Digital Twin Market Growth & Trends
The global digital twin market size is anticipated to reach USD 86.09 billion by 2028, according to a new study by Grand View Research Inc. It is projected to register a CAGR of 42.7% from 2021 to 2028. The spread of COVID-19 has expedited the adoption of digital twins in specific end-use industries. To work at minimum labor count with social distancing norms, end-user industries such as healthcare, agriculture, and government offices, have implemented digital twin technologies across several countries. Thus, the pandemic has resulted in providing impetus to digital twin adoption to be better prepared for any such crises in the future.
The use of a replica of an equipment or system helps improve the system’s productivity, optimize resource consumption, and ensure that the product handling is kept at a minimum, helping large organizations improve quality and productivity. Additionally, the use of digital twins also supports new business models and offers opportunities for SMBs to expand and include technological capabilities in their organizations. Owing to the benefits of a digital twin to large and small firms alike, their demand is anticipated to expand at a healthy CAGR over the next seven years.
The growing popularity of Artificial Intelligence (AI), Machine Learning (ML), and Internet of Things (IoT), coupled with the continued automation in various industries, such as automotive, defense and aerospace, and healthcare, is prompting the manufacturers to implement digital twins in their manufacturing processes to enhance their productivity and reduce the time-to-market. Furthermore, end-use industries are increasingly demanding digital twin portfolios capable of addressing specific requirements, and the leading market players are responding to this growing demand by offering different digital twin solutions tailored for specific end-use industries. Individualized digital twins are prompting end-users to adopt digital twins across their value chain, thereby driving the market growth.
Digital Twin Market Report Highlights
- Owing to the increasing adoption of digital twin platforms across the supply chain of automotive production and selling, especially post COVID-19 pandemic, the automotive and transport segment is projected to expand at a CAGR of more than 50% over the forecast period
- Europe accounted for more than 30% of the overall market in 2020. This is attributable to the high penetration of IoT in the region, especially in Western Europe
- Key players in the market are adopting inorganic strategies to kill competition and acquire a larger market share. For instance, in January 2019, Hexagon AB announced the acquisition of j5 International, a software developer of operations management software. The acquisition would help in enhancing the company’s HxGN SDx portfolio used to create and manage digital twin