Digital Twin Market Size, Share & COVID-19 Impact Analysis, By Type (Parts Twin, Product Twin, Process Twin, and System Twin), By Application (Aircraft Engine Design and Production, Space-Based Monitoring, Fleet Management, Vehicle Designing & Simulation, Medical Device Simulation, and Others), By End-Users (Aerospace & Defense, Automotive & Transportation, Electronics & Electrical/Machine Manufacturing, Healthcare, Retail, Energy & Utilities, Home & Commercial, IT and Telecom, and Others) and Regional Forecast, 2021-2028

The global digital twin market size was USD 5.30 billion in 2020. The impact of COVID-19 in the market has been adverse, with solutions witnessing a declining demand across the region during the pandemic. Based on our research, the global market exhibited a substantial growth of 28.5% in 2020, as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 6.90 billion in 2021 to USD 72.35 billion in 2028 at a CAGR of 39.9% during the 2021-2028 period. The sudden decline in Compound Annual Growth Rate (CAGR) is attributable to this market’s growth and demand, returning to pre-pandemic levels once the crisis is over.

Digital twin includes four core technologies including internet of things (IoT), cloud, extended reality (XR), and artificial intelligence. These technologies allow for the creation of a digital representation, collection and storage of real-time data, and provision of important insights based on the information gathered. With the rising adoption of these technologies across twin type solutions, the market is expected to grow at a substantial growth rate. For instance,

• May 2020: Siemens AG and Atos, extended their customer relationship agreement to launch Process Digital Twin, a digital twin solution for the pharmaceutical industry. This solution is enabled with AI, IoT, and Advanced Analytics technologies that create a digital replica of the pharmacy production process to provide flexibility in the manufacturing of pharmaceutical products.

The digital twin market growth anticipated is owing to increasing investment by market players to advance their product offerings and expand their business geography globally. For instance,

• In November 2020, Bentley Systems invested around USD 100 Million to boost the infrastructure of digital twins’ offerings.

COVID-19 Impact

Rising Investment in IT Projects have Augmented Demand amid Pandemic

Considering various preliminary indicators from the post COVID-19 pandemic, a decline is witnessed in the overall demand for a digital solution across various industries. Also, owing to the pandemic, various business strategies and projected investment situations, and others are on hold owing to lack of operability. The stance for the twin type market size in the year 2021 and beyond, remains uncertain. However, during the first quarter of 2021, key players in the market are adopting various strategies to restructure their business model and expand their commercial globally. For instance,

• In May 2021: Microsoft Corporation collaborated with Aera Technology, an automation company that provides digital technology solutions. Through this collaboration, the company aims to integrate Microsoft Azure’s digital twins with Aera's cognitive operating system to create a virtual representation of a physical entity in the automation process.

During the short-term impact, the market is expected to grow with sloppy growth in the coming years (2020-2023). High investments by various key players and governments in IT projects are likely to create growth of the digital solutions, as it is one of the significant technologies in automation. For occurrence,

• According to Invest India.gov, key companies and governments globally invested around USD 17 billion in 2017 and is projected to spend around USD 60 billion by 2021. This investment is driven largely by electronics and the healthcare industry in countries such as Germany, Italy, the U.K., India, Japan, South Korea, China, and others.

LATEST TRENDS

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Adoption of Product Twin across Healthcare & Life Science Sector to be Emerging Trend

The incorporation of twin solutions across the healthcare & life science sector is considered as one of the emerging trends. These solutions are increasingly deployed across the pharmaceutical sector to estimate the conclusion of procedures, resulting in fewer physical and real-world tests or process completions. These factors assist healthcare users to develop and authenticate drug applicants. According to the Swedish Digital Twin Consortium, product twin solutions are in the emerging phase and could be used to personalize healthcare treatment. The aim is to develop secure network models and then match those twins computationally.

With the rise in awareness of the digital solutions, key players are engaged in developing digital models for life science research and development. For instance,

• Hewlett Packard Enterprise used its supercomputer to develop digital models of the brain for research purposes in collaboration with Ecole Polytechnique Fédérale de Lausannes (EPFL).

