Digital twin technology is a virtual representation that provides real-time digital counterpart of a physical object or process. Digital twin technology employs simulation to profile, predict, and optimize the execution and implementation of industrial machinery or other assets by using data and intelligence. The idea of digital twin was first conceived by Michael Grieves in 2002, however, the first practical implementation of this technology was done by NASA in 2010. Digital twin technology has enabled in evolving product drawings and engineering specifications from hand-drawn drawings to model-based system engineering.
Forecast Analysis of the Global Digital Twin Market
As per a report by Research Dive, the global digital twin market is expected to reach a revenue of $1,25,717.4 million in the 2021–2030 timeframe, thereby growing at a stunning CAGR of 39.48% by 2030. A rising trend is being witnessed wherein digital twin technology is being adopted by various industries and sectors so as to examine industrial operations and gain insights into the critical processes that go on in these industries. As a result of this increasing adoption of digital twin technology, it is predicted that the digital twin market is poised to register a huge growth in the forecast years. Along with this, increasing integration of digital twin technology with other advanced technologies such as IoT, AI, etc. is expected to boost the market further. Furthermore, growing implementation of advanced technologies in automotive, healthcare, and energy sector is predicted to offer numerous growth opportunities to the market in the 2021-2030 timeframe. However, lack of skilled workforce may hamper the growth of the digital twin market in the analysis timeframe.
Regionally, the digital twin market in the Asia-Pacific region is expected to have the fastest growth rate in the forecast period. Increasing demand and adoption of digital twin technology by various sectors and industries including automobile, manufacturing, etc. is expected to be the primary growth driver of the market in this region.
Covid-19 Impact on the Market
The Covid-19 pandemic and the subsequent lockdowns have had a catastrophic impact on various businesses and markets worldwide. The digital twin market, however, has been an exception. The digital twin technology has immensely helped industries across different sectors to launch their products amid the pandemic. Applications running on digital twin technologies have helped different manufacturing companies to complete their product enhancement projects despite the lockdowns put in place during the pandemic years to curb the spread of the virus. All these factors have collectively led digital twin market to register a substantial growth even in the pandemic period.
Significant Market Developments
Some prominent market players include ProfitWell, Yapstone, PaySketch, BlueSnap, CashNotify, Revealytics, Databox, HiPay Intelligence, RJMetrics, Payfirma, and many others. The key players of the market are adopting various business strategies such as partnerships, mergers & acquisitions, and launches to gain a leading position in the market, thus helping the digital twin market to flourish. For instance:
In August 2021, CropX, a leading Israeli technology company, announced the acquisition of Dacom Farm Intelligence, a leading agriculture technology company. This acquisition is aimed at expanding the digital twin capabilities of CropX, especially in the agriculture sector. Also, this acquisition will help CropX to expand its business in the Europe region substantially in the years to come.
In December 2021, Siemens Smart Infrastructure, a German multinational company, has announced the acquisition of EcoDomus Inc., a US-based software company. This acquisition will help Siemens to expand its market share substantially as it will be able to integrate its existing operations with EcoDomus’ cloud-based digital twin software and flagship building management tool called, Desigo CC.
In April 2022, Asperitas, a leading clean-tech company, announced a partnership with Villa-Tech, a US-based networking solutions provider in order to develop digital twin technology for large- and medium-size companies. This partnership is expected to help both the companies to work collectively and develop the technology in a much better way.