The Role Of Digital Twin In The Automotive Industry In 2025

Imagine a world in which a vehicle's lifetime is maximized for effectiveness and performance in every way. The automotive industry has historically encountered many difficulties, ranging from expensive production faults to prolonged development cycles. In addition to delaying time to market, these problems raise manufacturing expenses. 

At this point, the idea of "digital twin technology" becomes crucial. 

A digital twin in the automotive industry generates a virtual image of an actual car or a few of its parts, allowing for real-time study and simulation. 

By 2024, digital twin autonomous vehicles will revolutionize the automotive industry, with options ranging from enhancing production procedures to testing autonomous vehicles.

The applications are numerous and include digital twin platforms for automotive industry as well as digital twin vehicle simulation.  As evidence of the technology's vital significance in contemporary automotive engineering, companies like Ford, BMW, GM, Tesla, etc are already utilizing digital twins to stay relevant. 

In this blog, we’ll examine how digital twins are improving everything from vehicle digital twins to manufacturing and beyond. This will help understand how the application of digital twins in the automotive industry is evolving in the future.

The market value of the automobile sector is predicted to increase from 0.46 billion US dollars in 2020 to 5.06 billion US dollars in 2025, per study done by Lionel Sujay Vailshery. Additionally, it is anticipated that by 2027, the digital twin market size will be worth 73.5 billion US dollars.

Now that you are aware of the market's preference for digital twins, let's talk about how they are used in the automotive sector. 

Digital Twins in Automotive Design and Engineering

When designing, the virtual replica of your end product created with Digital Twin can help the designers and engineers. Designers can simulate and optimize various scenarios before committing to costly physical prototypes. 

Following are a few ways Digital Twins are being used in automotive design and engineering.

1. Early-stage design

Companies can create virtual prototypes of the vehicle and its components to test and refine the design. This helps to reduce design cycles and minimize costly mistakes.

2. Performance optimization 

Manufacturers can simulate and optimize the vehicle's performance under various conditions. For example, they can be used to optimize engine performance, aerodynamics, and fuel efficiency.

3. Safety testing

It can also be used to simulate crash tests and other safety tests, helping vehicles meet safety standards and regulations. This can help improve vehicle safety and reduce the risk of accidents.

4. Manufacturing optimization 

Digital twins in car manufacturing aid in the optimization of production procedures including assembly line layouts and tooling design. This may lower production costs and boost productivity. 

Also, for successful implementation, you have to ensure the integration of Digital twins with CAD, CAE, and simulation tools. 

Suggested read: How digital twin projects are transforming the Manufacturing industry

By mimicking assembly lines, digital twins in manufacturing can assist producers in locating any method problems. The digital twin increases productivity and data accuracy by eliminating the human element from the entire production process.

Here are some instances of the application of digital twin technology in the automotive industry:

1. Quality Control

Real-time monitoring of the manufacturing process enables producers to spot any problems with quality. If problems are discovered, companies can respond swiftly to address them and prevent disruption. 

A manufacturer who uses this is BMW. They use digital twins to identify bottlenecks in their production process, improving efficiency and production rate. In doing so, they can maintain a high standard of quality, all the while reducing costs and downtime.

2. Predictive Maintenance

Digital Twins helps monitor product performance and identify potential maintenance issues. As a result, manufacturers can proactively schedule maintenance, increasing the lifespan of the equipment.

General Motors (GM) have created digital twins to predict maintenance issues in their equipment. By collecting data about the equipment's performance, they can identify potential issues that may arise. As a result, they are able to proactively tackle these issues increasing the equipment's lifespan. 

Learn how Toobler helped their customer reduce potential downtime through predictive maintenance.

3. Worker Training 

Manufacturers can virtually train their workers with simulations in Digital Twin. In doing so, manufacturers can help workers refine their skills before working on actual equipment. This reduces the likelihood of accidents and improves overall worker efficiency.

One of the places where the workers are trained using digital twins is Ford Motors. Ford’s digital twins create a VR training program to simulate real-world scenarios.  

