Digital twin market poised for $24.81bn growth by 2025
The value of the digital twin market is in the midst of a significant growth period, with a new report forecasting an incremental growth of $24.81bn between 2020 and 2025.
The study, Digital Twin Market by End-user, Deployment and Geography – Forecast and Analysis 2021-2025, by market research company Technavio, added that this is an accelerated annual growth rate of 40% which has been buoyed by digital twin use cases across the automobile, aerospace, defence, and manufacturing sectors.
A digital twin is a real-time digital model of an object or process that incorporates all available data and updates as new data becomes available. These digital replicas are used for tasks such as product development and predictive maintenance in smart factories.
Digital twins can also help companies predict equipment failures before they delay production, enabling repairs to be carried out early or at a lesser cost.
The study expects more than half of all large organisations across all major sectors in the US to implement digital twin solutions at some level as factories become ‘smarter’ with increased automation and connectivity.
Companies interviewed for the report included General Electric, Honeywell International, IBM, Microsoft, Oracle, Siemens AG and Wipro.
The report singles out the US as the key market for digital twins with 42% growth over a five-year period, but other regions include the UK, Germany, China, and Japan.
According to the report, companies which are more advanced in terms of AI and machine learning reported fewer negative impacts from Covid-19, and organisations with a greater reliance on advanced robotics had fewer labour shortages during lockdown.
Because of this, the report claims, the aerospace, and defence sectors, specifically, are expected to witness an increase in investments in digital twins.
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