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Internet of Things (IoT) to be Most Widely Used Technology in Digital Twin Market
The global digital twin market was valued at $3,645.1 million in 2019, and it is expected to grow to $73,245.4 million by 2030, witnessing a CAGR of 31.9% during the forecast period (2020–2030). The key factors behind the advance of the market are the increasing focus on intelligent maintenance and rapid adoption of internet of things (IoT).
Segmentation Analysis of Digital Twin Market
The product category, based on type, held the largest share in the digital twin market during the historical period (2014–2019). This is because companies are quickly adopting the technology to study every component of their product at the equipment level, in order to reduce the mean time to repair (MTR) and mean time between failure (MTF), by gaining enhanced visibility.
Till 2030, the IoT division, under the technology segment, is projected to keep dominating the digital twin market. This is primarily attributed to the rapid uptake of IoT-integrated devices and increasing focus on using sensors during the product development process, in almost every industry.
During the forecast period, small and medium enterprises (SME) are expected to witness faster growth in the digital twin market, on the basis of enterprise. This is because with the technology becoming increasingly popular, SMEs are also adopting it, in order to offer better products and improve their operational efficiency.
In 2019, performance monitoring, under the application segment, was the largest category in the digital twin market, because advanced technologies, such as IoT, big data analytics, and artificial intelligence (AI), are being used in digital clones to monitor and track the performance of physical assets.
The manufacturing industry, on the basis of end user, would hold the dominating share in the market till 2030. With the increasing penetration of industrial internet of things (IIoT) and Industry 4.0, the need for the digital clone technology, in order to enhance the operational efficiency and enable predictive maintenance, to ultimately decrease the downtime, is rising.
During the historical period, North America was the most productive region in the digital twin market, on account of the earliest adoption of Industry 4.0 standards, advanced information technology (IT) infrastructure, technological improvements, and strong presence of digital twin software providers. In the coming years, the highest CAGR would be witnessed in Asia-Pacific (APAC), due to the economic prosperity in regional countries, growing IT investments, and extending support by the government for the integration of AI and IoT in the industrial sector.
A Common Platform for Digital Twins Becoming Popular
The major trend in the digital twin market presently is the use of a common platform for device simulation. For instance, companies which deal with several jet engines are using a common platform for digital clones, with a separate twin created for each engine. This is helping such organizations collect data from all systems at one place, for improved manufacturing analytics, as this way, similar trends and patterns can be studied in less time. By analyzing the information from all the twins of similar objects, before they are begun to be mass-produced, companies can derive important insights that can help them in their growth.
Digital Twin Adoption Driven by Usage of IoT
The most important growth driver for the digital twin market is the rising adoption of IoT. By 2025, more than 41 billion IoT and connected devices are expected to be in use around the world, and their monitoring becomes easy with the digital clone technology, which also helps increase the efficiency of such devices. With individual components determining the performance of any system throughout its life cycle, the components are being rapidly digitally twinned. Additionally, a huge volume of unstructured data is created by connected devices provided by different vendors; thus, sharing it among stakeholders becomes difficult. Hence, to avoid investing in physical product innovation, businesses are digitally cloning their entire ecosystem.
Logistics & Transportation Sector an Area of Opportunity for Digital Twin Software Providers
The players in the digital twin market can leverage the opportunities being provided by the rapid adoption of this concept in the logistics & transportation sector. Owing to its cross-sectional operations, the industry is using big data analytics, which is enabled by key performance indicator (KPI) management tools. Here, the digital twin technology helps in the visualization and processing of data, by representing the physical assets digitally. By using the technology for simulating multiple scenarios, the transport model would be democratized, which would decrease the risk in deliveries and improve the engagement among stakeholders. Further, customer experience, design, and performance could be bettered by analyzing the passenger traffic flow.
Major Players Engaging in Partnerships to Strengthen their Position
Partnerships have been the strongest strategic measure taken by the digital twin market players in the recent years, in an effort to leverage each other’s expertise and strengthen their industry presence. For instance, in February 2019, PTC Inc. and Ansys Inc. together introduced the Creo Simulation Live solution. The solution uses the design and simulation capabilities of both partnering firms to create a simulation directly on the design environment in real time, which lets designers see what impact their decisions will have.
Similarly, in January 2019, MTU Friedrichshafen and Bosch.IO GmbH entered into a partnership in an effort by the former to explore market opportunities and advance its business strategy. Under the partnership, Bosch has set up a user interface (UI) and user experience (UX) lab for MTU Friedrichshafen, which will be used to transform ideas into minimum viable product (MVP) and commercialize such solutions.
The key players in the global digital twin market are General Electric Company, Siemens AG, Microsoft Corporation, Oracle Corporation, PTC Inc., Ansys Inc., IBM Corporation, Robert Bosch GmbH, Honeywell International Inc., XenonStack Pvt. Ltd., Wipro Limited, SAP SE, Tata Consultancy Services Limited, Seebo Interactive Limited, DNV GL, Dassault Systemes S.A., TIBCO Software Inc., The MathWorks Inc., Bentley Systems Incorporated, Emerson Electric Co., Faststream Technologies, Lanner Group Limited, Yokogawa Corporation of America, Dxc Technology Company, Navantia SA, Bureau Veritas, Rescale Inc., Cityzenith, Andritz Group, Altair Engineering Inc., Mevea Ltd., Cal-Tek Srl, Akselos SA, ScaleOut Software Inc., Avolution Pty Ltd., Arup Group Limited, Software AG Pte Ltd., and AnyLogic North America LLC.
Market Size Breakdown by Segment
The digital twin market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Type
Based on Technology
Based on Enterprise
Based on Application
Based on Industry