PUBLISHER: The Business Research Company | PRODUCT CODE: 1888220
PUBLISHER: The Business Research Company | PRODUCT CODE: 1888220
Digital twin in logistics is a virtual representation of physical logistics assets, processes, or supply chain networks that continuously reflects real-world conditions using real-time data. These digital models enable companies to simulate, monitor, and enhance operations across supply chains, warehouses, fleets, and distribution networks. It helps optimize operations, improve visibility, and support predictive decision-making for transportation, warehousing, and inventory management.
The key components of digital twin in logistics are software, services, and platforms. Software refers to digital tools and applications designed to manage logistics operations, including transportation, warehousing, and supply chain visibility, through cloud infrastructure for improved scalability and real-time data access. These solutions are deployed across public cloud, private cloud, and hybrid cloud models, and cater to organizations of all sizes, including large enterprises and small and medium enterprises (SMEs). Key applications include route optimization, warehouse and inventory management, predictive maintenance, asset tracking, and others, serving end users across automotive, aerospace and defense, manufacturing, retail and e-commerce, energy and utilities, and others.
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 information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The digital twin in logistics market research report is one of a series of new reports from The Business Research Company that provides digital twin in logistics market statistics, including digital twin in logistics industry global market size, regional shares, competitors with a digital twin in logistics market share, detailed digital twin in logistics market segments, market trends and opportunities, and any further data you may need to thrive in the digital twin in logistics industry. This digital twin in logistics 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 logistics market size has grown exponentially in recent years. It will grow from $2.77 billion in 2024 to $3.34 billion in 2025 at a compound annual growth rate (CAGR) of 20.5%. The growth in the historic period can be attributed to increasing use of real-time data analytics, rising demand for supply chain visibility, expanding warehouse automation, growing e-commerce logistics activities, rising focus on operational efficiency, and development of connected logistics infrastructure.
The digital twin in logistics market size is expected to see exponential growth in the next few years. It will grow to $6.95 billion in 2029 at a compound annual growth rate (CAGR) of 20.1%. The growth in the forecast period can be attributed to increasing investment in smart logistics solutions, rising adoption of predictive maintenance systems, expansion of autonomous and connected vehicle fleets, growing demand for sustainable logistics operations, and rising deployment of edge computing in logistics. Key trends in the forecast period include advancements in simulation and modeling technologies, innovations in AI-driven logistics analytics, development of interoperable digital twin ecosystems, research and development in virtual warehousing, and emergence of blockchain-enabled digital twins.
The rising e-commerce activities are expected to propel the growth of the digital twin in the logistics market going forward. E-commerce refers to the buying and selling of goods and services over the internet, where businesses and consumers conduct transactions online through websites or digital platforms. E-commerce activities are rising due to increasing internet accessibility and the convenience of shopping online from anywhere at any time. Digital twins in logistics support e-commerce by leveraging real-time data to optimize inventory, warehouse operations, and delivery processes for faster and more efficient order fulfillment. For instance, in 2024, according to the UK Business Data Survey published by the Department for Science, Innovation and Technology, around 1,540 out of 2,000 UK businesses handled digitized data, approximately 420 analyzed it for insights, and about 40 used it for AI or automated decision-making. Therefore, the rising use of digitized data is driving the growth of the digital twin in the logistics market.
Key companies operating in the digital twin in logistics market are focusing on developing advanced solutions, such as artificial intelligence-powered digital twin technologies, to enhance operational efficiency and real-time decision-making. Artificial intelligence-powered digital twin technologies refer to intelligent virtual replicas of physical systems that leverage AI, machine learning, and data analytics to simulate, predict, and optimize real-world operations in real time. For instance, in January 2025, Siemens AG, a Germany-based technology company, unveiled innovations in industrial AI and digital twin technology. This enables the creation of intelligent digital replicas of logistics and supply chain operations, allowing companies to design, test, and optimize warehouse workflows, fleet routes, and manufacturing processes virtually before implementing changes in the real world. It provides real-time insights into system performance, predictive maintenance capabilities, and process optimization, reducing downtime and improving efficiency. The industrial AI-powered digital twin enhances operational visibility, supports sustainable logistics practices, and enables businesses to achieve greater agility and productivity.
In May 2025, Vanderlande Industries B.V., a Netherlands-based material handling and logistics automation company, acquired Siemens Logistics GmbH for an undisclosed amount. Through this acquisition, Vanderlande Industries B.V. aims to strengthen its logistics automation capabilities by integrating Siemens Logistics GmbH's advanced technologies, enhancing its portfolio of digital twin-enabled, data-driven logistics solutions for intelligent, end-to-end automation. Siemens Logistics GmbH is a Germany-based provider of digital twin-driven logistics automation solutions.
Major players in the digital twin in logistics market are Amazon Web Services Inc., Microsoft Corporation, Robert Bosch GmbH, Accenture plc., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, General Electric Company, Honeywell International Inc., SAP SE, Tata Consultancy Services Limited, NVIDIA Corporation, Infosys Limited, Wipro Limited, Rockwell Automation Inc., Dassault Systemes SE, Hexagon AB, Ansys Inc., PTC Inc., Schneider Electric S.E., and Bentley Systems Incorporated.
North America was the largest region in the digital twin in logistics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in digital twin in logistics report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the digital twin in logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The digital twin in logistics market consists of revenues earned by entities by providing services such as real-time simulation, process optimization, asset monitoring, supply chain visualization, and performance forecasting. The market value includes the value of related goods sold by the service provider or included within the service offering. The digital twin in logistics market also includes sales of data integration tools, simulation and modeling systems, and analytics dashboards. 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 Logistics 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 logistics 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 logistics ? 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 digital twin in logistics 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.