Growing Need for Virtual Simulation and Prototyping
The global digital twin market is estimated to grow from $12.8 billion in 2024 to $240.3 billion by 2035, growing at a CAGR of 31% during the forecast period from 2024 to 2035. The market growth over the next decade is likely to be the result of increasing adoption of advanced digital technologies (IoT, AI, ML), advancements in data analytics and simulation capabilities, and rising demand for virtual prototyping.
Digital Twin Market Share Insights
The market research report presents an in-depth analysis of the various companies that are engaged in offering digital twin solutions, across different segments, as defined below:
- Historical Trend: 2018-2022
- Base Year: 2023
- Forecast Period: 2024-2035
- Market Size in 2024: $12.8 Billion
- CAGR: 31%
- Application Area
- Business Optimization
- Predictive Maintenance
- Production Design and Development
- Others
- Type of Twin
- Parts Twin
- Product Twin
- Process Twin
- System Twin
- End Users
- Aerospace and Defense
- Automotive and Transportation
- Energy and Utilities
- Healthcare
- IT and Telecommunication
- Manufacturing
- Real Estate
- Retail
- Others
- Key Geographical Regions
- North America
- Europe
- Asia
- Latin America
- Middle East and North Africa
- Rest of the World
- Key Companies Profiled
- Ansys
- Azure
- Bosch
- Cisco
- Dassault Systèmes
- General Electric
- IBM
- Oracle
- Siemens
- PowerPoint Presentation (Complimentary)
- Customization Scope: 15% Free Customization
- Excel Data Packs (Complimenary)
- Market Forecast and Opportunity Analysis
Digital Twin Market Segments Overview
Market Share by Application Area
The market report highlights the distribution of the market size across different application areas, such as business optimization, predictive maintenance, production design and development, and others. Among these application areas, the predictive maintenance segment occupies the highest share in 2024 and is expected to witness substantial growth during the forecast period.
Market Share by Type of Digital Twin
The global digital twin market is categorized into parts twin, product twin, process twin, and system twin on the basis of type of digital twin. The process digital twin segment occupies the highest share (~30%) currently in 2024 and is expected to stay dominant during the forecast period. This can be primarily attributed to the abilities of process digital twins to enable comprehensive simulations and optimization of industry workflows, leading to enhanced efficiency, cost savings, and improved outcomes, thus driving their widespread adoption and dominance in the market.
Market Share by End Users
The market is segmented across different types of end user industries, such as aerospace and defense, automotive and transportation, healthcare, manufacturing, retail, energy and utilities, real estate, IT and telecommunication, and other end users. The automative and transportation industry is expected to hold the majority share of the market in 2035 and is expected to grow at the highest CAGR in the coming years.
Market Share by Key Geographical Regions
This market is distributed across various geographies, including North America, Europe, Asia, Latin America, Middle East and North Africa, and Rest of the World. According to our projections, North America is likely to capture majority of the share in 2024, and this trend is unlikely to change in the future. Further, it is worth highlighting that the market in Middle East and North Africa is expected to grow at a healthy CAGR, during the forecast period 2024-2035.
Digital Twin Market: Key Insights
The market report features an extensive study of the current market landscape, market size, market share, market analysis, market forecast and future opportunities for the digital twin companies. The digital twin market research report highlights the efforts of several digital twin developers engaged in this rapidly emerging market segment. Key takeaways of the market analysis are briefly discussed below.
Market Drivers: Increasing Adoption of Industry 4.0 and Its Associated Technologies
The growth of digital twin market is driven by a number of key factors. For instance, the growing adoption of IoT technology has enabled the development of intricate digital replicas of various industrial processes, assets and systems. This technology, coupled with artificial intelligence and machine learning, has enabled organizations across various sectors to drive operational excellence, enable predictive maintenance, and optimize resource utilization.
