The global digital twin technology market is growing with a CAGR of 57.2 % and touched USD 2.86 Billion in 2020. The market is expected to reach USD 53.61 Billion by 2027. Growth in demand for digital twin technology will multiply over the forecast period owing to the growing requirements for remote monitoring of water turbines present in deep seas for energy production, for oil & gas pipeline fixtures, and their proper functioning. Digital Twin Technology is ideal for efficient disaster management, It reduces the probability of accidents and other calamities, besides eliminating human errors. It also provides real-time data for offshore wind turbines, fatigue performance, product testing, and much more.




Source: BlueWeave Consulting



Global Digital Twin Technology Market Overview

A digital twin is the virtual representation of a physical asset or a system or process that is developed using technologies such as Artificial Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), and the Internet of Things (IoT). It is used for determining and optimizing product performance via real-time analytics and observations. It could also be defined as the concept which represents the combination of the physical and the virtual world, where the digital representation of a given industrial product is analyzed. A digital twin leverages real-world data for creating simulations of a specific product or process. The product is observed from the initial design phase to the final deployment phase, which helps in assessing its performance in the future. The information gathered via digital twin technology helps businesses come up with innovations, besides creating value.



Digital Twin Technology Market Forecast and Trends



Growth Drivers



Integration of Manufacturing with Technology



The latest version of digital twin technology deals not only with the virtual representation of the asset but also stores and helps with accessing certain product-related data using technologies such as RFID codes and CAD (Computer-aided design) 3D models. It has been predicted that in the coming years nearly 40% of the IoT platform vendors and businesses would actively integrate simulation platforms and capabilities to create digital twins effortlessly. The computer program uses real-world data to create simulations that can predict how a product or process will perform. Then these programs integrate the internet of things with artificial intelligence giving software analytics to enhance the final output.



Adoption of Digital Twin technology in the medical and pharmaceutical industry



Technological advancement is reshaping the healthcare industry by leaps and bounds, thus helping healthcare professionals to keep pace with the changing times. The digital twin technology has been transforming healthcare domains such as diagnosis and treatment decision support programs. Additionally, groundbreaking software solutions such as Exacture(powered by digital twin technology)have been introduced for lessening medication errors and to help patients from the adverse effects of a drug.



Restraints



Data and Security Breach and Cyber Attacks



Digital twin technology leverages various digital technologies such as AI, big data, machine learning, etc. to help organizations innovate, optimize, and deliver matchless products and services to their customers. Because digital twins are cloud-based and don’t need physical infrastructure, the associated security risks are slimmer than that of other types of systems. Nevertheless, a massive amount of data that is collected and utilized are drawn from a multitude of endpoints, each of which represents a potential area of weakness. It is estimated that 75 % of digital twins will be integrated with at least five endpoints by 2023, all of which require a constant connection over the network and internet. Hence, the presence of a strong firewall system as well as anti-theft, anti-virus is a must to prevent IoT data compromise and eliminate cloud security risks. The ever-growing incidences of cyber-attacks have raised concerns regarding data security for the digital twins as well as their data storage security methodologies. This necessitates the formulation of industry-accepted security standards and regulations.





Impact of COVID-19 on Global Digital Twin Industry



COVID-19 has accelerated the digitization process. The rapid adoption of extended reality such as AI, AR, and VR during the lockdown phase has transformed the industry scenario across sectors. Continuous advancements were made in order to overcome challenges, such as remote-controlling and radio accessing of machinery; observing operations and procedures of offshore oil refineries, windmills, etc. Digital twin technology can be a useful tool for managing uncertainties during the pandemic. For example, AI-backed systems in the automotive industry propelled Hyundai India’s significant growth during the lockdown phase. The company recorded the highest ever monthly production of 71,000 units in December 2020. Consequently, its, existing capacity expanded by over 19%. The lockdown phase also witnessed the adoption of VR/AR in e-learning, owing to the closure of almost all the educational institutions. Additionally, the efforts made in the drug dosage assessment and wearable digital bio-markers have come to fruition due to the COVID impact.





Global Digital Twin Technology Segmentation: By Application Type



Based on application type, the market is segmented into product design & development, process support & service, machine & equipment health monitoring. The segment for product design and development, followed by machine & equipment-based health monitoring among the senior citizens in the U.S. held more than 50% of the market share in 2019-2020. Moreover, the increasing demand for predicting an accurate outcome, the rising efforts to improve product performance, and the urge to rapidly detect faults for building better products and delivering better services are driving the market growth. In terms of healthcare, the growing requirement of constant monitoring via bio-markers and bio-wearables aided with AI, voice-controlled assistants will continue to benefit the market in the projected timeframe.



Global Digital Twin Technology Segmentation: By End-Use Industry



Based on the end-users, the industry is segmented into aerospace & defense, automotive & transportation, electronics & electrical, energy & utility, healthcare, infrastructure & building, manufacturing, retail & consumer goods, and infrastructure & building. Of all these, the manufacturing and the automotive sector have vast applications, followed by the healthcare segment. These three segments have been growing significantly. Digital Twin Technology is utilized in the manufacturing sector for maintaining design, eliminating prototype failures, and lessening production errors. Digital twin technology makes the process of manufacturing more efficient and optimized while reducing manufacturing throughput times. The automotive sector uses digital twin in test-procedures of products, gears, and automotive parts for test running, and better estimation of accuracy.



