Market Research Report
Global Digital Twin Market By Type, By Application, By Industry, By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027
|Global Digital Twin Market By Type, By Application, By Industry, By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027|
Published: May 31, 2021
Content info: 297 Pages
Delivery time: 1-2 business days
The Global Digital Twin Market size is expected to reach $63.5 billion by 2027, rising at a market growth of 41.7% CAGR during the forecast period. Digital twins find their application in various end-use industries like manufacturing, agriculture, energy and utilities, healthcare, and automotive industries. In recent years, many companies that create digital twin platforms have introduced different solutions for specific business areas. For example, Volkswagen AG, an automotive company whose employees working at the Pre-Series Center in Wolfsburg are taking help of 3D models to support prototype assembly operations across the globe. The companies are forced to operate with least manpower post-pandemic. That is why, increasing number of companies are shifting towards automation with an aim to streamline different processes. With the rising demand for automation has been increased in various industries, the demand for digital twin platforms would be fueled over the forecast years.
Owing to the increasing adoption of Industry 4.0 across the globe, the digital twin market is estimated to experience significant growth in the coming years. Industry 4.0 refers to the fourth industrial revolution. It is an emerging trend in various industries including the manufacturing sector where it is focusing on automation, capturing, and exchanging data. For the digital representation of a product, it is very important to adopt advanced technology like IoT. In Industry 4.0, the digital twin is considered to integrate the manufacturing techniques with advanced technology like IoT that helps in developing interconnected manufacturing systems. Thus, digital twin technology seems to be an ideal solution that facilitates the companies in realizing the Industry 4.0 standards.
COVID 19 Impact
The sudden outbreak of the COVID-19 pandemic resulted in a global economic crisis. The pandemic has a negative impact on the growth of the end-use and manufacturing industries. As the demand for oil is on a declining trend, the main oil producers are facing a lack of storage space for extracted oil. This has created a huge gap between supply and demand. The automotive & transportation, energy & power, and aerospace & defense industries are the key end-users of digital twin technology. These manufacturing and end-use industries are also seen declining demand during the pandemic. Complete lockdown in many countries supported to limit foreign trades across international borders, non-operational distribution channels, and many government laws to take preventive measures for public health and safety to stop the spread of the virus. Though, various industries are focused to adopt the digitization of processes which is anticipated to boom in the post-COVID-19 period. The demand in the energy & power sector is also increasing, which would boost the growth of the segment in the forecast period.
Based on Type, the market is segmented into System, Process and Product. The market for system digital twin acquired the maximum revenue share in 2020. This growth can be attributed to factors like the growing use of digital twins for systems in numerous applications. For instance, the LOCOMACHS in the aerospace & defense sector has installed a digital twin for the complete assembly line for an aircraft wing and aids in performance monitoring.
Based on Application, the market is segmented into Predictive Maintenance & Performance Monitoring, Business Optimization, Inventory Management, Product Design & Development and Others. The Predictive Maintenance & Performance Monitoring market dominated the Global Digital Twin Market by Application 2020. The Business Optimization market is experiencing a CAGR of 42.2% during (2021 - 2027). The Inventory Management market is estimated to grow at a CAGR of 42.7% during (2021 - 2027).
Based on Industry, the market is segmented into Automotive & Transportation, Residential & Commercial, Healthcare & Life Sciences, Manufacturing, Energy & Power, Agriculture, Retail & Consumer Goods and Others. The Automotive & transportation industry segment procured the highest revenue share of the digital twin market in 2020. This growth can be accredited to growing uses of digital twins for designing, production, simulation, MRO (maintenance, repair, and overhaul), and after service. Automotive & transportation is one of the industries that would show high growth after the COVID-19 pandemic. It is due to the fact the industry players will tend to adopt digital solutions for their end-to-end operations that might help them in reducing losses that had happened due to the pandemic.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The market of the digital twin in Asia pacific is expected to see the highest growth over the forecast period. Due to the technological, infrastructure, and agricultural developments in emerging countries like China and India, it is expected to expand at a significant CAGR. This region is also characterized by the existence of numerous manufacturing industries. It is expected that these industries will adopt digital twin technology and would fuel the regional market in the forecast period.
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation is the major forerunner in the Digital Twin Market. Companies such as PTC, Inc., Honeywell International, Inc., SAP SE, ABB Group, and Siemens AG are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Honeywell International, Inc., SAP SE, PTC, Inc., General Electric (GE) Co., IBM Corporation, Oracle Corporation, Siemens AG, Robert Bosch GmbH, Microsoft Corporation, and ABB Group.
Recent strategies deployed in Digital Twin Market
Partnerships, Collaborations, and Agreements:
Feb-2021: IBM joined hands with Siemens and Red Hat. This collaboration aims to utilize a hybrid cloud designed to provide a flexible, open and safe solution for manufacturers & plant operators to lead the real-time value from operational data. In this joint initiative, Siemens Digital Industries Software would implement IBM's open hybrid cloud approach, based on Red Hat OpenShift, to expand the implementation flexibility of MindSphere, the industrial IoT as a service solution by Siemens.
Jan-2021: Siemens partnered with Ola, an Indian multinational ride-sharing company. In this partnership, Ola would get access to Siemens' integrated Digital Twin design and manufacturing solutions to get digitalize and authenticate product & production prior to actual operations.
Dec-2020: Microsoft collaborated with Johnson Controls, an Irish-domiciled multinational conglomerate. This collaboration aims to digitally transform the way buildings and spaces are conceived, built and managed. Microsoft's Azure Digital Twins is one of the latest Azure platform service combined with Johnson Controls. Johnson Control's platform turns the physical world into computable objects that will enable customers to create detailed digital versions of physical buildings, assets and systems.
