The Emerging Digital Twin Market In 2024

The idea of “digital twins” is growing in significance as the digital era progresses, with applications ranging from manufacturing to healthcare and urban planning. A virtual representation created that accurately imitates a real object is called a digital twin. 

These digital copies can replicate potential future incidents and gather real-time data on their physical counterparts. Digital twin technology can significantly increase efficiency, facilitate predictive maintenance, and enhance decision-making processes.

Further, innovations in the IoT, AI, and big data analytics have paved the way to a dynamic and evolving sector known as the digital twin market. 

This blog will give you insights into the digital twin market in 2024, including its size, growth, key players, regional analysis, and key trends. 

The digital twin market has expanded rapidly in the last several years. At a CAGR of 37.8%, it will increase to $20.36 billion in 2024 from $14.78 billion in 2023. The reasons behind the historical expansion can be due to the rapid uptake of Industrial IoT (Internet of Things), the growing use of 3D printing, and the extensive use of digital twin in manufacturing industry.

It is forecasted that the digital twin market will grow significantly in the next few years. By 2028, it will have grown to $62.64 billion at a CAGR of 32.4%. The creation of smart city buildings, the growing need for digital twin in healthcare, and the use of digital twins in automotive are the main drivers of the projected growth throughout the projection period. 

Due to the manufacturing industry’s increased acceptance of digitization, the global digital twins market is expanding significantly. Global manufacturing companies are proactively allocating resources toward digitization projects in order to improve productivity, output, and accuracy. Digital twins and other solutions are essential to this shift because they help firms respond more quickly and effortlessly to shifting consumer needs and market dynamics.

According to data from the 2023–2027 Digital Twin Market Report, 29% of manufacturing organizations worldwide have either entirely or partially adopted digital twin approaches. This is a significant rise from the 20% of companies that did so in 2020. Furthermore, the percentage of these businesses that do not plan to use digital twins looks to have decreased from 33.6% in 2020 to 9% in 2023.

Thus, the digital twin market is expected to be driven throughout the projected time frame by the growing integration of digitalization technologies in manufacturing. This will improve manufacturers’ capacities and promote operational developments.

Additionally, it is anticipated that the growing need for implementing digital twins in healthcare sector will fuel the expansion of the digital twin market. Digital twins are used by healthcare organizations to generate digital representations of patient care data. This covers test results, the hospital environment, and biological processes in humans.

By creating virtual versions of medical structures, digital twin technology facilitates the analysis of business plans, recruitment strategies, resource use, and healthcare delivery methods. Consequently, this allows for the identification of problems, the planning of upcoming challenges, and the enhancement of organizational tactics. Large companies in the healthcare industry are using digital twins more frequently to boost operational effectiveness.

One such healthcare provider that uses digital twins in its healthcare settings is Philips, USA. The digital twin uses real-world variability to create a virtual model. This is accomplished by taking advantage of historical data sets and turning them into very minute, real-time simulations. 

Experts gather statistics about virtual hospitals and analyze them to generate practical recommendations for optimizing hospital efficiency and quantifying the benefits of feasible options prior to implementation.

It is possible to evaluate several winter resilience programs and determine which ones will work by correctly simulating real-life processes. The insights determine the degree to which they should be adopted to give care at the appropriate time and location. 

Healthcare executives now feel more confident that they are ready for the coming winter cluster. Hence, digital twins address essential issues that will shortly become crucial to the digital strategy of all healthcare providers.

Meanwhile, the continuous focus on technical innovation is a significant trend fueling the digital twin market. To improve their position in the market, major players are actively working on developing cutting-edge technology solutions. 

For an unknown price, Germany-based Siemens AG, an international aggregate, purchased EcoDomus, a California-based producer of digital twin software, in December 2021. EcoDomus will become part of Siemens after its purchase and will utilize the Siemens name going forward. Because of this calculated decision, Siemens Smart Infrastructure can now provide its flagship building management platform, Desigo CC, and cloud-based building operations twin software, among other digital building offerings, to a broader audience.

