Digital Twin Market Research Report: By Type (Product, System, Process), Technology (Internet of Things, AI & Machine Learning, Blockchain, Big Data Analytics), Enterprise (Large Enterprises, Small & Medium Enterprises), Application (Performance Monitoring, Predictive Maintenance, Product Design & Development, Business Optimization, Inventory Management), Industry (Manufacturing, Automotive, Healthcare, Energy & Utilities, Aerospace & Defense, Oil & Gas) - Global Industry Analysis and Growth Forecast to 2030

Market Overview

The global digital twin market generated revenue of $3,210.1 million in 2020, and it is expected to reach $184,517.4 million by 2030, advancing at a CAGR of 50.0% during the forecast period. The growing adoption of the internet of things (IoT), artificial intelligence (AI), 5G, and machine learning (ML) technologies, increasing penetration of Industry 4.0 standards, and rising demand for cloud services are supporting the growth of the market.

The COVID-19 pandemic across the world has impacted the market. The world witnessed a temporary shutdown of different industries due to the lockdown implemented by governments in 2020. Furthermore, economies and industries came under financial stress during the lockdown period; therefore, companies reduced their investment in new technologies, such as digital twin. Due to the COVID-19 epidemic, the digital twin market succumbed to a decline in 2020 since the testing and simulation procedures for the adoption of the virtual model came to a halt. However, in the post-COVID-19 period, the continued focus on the digitization of industrial processes and development of advanced technologies will drive the market during the forecast period.

Due to Rising Adoption of Digital Product Twins for Enhanced Efficiency, Product Category Dominated Market in 2020

The product category generated the highest revenue, on the basis of type, in the digital twin market in 2020. This was mainly because the technology helps companies collect information on each component of a product, for enhanced visibility, to minimize the mean time between failure (MTBF) and mean time to repair (MTTR). This, in turn, helps improve system and cost efficiency and business productivity.

IoT Held Largest Market In 2020 due to Increasing Inclination toward Sensor-Driven Product Development

The IoT category held the largest market share in 2020, and it is also projected to witness the fastest growth during the forecast period, based on technology. The growing adoption of IoT devices and increasing inclination toward sensor-driven product development are the key factors supporting the market growth in this category.

North America Dominates Market due to Increasing Adoption of Advanced Technologies

North America held the largest share in the digital twin market in 2020. This can be mainly attributed to the developed IT infrastructure and growing penetration of the 5G, AI, IoT, and ML technologies across several verticals, including manufacturing, automotive, energy & unities, and aerospace & defense, in the region.

Usage of Common Platform for Digital Twins Trending in Market

Globally, the key trend being observed in the digital twin market is the use of digital twin aggregates. Organizations managing or monitoring multiple systems of the same type of asset, for instance, a fleet of jet engines, are deploying a common platform for digital twins (in this case, with each engine having a separate digital twin) to gather data from all systems. In such cases, similar patterns and trends are easy to identify and analyze for the refinement of the systems. By bringing all digital twins on a common platform, an effective learning system for the physical world can be built. From this concept of building a digital model of an object before an asset is built and analyzing the data from a cohort of digital twins, a powerful digital construct can be developed, which can provide important insights to asset-centric organizations.

Usage of IoT Propelling Market Growth

The shift to interconnected environments across industries is driving the demand for digital twin solutions across the world. Massive adoption of IoT is being witnessed, with over 41 billion connected IoT devices expected to be in use by 2025. For the successful implementation and functioning of IoT, increasing the throughput for every part or “thing” is necessary, which is made possible by the digital twin technology. Since the behavior and performance of a system over its lifetime depend on its components, the demand for the digital twin technology is increasing across the world for system improvement. Moreover, vendors and product owners are displaying an increasing need for digital representation in order to speed up the time to market and reduce operational costs.

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Market Players Involved in Partnerships to Gain Significant Position

Players in the market have been involved in partnerships in order to attain a significant position. For instance:

• In April 2021, Dassault Systèmes SE and Bouygues Construction SA expanded their strategic partnership to focus on the research and development of cloud-based and mobile-enabled systemic and modular approaches to transforming the industry's multiscale, fragmented ecosystems and addressing sustainability challenges. The two companies will primarily focus on the capacity provided by Dassault Systèmes’ 3DEXPERIENCE platform to collaborate throughout the lifecycle of a project, in addition to creating and modeling product lines where interactions with developers, architects, subcontractors, suppliers, customers, and operating companies can be simplified and streamlined.
• In December 2020, Johnson Controls International PLC and Microsoft Corporation announced a global collaboration to digitally transform how buildings and spaces are designed, built, and managed. Johnson Controls' OpenBlue Digital Twin is a key partner for Azure Digital Twins. Both are comprehensive platforms that support the entire ecosystem of building and device management technologies with digital cloud technologies.

Key Players in Global Digital Twin Market Are:

Market Size Breakdown by Segments

The global digital twin market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Type

• Product
• System
• Process

Based on Technology

• Internet of Things (IoT)
• Artificial Intelligence (AI) & Machine Learning (ML)
• Blockchain
• Big Data Analytics

Based on Enterprise

• Large Enterprises
• Small & Medium Enterprises (SMEs)

Based on Application

• Performance Monitoring
• Predictive Maintenance
• Product Design & Development
• Business Optimization
• Inventory Management

Based on Industry

• Manufacturing
• Automotive
• Healthcare
• Energy & Utilities
• Aerospace & Defense
• Oil & Gas

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • China
  • Japan
  • South Korea
  • India
  • Australia
• Middle East & Africa (MEA)
  • U.A.E.
  • Saudi Arabia
  • Turkey
  • South Africa
• Latin America (LATAM)
  • Brazil
  • Mexico