The global digital twin market size was valued at USD 3.1 billion in 2020 and is projected to reach USD 48.2 billion by 2026. It is expected to grow at a CAGR of 58% during the forecast period. Increasing demand for digital twins in the healthcare and pharmaceutical industries due to the outbreak of COVID-19 pandemic, the changing face of maintenance, and growing adoption of digital twin solutions to cope up with the COVID-19 pandemic are the key factors driving the growth of the digital twin market.
System digital twin to account for a larger share of the digital twin market by 2026
The market for system digital twin accounted for the largest market share in the 2019. This growth can be attributed to the increasing use of digital twin for systems in various applications. For example, in the aerospace & defense sector, the LOCOMACHS has implemented a digital twin for the entire assembly line for an aircraft wing for performance monitoring. In addition, in the automotive & transportation industry, Tesla Motors is using a digital twin solution for every car it manufactures for better performance 33 and business improvement.
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Automotive & Transportation accounted for the largest market share in 2019
Automotive & transportation industry accounted for the largest market share in the digital twin market in 2019. This growth can be attributed to the increasing usage of digital twins for designing, simulation, MRO (maintenance, repair, and overhaul), production, and after service. Automotive & transportation is one of the industries that will witness high growth in the post-COVID-19 period, as industry players will try to adopt digital solutions for their end-to-end operations to minimizes losses that have occurred due to the pandemic.
Predictive maintenance to account for the largest market share during the forecast period
The market for predictive maintenance application accounted for the largest share in 2019. The growth of the predictive maintenance application segment can be attributed to an increase in the use of digital twins for predictive maintenance in the post-COVID-19 period across various industries.
North America to hold the largest share in digital twin market during the forecast period
The North America holds the largest share in the digital twin market. In recent years, the development of various software and deployment of automation solutions in the manufacturing industries has improved production lines and downstream operations. These developments have positively impacted the growth of the market in North America due to the high economic growth and a large presence of vendors offering digital twins. Moreover, the increased R&D in the field of the IoT and IIoT and increasing demand for efficient and cost-effective technologies for product manufacturing are also supporting the regional market growth.
Digital Twin Market in APAC to witness higher CAGR during the forecast period
The market in APAC has been divided into India, China, Japan, and Rest of APAC. The market in APAC is expected to grow at the highest rate during the forecast period. China has a high potential for creating digital transformation in the manufacturing industries. The dense population, growing per capita income with large-scale industrialization and urbanization, and increasing adoption of IoT are the factors driving the growth of the digital twin market in the region. China’s rapid response to the pandemic allowed citizens to return to work (and normalcy) relatively faster as compared to other countries. One survey showed that almost half of the Chinese consumers expect the economy to rebound quickly and their routines to return to normal within the next 2 to 3 months. In APAC, other countries such as Japan, India, and South Korea are also affected severely, which has resulted in a significant downfall in the growth of the digital twin market in APAC. The market is expected to attain normalcy within a period of 1.5 to 2.5 years.
Key Market Players
General Electric (US), >IBM (US), >PTC (US), >Microsoft Corporation (US), >Siemens AG (Germany), ANSYS (US), SAP (Germany), Oracle (US), Robert Bosch (Germany), and SWIM.AI (US)., are among the major players in the digital twin market.