Global Digital Twin Market to Reach up to $52,081.0 Million by 2027 Despite the COVID-19 Emergency - Research DiveDownload Sample Reports Overview
According to analysis by Research Dive, the global digital twin market size will be $52,081.0 million till 2027, growing at a 41.3% CAGR from $3,500.0 million in the year 2019.
Digital Twin Market, COVID-19 Effect:
The novel coronavirus pandemic has affected the overall digital twin market in a positive way. During this pandemic, some government bodies have been taking various initiatives to support businesses. For example, in September 2020, in India, the Karnataka and Andhra Pradesh government utilized digital twin technology to analyze coronavirus spread by monitoring patient population in particular areas. Through this strategy, both the governments aimed to create virtual twins of the cities. Such adoption of the technology is predicted to fuel the market growth in the forecast time.
Digital Twin Market, Overview:
Rising demand for digital twin technology from automotive and transportation sector is a major driving factor for the market growth in the forecast time. This growth is majorly owing to digital twin allowing seamless communication between product developers & designers with end customers and many other stakeholders to deliver innovative and efficient vehicles. These aspects are projected to accelerate growth of the digital twin market in the forecast time. Moreover, potential utilization of industrial internet of things is estimated to propel the demand for digital twin technology, which is anticipated to drive the growth of the market. This growth is majorly due to the ability of digital twin technology to transform production processes and provide efficient ways to minimize costs, optimize maintenance, monitor assets, minimize downtime and allow the creation of connected products. Increasing adoption of digital twin technologies by several industries is estimated to surge the growth of the market in the forecast time. Moreover, continuous adoption of digital twin technology in several verticals such as automotive & transportation, energy & utilities, home & commercial and other verticals is predicted to drive the opportunities for the digital twin market growth in the forecast time. However, high installation as well as maintenance cost are major restraints for the market growth in the forecast time.
Digital twin Market, Segmentation Insights:
Product digital twin sub-segment was the second biggest revenue contributor in past decades and is estimated to experience a notable growth in the forecast timeframe. Manufacturers are incorporating AI with low-cost connectivity and mixed reality to build innovative digital twins for individual products that improve equipment abilities. This factor is predicted to fuel the growth of the market in the forecast time.
Home and commercial sub-segment accounted for second highest market size in 2019 and is predicted to rise at a rate of 39.7% CAGR during the forecast years. Rising demand for smart homes is predicted to drive the demand for digital twin market in the forecast years. With the help of digital twin technology, real estate owners are designing smart homes by incorporating digital twin with AI and big data analytics, which is further predicted to propel the growth of the market in the forecast time.
North America region accounted for a prominent digital twin market size in the previous years; it was over $1,297.8 million and is predicted to continue its steady growth at a notable CAGR of 39.8% during the projected timeframe. This dominance is significantly due to digitalization of industries such as manufacturing, automotive, healthcare industries by adopting digital twin technology as it enhances the reliability of production lines. Moreover, presence of significant players in the market such as General Electric, IBM and Microsoft is further estimated to fuel the market growth in the forecast time.
Digital twin Market, Significant Market Players:
The significant digital twin market players include ANSYS, Inc., Microsoft, General Electric, PTC, Oracle, IBM, DassaultSystèmes, Siemens, SAP, Robert Bosch GmbH and many others.
Porter’s Five Forces Analysis for Digital Twin Market:
- Bargaining Power of Suppliers: Digital twin industry has high number of large and small & medium sized dealers, and significant players are emphasizing on product advancements, and hence the delivering changing price is estimated to be high. The bargaining power of dealers is High.
- Bargaining Power of Buyers: This market has huge concentration of consumers. High demand for digital twin and high cost for the implementation of advanced technologies are resulting in moderate power of consumers. The negotiating control of the buyer is Moderate.
- Threat of New Entrants: High investment cost for digital twin technology software and high brand loyalty are major risk factors for the digital twin market resulting in Moderate threat of new entrants.
- Threat of Substitutes: Digital twin market has less number of alternatives and high investments are required for digital twin implementation, which may impact the adoption rate and emergence of alternatives. The risk of alternates is Moderate.
- Intensity of Rivalry: This market has huge number of key participants. These key participants are concentration on various strategies such as acquisitions, collaborations and new product launches to gain highest market share. The competitiveness in the market is High.