The global digital twin market size was valued at USD 3.1 billion in 2020 and is projected to reach USD 48.2 billion by 2026. It is expected to grow at a CAGR of 58% during the forecast period.

The rising demand for digital twins in the healthcare and pharmaceutical industries as a result of the COVID-19 pandemic, the changing face of maintenance, and the increased acceptance of digital twin solutions to deal with the COVID-19 pandemic are driving the digital twin market forward. 

System digital twin to account for a larger share of the digital twin market by 2026

In 2019, the market for system digital twins had the biggest market share. The increasing use of digital twins for systems in numerous applications is responsible for this growth. For example, in the aerospace & defense sector, the LOCOMACHS has implemented a digital twin for the entire assembly line for an aircraft wing for performance monitoring. In addition, in the automotive & transportation industry, Tesla Motors is using a digital twin solution for every car it manufactures for better performance 33 and business improvement. 

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Automotive & Transportation accounted for the largest market share in 2019

Automotive & transportation industry accounted for the largest market share in the digital twin market in 2019. This growth can be attributed to the increasing usage of digital twins for designing, simulation, MRO (maintenance, repair, and overhaul), production, and after service. Automotive & transportation is one of the industries that will witness high growth in the post-COVID-19 period, as industry players will try to adopt digital solutions for their end-to-end operations to minimizes losses that have occurred due to the pandemic.

Predictive maintenance to account for the largest market share during the forecast period

The market for predictive maintenance application accounted for the largest share in 2019. The growth of the predictive maintenance application segment can be attributed to an increase in the use of digital twins for predictive maintenance in the post-COVID-19 period across various industries.

North America to hold the largest share in digital twin market during the forecast period

The North America holds the largest share in the digital twin market. In recent years, the development of various software and deployment of automation solutions in the manufacturing industries has improved production lines and downstream operations. These developments have positively impacted the growth of the market in North America due to the high economic growth and a large presence of vendors offering digital twins. Moreover, the increased R&D in the field of the IoT and IIoT and increasing demand for efficient and cost-effective technologies for product manufacturing are also supporting the regional market growth.

Digital Twin Market in APAC to witness higher CAGR during the forecast period

India, China, Japan, and the rest of APAC make market up in APAC. During the projected period, the market in APAC is expected to develop at the fastest rate. China's manufacturing industry have a lot of promise for digital transformation.
The region's digital twin market is developing because to a dense population, rising per capita income from large-scale industry and urbanisation, and increased adoption of IoT. In comparison to other countries, China's speedy response to the pandemic allowed citizens to return to work (and normalcy) rather quickly. According to one survey, nearly half of Chinese consumers anticipate the economy to quickly recover and their daily lives to return to normal within the next two to three years.