Digital twins enable organisations to get a virtual replica of physical assets, processes and systems through real-time data synchronization between the physical and digital worlds. Using digital twins, companies can optimise asset performance, improve process efficiency, reduce operating costs and develop new products and services. Digital twins find extensive applications across industries like manufacturing, healthcare, oil & gas, aerospace etc for predictive maintenance, remote monitoring, research & development and supply chain optimization. They play a pivotal role in Industry 4.0 initiatives by facilitating smart manufacturing through industrial IoT solutions.
The global Digital Twin Market is estimated to be valued at US$ 12.26 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends gaining traction in the digital twin market is the integration of AI and machine learning capabilities. By combining digital twin models with AI, companies can gain deeper insights from massive amounts of real-time and historical equipment data. AI algorithms can detect patterns, predict failures and optimize operations. This leads to reduced downtime and maintenance costs. Technologies like computer vision when integrated with digital twins also allow remote monitoring of physical assets without human intervention. With growing reliance on AI across industries, the convergence of digital twins and AI is expected to reshape asset and process management over the coming years.
Porter’s Analysis
Threat of new entrants: Low. High capital requirements and economies of scale pose significant barriers for new companies entering the digital twin market.
Bargaining power of buyers: Moderate. Large technology companies have significant bargaining power due to the volume of digital twins they require; however, switching costs deter changing vendors.
Bargaining power of suppliers: Low. The digital twin market has many technology companies that can supply digital twin solutions, reducing suppliers’ bargaining leverage.
Threat of new substitutes: Moderate. Emerging technologies like artificial intelligence and 3D printing may substitute some digital twin uses but not replace their core functionalities.
Competitive rivalry: High. Major technology companies fiercely compete based on pricing, functionality, and integration capabilities.
Key Takeaways
The Global Digital Twin Market Size is expected to witness high growth over the forecast period. The global Digital Twin Market is estimated to be valued at US$ 12.26 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030.
North America is expected to dominate the market during the forecast period due to rapid technological advancements and increasing adoption of digital twin technologies across industries in the region. Europe is anticipated to grow at a high rate between 2023 and 2030 owing to significant investments in digital twin projects by major European companies across various sectors. The U.S. accounts for the majority share due to a high focus on innovation. The adoption of digital twins is increasing across various industries such as aerospace, healthcare and automotive in the U.S. and Canada.
Key players: Key players operating in the digital twin market include Abbvie Inc. (Allergan Inc.), Episciences Inc., L’ORÉAL SA (SkinCeuticals International), and Pfizer Inc., among others. Abbvie Inc. (Allergan Inc.) focuses on developing skin care products, medical devices, and other aesthetics solutions with the help of its strong R&D arm. Episciences Inc. specializes in skin analysis and skin health management using non-invasive skin tests along with advanced data analytics.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it