Some of the leading digital twin companies in the market are:

1. Toobler 

Toobler assists companies in implementing digital twin technology, enhancing their capacity for effective operations and sound decision-making. A digital twin provides real-time insights, simulations, and assessments by reflecting real-world things.

We assess your present systems and processes, taking into account your specific company objectives, in order to identify areas where digital twin technology might be improved. We also offer consultation on the specifics of digital twins, explaining their benefits and applicability to your industry.

Also read: How Toobler Helps Companies Become Digital Twin Ready? Here

2. Siemens 

Siemens has robust software systems that are essential for developing digital twins. These systems must be able to apply them across the whole value chain, from organizing and creating items, machines, and plants to maintaining manufacturing machines and goods. This enables users to tailor their production processes and respond with far greater flexibility and efficiency.

Please read our blog on the best digital twin companies to rely upon.  

The digital twin market is present in several regions: North America, Europe, Asia, Latin America, the Middle East and North Africa, and the remaining regions. Forecasts indicate that North America will take the majority of the market in 2024. 

Further, this trend is not expected to shift again. In addition, it’s important to note that, between 2024 and 2035, the Middle East and North Africa market is forecasted to grow at a robust compound annual growth rate (CAGR).

In addition, North America also has a highly skilled labor population, a robust digital infrastructure, and sophisticated data analytics skills. It is an advanced technological society. These elements offer a solid basis for employing and deploying digital twin solutions effectively, allowing companies to get the most out of the technology.

The region’s superiority in the digital twin companies is also a result of its strict focus on the industrial and manufacturing sectors. 

The digital twin benefits are growing highly with the following trends in 2024. 

1. Integration with IoT and AI

A critical factor in the development of digital twins is the increasing interplay between artificial intelligence (AI) and the Internet of Things (IoT). Integration with IoT and AI makes simulations more realistic and also empowers real-time applications to make more independent judgments. This is done by predicting outcomes based on received data.

Please read: How Digital Twins and IoT Work Together: Complete Guide. Here 

2. Improvements in Cybersecurity

With the increasing importance of digital twins in some critical industries, cybersecurity is becoming a major concern. Digital twin security is having huge significance with the use of many advanced technologies, which also in turn creates security concerns.  By 2024, digital twin cybersecurity protocols will be more robust, protecting sensitive data with real-time error detection and advanced encryption methods.

3. Digital Twins and Sustainable Development

A recent trend in sustainable development is using digital twins to assist in the process. By simulating different situations, digital twins can help build more efficient and ecologically sound buildings, energy systems, and transportation systems. Thus, digital twins and sustainability are interlinked, and are key trends in the future.  

4. Lifecycle Management and Proactive Maintenance

Digital twins are propelling the transition in maintenance strategies from responsive to preventive and predictive. Digital twins minimize unforeseen machinery failures and lengthen asset lifespans by constantly assessing the state of their physical counterparts. This allows them to predict when maintenance is required.

5. Uniformity and Compatibility 

As digital twin technology expands, it is becoming increasingly vital to achieve uniformity and enhanced compatibility throughout platforms and networks. The adoption of digital twins will accelerate due to the smooth interaction between them made possible by universal norms, which will also lower the difficulty and cost of implementation.

Please read our blog on digital twin implementation to learn how easy it is to implement this technology for your business requirements. 

The digital twin market is expanding significantly because of the industry's demand for efficiency, technological advancements, and the potentially transformative effects of IoT and AI. Despite these challenges, the industry offers profitable possibilities for global collaboration and innovation across a range of industries. Leading players are continuing to invest in R&D to improve digital twin benefits to ensure continued growth and impact in the upcoming years.

In this continuous research on the fruitful use of digital twins, Toobler is also in the position. We create a Digital Twin that accurately replicates your physical asset or system, giving you the information you require to maximize efficiency and cut expenses. 

Connect with us now to understand more about the digital twin market and how it’s shaping industries.