Digital Twin Market Industry Trends and Global Forecasts to 2035: Growing Need for Virtual Simulation and Prototyping - ResearchAndMarkets.com

The "Digital Twin Market: Industry Trends and Global Forecasts, till 2035 - Distribution by Application Area, Type of Twin, End Users and Key Geographical Regions" report has been added to ResearchAndMarkets.com's offering.

The global digital twin market is estimated to grow from $12.8 billion in 2024 to $240.3 billion by 2035, growing at a CAGR of 31% during the forecast period from 2024 to 2035. The market growth over the next decade is likely to be the result of increasing adoption of advanced digital technologies (IoT, AI, ML), advancements in data analytics and simulation capabilities, and rising demand for virtual prototyping.

The growth of digital twin market is driven by a number of key factors. For instance, the growing adoption of IoT technology has enabled the development of intricate digital replicas of various industrial processes, assets and systems. This technology, coupled with artificial intelligence and machine learning, has enabled organizations across various sectors to drive operational excellence, enable predictive maintenance, and optimize resource utilization.

Despite their promising attributes, the digital twins market faces several restraints that may hinder its growth. One such challenge is the complexity and cost associated with implementing and maintaining such solutions. Various organizations, more specially start-ups or companies in resource-constrained settings, may struggle to afford such resources to advance their portfolio; such restraints can hinder their ability to expand and commercialize their technologies. Additionally, concerns about protecting the user data used in digital twin technologies may affect their growth and adoption in the market. Moreover, the unintended data breaches and unauthorized access to user data may result in legal concerns which may in turn reduce the adoption of such technologies.

Market Opportunity: Growing Need for Virtual Simulation and Prototyping

Amidst the above-mentioned challenges, there are various opportunities for digital twin companies. The integration of virtual reality (VR) and augmented reality (AR) technologies with digital twins offers new avenues for visualization and simulation, which can in turn facilitate better decision-making and collaboration. In May 2023, BeyondView, a software developer, announced the launch of AR feature for its digital twin software used by clients in the real estate industry. Moreover, digital twins can play a pivotal role in resource usage optimization, waste reduction, and minimizing environmental impact.

Digital Twin Market Size Analysis: Increasing Adoption of Digital Twin Technology Across Automotive Industry

Automotive and transportation market segment, at present, holds the largest share of the market. The automotive industry is employing digital twins across various applications from manufacturing to connected vehicle services. In 2021, some of the well known international automotive manufacturers, including BMW, Hyundai and Kia, all announced the addition of digital twin capabilities. BMW collaborated with NVIDIA to use its Omniverse tool for R&D of new cars.

During the same time Hyundai and Kia adopted tools from Siemens Xcelerator portfolio to add digital twin capabilities to automotive manufacturing. As the automotive industry faces increasing challenges with software integration and updates, the digital twin technology is being explored in this area as well. In December 2023, Wipro announced partnership with Marelli Electronic Systems to introduce cabin digital twin to allow introduction of connected vehicle services to the customers. Automotives industry is exploring other industry 4.0 technologies as well including AR, VR and digital manufacturing.

Digital Twin Market Trends: Start-ups, Funding and More

The market is very dynamic at this stage with several startups being established in this space. These start ups include spin-offs from some major universities. Tibo Energy is one such spin off from Eindhoven University of Technology. Established in 2022, the company uses its digital twin software for helping with optimization of energy consumption. Another spin-off in this market includes Didimi, established 2023, which develops digital twin platform for construction industry. A spin-off from University of Cambridge, the company raised EUR 880,000 in pre-seed funding in February 2024. These start-ups will help drive innovation in the market and expand the application of digital twins.

Digital Twin Market Segments Overview

The market report features an extensive study of the current market landscape, market size, market share, market analysis, market forecast and future opportunities for the digital twin companies. The digital twin market research report highlights the efforts of several digital twin developers engaged in this rapidly emerging market segment. Key takeaways of the market analysis are briefly discussed below.

Market Share by Application Area

The market report highlights the distribution of the market size across different application areas, such as business optimization, predictive maintenance, production design and development, and others. Among these application areas, the predictive maintenance segment occupies the highest share in 2024 and is expected to witness substantial growth during the forecast period.

Market Share by Type of Digital Twin

The global digital twin market is categorized into parts twin, product twin, process twin, and system twin on the basis of type of digital twin. The process digital twin segment occupies the highest share (~30%) currently in 2024 and is expected to stay dominant during the forecast period. This can be primarily attributed to the abilities of process digital twins to enable comprehensive simulations and optimization of industry workflows, leading to enhanced efficiency, cost savings, and improved outcomes, thus driving their widespread adoption and dominance in the market.

Market Share by End Users

The market is segmented across different types of end user industries, such as aerospace and defense, automotive and transportation, healthcare, manufacturing, retail, energy and utilities, real estate, IT and telecommunication, and other end users. The automotive and transportation industry is expected to hold the majority share of the market in 2035 and is expected to grow at the highest CAGR in the coming years.

Market Share by Key Geographical Regions

This market is distributed across various geographies, including North America, Europe, Asia, Latin America, Middle East and North Africa, and Rest of the World. According to our projections, North America is likely to capture majority of the share in 2024, and this trend is unlikely to change in the future. Further, it is worth highlighting that the market in Middle East and North Africa is expected to grow at a healthy CAGR, during the forecast period 2024-2035.

Key Companies in Digital Twin Market

Examples of key digital twin companies include Ansys, Azure, Bosch, Cisco, Dassault Systemes, General Electric, IBM, Oracle and Siemens.

Recent Developments in the Digital Twin Market

Several recent developments have taken place related to the industry, some of which have been outlined below.

• In March 2024, Intangles launched a Diesel Particulate Filter solution in order to optimize fleet maintenance by leveraging its digital twin-based prognostic technology.
• In March 2024, Seeq launched a Seeq AI Assistant which provides users with various capabilities, such as advanced analytics, accelerate operational decision making and providing real-time assistance.
• In February 2024, Peripass procured a sum of USD 7.5 million in a Series A venture round, led by Welvaartsfonds and Groep Van Overstraeten.
• In January 2024, Unlearn raised a sum of USD 50 million in a Series C venture round, led by Altimeter Capital.
• In January 2024, Geminus raised a sum of USD 13 million in a Series A venture round, led by SLB Investment.

Key Attributes:

Digital Twin Market Share Insights

The market research report presents an in-depth analysis of the various companies that are engaged in offering digital twin solutions, across different segments, as defined below:

• Historical Trend: 2018-2022
• Base Year: 2023
• Forecast Period: 2024-2035
• Market Size in 2024: $12.8 Billion
• CAGR: 31%
• Application Area
  • Business Optimization
  • Predictive Maintenance
  • Production Design and Development
  • Others
• Type of Twin
  • Parts Twin
  • Product Twin
  • Process Twin
  • System Twin
• End Users
  • Aerospace and Defense
  • Automotive and Transportation
  • Energy and Utilities
  • Healthcare
  • IT and Telecommunication
  • Manufacturing
  • Real Estate
  • Retail
• Key Geographical Regions
  • North America
  • Europe
  • Asia
  • Latin America
  • Middle East and North Africa
  • Rest of the World
• Key Companies Profiled
  • Ansys
  • Azure
  • Bosch
  • Cisco
  • Dassault Systemes
  • General Electric
  • IBM
  • Oracle
  • Siemens

For more information about this report visit https://www.researchandmarkets.com/r/lnh6xm

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