Ford ensures that its production procedures are as accurate and productive as feasible in addition to improving the skill set of its staff through the creative application of digital twins in VR training programs. This application demonstrates the wider advantages of digital twin for automotive manufacturers, including increased operational effectiveness and the promotion of ongoing learning and growth.

Learn more about how digital twin enhances worker training in the automotive industry.

4. Performance Monitoring 

Automotive manufacturers can also use this for performance monitoring. Digital twins can provide deeper insights into every aspect of production and maintenance. 

Digital Twins collects and analyzes data from various sensors on the vehicle constantly. This enables it to monitor parameters like manufacturing and fuel efficiency, durability, and more. Thus, it can spot any discrepancies or issues early and resolve them. 

The Tesla digital twin is a good example here. They implement an array of sensors within their cars to create a digital twin and oversee the performance of their vehicle. They can monitor battery health, energy consumption, and more. Using this information, Tesla helps their customers with maintenance and improves vehicle performance. 

Additive manufacturing is another field where digital twins can improve process efficiency. For example, a digital twin of a 3D printer can stimulate the printing process and identify flaws. Additionally, digital twin ecosystems can be integrated with various sensors, and IoT devices help manufacturers monitor processes in real time, detect anomalies, and enhance efficiency. 

Learn the important role of digital twins in electric vehicles

5. Supply Chain Optimization

Digital twins have advantages for supply chain management in addition to production. By creating a digital duplicate of the entire supply chain, automakers may observe the movement of raw materials, completed items, and elements in real time. This visibility enables enhanced processing of orders, reduced time to delivery, and enhanced inventory management.

Toyota uses digital twins, for example, to ensure that parts arrive at its production sites on time and to optimize its supply chain. 

Also read: Benefits of digital twins 

6. Customization and Personalization

Manufacturers may provide vehicles that are personalized to each customer's desires attributable to digital twin technology. Paint colors and interior features are only two examples of the changes that manufacturers can rapidly evaluate for viability and cost-effectiveness using simulations and data analysis. This capacity increases brand loyalty and improves client happiness. 

Businesses like Porsche use digital twins to provide their clients with a wide range of customisation choices.

Learn the important role of digital twins in electric vehicles

The digital twin is handy for monitoring the health of individual vehicles or entire fleets. As you know, the digital twin can exchange data, including vehicle sensors, GPS, weather reports, and vehicle maintenance data, by performing sensor fusion. This way, engineers can monitor vehicle health, predict component failures, and optimize maintenance schedules.

With regard to connected automobiles, the digital twin may verify and evaluate a car's functionality in various traffic situations, road kinds, weather conditions, and other aspects. Furthermore, since the digital twin can track a car's performance over time and give manufacturers insights, the makers may effectively conduct remote diagnostics and prognostics to find possible problems and enhance the car's performance.

For instance, in order to constantly track data and conduct predictive analysis, GE Aviation has built a digital twin for each aircraft engine that is linked to sensors and data sources.  

The popular rental equipment company, United Rentals, employs digital twins to monitor the performance of their fleet. In doing so, they have experienced reduced downtime and repair costs. 

Lastly, integrating the digital twin with the blockchain has helped secure vehicle data management and communication. For safe storage and management of vehicle data, for instance, a digital twin of a car linked to a blockchain network may be employed. This allows auto specialists to monitor a car's history of service and efficiency in real time.  

Digital Twin also allows service providers to offer personalized aftermarket services. Depending on the needs and interests of the consumer, these services may include modifications and additional features. 

You may also read: Top 10 Use Cases of Digital Twins in the Automotive Industry

Technical Challenges

1. Data accuracy and quality

Since the digital twin is created using Model-based Systems Engineering(MBSE) and sensor fusion from various data sources, data fidelity is crucial. A digital twin with inaccurate or insufficient data may not accurately represent the vehicle, affecting its operational and maintenance activities.

For example, accurate data on the performance of individual components, such as fuel injectors or bearings, is critical for simulating and optimizing the entire system's performance.

