Digital Twin Market Size, Share & COVID-19 Impact Analysis, By Type (Parts Twin, Product Twin, Process Twin, and System Twin), By End-user (Aerospace & Defense, Automotive & Transportation, Manufacturing, Healthcare, Retail, Energy & Utilities, Home & Commercial, IT and Telecom, and Others), and Regional Forecast, 2022-2029

The global digital twin market size was valued at USD 6.75 billion in 2021. The market is projected to grow from USD 8.88 billion in 2022 to USD 96.49 billion by 2029, exhibiting a CAGR of 40.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with digital twin experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 27.8% in 2020 as compared to 2019.

The solutions considered in the scope include 3DEXPERIENCE Cloud Platform, Azure Digital Twins, GE Digital’s ADMS, and Ansys Twin Builder.

Digital twin includes four core technologies, the Internet of Things (IoT), cloud, Extended Reality (XR), and artificial intelligence. These technologies are used 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 substantially. For instance,

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

Further, the market growth is attributed to increasing investment by market players to advance their product offerings and expand their business globally. For instance,

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

COVID-19 IMPACT  

Rising Investment in IT Projects Augmented Product Demand amid Pandemic

Considering various preliminary indicators from the post-COVID-19, a decline was witnessed in the overall demand for digital solutions across various industries. Also, owing to the pandemic, various business strategies and projected investment situations, and others were on hold considering the lack of operability. However, during the first quarter of 2021, key players in the market adopted 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 desired to integrate Microsoft Azure’s twin technology with Aera's cognitive operating system to create a virtual representation of a physical entity in the automation process.

In the short term, this market is expected to witness a drop in growth in 2020. During the forecast period, high investments by various key players and governments in IT projects are likely to create change in digital solutions, as it is one of the significant technologies in automation. According to Invest India.gov, key companies and governments globally invested around USD 17 billion in 2017 and are projected to spend around USD 60 billion by 2021. This investment is driven largely by electronics and the healthcare industry in Germany, Italy, the U.K., India, Japan, South Korea, China, and others. Thus, post-pandemic, the increasing application of the technology is likely to boost the market growth.

LATEST TRENDS

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

The incorporation of twin solutions across the healthcare & life science sector is considered 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 in developing and authenticating 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 digital solutions, key players are engaged in developing digital life science research and development models. For instance, Hewlett Packard Enterprise used its supercomputer to create digital models of the brain for research purposes in collaboration with Ecole Polytechnique Federale de Lausannes (EPFL). Thus, growing developments and increasing demand for advanced technology in the industry will increase the digital twin market share.

DRIVING FACTORS

Increasing Adoption of 3D Simulation and 3D Printing Software to Fuel Market Growth

3D printing is rapidly evolving, and a rising number of materials are now 3D printable. Some materials may distort throughout the 3D printing process, necessitating a lengthy trial and error period. As a result, the cost of printing parts increases, as does the time it takes to print them. Twins can be used to imitate the 3D printing production process. The twins can predict whether and where distortions may arise, allowing them to be repaired on the 3D model. As a result, a new model is created that is fully optimized to adjust for the differences. For instance,

• In May 2021, the U.S. Army Aviation and Missile Command partnered with a Wichita State University team to integrate twin technology into its helicopter fleet Black Hawk. Using the technology, 3D scanning technologies will create a virtual model of the UH-60L Black Hawk. The National Institute for Aviation Research is also a part of the collaboration (NIAR).


• In June 2020, Simcenter 3D AM Process Simulation announced integration into Siemens' NX software. The approach is designed to prevent 3D-printed metal work pieces from being distorted before they are even created. It creates a digital duplicate of the object to be manufactured and analyses whether or not distortions are likely to arise.

Thus, the increasing demand for 3D simulation is expected to boost the digital twin market growth.

RESTRAINING FACTORS

Concerns of Privacy and Security to Impede Adoption of Twin Solution

The demand for 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 programmable electronic 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 about privacy and security are predicted to affect the demand across healthcare, government, and critical infrastructure sectors. This is likely to hamper the market share.

SEGMENTATION

By Type Analysis

Adoption of Product Twin across Healthcare to Boost Segment Growth

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

Amongst these, the product twin segment is predicted to capture the major share during the forecast period. The growth is attributed to the rising demand for IoT sensors and electronic manufacturing devices across the healthcare industry. According to IoT World Today, virtual twin is highly adopted across the healthcare industry to develop advanced product twin applications. In healthcare, technology has begun to aid doctors with a better understanding of patients’ diseases, including the coronavirus effect on lungs.