Market Restraints: Data Privacy and Security Concerns
Despite their promising attributes, the digital twins market faces several restraints that may hinder its growth. One such challenge is the complexity and cost associated with implementing and maintaining such solutions. Various organizations, more specially start-ups or companies in resource-constrained settings, may struggle to afford such resources to advance their portfolio; such restraints can hinder their ability to expand and commercialize their technologies. Additionally, concerns about protecting the user data used in digital twin technologies may affect their growth and adoption in the market. Moreover, the unintended data breaches and unauthorized access to user data may result in legal concerns which may in turn reduce the adoption of such technologies.
Market Opportunity: Growing Need for Virtual Simulation and Prototyping
Amidst the above-mentioned challenges, there are various opportunities for digital twin companies. The integration of virtual reality (VR) and augmented reality (AR) technologies with digital twins offers new avenues for visualization and simulation, which can in turn facilitate better decision-making and collaboration. In May 2023, BeyondView, a software developer, announced the launch of AR feature for its digital twin software used by clients in the real estate industry. Moreover, digital twins can play a pivotal role in resource usage optimization, waste reduction, and minimizing environmental impact.
Digital Twin Market Size Analysis: Increasing Adoption of Digital Twin Technology Across Automotive Industry
The global digital twin market size is estimated to reach $240.3 billion by 2035, growing at a CAGR of 31% during the forecast period from 2024 to 2035. Automotive and transportation market segment, at present, holds the largest share of the market.
Automotive industry is employing digital twins across various applications from manufacturing to connected vehicle services. In 2021, some of the well known international automotive manufacturers, including BMW, Hyundai and Kia, all announced the addition of digital twin capabilities. BMW collaborated with NVIDIA to use its Omniverse tool for R&D of new cars. During the same time Hyundai and Kia adopted tools from Siemens Xcelerator portfolio to add digital twin capabilities to automotive manufacturing. As the automotive industry faces increasing challenges with software integration and updates, the digital twin technology is being explored in this area as well. In December 2023, Wipro announced partnership with Marelli Electronic Systems to introduce cabin digital twin to allow introduction of connected vehicle services to the customers. Automotives industry is exploring other industry 4.0 technologies as well including AR, VR and digital manufacturing.
Digital Twin Market Trends: Start-ups, Funding and More
The market is very dynamic at this stage with several startups being established in this space. These start ups include spin-offs from some major universities. Tibo Energy is one such spin off from Eindhoven University of Technology. Established in 2022, the company uses its digital twin software for helping with optimization of energy consumption. Another spin-off in this market includes Didimi, established 2023, which develops digital twin platform for construction industry. A spin-off from University of Cambridge, the company raised EUR 880,000 in pre-seed funding in February 2024. These start-ups will help drive innovation in the market and expand the application of digital twins.
Key Companies in Digital Twin Market
Examples of key digital twin companies (also profiled in this report, the complete list of companies is available in the full report) include Ansys, Azure, Bosch, Cisco, Dassault Systèmes, General Electric, IBM, Oracle and Siemens.
Recent Developments in the Digital Twin Market
Several recent developments have taken place related to the industry, some of which have been outlined below.
- In March 2024, Intangles launched a Diesel Particulate Filter solution in order to optimize fleet maintenance by leveraging its digital twin-based prognostic technology.
- In March 2024, Seeq launched a Seeq AI Assistant which provides users with various capabilities, such as advanced analytics, accelerate operational decision making and providing real-time assistance.
- In February 2024, Peripass procured a sum of USD 7.5 million in a Series A venture round, led by Welvaartsfonds and Groep Van Overstraeten.
- In January 2024, Unlearn raised a sum of USD 50 million in a Series C venture round, led by Altimeter Capital.
- In January 2024, Geminus raised a sum of USD 13 million in a Series A venture round, led by SLB Investment.
Digital Twin Market Report Coverage
The market report presents an in-depth analysis, highlighting the capabilities of various stakeholders in this industry, across different geographies. Amongst other elements, the market report includes:
- A preface providing an introduction to the full report, Digital Twin Market, 2018-2023 (Historical Trends) and 2024-2035 (Forecasted Estimates).
