According to a new market research report issued by Credence Research, “the global digital twin market was valued at US$ 3.76 billion in 2018 and is expected to reach US$ 57.38 billion by 2027, increasing to CAGR by 37.1 per cent from 2019 to 2027.”
The impact of digitization on the industrial market can be seen from decades, but it is likely to have an enormous impact in the coming years at an even faster rate than in the past years. The advent of IoT and connected devices has added spark to the digital industrial infrastructure. Besides all of the above, the arrival of the digital twin heralds a tipping point in the industrial revolution. Its capacity to optimize costs and operating time provides the upper hand. In addition, the integration of digital twins with emerging technologies such as IoT, artificial intelligence, analytics, and machine learning can help digital twins update their system data in real-time.
By type, the digital twin system held around 50% of the revenue share in 2018. The growth of the segment is largely underpinned by its significant demand in various industries such as automotive, home and aerospace & defence. Collectively, industry verticals, aerospace & defence, automotive & transport, and energy & utilities account for almost 65% of the overall market share. Its advantage in optimizing product performance and also providing an in-depth analysis of the functioning of the product in the real world is the primary factor behind its increasing demand in the various vertical sectors of the industry. General Electric (GE) was one of the early adopters of the digital twin technology and implemented it for parts supplied to wind farms, power plants and electrical grids.
Geographically based, the global digital twin market report includes an in-depth study of the regions of North America, Europe, Asia Pacific and the rest of the world (RoW). The Asia Pacific is expected to have the fastest growth of almost 30% over the forecast period. The region’s exponential growth is mainly due to rapid industrialization, urbanization and rising IoT adoption. China is at the forefront of the Asia-Pacific digital twin market due to the enormous potential for digitalization in manufacturing industries.
Since its infancy, the global digital twin market has suddenly become a highly competitive market due to the emergence of strong market players over the last three years. In order to retain a market position, players are strategically focused on technological development, mergers and acquisitions. For instance, in June 2019, Bentley Systems acquired Keynetix to accelerate its vision of subsurface digital twins for infrastructure assets and products.
Some of the major market players profiled in the global digital twin market report include ABB Group, IBM Corporation, Microsoft Corporation, Oracle Corporation, General Electric Company, Rockwell Automation, SAP SE, Siemens AG, Infosys Ltd., Dassault Systemes, Ansys Inc., Accenture Plc. and Autodesk Inc. among others.