Increasing Adoption of Digital Twin Technology Across Industries Drives Digital Twin Market Forward
A digital twin, the digital representation of a physical object (such as a jet engine, or wind farms, or even larger items such as buildings or even whole cities), process or service, is a computer program that uses real world data to create simulations that can predict how a product, or process will perform. These programs can integrate the Internet of Things (Industry 4.0), Artificial Intelligence, and software analytics to enhance the output. With machine learning, and factors such as big data, these virtual models have become a staple in modern engineering to drive innovation and improve performance. Ascending adoption of the digital twin technology across the various industry verticals is expected to uplift the growth outlook of digital twin market. Creating a digital twin one can allow the enhancement of strategic technology trends, prevent costly failures in physical objects (also be used for prototyping ahead of manufacture, reducing product defects and shortening time to market) and through predictive capabilities, test processes and services - whether that is monitoring of staffing levels against output, or aligning a supply chain with manufacturing or maintenance requirements.
Key benefits of digital twins primarily include increased reliability, and availability through monitoring, and simulation to improve performance. They can also reduce the risk of accidents and unplanned downtime through failure, lower maintenance costs through predicting failure before it occurs, and ensure production goals are not impacted by scheduling maintenance, repair, and the ordering of replacement parts. They further offer continued improvements by analysing customisation models and ensure product quality through performance testing in real time. However, digital twin is not suitable in all instances as it can increase complexity. Some business problems can be solved without the associated investment in time, and cost.
Increasing Integration with Next-gen Technologies Augurs Well for Market Growth
There is a notable increase in demand for digital twins from end-use industries, which is a major driving factor for global digital twin market growth during the forecast period. According to published data 2020, nearly 75% of enterprises worldwide will be completely virtualised by 2027. Digital twin technology is already being used in a wide range of industries, including automotive, construction, and manufacturing. Besides, companies in these industry verticals are constantly utilising digital twin systems and technologies to estimate the performance of physical assets and identify where modifications and improvements are required to achieve favourable results. This factor is influencing several enterprises to develop digital twin technology, thereby creating ample growth opportunities for digital twin market. For instance, during the coronavirus crisis, the increasing adoption of digital twin technology by scientists and healthcare professionals to create innovative platforms that can improve care delivery through effective patient monitoring is expected to drive market growth over the forecast period.
Growing integration of digital twin technology with technologies such as AI, IoT, and cloud computing is further expected to boost the growth of digital twin market even further. Companies are using IIoT, and AI technologies to gather and analyse behavioural data from connected products, and existing IoT devices. This data can then be implemented into the digital twin model to replicate the functionality and use of the existing device. The implementation of these technologies also assists organisations in improving operations and system productivity, ultimately improving product performance. For instance, in May 2020, Siemens AG, and Atos extended their customer relationship contract to launch Process Digital Twin, a pharmaceutical industry twin solution. This solution is made possible by Al, IoT, and advanced analytic technologies, which create a digital replica of the pharmaceutical manufacturing process to provide industry flexibility.
3D Simulation, and 3D Printing Software Adoption in Automotive and Transportation Industry Segment to Lead Digital Twin Market
Automotive and Transportation is expected to be the fastest-growing segment of the digital twin market over the forecast period. The growing demand for 3D simulation, and 3D printing software in applications such as fleet management and vehicle design and simulation is expected to drive up demand. The growing adoption of automation technologies such as Robotic Process Automation (RPA), Industry 4.0, and others is driving the growth. With the adoption of these technologies, key players will have more opportunities to develop customised solutions for end users. The automotive and transportation industry is categorised as fleet management, vehicle design, and simulation. The growing global adoption of electric vehicles is likely to accelerate the adoption of the technology in vehicle design. Hyundai Motors, for instance, implemented twin technology in July 2021 to test the electric vehicle pilot production system.
Well-developed Manufacturing, and Automotive Industries to Fuel Growth of Asia Pacific Digital Twin Market
The market in the Asia Pacific is expected to grow at the fastest rate during the forecast period. This region's expansion can be attributed to well-established manufacturing and automotive industries in countries such as China, Japan, India, and South Korea. According to the United Nations Statistics Division, China's manufacturing industry accounts for 28.7% of global manufacturing. China has a high potential for driving digital transformation in the manufacturing industries. The region's dense population, rising per capita income from extensive industrialisation and urbanisation, and rising IoT adoption are all contributing to the market's expansion. For instance, NTT data, a Japanese multinational system integration company, proposed the 'Digital Twin Computing Initiative' in 2019, which is a platform to unite high-precision digital information reflecting the real world to synthesise diverse virtual worlds. The company aims at increasing the demand for its products in the global market by developing new services based on customer needs. This factor is expected to drive the expansion of digital twin market in the Asia Pacific region during the forecast period. In addition, smart city development projects throughout the region, as well as high consumer product demand, are propelling the regional market. Besides, the proliferation of connected products is anticipated to contribute to the growth of digital twin market across the region.
Further, rapid growth of digital twin market in North America can be ascribed to the region’s advanced infrastructures to support technologies like digital twins. The regions have some of the most developed infrastructures to support emerging technologies like digital twins, which is the primary reason for the technology's widespread adoption. Additionally, the expansion of the North American regional market has been aided by the early availability and adoption of new technologies in recent years.
Global Digital Twin Market: Competitive Landscape
In June 2020, IBM, and Siemens (Germany), a global technology provider with core competencies in automation, electrification, and digitalisation, have partnered to develop a new solution for optimising asset service lifecycle management (SLM) by dynamically linking real-world maintenance activities and asset performance to design decisions and field modifications. This new approach integrates components from Siemens and IBM Maximo's Xcelerator portfolios to enhance product performance, operations, and maintenance. On the other hand, in June 2020, Bosch Building Technologies, a division of the Bosch Group, created an energy-saving and cost-cutting solution for its internal operations. The energy platform makes use of Microsoft Azure Digital Twin to monitor and analyse energy consumption in real time, assisting in the management of business processes and providing operators with actionable insights.
A few of the players in the Digital Twin market include AAC Clyde Space AB, Tyvak Nano-Satellite Systems Inc, Astro Digital, Swarm Technologies Inc, GomSpace, Surrey Satellite Technology Ltd, Sierra Nevada Corporation, Lockheed Martin, Planet Labs, and L3Harris Technologies.
Global Digital Twin Market is Segmented as Below:
Key Elements Included In The Study: Global Digital Twin Market
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