- An outline of the systematic research methodology adopted to conduct the study on digital twin technology, providing insights on the various assumptions, methodologies, and quality control measures employed to ensure accuracy and reliability of our findings.
- An overview of economic factors that impact the overall market, including historical trends, currency fluctuation, foreign exchange impact, recession, and inflation measurement.
- An executive summary of the insights captured during our research. It offers a high-level view of the current state of the digital twin’s market and its likely evolution in the mid-long term.
- A brief introduction to important concepts related to digital twins, featuring information on various types of digital twins and their primary applications across various domains. Further, this chapter features details related to the recent advancements that have been reported in this market space.
- Elaborate profiles of various prominent digital twin companies. Each company profile features a brief overview of the company (including information on its year of establishment, number of employees, location of headquarters and key members of the executive team), financial information (if available), details related to its recent developments and an informed future outlook.
- An in-depth analysis of the various patents that have been filed / granted related to digital twins, since 2020, based on several relevant parameters, such as type of patent (granted patents, patent applications and others), publication year, geographical region, CPC symbols, leading industry players (in terms of the number of patents filed / granted) and patent valuation.
- A discussion on affiliated trends, key drivers and challenges, under a SWOT framework, which are likely to impact the industry’s evolution, along with a Harvey ball analysis, highlighting the relative effect of each SWOT parameter on the overall digital twin industry.
- Brief case study on the application of digital twins across various industries, such as aerospace and defense, automotive and transportation, healthcare, energy and utilities, real estate and IT and telecommunication. This chapter presents success stories of applications of digital twin technologies in the above domains.
- A detailed estimate of the current market size, current opportunity, and the future growth potential of the market growth over the next decade. Based on multiple parameters, such as likely adoption trends and revenue generation, we have provided an informed estimate on the market evolution during the forecast period 2024-2035. The report also features the likely distribution of the current and forecasted opportunity within the digital twin industry. Further, in order to account for future uncertainties and to add robustness to our model, we have provided three forecast scenarios, namely conservative, base, and optimistic scenarios, representing different tracks of the industry’s growth.
- Detailed projections of the current and future market size across various types of application areas, such as business optimization, predictive maintenance, production design and development and others.
- Detailed projections of the current and future digital twins market across various types of twins, such as parts twin, product twin, process twin and system twin.
- Detailed projections of the current and future digital twin market across various types of end users, such as aerospace and defense, automotive and transportation, energy and utilities, healthcare, IT and telecommunication, manufacturing, real estate, retail and others.
- Detailed projections of the current and future digital twin industry across various geographies, such as North America (US, Canada), Europe (Austria, Denmark, France, Germany, Ireland, Italy, Norway, Spain, Sweden, UK, Rest of Europe), Asia (China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Rest of Asia), Latin America (Brazil, Chile, Colombia, Mexico, Paraguay, Peru, Portugal, Rest of Latin America), Middle East and North Africa (Egypt, Jordan, Kenya, Mauritania, Morocco, Saudi Arabia, South Africa, UAE, Rest of Middle East and North Africa) and Rest of the World (Australia, New Zealand).
One of the key objectives of the market report was to estimate the current market size, opportunity and the future market growth potential of such solutions, over the forecast period. Based on multiple parameters, likely adoption trends and through primary validations, we have provided an informed estimate on the market evolution during the forecast period 2024-2035.
The market report also features the likely distribution of the current and forecasted opportunity within the market across various segments, such as application area (business optimization, predictive maintenance, production design and development, and others), type of twin (parts twin, product twin, process twin, and system twin), end users (aerospace and defense, automotive and transportation, healthcare, manufacturing, retail, energy and utilities, real estate, IT and telecommunication, and others) and key geographical regions (North America, Europe, Asia, Latin America, Middle East and North Africa, and Rest of the World). In order to account for future uncertainties and to add robustness to our model, we have provided three digital twin market forecast scenarios, namely conservative, base and optimistic scenarios, representing different tracks of the market growth.
All actual figures have been sourced and analyzed from publicly available information forums and primary research discussions. Financial figures mentioned in this report are in USD, unless otherwise specified.