However, collecting data for creating a digital twin ecosystem is also challenging - you may have to gather data from multiple sources and integrate them properly. Collecting and processing data can also raise privacy, security, and storage concerns. 

2. Integration and interoperability

Digital twin ecosystems are complex systems featuring different types of data obtained from sensors, IoT devices, databases, BIM models, and many more. Therefore, automotive experts must consider data exchange protocols to ensure a smooth data transfer between the systems. 

In addition, since different sources use different types of data, the digital twin must be designed to interpret various data types. Security is another factor that must be considered while creating a digital twin using various data sources.  

Also Read: Importance of Real-Time Integration in Digital Twin

3. Scalability

When it comes to scalability, one of the main challenges is the sheer volume of data that needs to be processed. As more sensors and data sources are added to the system being modeled, the volume of data can quickly become overwhelming. This can lead to challenges in storing, processing, and analyzing the data in real time.

Complexity is another challenge faced while scaling Digital Twins. For example, a vehicle could have numerous amount of components that need to be accurately modeled and simulated if you want to create a reliable Digital Twin. For this, it might require significant computational resources, which can be difficult to scale up. Why? Because the system being modeled becomes more complex. 

So, when designing digital twin solutions for complex automotive systems, you should have scalability in mind.

Please read: The Evolution of Digital Twin Software in Different Industries

4. Real-time simulation 

Computational complexity is one of the main limitations in real-time simulations. Since creating a Digital Twin model for vehicles requires a large number of calculations, the process can be computationally intense. This requires high-performing computing resources, which is expensive and may limit scalability. 

Also, it should be noted that for real-time simulations to perform well, they need accurate data inputs. But real-world data may not capture all relevant factors that could affect the accuracy of the Digital Twin. 

Finally, the real-time simulation might not be suitable for testing certain scenarios or conditions. For example, conditions like extreme weather or rare system failures are hard to replicate in real life. This poses a challenge in testing the reliability of digital twins in such conditions.

Also read: Digital Twin Security: Steps to Take & Best Practices. Here

Security and Privacy Concerns 

1. Data security & privacy

As mentioned earlier, the digital twin ecosystem operates on data obtained from various sources, including sensors, IoT trackers, and BIM models. It may also include sensitive data such as trade secrets, personal details of customers, proprietary data, etc. 

So it is important to keep all this data safe from falling into the wrong hands. Unauthorized access can affect the reputation of the company and business operations, sometimes even leading to financial losses. 

Companies must follow strong security measures like encryption, access controls, and firewalls to avoid data breaches and misuse. In addition, they can use secure storage solutions to safeguard the data. Regularly testing the system for vulnerabilities and security gaps is another way to ensure data security. 

Legal and Regulatory Issues 

1. Compliance

Protection of data is crucial, as was covered in the section before this one. Therefore, in order to preserve client privacy, adherence to GDPR, CCPA, or HIPAA standards is crucial.

The application of cutting-edge technologies presents a barrier in adhering to these laws.  For example, techs like machine learning are used in optimizing the manufacturing process. But it can be difficult to prove whether these algorithms comply with relevant regulations and standards. 

Thus, it is crucial to establish clear guidelines and standards for using different types of digital twins. This may involve working with regulatory bodies and standard organizations. 

2. Intellectual property

Intellect Property, or IP, is valuable for companies that create and use Digital Twins. It can include patents, trademarks, copyrights, and other forms of proprietary information. 

But, concerns related to the ownership and protection of IP in Digital Twin solutions need to be addressed. This is mainly because of the involvement of collaboration between multiple companies. 

To give you a clear idea, consider the following example. Two companies collaborate to create a digital twin, a manufacturer, and a software company. 

One company has exclusive data on the design and function of a specific component, while another has exclusive algorithms for simulating and improving its performance. If proper regulations and agreements are not in place, there is a risk of the latter's intellectual property being used without permission. 

That's why clear agreements and contracts must be established to establish ownership and usage rights to protect data.

