The global digital twin market value stood at $3,210.1 million in 2020, and it is predicted to surge to $184,517.4 million by 2030. According to the estimates of the market research company, P&S Intelligence, the market will advance at a CAGR of 50.0% from 2020 to 2030 (forecast period). The ballooning adoption of machine learning (ML), 5G, artificial intelligence (AI), and the internet of things (IoT) technologies, growing popularity of Industry 4.0 standards, and the burgeoning requirement for cloud services are the major factors propelling the advancement of the market across the globe.
With the rising penetration of the internet, the adoption of the IoT is surging sharply, with more than 41 billion IoT-connected devices predicted to be in usage by 2025. To ensure the successful functioning and implementation of IoT, growing the throughput for every component is critical, which can be done by the adoption of the digital twin technology. As the performance and behavior of a system during its lifespan rely heavily on its parts, the requirement for the digital twin technology is mushrooming rapidly around the world in order to facilitate rapid system improvements.
Additionally, many product owners and vendors are requiring digital representation for reducing the marketing time period and operational costs. Depending on application, the digital twin market is classified into performance monitoring, inventory management, product design and development, predictive maintenance, and business optimization. Out of these, the predictive maintenance category is predicted to exhibit the fastest growth during the forecast period. Enterprises can collect real-time information, estimate downtime, schedule maintenance by developing a digital twin of a system, process, or a product, and automate operations.
Owing to these factors, the demand for digital twin technologies is set to soar in the forthcoming years. The digital twin market is also categorized, on the basis of industry, into oil and gas, aerospace and defense, automotive, manufacturing, energy and utilities, and healthcare.
Geographically, the Asia-Pacific (APAC) region is predicted to be the fastest-growing region in the digital twin market throughout the forecast period. This will be because of the rapid economic progress of regional countries and surging investments being made in the information technology (IT) infrastructure, ballooning adoption of advanced technologies, and launch of initiatives by various private and public organizations for promoting the adoption of AI and IoT technologies in order to reduce production time and improve product quality in the region.
Thus, the demand for digital twin solutions will shoot up all over the world in the years to come, primarily because of the growing adoption of advanced technologies, such as AI and the IoT, and Industry 4.0 standards and burgeoning need for higher business efficiency and reduced downtime.