The global digital twin market size was valued at USD 11.12 billion in 2022 and is projected to grow at 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.
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.
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.
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.
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.
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.
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.
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
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. |
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.
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
b. The global digital twin market size was estimated at USD 11,126.2 million in 2022 and is expected to reach USD 16,753.8 million in 2023.
b. The global digital twin market is expected to grow at a compound annual growth rate of 37.5% from 2023 to 2030 to reach USD 155,839.4 million by 2030.
b. North America accounted for 35.14% revenue share in 2022 in the digital twin market 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.
b. The residential & commercial segment captured a share of 9.14% in 2022. 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 solutions include ABB Group; Hexagon Geosystems AG; General Electric; Dassault Systèmes; AVEVA Group plc; SAP SE; Schneider Electric SE; IBM Corporation; and Siemens AG.
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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.
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