Key Benefits of Buying this Report
- The report offers market leaders and newcomers valuable insights into revenue estimations for both the overall market and its sub-segments.
- Stakeholders can utilize the report to enhance their understanding of the competitive landscape, allowing for improved business positioning and more effective go-to-market strategies.
- The report provides stakeholders with a pulse on the Digital Twin Market, furnishing them with essential information on significant market drivers, barriers, opportunities, and challenges.
Table of Contents
Executive Summary
Digital twins refer to digital representation of a physical object, system or a process. Such virtual twins are fed with continuous stream of real-time data in order to leverage insights to monitor, analyze or simulate the real-world functions. Digital twins employ the use of technologies, such as IoT, AI, and data analytics to gather and process data. Digital twins can be used across various application areas and industries, including manufacturing, healthcare, transportation, energy, and infrastructure. For instance, in manufacturing, such technologies offer product lifecycle management, predictive maintenance and process optimization. On the other hand, these technologies aid in personalized medicine, patient monitoring, and surgical simulation. Whereas, in transportation, digital twins facilitate traffic management, and predictive maintenance of infrastructure.
Overall, digital twins offer improved operational efficiency, enhanced decision-making, and cost savings. Digital twins empower stakeholders to make informed decisions, mitigate risks and optimize resource utilization by enabling organizations to visualize and simulate real-world scenarios in the form of their digital representations. As technology continues to evolve and industries are adapting to such digital technologies, this domain is expected to witness significant growth in the coming years.
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- 8VC
- ABB
- AlbaCore Capital
- Alkuri Global Acquisition
- Alumni Ventures
- AMF Pensionsförsäkring
- AnatoScope
- Andreessen Horowitz
- Ansys
- Arboretum Ventures
- AstraZeneca
- Atos
- Babylon
- Bank of Canada
- Barclays
- Bentley Systems
- BINOCS
- BofA Securities
- Capital One Securities
- Certara
- Comerica Bank
- CORYS
- CPI
- Credit Suisse
- Cytiva
- Dassault Systèmes
- DayToDay
- DCVC
- DEO
- Eisai
- Elaia
- Empa
- Epic Capital Wealth Management
- EPIC Ventures
- European Innovation Council
- ExactCure
- FEops
- GE
- Google Cloud
- GSK
- Henry Ford Innovations
- Higi
- HP
- ICONIQ Growth
- ImmersiveTouch
- inHEART
- Insight Partners
- Insilico Biotechnology (Acquired by Yokogawa)
- IT-Translation
- Janssen
- Jefferies
- Khosla Ventures
- Kinnevik
- Klinik Sankt Moritz
- KYDEA
- Lahey Hospital & Medical Center
- LOP.AI
- Mayo Clinic
- Medical University of South Carolina
- Merck
- Meyer Chroma Technology
- Microsoft Azure
- Morgan Stanley
- Mubadala Capital
- Mubadala Investment Company
- Munich Re/ERGO Corporate Venture Fund
- Navv Systems
- ONRAD
- Optimo Medical
- ORTEN
- Pfizer
- PharmaPendium
- Philips
- Public Investment Fund
- Q Bio
- Radical ventures
- Round 13 Capital
- Royal Wolverhampton NHS Trust
- Schneider Electric
- Sectoral Asset Management
- Sequoia Capital India
- Siemens Healthineers
- Sim&Cure
- Sinai Health
- Swedbank Robur
- Tata Consultancy Services
- Teva Pharmaceutical
- ThoughtWire
- Twin Health
- TwInsight
- University of Strathclyde
- Unlearn.AI
- Vedanta
- VNV Global
- William Blair
- Yaletown Partners
- Yokogawa Insilico Biotechnology
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 190 |
| Published | May 2024 |
| Forecast Period | 2024 - 2035 |
| Estimated Market Value ( USD | $ 12.8 Billion |
| Forecasted Market Value ( USD | $ 240.3 Billion |
| Compound Annual Growth Rate | 31.0% |
| Regions Covered | Global |
