BIMScaler Blog – The digital twin market was initially driven by industries like aerospace, manufacturing, and automotive but has now expanded into other areas including healthcare, smart cities, and telecommunications.
The market’s real strength is in helping businesses to run more efficiently and cut costs.
As Australia gets on board with digital transformation, the country is investing in tech like IoT and AI, which is driving growth in the digital twin market.
Let’s break down how this technology paves the way for efficiency across sectors like mining, manufacturing, and urban planning.
Current Market Size and Valuation: How Big is the Digital Twin Market in 2024?
The digital twin market is really taking off, thanks to the rapid adoption of IoT, cloud computing, and AI technologies.
The latest report from Grand View Research, “Digital Twin Market Size, Share & Trends Analysis Report,” says that the market was worth a whopping USD 16.75 billion in 2023.
This is a pretty impressive figure, which shows that more and more people are realising the value and potential of digital twin technology across different sectors.
It looks like 2024 is going to be another big year for the digital twin market size, with an estimated value of USD 24.97 billion.
This big increase shows how quickly businesses are adopting digital twins to make themselves more efficient, productive and innovative.
Projected Growth Rate
The growth trajectory of the digital twin market is nothing short of remarkable.
The word from Grand View Research is we can expect a compound annual growth rate (CAGR) of 35.7% from 2024 to 2030.
This impressive growth rate shows how quickly the digital twin market is set to become a major player in the global tech scene.
The Grand View Research report also says this market will be worth a whopping USD 155.84 billion by 2030.
This rapid growth is down to a number of factors, including new technology, cheaper prices, and more people realising the benefits of digital twins.
Meanwhile, in the 2022 Gartner report, “Emerging Technologies: Revenue Opportunity Projection of Digital Twins,” says the market for digital twins will be ready for take-off in 2026.
According to the digital twin market size Gartner report, this technology will reach $183 billion in revenue by 2031, with composite digital twins presenting the largest opportunity.
Learn more: What We Need to Know About Digital Twins in AEC Industry of Australia
Key Market Drivers and Restraints
There are a few main reasons why the global digital twin market is growing so fast.
The rise in the use of the Internet of Things (IoT) and big data analytics is a big reason for the growth. These technologies are the building blocks for creating and maintaining digital twins.
The need for cost-effective operations, process optimisation, and reduced time to market is also driving demand.
Also, new developments in virtual reality (VR) and augmented reality (AR) are opening up new possibilities for digital twin applications, which is driving the market even further.
However, the digital twin market also has its challenges. Some organisations find it tricky to implement and manage digital twin solutions.
Furthermore, we need to make sure we’re handling data security and privacy issues properly to make sure we’re using digital twins responsibly and ethically.
In the FTI Delta perspective paper, “Digital Twins: A Revolutionary Technology for Industry Transformation,” Nick Agnew talks about how digital twins could be a game-changer for the telecommunications industry.
Agnew says that telcos like Verizon and MásMóvil have used digital twins to make their networks run better, give customers a better experience, and spot fraud more easily.
These real-world examples show the real benefits that digital twins can bring.
The Deloitte series on Industry 4.0, called “Industry 4.0 and the digital twin: Manufacturing meets its match,” gives a full overview of digital twin technology, how it’s used, and how it can help businesses.
The authors, Aaron Parrott and Lane Warshaw, say it’s important to take a strategic and measured approach to digital twin implementation.
They suggest starting with identifying high-value use cases and then gradually scaling up.
Market Segmentation
By Type
The Grand View Research report splits the digital twin market into three main types of solutions: component twins, process twins, and system twins.
System twins, which bring together lots of different assets and components, currently have the largest market share. They accounted for around 41% of global revenue in 2023.
They’re used a lot in complex systems like automotive models, aerospace designs, and oil and gas pipelines, which is why they’re so dominant.
But it’s the process twins that’ll see the fastest growth, at 37.5% from 2024 to 2030.
This growth is being driven by their increasing use in making workflows more efficient in a range of sectors, including supply chain management, smart city projects and manufacturing processes.
