Digital Twin Market Size, Share & Trends Analysis Report By Solution (Component, Process, System), By Deployment (Cloud, On-premise), By Enterprise Size, By Application, By End-use, By Region, And Segment Forecasts, 2024 - 2030

Research Methodology

A three-pronged approach was followed for deducing the digital twin market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for digital twin market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of digital twin market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Digital Twin Market Categorization:

The digital twin market was categorized into four segments, namely solution (Component, Process, System), deployment (Cloud, On-premise), enterprise size (Large Enterprises, Small and Medium Enterprises), application (Product Design & Development, Predictive Maintenance, Business Optimization), end-use (Manufacturing, Agriculture, Automotive & Transport, Energy & Utilities, Healthcare & Life Sciences, Residential & Commercial, Retail & Consumer Goods, Aerospace, Telecommunication), and regions (North America, Europe, Asia Pacific, Latin America, Middle East & Africa).

Segment Market Methodology:

The digital twin market was segmented into solution, deployment, enterprise size, end-use, application, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The digital twin market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into eighteen countries, namely, the U.S.; Canada; the UK; Germany; France; Italy; Spain; China; India; Japan; South Korea; Australia; Brazil; Mexico; Argentina; UAE; Saudi Arabia; and South Africa.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Digital twin market companies & financials:

The digital twin market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• ABB - ABB is a technology company that aids in the transformation of the industry and society toward a productive and sustainable future. The company serves various industries and industry verticals, including mining, chemical, automotive, food & beverage, railway, solar power, cement, aluminum, and pulp & paper. As of January 01, 2021, ABB operates its business through four business areas, namely Electrification, Process Automation, Motion, and Robotics & Discrete Automation. The Electrification segment offers digital and connected solutions, including switchboard and panel boards, switchgear, UPS solutions, and circuit breakers, among others. The products and solutions offered by the Process Automation segment include advanced process control software and manufacturing execution systems, sensing, measurement, and analytical instrumentation. The Robotics & Discrete Automation segment offers industrial robots, software, robotic solutions and systems, field services, spare parts, and digital services. The Motion segment manufactures and sells electrical motors, generators, and drives. ABB’s geographical footprint spans Europe, the Americas, Asia, and MEA, including countries, such as China, Egypt, India, Indonesia, Kazakhstan, Malaysia, South Korea, Taiwan, Thailand, Turkey, and Vietnam. The company’s subsidiaries include ABB Australia Pty Limited; ABB (China) Ltd.; ABB Automation Products GmbH; ABB Investments B.V.; ABB Turbo Systems AG; and ABB Pte. Ltd.; among several others.

• ANSYS, Inc. - ANSYS, Inc.'s primary objective is to develop and supply engineering simulation software that enables scientists and engineers to construct and evaluate systems and products digitally before developing prototypes. The company's products and services include by-products, such as Additive Suite, Cloud Direct, CML compiler, and digital safety manager. The company's application segment includes brakes, gas turbines, landing gear, turbochargers, blade design, blast explosion, and biomedical systems, among others. The company's capability segment includes a head-up display, geometry modeling, and topology optimization, among others. Its industry segment includes aerospace, defense, and automotive. ANSYS multiphysics modeling involves the collaboration of several physical procedures, including fluid-structure communication, electromagnetic-thermal association, and mechanical & thermal evaluation. It is essential for interpreting the behavior of products in real-world situations. ANSYS, Inc. has marked its presence across France, the U.S., the UK, India, Deutschland, and Italia, among others.

• Autodesk Inc. - Autodesk Inc. is an application software company that offers software and services for the 3D design, engineering, and entertainment industries. The company provides BIM 360, a cloud-based construction management software; AutoCAD, a software for designing, formulating, outlining, and visualization; AutoCAD LT, a drafting and detailing software; Computer-Aided Manufacturing (CAM) technology for desktop arithmetic control tooling, audit, and documentation; and AutoCAD Civil 3D, an aerial survey, layout, assessment, and verification solution for structural engineering such as land development, transportation, and environmental projects. The company’s business operations are spread across Asia Pacific, the Americas, Europe, and MEA.

• Amazon Web Services, Inc. - Amazon Web Services, Inc., a subsidiary of Amazon.com, Inc., is primarily engaged in offering cloud computing platforms and related services The company provides security, storage, servers, networking, mobile development, email, and remote computing services through its cloud platforms. It caters to various industries and sectors, such as automotive, advertising & marketing, education, consumer packaged goods, government, financial services, energy, gaming, NGOs, media & entertainment, healthcare & life sciences, manufacturing, retail, telecom, travel & hospitality, and power & utilities. Amazon Web Services, Inc. designs its services for various firms, including enterprises, the public sector, startups, and small & mid-sized businesses. The company offers solutions for Blockchain, storage, end-user computing, IoT, machine learning, cloud financial management, gaming, satellite, media & governance, quantum technologies, robotics, and migration & transfer. It offers digital solutions through various delivery methods, such as Amazon Machine Image, SaaS platforms, data exchange, and helm charts. As of June 2022, the company had over 310,000 active clients and over 1,600 software vendors. The company’s client base includes companies such as John Holland Group Pty Ltd, Carrier, and INVISTA. In addition, the company provides training & certifications for various AWS tools and cloud computing. Moreover, it offers classroom or digital training for several roles, such as developer, architect, cloud practitioner, and operator.