The technology is expected to grow at a substantial progress rate during the projection period. The incorporation of extended reality technology and predictive analysis tools has driven the demand across manufacturing, automotive & transportation, and others.

By End-user Analysis

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

Based on end-user, the market is categorized into home & commercial, manufacturing, automotive & transportation, aerospace & defense, retail, healthcare, energy & utilities, IT and telecom, and others.

Among end-users, automotive & transportation is expected to hold the major part during the anticipated period. The increasing demand for 3D simulation and 3D printing software across applications such as fleet management, vehicle designing & simulation is likely to surge the demand.

Similarly, 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 the rising adoption of automation technologies such as Robotic Process Automation (RPA), industry 4.0, and others. The adoption of these technologies would create opportunities for key players to develop customized solutions to cater to end-users.

The aerospace & defense segment is divided into aircraft engine design and production and space-based monitoring. The growing investments by governments in space monitoring projects are likely to drive the market growth.

The automotive & transportation segment is separated into fleet management, vehicle designing & simulation. The increasing adoption of electric vehicles across the globe is likely to surge the adoption of the technology in vehicle design. For instance, in July 2021, Hyundai Motors implemented twin technology to test the electric vehicles pilot production system.

The healthcare segment is investing in adopting advanced technology into medical device simulation, and patient monitoring. For instance, the company Twin Health raised USD 140 million Whole Body Twin service. The energy & utility market is allocated to wind & gas turbines and power infrastructure.

REGIONAL INSIGHTS

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The global market scope is classified across five regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America is predicted to develop with momentous CAGR during the forecast period. As end-users across industries, such as healthcare, home & commercial, among others, of the U.S. are investing in adopting parts twin and product twin, this is likely to drive the market growth. 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 maximum CAGR during the forecast period. End-users across manufacturing processes in China, India, Japan, South Korea, and others are increasing their venture investment to adopt twin technologies. Similarly, the presence of a huge number of industries, such as automotive & transportation, manufacturing, energy & utility, among other sectors in the region, is likely to contribute to the market expansion. China is the leading country in adopting technology. As per the United Nations Statistics Division, 28.7% of the global manufacturing account is provided by the China manufacturing industry.

Europe is expected to showcase significant gain during the forecast period. The growing demand for advanced industrial technologies across = European countries is likely to surge the demand for virtual twin technology. The automotive and transportation industry in the region is significantly implementing the technology across the processes. For instance, in July 2021, Robert Bosch and car manufacturing company Volkswagen are using a virtual twin model to enhance the self-driving car performance. 

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

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The market in the Middle East & 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 types based on cloud services.

KEY INDUSTRY PLAYERS

Key Players Developing Twin Platform to Strengthen their Positions

SAP SE, Siemens AG, ANSYS, Inc., Hitachi Ltd., Microsoft Corporation, and others are the prominent players in the market. The increasing share of these companies is accounted for through the constant expansion in 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 twin technology is used by Engie Lab Green to develop a high fidelity platform to deliver 3D Computational Fluid Dynamics (CFD) results in real-time.

April 2021 – Dassault Systemes renewed its partnership with Bouygues Construction, a construction company headquartered in Paris, France. Through this partnership, the company aims to power the construction industry by using the 3DExperience platform to increase productivity and provide an enhanced construction experience by simplifying the value chain process.

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

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

List of the Key Companies Profiled:

• General Electric (U.S.)


• Microsoft Corporation (U.S.)


• Hitachi Ltd. (Japan)


• Dassault Systemes SE (France)


• Autodesk Inc. (U.S.)


• SAP SE (Germany)


• Siemens AG (Germany)


• ANSYS Inc. (U.S.)


• PTC Inc. (U.S.)


• IBM Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2022 – NVIDIA Corporation launched a platform consisting of an artificial intelligence framework for virtual twin to solve scientific and engineering problems using machine learning models. The twin platform offers fast operation and quick results. It helps research works such as analyzing extreme weather events with higher accuracy.


• March 2021 – Autodesk Inc. acquired Innovyze, Inc., a provider of water infrastructure solutions, headquartered at Oregon, U.S. This acquisition took place for USD 1 billion. It will help the company’s twin technology strategy to develop more sustainable and digitized water industry.

REPORT COVERAGE

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The report highlights leading regions across the world to offer a better understanding of the user. Furthermore, it provides insights into the latest industry, market trends, and competitive landscape and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge along with the detail digital twin market analysis.

REPORT SCOPE & SEGMENTATION