The global digital twin market size was valued at USD 2.26 billion in 2017 and is expected to expand at a CAGR of 38.2% from 2018 to 2025. Digital twins can be described as dynamic digital or virtual replicas of physical assets or products. The technology is being used across numerous end-use industries owing to its potential in improving production layout, reducing operational costs, enhancing the productivity of the existing system, and reducing the Time to Market (TTM).
The key technologies and solutions that enabled the espousal of the technology include Artificial Intelligence (AI), Machine Learning (ML), and Internet-of-Things (IoT), among others. Factors, such as growing usage of connected devices across various organizations, increasing adoption of cloud platforms, and emergence of high-speed networking technologies, have allowed enterprises to opt for IoT solutions.
Given that IoT can help enterprises in leveraging digital twin platforms to boost their services and processes, the growing adoption of IoT particularly bodes well for the global market. On the other hand, the vulnerability of IoT and cloud platforms to cybercrimes and data security threats would restrain market growth.
Several enterprises, particularly the small- and medium-sized, are still dependent on 2D drawings. If they do not gain adequate expertise in 3D drawings, they would be at the risk of losing their clients to their competitors holding expertise in 3D drawings, which would also hamper the market growth.
On the basis of end use, the digital twin market can be segmented into manufacturing, agriculture, automotive and transport, energy and utilities, healthcare and life sciences, residential and commercial, and retail and consumer goods, among others. Residential and commercial segment accounted for the largest market share in 2017 as digital twins are used to optimize the urban sustainability by capturing the 3D and time-based implications of smart buildings. For instance, ‘Virtual Singapore’, a part of the smart nation initiative by the Singaporean government, can be considered as the world’s first digital twin of an existing city-state that paves the way for its citizens to engage in the digital economy in an effective manner.
The automotive and transport segment is anticipated to expand at a CAGR exceeding 40.0% over the forecast period. Rising demand for connected vehicles is expected to drive the segment in the coming years. Digital twins are deployed in the automobile sector for creating virtual models of a connected vehicle and capture the operational/behavioral data and evaluate the overall performance of the vehicle. The technology can also be used to provide complete customized services. The retail and consumer goods segment is also expected to witness a significant CAGR as companies leverage the technology to better understand the changing needs of consumers and customize the products, services, and operations accordingly for enhanced user experience.
The North American and Europe regional markets together accounted for more than 50% of the global market share in 2017. These regions are among the early adopters of the latest technologies. While they are home to some of the most prominent tech giants, they also possess a unique research ecology. They are also witnessing the rising adoption of smart connected devices. Due to all these factors, these two regions are expected to maintain their lead.
Asia Pacific is anticipated to expand at a CAGR exceeding 40.0% over the forecast period. Some of the emerging countries, such as Japan, China, and India, have undertaken several initiatives to encourage the implementation of IoT. This is augmenting the market growth. Moreover, the continued rollout of high-speed internet services, growing industrialization, and declining average selling prices of sensors and modules in the region are expected to drive the market further.
ABB Group; Hexagon Geosystems AG; PTC, Inc.; Dassault Systèmes; AVEVA Group plc; SAP SE; Schneider Electric SE; and Siemens AG are some of the leading companies in the market. These companies are coming up with innovative applications for the digital twin technology as part of the efforts to gain a competitive edge over their rivals. For instance, General Electric is using the technology to assess the operating life and determine the optimal maintenance intervals for critical jet engine components. These companies are trying to advance the technology to improve the success rates of product innovation and enhance organizational productivity by up to 25% or more.
Report Attribute |
Details |
Market size value in 2020 |
USD 4,304.5 million |
Revenue forecast in 2025 |
USD 26,070.0 million |
Growth Rate |
CAGR of 38.2% from 2018 to 2025 |
Base year for estimation |
2017 |
Historical data |
2014 - 2016 |
Forecast period |
2018 - 2025 |
Quantitative units |
Revenue in USD million and CAGR from 2018 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
End use and region. |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; Mexico; U.K.; Germany; China; India; Japan; Brazil |
Key companies profiled |
ABB Group; Hexagon Geosystems AG; PTC, Inc.; Dassault Systèmes; AVEVA Group plc; SAP SE; Schneider Electric SE; and Siemens AG. |
Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Grand View Research has segmented the global digital twin market report on the basis of end use and region:
End-use Outlook (Revenue, USD Million, 2014 - 2025)
Manufacturing
Agriculture
Automotive & Transport
Energy & Utilities
Healthcare & Life Sciences
Residential & Commercial
Retail & Consumer Goods
Others
Regional Outlook (Revenue, USD Million, 2014 - 2025)
North America
The U.S.
Canada
Europe
The U.K.
Germany
France
Asia Pacific
China
India
Japan
Latin America
Brazil
Mexico
Middle East & Africa
b. The global digital twin market size was estimated at USD 3,362.9 million in 2019 and is expected to reach USD 4,304.5 million in 2020.
b. The global digital twin market is expected to grow at a compound annual growth rate of 38.2% from 2018 to 2025 to reach USD 26,070.0 million by 2025.
b. The residential & commercial segment dominated the digital twin market with a share of 24.1% in 2019. This is attributable to the increasing use of digital twins to optimize urban sustainability by capturing the 3D and time-based implications of smart buildings.
b. Some of the digital twin market leaders involved in providing digital twin solutions include ABB Group; Hexagon Geosystems AG; PTC, Inc.; Dassault Systèmes; AVEVA Group plc; SAP SE; Schneider Electric SE; and Siemens AG.
b. Key factors that are driving the digital twin market growth include increasing adoption across numerous end-use industries owing to its potential in improving production layout, reducing operational costs, enhancing the productivity of the existing system, and reducing the Time to Market (TTM).
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Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.