Organizational Challenges

1. Adoption barriers

While Digital Twins can revolutionize organizations' performance, there exists an adoption barrier. These barriers can include fear of change and lack of understanding.

Digital Twins are disruptive and can significantly change existing workflows and practices. However, some individuals or organizations may resist due to uncertainty about its impact on their job or the organization as a whole.

Digital Twin technology can be complex, requiring specialized knowledge and expertise. And individuals or organizations that lack this expertise may be hesitant to adopt it. Many people don't use it or prefer it because they don't fully understand its advantages and how to use it properly.

Organizations may also be hesitant to adopt this considering the complexity and cost of data management. 

2. Skillset requirements 

It's not always easier to find laborers with the right skill set to develop, implement, and maintain digital twins. Software development, data analytics, and simulation are a few of the areas laborers need to be skilled in. 

Furthermore, it should also be noted that the Digital Twin tech is changing with the emergence of new technologies and techniques. 

So, how to address these challenges?

The best and most affordable way will be to partner with a digital twin development company. 

The best and most affordable way will be to partner with a digital twin development company. 

Why? 

Because they have more experience and expertise in developing Digital twins. They will have proper team and project management processes set in place, guaranteeing timely delivery of the product. And most importantly, they can help you improve digital twin with their expertise. 

In regard to the budget, it will be cheaper than hiring an in-house team. 

3. Cost considerations

Adopting Digital Twin technology can require a significant financial investment. This is because it involves acquiring specialized hardware, software, and expertise. 

Also, the cost varies depending on the scope and complexity of the project. For example, developing a Digital Twin for a single component or subsystem of a vehicle may require less investment. At the same time, developing a Digital Twin for an entire vehicle or manufacturing process.

Despite these investments, the digital twin can contribute to several potential returns on investment. For example, the digital twin can help automotive engineers to detect potential machine failures and perform timely maintenance and services. In doing so, they can reduce machine downtime and improve its life. The digital twin can also be used to simulate real-world conditions and deliver personalized solutions, improving sales and ROI. 

Meanwhile, for a successful digital twin implementation, you must connect with the best digital twin companies. This will help you remove the major challenges and limitations mentioned above.  

Please read: How much does it cost to develop a digital twin

Despite the advantages of digital twin technology for increasing efficiency and production, several security concerns and obstacles are associated with its widespread use. Therefore, before using digital twin technology, it is essential to consider the following significant security concerns.

1. Reconnaissance

Sniffing packets and bandwidth is part of reconnaissance. Attackers can use these methods to count devices, find security flaws, and uncover vulnerabilities. Unauthorized access to private information and exploiting weaknesses in the CPS and its digital twin are possible outcomes of such attacks.

Attackers can, for example, monitor network activity and intercept network packets to identify which CPS components are operational or to deduce CPS activity from the bandwidth usage between the CPS and its digital counterpart. The bandwidth between the CPS and its digital twin may allow attackers to estimate the potential protocols, even if the network packets cannot be adequately decrypted or analyzed.

Once network data has been effectively intercepted, attackers can learn more about the CPS's communication with its digital duplicate. The next section will include reconnaissance-based attacks, such as model injection, data injection, and data delay.

2. Attacks Using Data Injection

Interaction between real and digital components needs to be carefully controlled because of the inherent data dependency and requirement for reliability. One attack technique involves introducing malicious commands or bogus status reports to fool the system. The assault methods listed below have the potential to either interfere with the cyber-physical system or give digital twins inaccurate information.

1) To gain control of the CPS, attackers send particular orders that should come from the digital twin. Attacks like these aim to take control of CPS devices or harm and destroy them, preventing the digital twin from operating the CPS and leading to simulation failures.

2) Attackers trick digital twins by sending packets to show the CPS's current state. This kind of attack has the potential to confuse and malfunction by causing the digital twin to obtain inaccurate data from the CPS.

3. Data Delay Attack

Digital twin technology relies heavily on real-time synchronization between the virtual and real worlds. Attackers might try to break this synchronization, though, by adding many communication delays. Attackers may overload the network to affect the physical or digital twin and create these kinds of delays.

