The digital twin market is projected to reach USD 20.60 billion by 2023, at a CAGR of 28.5% during the forecast period. Digital twins are digital replications of physical entities, such as machines, industrial processes, and products. Digital twins are used to monitor and optimize the performance, and to predict the failure of machines and systems.
They are used in applications such as asset tracking, predictive maintenance, and remote monitoring. The increasing demand for digital twins from various industries such as automotive, aerospace & defense, healthcare, manufacturing, oil & gas, and others is driving the growth of the digital twin market.
Recent Developments in Industry
- The global Digital Twin Market is expected to grow at a CAGR of 30.0% during the forecast period (2020-2025).
- The increasing adoption of digital twin technology in the manufacturing, aerospace & defense, healthcare, and automotive sectors is driving the growth of the digital twin market.
- The increasing focus of organizations on predictive maintenance and the increasing demand for cloud-based solutions are expected to provide opportunities for the growth of the digital twin market.
- The high cost of digital twin technology is a key factor restraining the growth of the market.
- The major players in the digital twin market are IBM Corporation, Microsoft Corporation, Oracle Corporation, PTC Inc., Siemens AG, and Autodesk Inc.
The global digital twin market is highly competitive and fragmented due to the presence of numerous small and large players operating in the market. Key players in the global digital twin market include Siemens AG, IBM Corporation, SAP SE, PTC Inc., Microsoft Corporation, Oracle Corporation, Autodesk Inc., AVEVA Group plc, Dassault Systèmes, and HPE.
These players are adopting various strategies such as mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their position in the global digital twin market. For instance, in November 2020, Siemens AG acquired Intetics Inc., a technology service provider, to expand its digital twin capabilities and enhance its offerings for its customers.
Similarly, in October 2020, IBM Corporation collaborated with Avnet and Arrow Electronics to enable customers to build their own digital twin solutions using IBM’s digital twin technology. Moreover, in August 2020, PTC Inc. launched its IoT platform, ThingWorx, to enable customers to extend their digital twin capabilities and enable them to develop innovative solutions.
To gain a competitive advantage, these players are also investing heavily in research & development activities to develop innovative digital twin solutions. For instance, in December 2020, SAP SE launched its digital twin
The digital twin market is segmented on the basis of component, application, end-user, and region. On the basis of component, the market is segmented into software, services, and platform. The services segment is expected to hold the largest market share during the forecast period.
The way forward
- Accelerated adoption of IoT and cloud technology: Companies should accelerate the adoption of IoT and cloud technologies in order to develop better digital twins. This will enable them to capture data more efficiently and with more accuracy.
- Increase investments in AI and ML-based solutions: Companies should invest more in AI and ML based solutions that can help them in creating digital twins that can provide real-time insights.
- Develop a comprehensive strategy: Companies should develop a comprehensive strategy to manage the development and deployment of digital twins across their organizations.
- Increase collaboration between industry players: Industry players should collaborate more in order to tap into the potential of digital twins. This will enable them to create more innovative solutions in a shorter time frame.
- Develop standards and regulations: Companies should develop standards and regulations that will enable them to use digital twins more effectively. This will help in increasing the adoption of digital twins and will also ensure their effective deployment.