GVR Report cover Digital Twin Market Size, Share & Trends Report

Digital Twin Market Size, Share & Trends Analysis Report By End-use (Manufacturing, Agriculture), By Solution (Component, Process, System), By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-2-68038-494-9
  • Number of Pages: 110
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2021
  • Industry: Technology

Report Overview

The global digital twin market size was valued at USD 11.12 billion in 2022 and is projected to exhibit a compound annual growth rate (CAGR) of 37.5% from 2023 to 2030. Supply chain disruptions and production halts during the COVID-19 pandemic led to the suspension of several other activities along the value chain of industries such as manufacturing, aerospace, and automotive. This impacted the digital twin market during the first half of the pandemic in 2020. However, as the number of COVID-19 cases started reducing and restrictions were lifted, the digital twin market began recovering strongly as several industries started moving toward automation and virtualization of products as well as processes.

 North America digital twin market size, by solution, 2020 - 2030 (USD Billion)

While the world is now on the path of recovery, a lot of uncertainty remains surrounding the spread of new COVID-19 variants. As such, several countries across the globe are expected to implement digital twin technology as a part of their economic activities. Digital twins facilitate the building of predictive models and help to examine the success before releasing physical prototypes The pandemic has accelerated the implementation of digital twin technology across applications in several verticals beyond manufacturing, including healthcare, real estate, telecom, and retail, fueling the market's development potential.

The installation of digital twin technology by combining with the latest technologies such as artificial intelligence, IoT, and cloud computing is further expected to boost the market growth. Organizations are deploying AI and IoT technologies to collect and interpret behavioral data from existing IoT devices and connected products, which can be later applied to the digital twin model to replicate the existing device’s usage and performance. This helps product engineers and designers observe the product performance and identify any issues as well as predict future iterations of common problems. The deployment of these technologies also aids organizations in enhancing operations and system productivity, thereby improving overall product performance.

Several organizations are focused on deploying digital twin solutions to optimize their supply chains and operational processes to recover from economic disruptions caused by the pandemic. As such, cloud companies such as Microsoft Azure and Google Cloud are focusing on launching various cloud-based digital twin solutions for industry players for easy accessibility and customized solutions. For instance, in January 2022, Google Cloud launched a supply chain digital twin, which aimed to provide distributors and manufacturers with unprecedented visibility of operations occurring in their supply chains. Such innovative solutions and the growing demand for automation in various industries are anticipated to trigger the demand for the digital twin platform in the forecast period.

The increasing deployment of cloud and IoT technologies is also leading to security and data privacy threats and the increased risk of cyberattacks. Cloud-based digital twins require online storage of asset information, subsequently leading to security and privacy concerns. Moreover, the lack of skilled professionals makes it tougher for organizations to develop and execute cybersecurity strategies efficiently. As such, several small and medium enterprises are still hesitant to invest heavily in advanced technologies, which is expected to pose a challenge to digital twin market growth.

End-use Insights

The automotive & transport segment accounted for the largest revenue share in 2022, contributing more than 20% of the overall revenue. This can be attributed to the adoption of lean adoption, electric vehicles, and the rising usage of simulation technologies. The incorporation of digital twin technology in the automotive sector helps engineers capture behavioral and operational data of the vehicle, thereby further leading to enhancements in automobile design and optimizing costs. The upcoming trends in the automobile industry, including connected and vehicles autonomous, and shared mobility, are further expected to increase the adoption of digital twin technology.

 Global digital twin market share, by end-use, 2022 (%)

The growth in the automobile industry is followed by the telecommunication, residential, and healthcare sectors, which are expected to exhibit healthy growth rates over the forecast period. Digital twin technology supports telecom service providers by facilitating and design designing complex network architectures and it upgrades the existing network infrastructures to accommodate new solutions, such as Fiber to the Home (FTTH) and software-defined networking. The adoption of digital twin technologies has increased in the healthcare sector amid the COVID-19 pandemic, helping healthcare professionals study the infected patient’s data for future research in performing treatment simulations. Furthermore, the increasing usage of digital twin solutions in the residential and commercial segments building 3D models of upcoming smart city projects is expected to fuel the growth of the digital twin market.