Global Digital Twin Technology: Regional Analysis



North America will witness the highest-paced growth over the forecast period owing to the presence of multiple investors, and the emergence of mega-companies in digital twin technology. Moreover, the abundance of interested investors, along with the growth of R&D in automotive manufacturing would support the market’s revenue. The Asia-Pacific is also expected to expand at a promising CAGR due to the presence of emerging countries, such as Japan, China, and India which are driving the market growth. Several initiatives have been taken by these nations to encourage the implementation of the IoT, smart-city projects, and much more. Moreover, enhancements and network relaxation for high-speed internet services, combined with growing industrialization, and declining average selling prices of bio-sensors in the region are anticipated to drive the market growth.




BlueWeave Consulting



Competitive Landscape

The significant players for global digital twin technology are ABB Group, Accenture PLC, ANSYS Inc., AVEVA Group plc, Cisco Systems, Inc., Dassault Systemes SE, PTC Inc., Microsoft Corporation, Hexagon Geosystems AG, IBM Corporation, General Electric, Siemens AG, Oracle Corporation, SAP SE, Schneider Electric SE, and Siemens AG, among several others.



Recent Developments



● 10 Feb’ 20- DassaultSystèmes- one of the leading 3D CAD software providers declared the launch of two new software packages, on its platform—3DExperience. This software enables cloud-based access to the world’s most powerful digital environment for design, sculpturing, creating, engineering, and collective invention. The 3DEXPERIENCE SOLIDWORKS for Students has been designed to make students job-ready in the field of engineering, designing, sculpting, and creating products, assets, etc.



● 28 Feb’ 20- European Union- Researchers have joined hands to carry out two ambitious projects named “digital strategy” and “Green Earth”. These programs will incorporate digital twin in order to make the digital Earth model more accurate besides monitoring the evolution and predicting plausible future processions, which were earlier being used for weather and climate simulations. The new "Earth system model" will virtually represent all the processes on the Earth's surface as convincingly as possible, along with the influence of humans on food, water, and energy management, and the courses in the system of the physical Earth.



● 03 Jan’ 20 - Los Angeles- The Shipyard Infrastructure Optimization Program, or SIOP, is a 20-year, USD 21 Billion worth program for streamlining four public yards in Maine, Hawaii, Virginia, and Washington. Digital twin technology would help in recognizing the degree to repair and reconstruction required.





Scope of the Report

Attribute

Details

Years Considered

Historical data – 2017-2019

Base Year – 2020

Forecast – 2020 – 2027

Facts Covered

Revenue in USD Billion

Market Coverage

U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, Argentina, UAE, South Africa, Saudi Arabia.

Product/Service Segmentation

By Application Type, By End-User, By Region

Key Players



ABB Group, Accenture PLC, ANSYS Inc., AVEVA Group plc, Cisco Systems, Inc., Dassault Systemes SE, PTC Inc., Microsoft Corporation, Hexagon Geosystems AG, IBM Corporation, General Electric, Siemens AG, Oracle Corporation, SAP SE, Schneider Electric SE, and Siemens AG.



Scope of the Report

By Application Type

● Product Design & Development

● Process Support & Service

● Machine & Equipment Health Monitoring



By End-user

● Aerospace & Defense

● Automotive & Transportation

● Electronics & Electrical, Energy & Utility

● Healthcare

● Infrastructure & Building

● Manufacturing

● Retail & Consumer Goods

● Infrastructure & Building

By Region

● The Asia-Pacific

● North America

● Europe

● The Middle East & Africa

● Latin America




Frequently Asked Questions



1. What is the current size of the global digital twin technology market?



Answer: The global digital twin technology market has reached USD 2.86 Billion in 2020 and is projected to reach 53.61 by 2027, growing at a CAGR of 52.7 %.



2. What are the major factors driving the growth of global digital twin technology market?



Answer: The major factors driving the growth of global digital twin technology market are-

· Integration of digital twin technology with manufacturing.

· Adoption of Digital Twin technology in the medical and pharmaceutical-related industry.



3. Who are the key players in the global digital twin technology market?




Answer: ABB Group, Accenture PLC, ANSYS Inc., AVEVA Group plc, Cisco Systems, Inc., Dassault Systemes SE, PTC Inc., Microsoft Corporation, Hexagon Geosystems AG, IBM Corporation, General Electric, Siemens AG, Oracle Corporation, SAP SE, Schneider Electric SE, and Siemens AG.



4. Which segment accounted for the largest global digital twin technology market share under end-use industry segmentation?


Answer: The segment that accounted for the largest global digital twin technology market share under end-use industry segmentation is the manufacturing segment.



5. Which region is expected to gain the highest of market growth for digital twin technology market?




Answer: North America is expected to gain the highest market growth for the digital twin technology market.