by The Digital Twin Market is estimated to be valued at US$ 12.26 Bn or Billion in 2023 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Digital twins are digital representations or simulations of physical objects or systems across their lifecycles. They help businesses optimize products, processes and services by providing insights to make informed decisions. Digital twins provide virtual models of tools, plants, infrastructure and product development processes to predict performance, locate inefficiencies and support remote monitoring.
Market key trends:
The rising adoption of industrial Internet of Things (IIoT) is expected to drive the global digital twin market growth over the forecast period. IIoT enables collecting real-time data from sensors and devices which is further used to develop digital twins. Digital twins powered by IIoT can effectively model and optimize industrial operations. They can help analyze real-time machine performance and predict maintenance needs, downtimes and equipment failures. This improves production efficiency and reduces costs. IIoT also facilitates remote monitoring of plants and machinery using digital twins, which has gained more importance amid the COVID-19 pandemic.
Porter’s Analysis
Threat of new entrants: The Global Digital Twin Market requires high capital investment and technologies that pose barriers for new companies.
Bargaining power of buyers: There is a large buyer base for digital twin solutions across various industries which reduces their individual bargaining power.
Bargaining power of suppliers: Major digital twin suppliers continue to invest in R&D and offer tailored solutions giving them advantage over buyers.
Threat of new substitutes: Alternatives like data analytics tools are available but digital twins provide integrated simulations that cannot be easily substituted.
Competitive rivalry: Major players differentiate based on industry expertise and continuous product innovations keeping the competition intense.
SWOT Analysis
Strengths: Digital twins leverage real-time data to enable predictive maintenance and reduce downtime. They provide cost savings through remote monitoring and process optimization.
Weaknesses: High costs associated with development and maintenance of digital twins. Lack of compatibility standards for connecting real world assets to their virtual replicas.
Opportunities: Growth in IoT, connectivity and cloud adoption is expanding scope of digital twins across industry value chains. Increasing acceptance in emerging applications like smart cities and healthcare.
Threats: Concerns around data privacy and security with increased usage of real-time sensor data. Regulatory challenges for cross-border data flows limit global implementations.
Key Takeaways
The global digital twin market is expected to witness high growth, exhibiting CAGR of 4.2% over the forecast period, due to increasing focus on predictive maintenance and remote asset management across industries. By 2030, the market size is projected to reach US$ 214.13 Bn.
Regional analysis North America and Europe collectively accounted for over 60% market share in 2023 due to advanced technologies adopted by manufacturing companies. However, Asia Pacific is emerging as the fastest growing region with government initiatives for smart infrastructure development in major countries like China and India.
Key players operating in the digital twin market are SAP SE, Siemens AG, ANSYS, Inc., Hitachi LtD, Microsoft Corporation. These players are focused on developing industry-specific digital twin solutions and strengthening cloud and IoT platforms to gain more customers and expand globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
