by The digital twin concept enables businesses to create a digital replica of assets, processes and systems to help optimize performance. By connecting real-world assets and processes with their virtual digital twins, businesses can leverage data received from IoT sensors to engage in predictive maintenance, improve efficiency and reduce downtime. Digital twins allow businesses to understand key aspects like usage patterns, asset health and more to identify potential issues in real-time and address them before they escalate. This helps achieve reduced operational costs and improved safety.
The global Digital Twin Market is estimated to be valued at US$ 12.26 billion in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving market growth is the integration of digital twins with cloud and edge computing technologies. With edge and cloud computing, businesses can collect and analyze vast amounts of IoT data in real-time to gain valuable insights. Cloud platforms also offer scalability to support the data volumes and computational requirements of digital twins. Edge computing further helps realize the full potential of digital twins by providing low latency, high bandwidth processing capabilities closer to assets and systems. This makes digital twins more responsive and useful for time-critical tasks like predictive maintenance and process optimization. Edge-based deployments of digital twins are gaining popularity especially in industries like manufacturing and utilities.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the digital twin market is low as this market requires significant investments and technological expertise to develop products.
Bargaining power of buyers: The bargaining power of buyers is moderate as digital twin solutions are adopted by large organizations.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are numerous component suppliers for digital twin market.
Threat of new substitutes: The threat of substitutes is low as there are no close substitutes for digital twin solutions.
Competitive rivalry: The competitive rivalry in the digital twin market is high due to presence of established players.
Key Takeaways
The global digital twin market size is expected to witness high growth over the forecast period. The global Digital Twin Market is estimated to be valued at US$ 12.26 billion in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023-2030.
North America is expected to dominate the market over the forecast period. Large presence of key players and high technology adoption gives advantage to the region in the market. Europe is also expected to grow at a high pace in the digital twin market owing to increasing investment by governments and growing focus of organizations towards adoption of Industry 4.0. Germany, France and UK are major countries expected to contribute to the growth of Europe digital twin market.
Key players operating in the market are Abbvie Inc. (Allergan Inc.), Episciences Inc., L’ORÉAL SA (SkinCeuticals International), and Pfizer Inc., among others. Key players are focusing on new product launches and strategic collaborations to strengthen their market position in the digital twin market. For instance, in January 2023, Dassault Systèmes announced a collaboration with Alstom for development and application of digital twin technology.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