• AVEVA Group Plc - AVEVA Group plc provides industrial and engineering software. The company’s offerings include process engineering & simulation, asset maintenance, asset analysis, industrial information management, supply chain scheduling, network & distribution optimization, and operations optimization, among others. The company’s product portfolio includes AVEVA E3D Design, AVEVA System Platform, AVEVA Insight, AVEVA InTouch HMI, and more. The company caters to the incumbents of various industries and industry verticals, including infrastructure, life sciences, pulp & paper, steel fabrication, oil & gas, and marine. AVEVA Group plc has a global presence spanning countries, such as the UK, the U.S., Canada, Germany, France, South Korea, China, India, Japan, the Netherlands, and Russia. The company’s subsidiaries include Schneider Electric Software Chile S.p.A., Schneider Electric Software Mexico SA de CV, Schneider Electric Software Argentina S.A., Schneider Electric Software Canada Inc., Schneider Electric Software Germany GmbH, Schneider Electric Software Middle East FZE, Schneider Electric Software RU, and Schneider Electric Software GB Limited, among others.

• Dassault Systèmes - Dassault Systèmes is a software company that provides businesses and people with a virtual world. The company has organized its brands under four quadrants. The first quadrant is for social and collaborative applications and includes the brands 3DEXCITE, CENTRIC PLM, and ENOVIA. The second quadrant is for 3D modeling applications and includes the brands SOLIDWORKS, CATIA, GEOVIA, and BIOVIA. The third quadrant is for simulation applications and includes the brands SIMULIA, DELMIA, and 3DVIA. The fourth quadrant is for information intelligence applications and includes the brands NETVIBES and MEDIDATA. The company caters to the incumbents of various industries and industry verticals, including transportation & mobility, marine & offshore, consumer goods & retail, aerospace & defense, life sciences, and financial & business services, among others.

• GE DIGITAL - GE Digital is a software-based company that focuses on carbon emission management, analytics, asset performance, predictive management, geospatial asset management, operations performance management, and distribution operations, among others. The purpose of these applications is to assist industrial clients in raising the productivity and dependability of business operations and assets. In the IIoT, GE Digital is engaged in networking and tracking industrial systems and equipment to obtain operational insights. The IIoT solutions assist businesses in asset management, manufacturing procedure optimization, and preparing for and mitigation of equipment issues. The company offers its products to various industries, such as automotive, manufacturing, utilities, power generation, telecommunication, mining, and metals. The company has marked its presence across Europe, North America, Asia Pacific, and Middle East.

• General Electric - General Electric is a global high-tech company, which offers steam power systems, gas power systems, commercial engines, turbomachinery & process solutions, digital solutions, healthcare systems, lighting systems, and energy systems, among other product offerings. The company also offers financial services and insurance services. General Electric’s operating segments include Power, Renewable Energy, and Aerospace. The Power segment has been categorized into two business portfolios, namely gas power and power portfolio. The business portfolio of the aerospace segment has been categorized under commercial, military, and systems & other. Lastly, the business portfolio of the Renewable Energy segment has been categorized under onshore wind, grid solution equipment and services, hydro solutions, offshore wind, and hybrid solutions. The company's GE Ventures subsidiary invests in innovative solutions in the industrial landscape. The company’s portfolio companies include Advanced Microgrid Solutions, Element Analytics, Ambyint, Nexar, and Sentiment. General Electric has 82 manufacturing plants located across 28 U.S. states and Puerto Rico along with 149 manufacturing plants located in 34 other nations.

• Hexagon AB - Hexagon AB is engaged in providing Information technology (IT) solutions that can potentially help in increasing the quality and productivity of the industrial landscape. The company’s product portfolio comprises mobile mapping technologies, laser scanners, stationery & portable equipment used in manufacturing fields, coordinate measurement machines, laser trackers, and software used for 3D modeling & computer-aided design. The company’s product offerings are used across a broad range of industries and industry verticals, including safety & security, infrastructure & construction, power & energy, and electronics & manufacturing, among others. Hexagon AB conducts its businesses through two operating segments, namely Industrial Enterprise Solutions (IES), and Geospatial Enterprise Solutions (GES). The IES segment includes the manufacturing intelligence and PPM divisions while the GES segment includes positioning systems, geosystems, and safety & infrastructure divisions. Hexagon AB has a geographical presence spanning Europe, the Americas, Asia, and Middle East & Africa. Some of the company’s primary R&D centers are located in Switzerland, China, India, and the U.S.

• International Business Machines (IBM) Corp. - IBM Corporation is a global Information Technology (IT) company that provides software and solutions for digital technologies. The services offered by the company include business process & operations, cloud services, digital workplace services, technology support services, business resilience services, network services, application services, and security services. The company operates through five business segments, namely Cloud & Cognitive Software, Global Business Services, Global Technology Services, Systems, and Global Financing. The Cloud & Cognitive Software segment consists of three business divisions, namely Cognitive Applications, Cloud & Data Platforms, and Transaction, while the Global Business Services segment consists of Application Management and Global Process Services divisions. The Global Technology Services segment consists of Infrastructure & Cloud Services and Technology Support Services divisions, while the Systems segment consists of Systems Hardware and Systems Operating Software divisions. The Global Financing segment deals with financing, primarily conducted through IBM Credit LLC (IBM Credit), remanufacturing, and remarketing.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Digital Twin Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Digital Twin Market Report Assumptions:

• The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.