by A digital twin refers to a virtual representation of a physical product or system which helps analyze and optimize the performance of the physical object. Digital twin technology utilizes multimodal data to create an interactive digital profile that mimics a physical object or system. It allows users to visualize, analyze, and optimize operations by enabling collaboration between virtual and physical assets. The global digital twin market is driven by increasing adoption of digital twin solutions across various industries such as aerospace & defense, automotive, healthcare, transportation and logistics, among others. Digital twin finds wide usage in product design and development, predictive maintenance, supply chain management, and factory asset management.
The global digital twin Market is estimated to be valued at US$ 12.26 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing adoption of digital twin technologies across industries represents a key opportunity that is expected to drive the market growth over the forecast period. The adoption of digital twin solutions is growing across industries as it helps optimize business processes by enabling collaboration between physical and virtual assets. For instance, aerospace companies are using digital twin technology to design and engineer new aircraft virtually before manufacturing actual prototypes. This allows them to catch design flaws early and reduce costs. Similarly, automotive manufacturers are deploying digital twin solutions to accelerate vehicle development process and production.
In addition, the increasing focus of industries on predictive maintenance is also fueling the demand for digital twin technology. By creating virtual simulations of physical assets, digital twins help predict equipment failures and automate maintenance schedules. This improves uptime and reduces maintenance costs. For example, major oil and gas companies are implementing digital twins of rigs and pipelines to optimize maintenance planning and avoid unexpected breakdowns.
Segment Analysis
The digital twin market is primarily segmented into five types: product twin, parts twin, process twin, system twin, and digital thread. The process twin segment is expected to dominate the market and account for over 40% market share during the forecast period. A process twin helps simulate and optimize business operations by creating a digital representation of key business processes. It allows organizations to test scenarios without disrupting live operations.
PEST Analysis
Political: Regions like Europe and North America are formulating new regulations around data privacy and security which will drive need for digital twins to ensure compliance.
Economic: Globalization is increasing complexity of supply chains which is propelling demand for digital twins from manufacturing industry to optimize costs and resource utilization.
Social: Increasing customer expectations around personalized products and services is prompting companies to adopt technologies like digital twins to gain insights from customer experience data.
Technological: Emerging technologies like IoT, artificial intelligence, cloud computing are facilitating collection of real-time data from physical assets which is critical for building accurate digital twins.
Key Takeaways
The Global Digital Twin Market Size is estimated to be valued at US$ 12.26 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030.
Regional analysis
North America currently dominates the digital twin market owing to rapid adoption by US companies from aerospace & defense, manufacturing and healthcare industries. Europe is also expanding at a notable pace supported by initiatives from European Commission to promote Internet of Things.
Key players
Key players operating in the digital twin market include Abbvie Inc. (Allergan Inc.), Episciences Inc., L’ORÉAL SA (SkinCeuticals International), and Pfizer Inc., among others. Abbvie Inc. (Allergan Inc.) offers skin aging analysis using digital twin technology for its dermatology products. Episciences Inc. provides 3D skin tissue modeling platform using patient-specific digital twins for drug research and development.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
