services Limited, Altair Engineering Inc., Digital Twin Consortium
North America was the largest region in the digital twin technology market in 2023. The regions covered in the digital twin technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the digital twin technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The digital twin technology market includes revenues earned by entities by providing services, such as simulation and modeling, optimization and control, virtual prototyping and testing, and personalization. The market value includes the value of related goods sold by the service provider or included within the service offering. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Digital Twin Technology Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on digital twin technology market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
