Digital Twin Market To Generate $195,347.6 Million Revenue by 2030
- Published: December 2022
The size of the global digital twin market is expected to advance at a CAGR of 49.9% during 2022–2030, to reach $195,347.6 million by 2030.
The rising integration of the internet of things, machine learning, 5G, and artificial intelligence and the increasing demand for cloud services are expected to boost the growth of the market. This technology helps aerospace, automotive, and manufacturing companies reduce their expenditure on new part design and improve operations and system productivity, thus enhancing the overall product performance. Further, many enterprises are focused on digital twin solutions to enhance their supply chains and operational processes, to recover from the financial crises triggered by the pandemic.
For instance, in April 2021, Bouygues Construction SA expanded its partnership with Dassault Systèmes SE to focus on R&D on mobile-enabled and cloud-based modular and systemic approaches to transforming the industry's fragmented, multiscale ecosystems and tackling sustainability challenges. The two companies will collaborate throughout A project’s life using Dassault Systèmes’ 3DEXPERIENCE platform and create and model product lines where developers, subcontractors, architects, suppliers, operating companies, and customers can interact in a streamlined and simplified manner.
Logistics & Transportation Sector Increasingly Leveraging This Technology
The logistics & transportation sector is increasingly adopting big data analytics as a strategic tool due to its cross-sectional operations. A management tool for the determination of key performance indicators (KPIs) is necessary since it allows evaluation and analysis at various levels. Such a form of data processing and data visualization is made possible by the digital representation of physical assets in the form of digital twins. Particularly in logistics, the usage of real-time data is essential for the immediate visualization of events. Digital twins allow assets and different systems to communicate in real time. Concerning logistics, data collection alone is not a major challenge. The key factor here is the way data is processed to add value.
In this context, the added value is created with the help of KPIs tailored precisely to their respective applications. Depending on the sensors being used, the same data sources can be used to determine different KPIs in real time, precisely as the process requires.
Using a digital twin model that is adaptable to multiple-scenario testing could democratize transport modeling, thereby increasing stakeholder engagement and reducing delivery risk. The models would also become more accurate with real-time feedback. Additionally, measuring and tracking passenger traffic flow can help improve design, performance, and customer experience. The technology, thus, has an immense potential in the logistics & transportation sector in the coming years.
Convergence of Information Technology and Operational Technology
Massive digital transformation across the world has been witnessed in the last eight years. However, technologists now seek absolute digital industrial transformation, which is expected through the convergence of IT and OT. In this regard, the digital twin technology is projected to be a major catalyst. Traditionally, asset-centric organizations have focused on OT and other technologies that have evolved in parallel with IT. The rise in IoT usage is, thus, creating an immense potential for their convergence.
Organizations are adopting solutions that create a holistic operational environment on their premises and, therefore, combining and orchestrating all digital twins to improve operations and create advanced business models. A digital thread, for instance, is a communication framework that facilitates an integrated view and flow of operational data throughout the lifecycle of a product. By developing a digital thread, product engineers can collaborate with manufacturing engineers for creating digital 3D models for the production process. Such solutions can be harnessed by leveraging the digital twin technology.
The technology is expected to benefit a large number of sectors. For instance, in the retail sector, the transition from transaction-oriented interactions to engagements throughout the customer relationship lifecycle is notable. Retailers can leverage digital twins to optimize their customer engagement and outreach initiatives, via smarter marketing. They can use customer behavior insights generated from IT–OT data sets by AI to communicate in a more-personalized and -proactive manner.
Some of the major players operating in the global digital twin market are General Electric Company, IBM Corporation, Siemens AG, Robert Bosch GmbH, Microsoft Corporation, Honeywell International Inc., Oracle Corporation, XenonStack Pvt. Ltd., PTC Inc., Wipro Limited, and Ansys Inc.