Digital Twin Market 2030: What Will Be Changes In Investment Ratio With Opportunity Analysis??

Posted by Mrudula Anil Karmarkar on April 24th, 2024

San Francisco, 24 April 2024: The ReportDigital Twin Market Size, Share & Trends Analysis Report By Solution (Component, Process, System), By Deployment (Cloud, On-premise), By Enterprise Size, By Application, By End-use, By Region, And Segment Forecasts, 2024 - 2030

The global digital twin market size is projected to reach USD 155.84 billion by 2030, registering a CAGR of 35.7% from 2024 to 2030, according to a new study by Grand View Research Inc. Increasing public and private investments in digital transformation solutions, rising significance of smart factories, and global proliferation of cloud-based platforms are collectively contributing to market growth. The digital twin facilitates enterprises to efficiently reduce expenses and increase revenue. Various factors, such as social media, cloud computing, and process automation, also contribute to the use of digital twins to increase process efficiency and propel market expansion.

The emergence of advanced technologies, such as robotic process automation (RPA), the Internet of Things (IoT), artificial intelligence (AI), cloud computing, and big data analytics is creating a positive outlook for the market. Implementing IoT in manufacturing allows electronic devices to communicate with each other without any human interference within a prevailing internet infrastructure. Therefore, IoT could have a profound impact on the digital twin industry. IoT allows connected devices to interact with each other and exchange critical notifications, such as defective or damaged ping, supporting market growth. Several industries have adopted digital twin technology.

For instance, a new packaging machine can be tested virtually before being introduced commercially. At the same time, a fan motor of an industrial HVAC unit can also be tested virtually before it is installed. Digital twins enable end-users to conduct tests on the product while enhancing the digital world’s decision-making capabilities. Digital twins are rapidly gaining momentum in the healthcare, automotive, and manufacturing industries. Various digital twin platform-developing companies have launched different solutions to cater to specific business areas. High demand for automation in various industries is anticipated to trigger market growth over the forecast period.

Digital twin technology is gaining traction owing to its potential to bridge the gap between the physical and virtual worlds. The global market is expected to grow significantly over the forecast period in line with the growing adoption of the Internet of Things (IoT) and big data analytics and the growing need to ensure cost-efficient operations, optimized processes, and reduced time to market. Moreover, digital twins would continue to evolve in line with innovations in virtual reality and augmented reality, thereby boosting the market's growth. Increasing public and private investments in digital transformation solutions are creating robust opportunities for market growth. Countries, such as the U.S., India, Australia, Brazil, Saudi Arabia, and South Africa, are significantly investing in digital transformation solutions to accelerate digitization.

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Moreover, the growing demand for cloud-based digital applications due to factors like cost-effectiveness, ease of access, and flexibility in terms of usage is encouraging market players to develop and provide advanced cloud-native digital twin solutions. Implementing emerging technologies, such as cloud computing, big data, artificial intelligence (AI), IoT, and machine learning (ML), in digital twin solutions is anticipated to boost market growth during the forecast period. Various end-user companies are deploying IoT and AI technologies to collect and interpret data from connected devices, which can be later used in digital twin models to replicate the operation and performance of the existing device. This assists designers & engineers to monitor performance, identify issues, and predict any iterations of common problems.

Digital Twin Market Report Highlights

• In terms of solution, the process segment is anticipated to grow at the fastest CAGR of 37.5% from 2024 to 2030. The digital twin technique can be applied to several tasks, including tracking device performance, anticipating maintenance needs, and identifying potential issues, all of which will contribute to the segment's growth
• The cloud-based deployment segment is expected to register the fastest CAGR from 2024 to 2030. Cloud-based systems lower maintenance costs and installation expenses for physical equipment, giving businesses greater flexibility and cost-effectiveness
• The small enterprises segment is expected to register the fastest CAGR from 2024 to 2030. SMEs are increasingly using digital twin technologies to reduce expenses associated with product development and to easily access reasonably priced solutions
• The product design & development segment is expected to register the fastest CAGR from 2024 to 2030. A digital twin solution is in demand in product design and development due to various factors, such as helping engineers and designers visualize design concepts, reviewing manufacturing processes with computer-aided manufacturing (CAM) software, and simulating design performance
• The automotive and transportation industry is expected to register the fastest CAGR from 2024 to 2030. The automotive and transportation industries use digital twin solutions to maximize vehicle performance while reducing maintenance costs and downtime
• Asia Pacific is expected to register the highest CAGR from 2024 to 2030. The market is growing due to the substantial entry of international competitors, use of digital twin technologies in the industrial sector, and the spread of cloud platforms
• Market players are adopting various business strategies to attract potential clients and achieve higher profitability from this potential market
• For instance, in January 2023, IBM and Adobe Inc. announced a strategic partnership to offer next-generation digital transformation solutions for streamlining and optimizing organizations' supply chain & order management process by offering digital commerce experience to the customer from real-time tracking of inventory to the tracking of customer data for better end-user experience

The integration of these emerging technologies also helps companies in enhancing system productivity and operations, thereby driving market growth. Companies are focusing on deploying digital twin solutions to optimize their operational processes and supply chains to recover financial losses. Growing demand for digital twin solutions is encouraging industry players to improve their product portfolio and geographic expansion to achieve higher profitability from the market. For instance, in June 2023, a software company, Matterport, Inc., partnered with technology solution distributor CompuSoluciones to accelerate the sales of its digital twin solutions in key regions of Latin America, such as Mexico and Columbia.

With these partnerships, CompuSoluciones will offer Matterport, Inc.’s D cameras and digital twin solutions to various SMEs in Latin America. End-user industries, such as manufacturing, automotive, aerospace, defense, residential & commercial, and retail & consumer goods companies, can obtain greater insights into the features, qualities, specifications, and utilization of the products. Defense organizations are focused on developing their digital & IT infrastructure and the digital twin, which helps them accomplish better communication, thereby driving market growth.

Digital Twin Market Report Scope

For instance, in February 2024, Matterport, a software development company, partnered with Arcadus, an engineering and consulting services provider, to facilitate digital twin products to federal, state, and local agencies. Using the platform, agencies can remotely oversee operations and generate realistic, interactive 3D models of assets that comply with federal regulations. With the new contract, Arcadus would offer Matterport's three primary solutions in property marketing, design and construction, and facilities management, making it the first reseller of the company's digital twin platform for the public sector.

List of Key Players of Digital Twin Market

• ABB Group
• Amazon Web Services, Inc.
• ANSYS, Inc.
• Autodesk Inc.
• AVEVA Group plc
• Bentley Systems Inc.
• Dassault Systemes
• General Electric
• Hexagon AB
• International Business Machines Corporation
• Microsoft Corporation