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

Digital Twin Market Size, Share & Trends Analysis Report By End-use (Automotive & Transport, Retail & Consumer Goods, Agriculture, Manufacturing, Energy & Utilities), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Apr, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-494-9
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 101

Report Overview

The global digital twin market size was valued at USD 5.04 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 42.7% from 2021 to 2028. The market experienced a slight slump in 2020 owing to the shutting down of manufacturing sites, production plants, and other factories in the first half of the year triggered by the spread of the COVID-19 pandemic. However, owing to the varied applications of digital twins, the market is poised for exponential growth, which is expected to be accelerated by social distancing norms, forcing companies to adopt digital twins. The digital twin is a dynamic digital clone of a process, product, system, or facility, which can be used for multiple purposes, including gauging the performance and assessing the operating life of equipment, creating a sustainable environment, and ensure a better digital experience for customers. Such digital replicas can imitate real-world situations and help examine products, monitor the changes in the performance and condition of machines, and eventually optimize the systems and processes.

U.S. digital twin market size, by end-use, 2017 - 2028 (USD Million)

Innovation, global competition, and advances in technology can be considered the key driving factors responsible for market growth. The digital twin has provided businesses with additional means to cut costs and augment profits effectively. Advantages associated with process automation and cloud computing are also encouraging businesses to opt for digital twin and further boost their processes' efficiency. The benefits of digital twin are anticipated to drive market growth in the next seven years.

The Internet of Things (IoT) is transforming businesses globally. Digital twin platform developers are also leveraging IoT to improve operations, enhance system productivity, and augment sales. The proliferation of IoT devices is opening new avenues for growth for developers. As such, the developers are particularly developing IoT-enabled digital twin solutions to strengthen their market position. ABB, General Electric, Siemens AG, AVEVA Group plc, Dassault Systemes, and Hexagon AB, among others, are some of the players that have added IoT-enabled digital twin solutions to their portfolio.

Digital twins are extensively used across several end-use industries such as manufacturing, healthcare, agriculture, energy and utilities, and automotive industries. Various digital twin platform developing companies have launched different solutions to cater to specific business areas. For instance, in the automotive industry, Volkswagen AG employees working at the Pre-Series Center in Wolfsburg use 3D models to assist prototype assembly operations worldwide. Post COVID-19 pandemic that forced companies to operate on minimum manpower, more and more companies are moving towards automation. The growing demand for automation in various industries is anticipated to trigger the digital twin platform's demand over the forecast period.

The digital twin market is expected to experience significant growth due to the increasing adoption of Industry 4.0 worldwide. Industry 4.0 is considered to be the fourth industrial revolution and is an ongoing trend in the manufacturing sector wherein it focuses on automation and capturing and exchanging data. Given that it is a digital representation of a product, the digital twin in Industry 4.0 can be considered the combination of manufacturing techniques with IoT to create interconnected manufacturing systems. Thus, digital twin technology can potentially assist companies in achieving the Industry 4.0 standards.

End-use Insights

The residential and commercial segment accounted for the largest revenue share of more than 20% in 2020. The large revenue share is attributable to the increasing number of smart buildings in major economies around the world. Smart buildings make use of the IoT technology for centralized connectivity throughout the building. The incorporation of digital twin technology has made the construction even more efficient and cost-effective. For instance, the Azure Digital Twins platform by Microsoft Corporation was used in ICONICS smart building software to eliminate the use of manual inspection of buildings.

Global digital twin market share, by end-use, 2020 (%)

Digital twins in healthcare applications can potentially revolutionize the care provided to the patients as well as the hospitals’ operations. Digital twin creates an interconnected system that represents the digital image of the entire hospital, systems, and other equipment. On the other hand, the digital twin of human bodies and individual organs can help in studying surgical procedures in a simulated environment before they are carried out on the patient, thereby further improving patient outcomes and reducing mortality rates. Owing to the aforementioned benefits, the healthcare and life sciences segment is expected to record substantial growth from 2021 to 2028. Additionally, the spread of the COVID-19 pandemic has resulted in an increased focus on developing the healthcare infrastructure, thus, further promoting segmental growth.

Regional Insights

North America accounted for over 30% revenue share in 2020 and is expected to grow steadily over the forecast period. The regional healthcare industry is characterized by the extensive use of technology and is anticipated to be one of the early adopters of the digital twin in the healthcare sector. Similarly, the European market is also expected to record healthy growth, driven by the flourishing automotive industry and growing biotechnology industry in the region. Early adoption of technologies in these regions is also a major contributing factor to both regions' large revenue share.

The highest growth over the forecast period is expected to be seen from the Asia Pacific. Due to the infrastructure, technological, and agricultural developments in China and India, both countries are expected to expand at a CAGR of more than 50% in the next seven years. The region is also characterized by the presence of several manufacturing industries. The adoption of digital twin technology in these plants is expected to upkeep the regional market in near future.

Key Companies & Market Share Insights

The key players that dominated the global market in 2020 include ABB, AVEVA Group plc, Dassault Systemes, General Electric, and Hexagon AB. To leverage new opportunities in the market and target new customers, companies are adopting strategies to develop customized products for specific clients. For instance, in February 2019, Dassault Systèmes announced the strategic partnership between ABB Ability digital solutions and Dassault Systèmes' 3DEXPERIENCE platform. With the partnership, both the companies would focus on process industry automation, factory automation and robotics, and electrification solutions for smart buildings.

Apart from growing the company's size and reach, market players emphasize research and development to develop technologically advanced and differentiated products to gain a competitive edge. For instance, Hexagon AB announced the acquisition of j5 International, a software developer of operations management software, in January 2019. The acquisition would enhance the company’s HxGN SDx portfolio used to create and manage digital twin. Some prominent players operating in the global digital twin market are:

  • 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 2021

USD 7.14 billion

Revenue forecast in 2028

USD 86.09 billion

Growth Rate

CAGR of 42.7% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD Million and CAGR from 2021 to 2028

Report coverage

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

Segments covered

End-use, 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 Systems; 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.

 

Segments Covered in the Report

The report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global digital twin market report based on end-use and region:

  • End-use Outlook (Revenue, USD Million, 2017 - 2028)

    • Manufacturing

    • Agriculture

    • Automotive & Transport

    • Energy & Utilities

    • Healthcare & Life Sciences

    • Residential & Commercial

    • Retail & Consumer Goods

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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