The system segment held the highest revenue share of the market in 2022. The high market share can be attributed to the high deployment of digital twins for developing, designing, and prototypes aerospace engines, assembly lines, communication systems, full-scale automotive models, and piping systems in the oil & gas industry, among other applications. System twins are an integration of several assets put together, which provides engineers to interpret and observe the system performance and synchronization of components during operation. Deployment of digital twin technology helps identify abnormalities in system operations and helps to enhance system performance, thus helping to drive the growth of the digital twin market during the forecast period.

Solutions Insights

The process segment is expected to register the fastest growth, at a CAGR of more than 35%, over the forecast period 2023-2030. This growth can be attributed to the implementation of a digital twin for designing workflows in an organization, supply chain processes, smart city projects, and warehouse processes, among other applications. Organizations are more focused on cutting down the operational cost, thereby improving coordination across operations Digital twin technologies help enterprises develop workflow structures, thereby enhancing the collaboration within the company’s departments and suppliers and improving customer engagement, thereby fuelling the growth of the digital twin market.

Regional Insights

Asia Pacific is expected to register the fastest growth at a CAGR of more than 40%, over the forecast period. The growth of this region can be attributed to the well-established manufacturing and automotive industries in countries such as China, India, Japan, and South Korea. Additionally, smart city development projects across the region and the high demand for consumer products are driving the regional market. Further, the proliferation of connected devices is expected to contribute to the regional market growth during the forecast period.

Digital Twin Market Trends by Region

North America held the high market share, followed by Europe, in 2022. The regions have some of the most advanced infrastructures to support upcoming technologies like digital twins, which is the prime reason for the high adoption of the technology. Furthermore, the early availability and adoption of new technologies have contributed to the growth of the North American market over the past years. The promising growth of the biotechnology industry and aggressive investments in the research and development of the automotive and manufacturing sectors is expected to drive growth in the European region.

Key Companies & Market Share Insights

The key market players in the global market in 2022 include ABB, AVEVA Group plc, Dassault Systèmes, General Electric, and Hexagon AB. Intense competition among leading players for introducing advanced and innovative products is encouraging companies to invest in the research and development of products and automation of processes. Furthermore, several automotive brands are adopting digital twin technologies to improve customer engagement using interactive automobile dashboards on websites, where customers can customize vehicles at their convenience. This helps companies in tapping consumer behavior and make changes to existing models.

Companies are adopting strategies to leverage new opportunities in the market and target new customers by developing customized products. For instance, in December 2021, Dassault Systèmes announced a partnership with Renault Group. The partnership was aimed at using Dassault Systèmes 3DEXPERIENCE platform on the cloud to develop programs for new vehicles and other mobility services. Renault Group would leverage the platform to manage the virtual twins of its product configurations. Some prominent players in the global digital twin market include:

  • ABB

  • AVEVA Group plc

  • Dassault Systemes

  • General Electric

  • Hexagon AB

  • IBM Corporation

  • SAP

Digital Twin Market Report Scope

Report Attribute

Details

Market size value in 2023

USD 16.75 billion

Revenue forecast in 2030

USD 155.83 billion

Growth Rate

CAGR of 37.5% from 2023 to 2030

Base year for estimation

2022

Historical data

2018 - 2021

Forecast period

2023 - 2030

Quantitative units

Revenue in USD million and CAGR from 2023 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

End-use, solution, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; China; India; Japan; Brazil; Mexico

Key companies profiled

ABB; AVEVA Group plc; Dassault Systèmes; General Electric; Hexagon AB; IBM Corporation; SAP

Customization scope

Free report customization (equivalent to 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.

 

Global Digital Twin Market Segmentation

The report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 - 2030. For this study, Grand View Research has segmented the digital twin market report based on end-use, solution, and region.

Global Digital Twin Market Segmentation

  • End-use Outlook (Revenue, USD Million, 2018 - 2030)

    • Manufacturing

    • Agriculture

    • Automotive & Transport

    • Energy & Utilities

    • Healthcare & Life Sciences

    • Residential & Commercial

    • Retail & Consumer Goods

    • Aerospace

    • Telecommunication

    • Others

  • Solution Outlook (Revenue, USD Million, 2018 - 2030)

    • Component

    • Process

    • System

  • Regional Outlook (Revenue, USD Million, 2018 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Rest of Europe

    • Asia Pacific

      • China

      • India

      • Japan

      • Rest of Asia Pacific

    • Latin America

      • Brazil

      • Mexico

      • Rest of Latin America

    • Middle East & Africa

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