Digital Twin Industry Overview
The global digital twin market size is projected to reach USD 155,839.4 million by 2030, registering a CAGR of 39.1% from 2022 to 2030, according to a new study by Grand View Research, Inc. Digital twin technologies were primarily developed and deployed in the manufacturing, aerospace, and automotive sectors for designing and simulating component and system twins. However, the rising need for virtualization and automation as well as the emergence of technologies, such as the Internet of Things (IoT) and Artificial Intelligence(AI) has opened up new avenues for digital twin solution providers across industries, such as retail, real estate, banking and finance, and healthcare, thereby driving the market growth.
Digital twins enable enterprises to create virtual representations of their existing workflow patterns, which can be then observed and optimized to reduce operational costs. The retail and residential sectors are expected to witness increased adoption of digital twin technologies with the increasing focus on optimizing vendor-to-customer supply chains, sales forecast, and development of smart city projects. The emergence of such varied applications has increased the demand for tailor-made solutions across the end-use industries to address specific requirements, which is anticipated to fuel market growth. The COVID-19 pandemic has expedited the adoption of digital twin technology across several industries owing to social distancing norms.
As offices are on the verge of reopening, several firms are expected to adopt the technology to facilitate employee safety by creating digital twins of workplaces and modifying furniture, workplaces, sitting arrangements, among other applications. In addition, the healthcare sector has witnessed a surge in the adoption of the digital twin technology to create virtual replicas of infected patients and use them for future research. For instance, in May 2021, Dell Technologies partnered with i2b2 tranSMART Foundation to create digital twins using de-identified patient data. The digital twin is then expected to help researchers perform innumerable treatment simulations for future treatments, which may help mitigate the spread of the disease.
Digital Twin Market Segmentation
Grand View Research has segmented the global digital twin market on the basis of end-use, solution, and region:
Based on the End-use Insights, the market is segmented into Manufacturing, Agriculture, Automotive & Transport, Energy & Utilities, Healthcare & Life Sciences, Residential & Commercial, Retail & Consumer Goods, Aerospace, Telecommunication and Others.
- The automotive and transport segment led the market in 2021 and accounted for the largest revenue share of more than 19.00% of the overall revenue. This can be attributed to the adoption of Electric Vehicles (EVs), lean adoption, and the rising usage of simulation technologies
- Digital twin technology supports telecom service providers in designing complex network architectures and upgrading the existing network infrastructures to accommodate new solutions, such as Fiber to the Home (FTTH) and software-defined networking.
Based on the Solution Insights, the market is segmented into Component, Process and System.
- The process segment is expected to register the fastest CAGR of 40.0% over the forecast period. This growth can be attributed to the implementation of a digital twin for designing workflows in an organization, supply chain processes, smart city projects, warehouse processes, among other applications.
- The system segment accounted for the highest revenue share of the global market in 2021. The market share can be attributed to the high deployment of digital twins for designing and developing prototypes of aerospace engines, assembly lines, communication systems, full-scale automotive models, piping systems in the oil & gas industry, among other applications.
Digital Twin Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile
Intense competition among leading players for introducing advanced and innovative products is encouraging companies to invest in the R&D of products and automation of processes. Furthermore, several automotive brands are adopting digital twin technologies to improve customer engagement by using interactive automobile dashboards on websites, where customers can customize vehicles at their convenience.
Some prominent players in the global Digital Twin market include
- ABB
- AVEVA Group plc
- Dassault Systemes
- General Electric
- Hexagon AB
- IBM Corp.
- SAP
Order a free sample PDF of the Digital Twin Market Intelligence Study, published by Grand View Research.
