Digital Twin Market size is anticipated to reach USD 100 Billion by the end of 2035, growing at a CAGR of 44% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of digital twin was over USD 15 Billion. The primary growth factor of the market during the forecast period is the increasing digitalization of data and increasing use of the smart technology such as IoT (Internet of Things), AI (Artificial Intelligence, cloud, big data, and other advanced technologies in various areas of businesses. Globally, about 8 billion Internet of Things (IoT) devices are expected to exist in 2020, almost tripling to more than 28 billion IoT devices in 2030. As the creation of digital twin entails the virtualization of the physical twin using a variety of IoT sensors and above-mentioned digital technologies, the rising adoption of IoT devices is considered to be a positive factor influencing market growth in the upcoming years.
In the recent period, digital twin has been significantly adopted by manufacturing industries to reduce cost and improve supply chain operations. This factor is thus anticipated to bring in lucrative growth opportunities for market expansion during the forecast period. Also, digital twin is being highly adopted in the healthcare and life science sector owing to its great advantage in estimating the conclusion of procedures which results in fewer physical and real-world tests or process completions. Therefore, the rapid growth of the pharmaceutical industry is estimated to increase the adoption of digital twin in various healthcare facilities. Apart from high utilization rate in the healthcare industry, digital twin is also very much beneficial in other areas such as aerospace, military, aeronautical, biomedical, automotive, and maritime sectors. Various advantages of digital twin which includes high level of dependability and accuracy, accelerated risk assessment and production time, predictive maintenance, improved customer satisfaction and product quality have also increased the adoption rate of digital twin in various spectrum of across numerous industries which is projected to drive market growth during the forecast period.
Growth Drivers
Rise in the Demand for Digital Twin in the Healthcare and Pharmaceutical Sector - Digital twin in the healthcare and pharmaceutical sector is expected to reduce the time and cost spend in case of research experiments, and humans/animals testing. Hence the demand is anticipated to increase in the forecast period. Therefore, major key players are focusing on introducing digital twin in healthcare facilities for betterment and enhancement in patient’s experience. For instance, Philips has developed a heart model software with the help of digital twin technology which will create a virtual model of a patient’s heart. Owing to this a doctor would get a guidance in case of complex surgery from a cardiovascular specialist located in remote area.
Increasing Adoption of Digital Twin for Better Biopharma Logistics Efficiency - BioTwin, a company based in Canada, introduced BioTwin AI biomarkers and biometrics to create a simulated human copy. These digital twins enable the early detection and prediction of numerous diseases, as well as an infinite number of simulations. Through a "toolbox" ecosystem, this technology will revolutionize the wellness and healthcare sectors, allowing for personalized and preventive medicine.
Increasing Focus on Partnership and Product Launch - L&T Technology Services Limited announced the launch of next generation IoT-based engineering practice for manufacturing industry. LTTS has partnered with Microsoft and Bentley Systems to establish a Center of Excellence (CoE) that will address and accelerate new-age manufacturing companies' Digital Twin and Digital Thread requirements.
Favorable Government Initiatives for Transitioning Towards Digitalization – Governments of different nations are focusing on adopting internet services and integration of technologically advanced programs such as digital twin technology for advancement of businesses and growth. Thus, such favorable initiatives are expected to introduce new opportunities for market growth in the next few years. The European Commission is dedicated to creating a Europe fit for the digital age by equipping people, businesses, and governments with a new generation of technologies, where the digital transformation will benefit everyone.
Rise in Adoption of Industry 4.0 Around the World – Industry 4.0 has been in constant rise owing to its adoption in companies for revolutionizing of manufacturing process, improving and distributing their services and products. As a result, manufacturers are integrating new technologies, including Industrial Internet of Things (IIoT), cloud computing and analytics, AI, machine learning, and digital twin to facilitate their operations. In 2021, it was estimated that the global industry 4.0 generated almost USD 115 billion and is projected to grow and reach almost USD 400 billion in 2029 with a CAGR of 16% during the period.