Nov-2020: ABB Thailand partnered with Ericsson Thailand. This partnership aims to complement ABB's customers and companies in Thailand with Ericsson's 5G solutions. Through this partnership, Ericsson will become ABB's Preferred Connectivity Partner in Thailand. The agreement offers a framework and opportunity for ABB and Ericsson to together boost the digital transformation of various enterprises all over Thailand and to improve support for ABB's users with 5G connectivity expertise.
Oct-2020: PTC came into partnership with Rockwell Automation, an American provider of industrial automation and information technology. This partnership aims to ensure continuity in both organizations' sales & product development efforts and extend the agreement to involve PTC's product lifecycle management & software as a service (SaaS) products.
Oct-2020: Microsoft came into a partnership with Bentley Systems, an American-based software development company. This partnership aims to integrate Microsoft's Azure IoT Digital Twins & Azure Maps with Bentley Systems' iTwins platform, helping architects, engineers, constructors and city planners to work under a comprehensive city-scale digital twin, helping in better decision-making, maximizing operational efficiency, decrease costs and enhance collaboration.
Oct-2020: Honeywell teamed up with Microsoft, an American multinational technology company. Under this collaboration, Honeywell would bring to market its domain-specific applications based on the Microsoft cloud platform to accelerate new stages of productivity for industrial customers.
Sep-2020: Microsoft extended its partnership with Telstra, an Australian telecommunications company. This expansion focuses on boosting the development and launch of advance and sustainable cloud-based solutions over various sectors driving efficiency, augmenting decision making capability and improving customer experiences.
Sep-2020: Siemens Digital Industries Software came into partnership with VSI Labs, a researcher of active safety and autonomous vehicle (AV) technologies. Under this partnership, Siemens' PAVE360 platform would help in developing digital twin simulations for the authentication & testing of every processors, sensor, electronics, and systems empowering the VSI Labs Capability Demonstrator that is an improved AV development vehicle embedded with components from automotive technology leaders and combined by VSI solutions engineers.
Aug-2020: Honeywell came into partnership with iTRACE Technologies. This partnership aimed to enable users to integrate blockchain with the product marking in supply chains. Apart from securing end-to-end traceability, the integrated technologies can assist detect counterfeit parts and enhance inventory management. The Aerospace division of Honeywell has worked with iTRACE's 2DMI solution prior to avert counterfeit aerospace parts by utilizing blockchain and other technologies.
Aug-2020: Honeywell teamed up with Halliburton, an American multinational corporation. Together, the companies aim to optimize asset potential, decrease execution risk and reduce the overall cost of ownership for oil and gas operators. This collaboration would leverage Halliburton Landmark's DecisionSpace 365 E&P cloud applications and Honeywell Forge that is a robust industrial analytics software solution, to provide unparalleled insights about oil & gas assets.
Jul-2020: PTC signed an agreement with the U.S. Navy. Under this agreement, the U.S. Navy selected PTC's Windchill product lifecycle management (PLM) Software as a Service (SaaS) capabilities to complement its Model-Based Product Support (MBPS) digital transformation initiatives that are focused on enhancing the Navy's operational readiness.
Jul-2020: Siemens formed a partnership with SAP, a German multinational software corporation. This partnership focuses on integrating their complementary software solutions for supply chain, product lifecycle, and asset management to boost the digital transformation for their customers.
Jul-2020: ABB came into collaboration with Accenture, an Irish-domiciled multinational company. This collaboration would build on ABB's expertise in digitalized processes for the evolution of sectors and Accenture's Information & Operational Technologies (IT/OT) architecture & software development offerings over industries.
May-2020: Siemens collaborated with Atos, a global leader in digital transformation. This collaboration aims to enhance production with an advanced solution based on a digital copy of the pharma production process. This advanced Process Digital Twin for pharma manufacturing powered by AI, IoT, and Advanced Analytics, which is developed to offer enhanced efficiency & flexibility in the manufacturing of pharmaceutical products.
Feb-2020: GE Digital, a division of General Electric came into partnership with NEC, a Japanese multinational information technology and electronics company. This partnership aims to offer IoT solutions, which brings innovation & growth in global business initiatives in a wide range of industries like manufacturing and national infrastructure.
Acquisition and Mergers:
Jan-2021: PTC took over Arena Solutions, the industry's leading software as a service (SaaS) product lifecycle management (PLM) solution. This acquisition aimed to establish PTC as the top provider of pure SaaS solutions for the product development market and widely expand PTC's presence in the attractive mid-market.
Nov-2020: Siemens signed an agreement to acquire Culgi, a computational chemistry software company. This acquisition will expand the simulation capabilities of the Xcelerator portfolio with quantum & molecular chemistry models, which effortlessly integrate with the continuum approach in Simcenter STAR-CCM+ software.
Feb-2020: Siemens Digital Industries Software took over MultiMechanics, developer of finite element software. This acquisition aimed to expand the Simcenter and Xcelerator portfolio of Siemens and Users would get the benefit from a solution that can virtually forecast the failure in materials at an unprecedented level of speed & accuracy.
Product Launches and Product Expansions:
Dec-2020: Microsoft introduced Azure Digital Twins and the Digital Twins Consortium, an integrated effort to increase consistency in digital twin technology has 170 members including companies, government agencies, and academia.
Apr-2020: PTC released the next generation of its Creo 3D computer-aided design (CAD) software, Creo 7.0. The software's latest offerings put the power of artificial intelligence (AI) at designers' fingertips that make simulation an effortless part of daily work.
Market Segments covered in the Report:
Unique Offerings from KBV Research
List of Figures