Attacks of this kind are comparable to denial-of-service (DoS) attacks. To carry out such an assault, attackers don't even need to comprehend ICS protocols or features. The digital or physical twin may not react promptly during a timeout, which could cause both twins to behave unexpectedly.

4. Model Corruption

Directly injecting unauthorized software is another way to throw off the synchronization between the physical and digital twins. If an attacker manages to get access to the environment, they might, for example, look through the repositories, examine the code, and insert malicious code to distort the model. The digital twin is impacted as soon as the model is compromised. The output may become inconsistent if the digital twin can no longer faithfully depict the physical twin.

As an alternative, attackers can introduce harmful code into model-building libraries. Additionally, models created using compromised libraries are tainted. As a result, the digital twin may be compromised and lose its ability to faithfully depict the physical twin, which could result in inconsistent output.

5. User Data Breach and IP Leakage

Attackers may be able to obtain sensitive data acquired by physical twins, such as sensor values, data from the Internet of Things devices, and more after digital twin technology is compromised. In a production setting, this data usually requires more effort to access. However, recovering sensitive data from a leaked digital twin is easier. The physical twin could also contain priceless intellectual property (IP), frequently a vital business resource.

Furthermore, as the GDPR demonstrates, many firms today place a high importance on preserving privacy. If a digital twin is compromised and contains client information, the company may sustain not just monetary losses but also harm to its reputation.

With emerging tech like AI, ML, and generative designs, the future of Digital Twin in automotive design and engineering is full of promise. Here are some key areas where digital twins will likely have a significant impact:

Digital Twins in Automotive Design and Engineering

• Virtual testing and validation: Companies can test vehicle components virtually, eliminating the need for a physical prototype. This helps reduce the cost and development time. 

• Design and development: With virtual testing, engineers can test and optimize models to make them more efficient. This will lead to faster development times, reduced material waste, and better product quality. 

• Autonomous vehicle development: Self-driving vehicles are already in the market, and there is more potential for them in the future. Engineers can run simulations of complex scenarios and traffic conditions with digital twins. This ultimately helps train and refine AI algorithms responsible for vehicle autonomy.

• Supply chain optimization: Digital Twins can be used to model and optimize the entire automotive supply chain. This will reduce lead times, lower costs, and improve overall efficiency. Follow the link to learn more about the role of digital twins in supply chain management.

• Enhanced safety: Digital twins can help create safer vehicles and improve passenger protection by running crash tests. 

• Environmental impact: By simulating and optimizing energy consumption, emissions, and resource usage, Digital Twins can help their environmental footprint.

Also read: Sustainability with Digital Twin for Environmental Conservation | Toobler

Digital Twins in Automotive Manufacturing

• Production Optimization: Companies can optimize the production process by monitoring real-time data. They can identify bottlenecks, inefficiencies, or potential issues before they become major problems from these data. This will result in improved throughput, reduced downtime, and higher productivity.

• Quality Assurance: With Digital twins, manufacturers can monitor the assembly process and analyze data in real time. In doing so, manufacturers can identify deviations from the ideal manufacturing process. This help ensures that each meets quality standards and reduces the risk of recalls. 

• Predictive Maintenance of Equipment or Machinery: Manufacturers can enhance their maintenance schedules by utilizing digital twins to anticipate when equipment or machinery will need repairs. This enables them to schedule maintenance more effectively. Also, it will reduce downtime, extend equipment life, and lower maintenance costs.

• Supply Chain Management: With Digital twins, companies can optimize and manage their entire supply chain. This includes tracking raw materials, managing inventory, and optimizing logistics. Doing so helps manufacturers reduce waste, lower costs, and respond quickly to market demands.

Suggested read: How is IoT Transforming Supply Chain Management

Digital Twins in Vehicle Maintenance and Aftermarket Services

As technology progresses, we can anticipate the following advancements in using digital twins for vehicle maintenance and aftermarket services.