DRIVING FACTORS

Advancement in Technology such as IoT, AI, Cloud, and others, to Drive Adoption

Internet of things (IoT), is one of the primary technologies used in all virtual twin applications. Data from real-world entities are collected and utilized to generate a digital duplicate of the physical object. This information collected is further studied, and optimized to create valuable insights. The increasing adoption and need for IoT technology across various industries are expected to drive the growth of the market. End-use enterprises are increasingly adopting digital solutions based on IoT technology. For instance,

• According to a survey published by Gartner in February 2019, 75% of enterprises are already using or plan to use digital twins enabled with IoT. Of which 13% of firms have already started using digital twins, while the remaining 62% of them are either under the process of implementing digital twins or planning to do so.

Moreover, the growing advancement in technologies such as Artificial Intelligence (AI), cloud, 3D simulation and 3D printing software, and others, is predicted to boost the demand.

RESTRAINING FACTORS

Concerns of Privacy and Security to Impede Adoption of Twin Solution

The demand for virtual twin solutions based on technologies such as the IoT, big data, cloud, and artificial intelligence is becoming more common in industries. For developing the physical twin, the solution involves the integration of multiple IoT sensors and other digital technologies. With the increasing number of IoT sensors and electronic programmable devices, there is an augmented risk of security, compliance, and data protection, as well as legislation.

There might be a high prospect of some anonymous individual or a hacker effortlessly stealing the information of mechanisms owing to a lack of privacy-related rules. Increasing concerns of privacy and security are predicted to affect the demand across healthcare, government, and critical infrastructure sectors.

SEGMENTATION

By Type Analysis

Adoption of Product Twin across Healthcare to Boost Segment Growth

Based on the type, the market has been bifurcated into parts twin, process twin, product twin, and system twin.

Amongst them, the product twin is predicted to capture the key share during the expected period. The growth in the segment is owing to the rising demand for IoT sensors, and electronic manufacturing devices across the healthcare industry. According to IoT World Today in March 2021, virtual twin is highly adopted across the healthcare industry to develop advanced product twin applications. In healthcare, technology has begun to aid doctors in better understanding patient diseases, including novel ones like COVID-19's effect on the lungs.

The twin is expected to grow at a substantial progress rate during the projection period (2021-2028). The incorporation of extended reality technology and predictive analysis tools has driven the demand across electronics & electrical/machine manufacturing, automotive & transportation, and others.

By Application Analysis

Rising Demand for Twin Solutions across Space-Based Monitoring to Boost Segment Growth

Based on the application, the market has been bifurcated into aircraft engine design and production, space-based monitoring, fleet management, vehicle designing & simulation, medical device simulation, patient monitoring, wind & gas turbines, and power infrastructure.

The space-based monitoring is expected to grow at a considerable growth rate during the prediction period (2021-2028).

The aerospace & defense market is divided into aircraft engine design and production and space-based monitoring.

The automotive & transportation market is separated into fleet management, vehicle designing & simulation.

The healthcare market is distributed into medical device simulation, patient monitoring. The energy & utility market is allocated into wind & gas turbines, and power infrastructure.

By End-user Analysis

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Adoption of 3D Simulation and 3D Printing Software Across Automotive & Transportation to Boost Growth

Based on the end-user, the marketplace has been bifurcated into home & commercial, electronics & electrical/machine manufacturing, automotive & transportation, aerospace & defense, retail, healthcare, energy & utilities, IT and telecom, and others.

Among the segments, automotive & transportation are forecast to hold the major part during the anticipated period. The growth in the section is owing to the increasing demand for 3D simulation and 3D printing software across applications such as fleet management, vehicle designing & simulation. Other segments such as aerospace & defense, retail, healthcare, energy & utilities, IT and telecom, and others, are expected to rise with a significant growth rate. The growth is owing to rising adoption of automation technologies such as robotic process automation (RPA), industry 4.0, and others. The rising adoption of these technologies would create opportunities for key players to develop customized solutions to cater to end-users.