Challenges
|
Base Year |
2022 |
|
Forecast Year |
2023-2035 |
|
CAGR |
~44% |
|
Base Year Market Size (2022) |
~ USD 15 Billion |
|
Forecast Year Market Size (2035) |
~ USD 100 Billion |
|
Regional Scope |
|
Product (Augmented Reality & Virtual Reality, IoT & IIoT, Artificial Intelligence & Machine Learning, Big Data Analytics)
The global digital twin market is segmented and analyzed for demand and supply by product into augmented reality & virtual reality, IoT & IIoT, artificial intelligence & machine learning, big data analytics, and others. Out of these segments, the augmented reality & virtual reality segment is estimated to gain the largest market share of about ~35% in the year 2035. The primary factor for segment growth is the rising popularity of augmented reality & virtual reality in the recent period owing to its greatest advantages and benefits for attracting customers and revenue generation. Recent statistics of a report stated by the end of 2023, there is estimated to be approximately 110 million augmented reality users and 170 million virtual reality users across the world. The implementation of virtual reality (VR) and augmented reality (AR) requires technologically advanced programs such digital twin for effective operation, thus with the rising adoption rate of VR and AR is projected to increase market size along with segment size. Furthermore, augmented reality and virtual reality is in high demand from various industries such as gaming, information technology (IT), architecture, military, archaeology which is also anticipated to bring in favorable opportunities for expansion of segment size in the upcoming years.
Deployment (Cloud, On-Premises)
The global digital twin market is also segmented and analyzed for demand and supply by deployment into cloud and on premise. Amongst these two segments, the cloud segment is expected to garner a significant share of around ~61% in the year 2035. The main reason for segment growth is the rising adoption rate of cloud services owing to its advantages across a wide spectrum of industries as well as rapid increase of data being generated every day. It has been predicted from the recent data that the rate of cloud adoption spending is estimated to increase to around USD 485 billion by the end of 2023. Also, the cloud computing industry is projected to reach approximately USD 950 billion by 2026. Furthermore, the various advantages offered by cloud solutions are propelling large scale enterprises along with medium and scale enterprises as cloud services are very much effective in ensuring advanced identity protection and reducing the chances of cyberattacks and cyber-crimes in the long run. For instance, in the year 2021, more than 65% of global enterprise infrastructure was cloud-based. All these factors couple up to positively contribute towards segment growth in the assessment period.
Our in-depth analysis of the global market includes the following segments:
|
By Type |
|
|
By Product |
|
|
By Function |
|
|
By Deployment |
|
|
By Component |
|
|
By Enterprise |
|
|
By End-User |
|
North American Market Forecast
The market share of digital twin in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~41% by the end of 2035, backed by the growing dependence on online systems, internet services, advanced programs, and penetration of a huge amount of data in the region. It has been estimated that more than 90% of the Americans have access to internet services. Also, in 2019, it was being calculated that the United States region ranked third in the world for the number of around 320 million internet users. In addition to the other factors, the presence of major key players in the region along with the rising focus of the government regarding the implementation of digital twin services for facilitating a better manufacturing process with enhanced distribution of products and services among the population are also some of the factors that are considered to positively contribute towards market growth in the region during the forecast period.
APAC Market Statistics
The Asia Pacific digital twin market is estimated to be the second largest, registering a share of about ~26% by the end of 2035. Ability to enhance planning and maintaining sustainable infrastructure is the major factor expected to drive market growth in the region. In India, the state of Andhra Pradesh is constructing Amaravati, its new capital, as the first city designed from the ground up with a digital twin. The system will enable government officials to manage the permitting process, monitor construction progress, and evaluate design plans, allowing them to better understand how buildings will respond to the hot and humid climate.
Europe Market Forecast
Further, the market in the European region, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The expansion of the information technology and communications (ICT) industry, along with the escalation of initiatives taken by the European government are primary factors for expansion of market size in the next few years. Also, the rapid development of industries present in the region is anticipated to increase the demand for digital twin during the assessment period.
Atos SE along with Siemens have joined hands together to build ‘Process Digital Twin’. It is a twin technology which is integrated with IoT, AI and Advanced Analytics for improving efficiency and flexibility in the manufacturing of pharmaceutical products.
ANSYS, Inc. along with ENGIE Lab CRIGEN is employing Ansys' digital twin solution for helping companies transition to carbon-free energy and cut costs, time along with environmental impact.
Author Credits: Abhishek Verma, Hetal Singh
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?