The digital twin market is expected to grow from USD 6.9 billion in 2022 to USD 73.5 billion by 2027; it is expected to grow at a CAGR of 60.6% from 2022 to 2027.
The market has a promising growth potential due to rising emphasis on digital twin in manufacturing industries to reduce cost and improve supply chain operations. Increasing demand for digital twin from the healthcare industry; and growing focus on predictive maintenance further drives the growth of digital twin market.
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Automotive & transport industry to dominate the market during the forecast period
The automotive & transportation industry is expected to account for the largest share of digital twin market during forecast period. It is further expected to grow at significant CAGR from 2022 to 2027. The growth can be attributed to the increasing usage of digital twins for designing, simulation, MRO (maintenance, repair, and overhaul), production, and after service. A digital twin is capable of analyzing performance data collected over time and under different conditions during the manufacturing phase of vehicle designing. For example, a digital twin enables visualization of a race car engine to identify the necessity of maintenance of the components that can burn out or get damaged. Even in the after-sales stage, a digital twin is used for collecting feedback. Digital twins help ensure the safety of vehicles by monitoring the systems or parts that need replacement and alerting the relevant teams regarding the necessary change.
The aerospace segment is expected to dominate the digital twin market for product design & development application during the forecast period
The aerospace segment is expected to account for the largest size of the digital twin market for product design & development application during the forecast period. It is further expected to grow at significant CAGR during 2022 and 2027. Digital twin is one of the emerging technologies used in product design and development along with artificial intelligence (AI), machine learning (ML), internet of things (IoT), and cloud computing. The capital required for real part design and development in the aerospace industry is enormous. Even the design of prototypes is costly. Digital twins are used by aerospace companies in R&D to improve the engineering of new parts by allowing them to model their performance in a wide range of scenario. Aerospace businesses utilize digital twin to develop one or more critical systems, such as the airframe, propulsion and energy storage systems, avionics, and thermal protection system.
Digital Twin market in North America is expected to maintain the highest share during 2022–2027
North America is expected to hold the largest share of the digital twin market throughout the forecast period.
North America is a major hub for technological innovations and an early adopter of digital twin and related technologies. The presence of major digital twin providers in the region such as General Electric (US), Bentley Systems (US), IBM (US), Emerson (US), Microsoft (US), ANSYS (US), Amazon Web Services (US), Altair (US), and Oracle (US) also raises the demand and awareness regarding digital twin solutions. North America has an established ecosystem for digital twin practices and the presence of large automotive & transportation, aerospace, chemical, energy & utilities, and food & beverage companies in the US.
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