PUBLISHER: The Business Research Company | PRODUCT CODE: 1750971
PUBLISHER: The Business Research Company | PRODUCT CODE: 1750971
Digital twin technology in manufacturing refers to the creation of a virtual replica of physical systems, allowing for real-time monitoring and simulation. By integrating IoT, artificial intelligence (AI), and data analytics, it enables manufacturers to optimize operations and enhance efficiency. Key benefits include predictive maintenance, improved product design, and supply chain optimization. This technology empowers manufacturers to make data-driven decisions, leading to increased productivity.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The main types of digital twin solutions in manufacturing include product and machine design software, computer-aided manufacturing (CAM) software, manufacturing execution systems (MES), and IoT analytics software. Product and machine design software allows engineers to design, simulate, and optimize products and machinery for greater accuracy and efficiency before actual production. These solutions cater to both small and medium enterprises (SMEs) as well as large enterprises. Common applications include product design, process optimization, quality management, predictive maintenance, and other operational improvements.
The digital twin in manufacturing market research report is one of a series of new reports from The Business Research Company that provides digital twin in manufacturing market statistics, including digital twin in manufacturing industry global market size, regional shares, competitors with a digital twin in manufacturing market share, detailed digital twin in manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the digital twin in manufacturing industry. This digital twin in manufacturing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The digital twin in manufacturing market size has grown exponentially in recent years. It will grow from$17.71 billion in 2024 to $29.03 billion in 2025 at a compound annual growth rate (CAGR) of 63.9%. The growth during the historic period can be attributed to the rising demand for data-driven manufacturing, increased adoption of 3D printing technologies, widespread implementation of the Internet of Things (IoT), and a growing number of approved biologics in the manufacturing sector.
The digital twin in manufacturing market size is expected to see exponential growth in the next few years. It will grow to$207.87 billion in 2029 at a compound annual growth rate (CAGR) of 63.6%. The growth during the forecast period can be attributed to the increasing number of biologics-related clinical trials, rising demand for real-time monitoring and predictive maintenance, a growing need for process optimization and operational efficiency, and a surge in investments in Industry 4.0 and smart manufacturing facilities. Key trends expected in the forecast period include innovative applications of digital twin technology, strategic partnerships and collaborations among leading industry players, the use of advanced digital twins in medical trials, and ongoing upgrades in technology capabilities by software providers.
The growing demand for military and defense is anticipated to drive the expansion of digital twin technology in the manufacturing sector. Military and defense encompass the systems, personnel, and strategies utilized to protect a nation from both internal and external threats. As global tensions escalate, nations are bolstering their military capabilities to counter geopolitical risks, deter potential adversaries, and ensure national security. Digital twin technology supports military and defense manufacturing by enabling real-time simulation, testing, and optimization of equipment, weapon systems, and logistics. This enhances operational efficiency, reduces costs, and boosts mission readiness. For example, in February 2025, the International Institute for Strategic Studies (IISS), a UK-based organization, reported that global defense spending in 2024 rose to USD 2.46 trillion, reflecting a 7.4% increase in real terms. This accounted for 1.9% of global GDP, compared to 1.6% in 2022 and 1.8% in 2023. Consequently, the rising military and defense investments are fueling the growth of digital twin technology in manufacturing.
Leading companies in the digital twin manufacturing market are innovating through the development of advanced technologies, such as open digital business platforms, to enhance interoperability, streamline data integration, and improve real-time monitoring of manufacturing operations. Open digital business platforms facilitate the seamless incorporation of digital technologies, enabling real-time data exchange, collaboration, and efficiency across the manufacturing value chain. For instance, in June 2022, Siemens AG, a Germany-based technology firm, introduced Siemens Xcelerator, a digital transformation accelerator that integrates IoT-enabled hardware, software, and services. This platform fosters collaboration among customers, partners, and developers and offers a curated portfolio, a partner ecosystem, and a marketplace to drive value across industries including manufacturing, infrastructure, energy, and mobility.
In September 2022, Dassault Systemes SE, a France-based software company known for delivering virtual environments for business innovation, acquired Diota for an undisclosed amount. The acquisition aims to strengthen Dassault Systemes' 3DEXPERIENCE platform by incorporating augmented reality (AR) and field control technologies to optimize complex industrial processes and enhance manufacturing operations. Diota, also based in France, specializes in enhancing digital twin solutions with real-time data integration, AR visualization, and process optimization, contributing to greater efficiency in manufacturing environments.
Major players in the digital twin in manufacturing market are Amazon.com Inc., Microsoft Corporation, Siemens AG, General Electric Company, IBM Corporation, Cisco Systems Inc., Schneider Electric SE, Honeywell International Inc., SAP SE, ABB Ltd, Emerson Electric Co., Rockwell Automation Inc., Dassault Systemes SE, Hexagon AB, Autodesk Inc., DNV AS (Det Norske Veritas), Ansys Inc., AVEVA Group plc, Bentley Systems Incorporated.
North America was the largest region in the digital twin in manufacturing market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in digital twin in manufacturing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the digital twin in manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The digital twin in manufacturing includes revenues earned by entities by providing services such as real-time monitoring, predictive maintenance, and process optimization. The market value includes the value of related goods sold by the service provider or included within the service offering. The digital twin in manufacturing market also consists of sales of products including simulation software, IoT-enabled sensors, and 3D visualization and AR or VR tools. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Digital Twin In Manufacturing Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on digital twin in manufacturing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for digital twin in manufacturing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The digital twin in manufacturing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.