Digital Twin Market Analysis Report By End Use, By Region And Segment Forecasts From 2018 To 2025

Industry Insights

The digital twin market size across the globe was valued at USD 2.26 billion in 2017. It is projected to witness a 38.2% CAGR over the forecasted years, 2018 to 2025. The increasing adoption of this technology across several industries for enhancing production layout, improving productivity, and lowering operational costs are projected to drive market growth.

The emergence of technologies like AI (Artificial Intelligence) and ML (Machine Learning) has revolutionized the global market. Further, rising demand for connected devices, high-speed internet, and cloud platforms are prevailing across several organizations. Thus, they have started adopting IoT solutions for their effective functioning, thereby generating demand for technologies like digital twins.

The adoption of digital twin platforms permits organizations to improve their processes and services by triggering their operational procedures. However, risks associated with these IoT and cloud platforms such as security breaches and cybercrimes are anticipated to hinder the market growth.

End-use Insights

In 2017, the residential & commercial end-use segment held the largest share across the global digital twin market. This can be attributed to its feature of capturing time-based and 3D implications of buildings, thereby offering a sustainable opportunity over other conventional methods. For example, an initiative named ‘Virtual Singapore’ undertaken by the government of Singapore is being considered as the first digital twin that allows its residents to leap forward towards the digital economy.

The end-user segment of automotive & transport is projected to witness significant growth with around 40.0% CAGR in the upcoming years. This growth can be attributed to the rising demand for connected vehicles prevailing across the globe. Also, the need for the creation of virtual models of connected vehicles, capturing behavioral and operational data, and analyzing vehicle’s performance is estimated to boost demand for digital twin technology.

Regional Insights

In 2017, Europe and North America jointly held a share of more than 50.0% across the global market. This can be associated with the rising number of organizations adopting these technologies across countries like the U.S., Canada, the U.K., and Germany. Also, increasing preference towards the usage of connected devices is anticipated to propel market growth in the upcoming years.

Asia Pacific is projected to witness the fastest growth with more than 40.0% CAGR from 2018 to 2025. This can be associated with the rising number of initiatives being undertaken by governing authorities of India, China, and Japan for the adoption of IoT technology. Further, a rising number of internet service providers, rapid industrialization, and reducing prices of modules and sensors are estimated to drive the market demand for digital twins across this region.

COVID-19 Impact Insights

The global market has been impacted due to the ongoing COVID-19 crisis. The imposition of lockdown across several countries is propelling the demand for VR and digital technologies. Thus, the need for virtual or digital replicas of products and physical assets is gaining traction among many organizations for testing and assessing purposes. Also, its feature of no physical contact with the product is estimated to contribute majorly towards the market growth in the pandemic as well as the post-pandemic period.

Digital Twin Market Share Insights

The global market includes key players such as PTC, Inc.; ABB Group; Dassault Systèmes; SAP SE; Siemens AG; and Schneider Electric SE. These players are constantly engaged in product development and innovation to gain a competitive advantage over other players.

Various technological advances are being undertaken for the adoption of the technology of digital twins. For example, General Electric uses this technology for assessing the maintenance and operational life of the jet engine components. They are also continuously focusing to boost the success rate for product innovation.

Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the global digital twin market on the basis of end-use and region:

• End-use Outlook (Revenue, USD Million, 2014 - 2025)
    • Manufacturing
    • Agriculture
    • Automotive & Transport
    • Energy & Utilities
    • Healthcare & Life Sciences
    • Residential & Commercial
    • Retail & Consumer Goods
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • The U.S.
        • Canada
    • Europe
        • The U.K.
        • Germany
        • France
    • The Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa