Digital twin technology plays a pivotal role in providing performance prediction of a new product or process launches to various industries. There has been an increasing adoption of modern technologies, such as AI, big data analytics, cloud platforms, IoT, and others across numerous industries.
Soaring demand for advanced products and services is influencing industries of different verticals to leverage these technologies for upscaling their output. The rise in the adoption of automation and robotics that drastically transformed the working methodologies almost across all industrial verticals is expected to create strong demand for digital twin technology in the upcoming years.
According to Global Market Insights, Inc.’s report, the digital twin market size is predicted to top $50 billion by 2027. Listed below are some notable factors augmenting the adoption of digital twin technology across various applications.
Growing demand for machine and equipment health monitoring
Digital twin technology shows a lot of promise in monitoring the health of machines and equipment. It effectively improves product performance, reduces asset downtime, and accelerates fault diagnosis. The emergence of Industry 4.0, which resulted in rapid digitalization across various industries, such as healthcare, automotive, manufacturing, and others is fueling the integration of this technology in machine and equipment health monitoring. The digital twin industry share from machine and equipment health monitoring is slated to be around 30 percent by 2027.
Vehicle performance analysis in the automotive industry
Digital twin technology helps OEMs to track, simulate, and optimize vehicle performance in real time by creating a virtual representation of automotive components, such as the engine, its security features, and other components. There has been increasing penetration of automatic and electric vehicles, along with the deployment of the latest automotive technologies, such as advanced driver-assistance systems (ADAS), automatic emergency braking (AEB), and others. This is creating a significant requirement for testing and performance evaluation. From the automotive segment, the digital twin industry share is anticipated to witness a compound annual growth rate (CAGR) of more than 30 percent through 2027.
Extensive R&D expenditure from technology giants in Europe
Europe's digital twin industry revenue is anticipated to exceed $10 billion by 2027. The region is observing high adoption of Internet of Things (IoT) devices, along with significant capital investment in research and development from leading technology companies, such as Wipro, Schneider Electric, PTC Inc, and others. Recent innovations have made the AI-based digital twin technology highly compatible to use in various industries in the region, such as healthcare, aerospace, defense, energy and utility, and others.
Strategic initiatives by key market players
Prominent companies functioning in the global digital twin industry are emphasizing collaborations with public organizations, to offer technological solutions to different sectors and proliferate their share in the global market.
For example, PTC Inc., in July 2020 joined hands with Tata Technologies to render digital transformation solutions to the manufacturing industry. These digital transformation technologies are AR/VR and digital twin for smart manufacturing.
On the whole, growing digital transformation across organizations, boosting the inclination towards cloud-based services should foster the adoption of digital twin technology. Additionally, the emergence of 5G network technologies is bringing a significant boost to IoT and other services. This is further predicted to create ample growth opportunities for the global digital twin industry.
Naman Shrivastava has an MBA and currently works as a full-time content writer for Global Insights Inc.