The global digital twin market size was estimated at USD 16.75 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 35.7% from 2024 to 2030.
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.
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.
Gather more insights about the market drivers, restrains and growth of the Digital Twin Market
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
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• The global generative AI coding assistants market size was estimated at USD 18.6 million in 2023 and is projected to grow at a CAGR of 25.8% from 2024 to 2030.
• The global IoT platform market size was estimated at USD 11.10 billion in 2023 and is projected to grow at a CAGR of 12.7% from 2024 to 2030.
Digital Twin Market Segmentation
Grand View Research has segmented the global digital twin market on the basis of solution, deployment, enterprise size, application, end-use, and region:
Digital Twin Solution Outlook (Revenue, USD Billion, 2018 - 2030)
• Component
• Process
• System
Digital Twin Deployment Outlook (Revenue, USD Billion, 2018 - 2030)
• Cloud
• On-premise
Digital Twin Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)
• Large Enterprises
• Small and Medium Enterprises (SMEs)
Digital Twin Application Outlook (Revenue, USD Billion, 2018 - 2030)
• Product Design & Development
• Predictive Maintenance
• Business Optimization
• Others
Digital Twin End-use Outlook (Revenue, USD Billion, 2018 - 2030)
• Manufacturing
• Agriculture
• Automotive & Transport
• Energy & Utilities
• Healthcare & Life Sciences
• Residential & Commercial
• Retail & Consumer Goods
• Aerospace
• Telecommunication
• Others(Aerospace & Defense, Mining, Financial Services)
Digital Twin Regional Outlook (Revenue, USD Billion, 2018 - 2030)
• North America
o U.S.
o Canada
• Europe
o UK
o Germany
o France
• Asia Pacific
o India
o China
o Japan
o Australia
o South Korea
• Latin America
o Brazil
o Mexico
• Middle East & Africa (MEA)
o UAE
o Saudi Arabia
o South Africa
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