• Predictive Maintenance of Vehicles: With digital twins, vehicle maintenance can shift from reactive to predictive. By keeping track of the digital twin's performance and comparing it to the actual vehicle, maintenance teams can detect potential problems before they escalate. This enhances the dependability of the vehicle and minimizes maintenance expenses and downtime. Digital twins also help with real-time monitoring and remote diagnostics of vehicles. 

Read more to learn the difference between preventive and predictive maintenance.

• Enhanced Training and Skills Development: Digital twins can be used as an effective training tool for mechanics. Instead of working on actual vehicles, they can work on virtual vehicles to develop their skills and knowledge.

• Advanced Integration with IoT and Connected Vehicles: A digital twin's capabilities are enhanced as it acquires more data. So, if we can integrate external data sources with vehicle data, the digital twin can offer more accurate insights. Furthermore, this will help in improving the vehicle's performance as well. 

By 2024, digital twin technology is predicted to radically change the automotive industry. Digital twins in the automotive industry solve several prevalent issues by creating virtual replicas, or digital twins, of an automobile and its components, enabling real-time analysis and modeling. 

The applications are numerous and significant, ranging from strengthening manufacturing procedures and safety testing to bettering vehicle design and performance optimization. The adoption of digital twins, however, may encounter difficulties due to a number of significant obstacles, including organizational, legal and regulatory, security and privacy, and technical difficulties. 

Hence, it is possible to experience some friction during the initial stages of adoption, but the benefit it brings is invaluable. Hence, you must follow a definitive guide to implementing digital twins in your organization  

One way to facilitate your transformation to Industry 4.0 is to partner with digital twin experts like Toobler. Having developed digital twin products like TwinBin, Toobler offers an end-to-end solution in digital twin development. 

TwinBin is a smart dispenser with storage spaces for active stock and reserve stock. It works on the same principle as digital twins - a sensor sends real-time data to the product supplier regarding the available stock. This way, the product supplier can monitor available stock in real time. You can learn more about how we help develop TwinBin here. 

Ready to optimize your business with a digital twin? Leverage our innovative solutions and unparalleled expertise to take your operations to the next level. Get in touch with us today to transform your business for the digital era!

Suggested Read: How to Choose Your Digital Twin Development Company

1. What is the digital twin in the automation industry?

A digital twin in the automation industry is an electronic duplicate of real-world resources, systems, or procedures. It replicates real-world situations using simulation models and real-time data to enable monitoring, diagnostics, and predictive insights. This technology improves profitability, effectiveness, and decision-making by detecting problems early, improving performance, and modeling changes before they are implemented in the actual world.

2. What is the role of digital twins in the automotive industry?

Digital twins are not just essential, they are the catalyst for a wave of innovation in the automotive sector. They provide virtual representations of automobiles or parts, allowing for real-time simulation and data analysis. This lowers development expenses, increases security, forecasts maintenance requirements, and maximizes manufacturers' performance. By modeling various scenarios to test vehicle responses, digital twins also enable advancements like autonomous driving, paving the way for a future of automotive innovation.

3. What are the top use cases of digital twins in the automotive industry?

The following are some digital twin applications in the automotive sector:

• Vehicle Design and Testing: With digital twins, designs are simulated, and virtual prototypes are tested, significantly reducing development time and expenses. This reassures the industry professionals, students, and enthusiasts about the efficiency of the technology.

• Predictive maintenance: Keeps an eye on a car's condition to anticipate problems and minimize downtime.

• Manufacturing Optimization: Simplifying production by identifying and resolving bottlenecks, which are points in the production process where the flow of work is slowed or stopped, and enhancing procedures.

• Autonomous Vehicle Testing: Testing and improving self-driving systems by simulating real-world situations.

• Increased Customer Experience: One of the most significant benefits of digital twins in the automotive sector is the improved customer experience. By offering individualized services and insights derived from real-time data from digital twins of vehicles, customers feel more valued and connected to their vehicles, enhancing their overall experience.

Customer happiness, creativity, and efficiency are all fueled by these applications.