PUBLISHER: The Business Research Company | PRODUCT CODE: 1822719
PUBLISHER: The Business Research Company | PRODUCT CODE: 1822719
A building twin is a digital replica of a physical building that integrates real-time data, simulations, and analytics to accurately reflect its performance, usage, and conditions. This technology facilitates improved decision-making, predictive maintenance, and enhanced operational efficiency throughout the building's lifecycle.
The main components of building twins include software, hardware, and services. The software component consists of digital platforms and applications that create, manage, and visualize virtual models of real buildings. These can be deployed both on the cloud and on-premises, utilizing various technology stacks such as Internet of Things (IoT) sensors, data analytics, and visualization tools. Applications span security management, operations and maintenance, space management, facility management, smart automation, and more. Building twins are utilized by a wide range of end users including commercial buildings, industrial facilities, residential buildings, and government and public buildings.
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 rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the construction sector, particularly in materials procurement and project costs. Higher duties on imported steel, aluminum, lumber, and machinery have driven up expenses for builders, contractors, and infrastructure developers, leading to increased project bids and delayed timelines. Construction equipment manufacturers face similar challenges, with tariffs on essential components and raw materials inflating production costs and squeezing margins. Additionally, retaliatory tariffs in international markets have curtailed exports of U.S.-made construction equipment and materials, further affecting profitability. The sector must now prioritize local sourcing, modular construction techniques, and supply chain diversification to control costs and ensure project viability amid ongoing trade uncertainties.
The building twins market research report is one of a series of new reports from The Business Research Company that provides building twins market statistics, including building twins industry global market size, regional shares, competitors with a building twins market share, detailed building twins market segments, market trends and opportunities, and any further data you may need to thrive in the building twins industry. This building twins 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 building twin market size has grown exponentially in recent years. It will grow from $1.99 billion in 2024 to $2.62 billion in 2025 at a compound annual growth rate (CAGR) of 31.6%. The growth during the historic period can be attributed to the surge in modular construction methods, increased government funding and incentives, rising urbanization, population growth, and the post-pandemic shift toward smart buildings.
The building twin market size is expected to see exponential growth in the next few years. It will grow to $6.20 billion in 2029 at a compound annual growth rate (CAGR) of 31.3%. The growth projected for the forecast period can be attributed to the rise of smart city projects, increased real estate investments, growing construction of green buildings, expansion of the facility management industry, and rising demand for smart commercial spaces. Key trends during this period include the integration of IoT sensors, advancements in AI and machine learning, high-performance cloud computing, interoperable digital twin platforms, and the development of augmented reality technologies.
The growing demand for energy-efficient buildings is expected to drive the expansion of the building twin market moving forward. Energy-efficient buildings are designed using smart construction techniques, advanced technologies, and thoughtful design to reduce energy consumption while maintaining comfortable indoor environments. This demand is rising due to increasing environmental awareness, as such buildings play a vital role in reducing greenhouse gas emissions and combating climate change. Building twins are crucial for energy-efficient buildings because they enable continuous monitoring and simulation of energy performance, allowing precise adjustments to improve efficiency and reduce energy waste. For example, in December 2024, the Green Building Council of Australia, a non-profit organization, reported that 64 million square meters of building space in Australia received Green Star certification during 2023-24. Additionally, project submissions for green building sustainability certifications more than doubled from the previous year, exceeding 120 submissions. Therefore, the rising focus on energy-efficient buildings is fueling growth in the building twin market.
Leading companies in the building twin market are developing advanced solutions such as SaaS digital twin platforms to support continuous improvement and ensure interoperability throughout building operations. SaaS digital twin platforms are cloud-based software tools that create virtual models of physical systems, enabling users to monitor, analyze, and optimize performance remotely in real time. For instance, in October 2023, Nemetschek Group, a Germany-based software firm, launched dTwin, a SaaS digital twin platform that offers an open, unified solution to support informed decision-making across the entire building lifecycle-from design through daily operations. It is the first platform to integrate all building data into a single comprehensive view by linking design tools such as CAD and BIM, management systems such as IWMS, and live operational data through open APIs. The platform provides customized insights via real-time dashboards and reports tailored for stakeholders including service providers, operators, and owners.
In January 2023, Hexagon AB, a Sweden-based industrial technology company, acquired LocLab for an undisclosed sum. This acquisition expands Hexagon's Smart Digital Reality capabilities and broadens its customer base. It also equips LocLab's clients with an advanced platform to manage, share, and update their 3D digital twin models. LocLab is a Germany-based provider specializing in 3D digital twins for buildings, infrastructure, and other assets.
Major players in the building twin market are Amazon.com Inc., Microsoft Corporation, Robert Bosch GmbH, Siemens AG, Schneider Electric SE, Johnson Controls International plc, Dassault Systemes, Autodesk Inc., Trimble Inc., Environmental Systems Research Institute Inc. (Esri), Bentley Systems Inc., Nemetschek SE, Granlund Oy, Matterport Inc., Cupix Inc., ACCA software S.p.A., Invicara Pte. Ltd., ProptechOS AB, Glider Technology Ltd., and AVEVA Group plc.
North America was the largest region in the building twin market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in building twin report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the building twin market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The building twin market consists of revenues earned by entities by providing services such as digital modeling services, real-time data integration, energy performance monitoring, and environmental monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. The building twin market also includes sales of occupancy sensors, smart meters, thermal cameras, energy monitoring devices, and smart lighting controls. 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.
Building Twin 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 building twin 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 building twin ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The building twin 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 technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.