REGIONAL INSIGHTS

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Geographically, the market is divided across five major regions, namely, North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

North America is predicted to develop with momentous CAGR during the forecast period (2021-2028). As the end-users across industries such as healthcare, home & commercial, and others, in the U.S. are investing to adopt parts twin and product twin. Moreover, the U.S. and Canada mark the presence of key providers such as IBM Corporation, Microsoft Corporation, Oracle Corporation, Cisco Systems, Inc., and others. Players in the market are involved in mergers and partnerships with technology providers to strengthen their product offerings and escalate the client base. For instance,

• In June 2020: Siemens AG and IBM Corporation expanded their long-term partnership and announced the availability of an advanced solution that combines elements of IBM Maximo portfolio and Siemens’ Xcelerator. The solution is used to enhance the Service Lifecycle Management (SLM) assets by developing a digital thread between equipment manufacturers, product design, and project owners to increase production capacity.

Asia Pacific is likely to grow with the uppermost CAGR during the prediction period (2021-2028). End-users across manufacturing processes in countries such as China, India, Japan, South Korea, South East Asia, and others, are increasing their venture investment to adopt twin technologies.

The market in the Asia Pacific is highly industrialized. The growth in the region is attributable to the presence of a huge number of end-users in industries such as automotive & transportation, electronics & electrical/machine manufacturing, healthcare, and others. China is the leading country in adopting the virtual twin.

The Latin American market is in the emerging phase, owing to growing investment done by local government and global key players in energy & utility sectors. Key players in the market are aiming on escalating their terrestrial presence across Caribbean nations by offering twin types enabled with innovative technologies.

The market in the Middle East and Africa is in the developing phase, owing to an increasing number of start-ups and domestic players such as Vervelogic, XPLOR, and others. These companies are investing in the advancement of twin type based on cloud services.

KEY INDUSTRY PLAYERS

Key Players Developing Twin Platform to Strengthen their Positions

SAP SE, Siemens AG, ANSYS, Inc., Hitachi Vantara, Dassault Systèmes SE, and others are the prominent players in the market. The share of these companies is owed to their constant expansion in the field of virtual twins based on cutting-edge technologies such as artificial intelligence (AI), IoT smart devices, cloud, and others. Market players are concentrated on completing various business approaches to advance twin types. For instance,

• In March 2021: ANSYS, Inc. collaborated with ENGIE, a supplier of energy-efficient services located in France. In this collaboration, Ansys digital twin technology is used by Engie Lab Green to develop a high fidelity platform to deliver 3D Computal Fluid Dynamics (CFD) results in real-time.

List of Key Companies Profiled in the Report:

• Microsoft Corporation (Washington, U.S.)


• ANSYS Inc. (Pennsylvania, U.S.)


• PTC Inc. (Massachusetts, U.S.)


• IBM Corporation (New York, U.S.)


• Dassault Systems SE (Velizy-Villacoublay, France)


• Accenture PLC (Dublin, Ireland)


• Oracle Corporation (California, U.S.)


• SAP SE (Walldorf, Germany)


• General Electric (Massachusetts, U.S.)


• Siemens AG (Munich, Germany)


• Huawei Technologies Co., Ltd. (Shenzhen, China)


• Robert Bosch (Gerlingen, Germany)


• Infosys Limited (Bengaluru, India)


• Hitachi, Ltd. (Tokyo, Japan)


• Autodesk Inc. (California, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2021: General Electric launched Digital Smelter, an advanced process analytics solution. The software is used to develop a virtual twin of the aluminum smelting process that will provide guidance to optimize energy consumption, reduce raw material costs and increase production.


• April 2021: Autodesk Inc. launched Autodesk Tandem, a digital twin tool to streamline the flow of real-time data between architectural, engineering, and contracting (AEC) teams and project owners to create a digital twin.

REPORT COVERAGE

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The digital twin market research report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and leading product applications. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope and Segmentation