Digital Twin Market is set to grow from its current market was valued at over USD 3 Billion in 2018 to USD 20 Billion by 2025, according to a new research report by Global Market Insights, Inc.
Emergence of advanced technologies like big data analytics, ML, AI, VR, AR and MR will influence the growth of digital twin market size. Also, increasing adoption of IoT and IIoT along with rapidly growing digitalization in automotive, manufacturing and healthcare industries will drive the digital twin market growth. Moreover, growing demand for optimizing process time, reducing asset downtime, improving operational efficiency and reducing time-to-market are anticipated to proliferate market growth over forecast timeline.
Rapidly developing and competitive sectors including healthcare, automotive and manufacturing, that form a part of the industry end-use landscape, will account for a considerable share of the market. The manufacturing sector is anticipated to account for more than 25% market share by 2025 owing to the advent of automation systems to enhance production capabilities, and the healthy growth of the sector after Industry 4.0. The steady progress of the sector will further increase the demand for digital twin to optimize and streamline flaws in manufacturing process.
The healthcare sector is expected to secure a considerable share in the market over analysis period. The digital twin offers real-time analytics and monitoring using machine learning to simplify operations and processes in the hospital, enhancing customer experience. In addition, growing demand for advanced healthcare options will further fuel industry growth.
The product design & development is estimated to grow at a CAGR of over 31% during the forecast timeline due to the growing adoption of Industry 4.0 by the enterprises operating in the manufacturing and automotive sectors. The advent of advanced analytics and visualization techniques to analyze & visualize the data obtained from the physical counterpart helps in improving the product performance and overcome the shortcomings of the previous model of equipment or system. The prominent market players are focusing on strategic initiatives to develop innovative digital twin solutions to improve product design & development process for their clients. For instance, in April 2019, Capgemini partnered with Autodesk to deploy Reflect, a new cloud-enabled and secure digital twin platform. This software will include design reviews in operations, IoT alerts to prevent fluctuations, support for real-time diagnosis & inspections, remote assistance, and asset revamping.
The digital twin market share from product design & development application is anticipated to exhibit a CAGR of over 31% during the forecast period owing to implementation of Industry 4.0 by the automotive and manufacturing sectors. Moreover, the emergence advanced data visualization & analytics techniques help in optimizing product performance, thus driving the digital twin industry growth.
The infrastructure buildings market held a market share of around 6% in 2018 and will maintain a significant market share during the forecast period. The supportive government initiatives & funding to build smart cities to avert environmental challenges is supporting the growth of the digital twin market. The governments are partnering with prominent technology players to build a digital twin of the physical city to improve key public services for the citizens in that city. For instance, the Singapore government is investing over USD 73 million in building digital twin of the city. The government partnered with Dassault Systems and 3DEXPERIENCity to build data-rich digital twin and improve public services with reduced cost for its citizens. Additionally, India is investing USD 1.2 trillion over the next 20 years to transform 100 cities into smart cities.
The Asia Pacific digital twin market is projected to grow at a CAGR of over 30% during the forecast period. In this region, rising internet penetration coupled with the proliferation of smart devices and the growing adoption of IoT/IIoT are triggering the digital twin industry. According to the China Internet Network Information Center (CNNIC), at the end of December 2017, the number of internet users in China reached 772 million, which is an increase of 40.74 million from the end of 2016. The rise in the number of connected devices has increased the use of digital twin coupled with advanced technologies, such as AR, VR, MR, AI, ML, and big data analytics, to draw actionable insights to reduce lead time, running cost, and improve product performance. This drives the growth of digital twin to cater to the growing demand for cost-efficient operation, reduced time-to-market, and optimization of processes.
Major players operating in the digital twin market include ABB Group, Ansys Inc., Autodesk Inc., Dassault Systèmes, General Electric, IBM Corporation, Microsoft Corporation, Oracle Corporation, Robert Bosch GmbH, SAP SE, Siemens AG, and Wipro Limited.