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Digital twins also referred to as "cyberobjects", or "digital avatars” are dynamic digital or virtual replicas of physical assets or products which record, control, and monitor dynamic process, product or a service by creating a hypothetical model using simulation software’s and computer-based aids.
They are a malleable technology for Industrial IoT where physical objects can live, learn and interact with other machines and people virtually, which therefore, bridges the gap between real and virtual systems.
In various industrial sectors, twins are used to optimize the operation and maintenance of physical assets, systems and manufacturing processes. Their potential in improving production layout, reducing paperwork and operational costs, increasing optimized solutions, enhancing productivity, and reducing the Time to Market (TTM) has made them tremendously popular in the healthcare, oil & gas, aerospace, automotive, space exploration, power generation startups and heavyweight companies.
The global digital twin market is projected to grow from $2.70 billion in 2020 to above $29.00 billion by 2025, at a CAGR of around 62.00% from 2020 to 2025.
The growth of this market is attributed towards major relying factors including; the rapid adoption of Industry 4.0 and industrial IoT across the world, the rapidly increasing demand from the electronic and electrical/machine manufacturing sector, the surging need for optimized products, scaling up of investments in research and development activities, the rising internet penetration coupled with the proliferation of smartphones globally, the increasing introduction of smart technology and abolishment of obsolete technology, the increasing demand for asset health optimization and the increasing enforcement of business intelligence all around the world etc.
Additionally, with the increasing easy availability of cloud-based digital twins, their adoption among SMEs, which was previously limited to large manufacturing companies because of high costs has now spurred tremendously, which in turn is creating ample opportunities for the growth of this market for the next few years.
Moreover, through analysis of data extracted via sensors, digital twins operate, maintain and predict outcomes of systems with a very high degree of accuracy. They monitor the system and help to detect a problem even before it arises and use machine learning algorithms to forecast performance requirements. This makes them highly desirable in industries all across and aids in the fueling of the overall market.
Furthermore, other factors such as such the increasing adoption of cloud platforms, the emergence of high-speed networking technologies, the increasing digitization of documents, the advent of advanced technologies such as VR, AR, AI, machine language, deep learning, and blockchain, the rapid adoption of 3D printing and 3D simulation, the rising establishment of smart building infrastructure to ensure optimum energy consumption and new technological advancements will further propel the market growth.
However, the high cost of deployment, the complex architecture of digital twin, the vulnerability of IoT and cloud platforms to cybercrimes and data security threats, lack of in-house expertise and awareness of digital technology in rural areas and the slow deployment of digital twin technology among existing small and medium sized enterprises (SME’s) due to their low investment capability are factors expected to restrain the growth of the market.
DIGITAL TWIN MARKET SEGMENTATION:
By End-Use Vertical:
The North American region dominates the digital twin market and is expected to maintain its position at the top in the coming years also. The growth in the region can be attributed to various factors such as the increasing demand for digital twins in the automobile and aerospace industry, the increasing development of various software coupled with the deployment of automation solutions in the manufacturing industries in the region and the increased R&D in the field of the IoT and IIoT . Also, high economic growth, supportive government initiatives to support the advent of Industry 4.0 and the increasing presence of vendors that offer digital twin solution in the region contribute to the growth of this market in the region. The U.S and Canada are the major contributors in the region.
The Asia-Pacific region is the fastest growing regional market for digital twins. The region is also anticipated to register growth at a tremendous rate in the upcoming years owing to the increased adoption rate of digital twins in the region, the increasing implementation of Internet of things, the growing market penetration of advanced technologies, favorable government investments on the adaptation of Industry 4.0 standards and policies for enhanced manufacturing and production facilities across all industry verticals. Moreover, the growing disposable incomes of people, the increasing population in countries such as India and China and the declining average selling prices of sensors and modules in the region also enhance the market growth. The major contributors in the region include India, China and Japan.
FEW KEY PLAYERS IN DIGITAL TWIN MARKET:
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