The digital twin market is expected to reach USD 110.1 billion by 2028 from USD 10.1 Billion in 2023. The market will grow at a CAGR of 61.3% between 2023 and 2028.

Many companies have started implementing Digital Twin in their ecosystem. Recently, BMW and Renault have implemented digital twins in their manufacturing ecosystem, which helps create efficient manufacturing processes. The digital twin is not confined to a specific industry but is used to monitor and manufacture jets to manage smart cities. So, the scope and application of digital twins are vast. As the technology improves and matures, it may find more applications in different industries i.e. beyond the manufacturing ecosystem. Improving the supply chain, reducing operational costs, increasing demand from the healthcare industry, and adopting predictive maintenance are some factors helping grow the digital twin market. Complexity in terms of data collection and issues related to cyber threats are factors that are hampering the growth of the digital twin market.

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Predictive Maintenance Segment to hold the largest share of the digital twin market during 2023–2028
The predictive maintenance application is expected to account for the largest size of the digital twin market during the forecast period. Predictive maintenance offers substantial benefits in terms of cost savings, operational efficiency, and equipment uptime. Companies worldwide use digital twins for predictive maintenance; for instance, recently, rolls-royce, an automotive manufacturer, utilized digital twins to enhance engine efficiency, resulting in savings of 22 million tons of carbon emissions. Additionally, digital twins help Rolls-Royce improve maintenance, reducing customer interruptions. Moreover, factory manufacturing users use real-time sensor data and past performance to check equipment health and predict problems. This proactive method helps them plan maintenance, cutting down on unexpected downtime and repair costs. Further, Advances in AI make predictive maintenance with digital twins more effective and accurate.

Automotive & transport industry to dominate the market during the forecast period
The automotive & transportation industry is expected to account for the largest share of the digital twin market during 2023-2028. The automotive & transport industry operates with a highly interconnected and complex supply chain involving several components, suppliers, and manufacturing processes. Digital twins offer a real-time and comprehensive view of the entire supply chain, enabling better analysis, monitoring, and optimization of operations. This capability increases efficiency, improves overall supply chain management, and reduces downtime. Several Auto players have already adopted digital twin technology. BMW Group recently planned to use digital twin technology in its new iFactory production lines. These will aid in producing the upcoming 'Neue Klasse' electric vehicle series, planned for release in 2025, incorporating advanced digital assembly techniques. BMW plans to implement Digital Twins worldwide across its 31 production and assembly sites to boost efficiency and streamline production processes.

The Digital Twin market in North America is expected to maintain the highest share during 2023–2028
North America is expected to hold the largest share of the digital twin market throughout the forecast period. Technological developments in aerospace, manufacturing, and automotive sectors in countries such as the U.S., Mexico, and Canada augment production line effectiveness. North America is a major hub for technological innovations and an early adopter of new technologies. The presence of major regional players also boosts the demand and awareness regarding the digital twin technology. The move to automated production and ongoing investments in research and development to spur innovation in industrial processes are key drivers of North America's prosperity. In addition, the US government recently proposed a USD 285 million funding plan for studying "digital twin" chips in 2024. The funding aims to enhance semiconductor technology research further while increasing digital twin chips' performance and efficacy. They assist companies in realizing the full potential of digital twin technology and offer them a solid basis for their desire for it. The region's strong focus on the industrial and manufacturing sectors accounts for its leadership in the digital twin market.

The major players are General Electric (US), Microsoft (US), Siemens (Germany), Amazon Web Services (US), ANSYS (US), Dassault Systèmes (France), PTC (US), and Robert Bosch (Germany).