By Technology
It’s fair to say that tech like IoT, AI and cloud computing are key to the growth of the digital twin market.
The Deloitte study shows how new developments in machine learning (ML) and artificial intelligence (AI) are making digital twins even more powerful, especially in manufacturing.
These technologies let you analyse in real time and do predictive maintenance, which helps companies stop expensive breakdowns and improve productivity.
In Australia, cloud computing is a must, especially for remote operations in industries like mining and agriculture.
By using cloud-based platforms, companies can cut infrastructure costs while keeping an eye on equipment across huge areas.
Cloud-based digital twin solutions are set to grow really quickly, with a CAGR predicted to outpace on-premise solutions during the forecast period thanks to their flexibility and scalability.
By End-User Industries
The digital twin market covers a lot of different end-user industries, with each one having its own special applications and benefits.
Right now, the automotive and transport sector is the market leader, with around 21% of the global revenue share in 2023.
Digital twins are used a lot in this industry to cut costs, make vehicles safer and improve how we manage our supply chains.
But it’s the telecommunications sector that’s set to see the fastest growth, with a CAGR of 40% from 2024 to 2030.
This rapid growth is down to digital twins being used for network optimisation, customer experience enhancement and fraud detection, as highlighted in the FTI Delta perspective paper.
Other big users include manufacturing, healthcare, energy and utilities, and aerospace and defence.
Geographic Analysis
The digital twin market is pretty mature in some regions and still growing in others.
Right now, North America is the market leader, with a 34% share in 2023. This is down to the big players in the market, new technology and high adoption rates across different industries.
But it’s the Asia-Pacific region that’s set to see the fastest growth over the forecast period.
This is down to things like rapid digitalisation, increasing manufacturing output and supportive government initiatives.
The European market is also set to grow a lot, with a projected CAGR of 38.1% from 2024 to 2030.
Learn more: A Various Budget of Digital Twins Applications: From Healthcare to Space
Market Trends
One of the main reasons the digital twin market is booming is because companies are relying a lot more on predictive maintenance.
This is a big deal in industries like manufacturing and energy, where equipment downtime can cost a lot.
In Australia, predictive maintenance is becoming more popular in the energy sector.
It’s used to monitor things like power plants and wind farms, which helps companies cut down on downtime and maintenance costs.
Another big trend is the growth of cloud-based solutions. As the Deloitte report shows, cloud computing lets businesses bring together real-time data from different sources on their digital twin platforms.
Cloud-based solutions are great for Australian industries operating in remote locations, such as mining and agriculture, because they’re flexible and scalable.
We’re going to see a lot more cloud-based digital twin solutions than on-premise ones from 2024 to 2030.
Also, the combination of AI and IoT is still developing, which means digital twins can now handle more complex processes and deliver useful insights.
IoT sensors are pretty useful for gathering real-time data, which can then be fed into AI algorithms for predictive analysis.
Take healthcare, for instance. Digital twins are used to model patient treatments, which helps doctors test new medications before they’re used.
We can probably expect this trend to grow in Australia’s healthcare sector, where personalised medicine is becoming more common.
And finally, sustainability is becoming one of the main focuses. Businesses are using digital twins to cut energy use and get better at managing resources.
Take the energy sector, for example. Digital twins help utilities make the most of their power generation and cut greenhouse gas emissions.
In Australia, where there’s a big focus on reducing carbon footprints, digital twins are becoming important for achieving sustainability targets, particularly in urban planning and energy management.
How to Combine Digital Twin and Market Trend with Limited Resources
Bringing digital twins and those market trends can be a bit of a resource challenge. But there are ways to make it work even with limited resources.
One way to get started is to focus on a few specific use cases with high value, rather than trying to digitise the whole operation at once.
That’s why, a phased approach lets businesses use their existing infrastructure while gradually adding digital twin capabilities.
It’s also a good idea to team up with external providers who know all about digital transformation.
This approach can really cut down on the hassle in the short term.
Here in Australia, we at BIM Scaler can help your business integrate IoT and digital twin technology without the need for a big upfront investment.
We can help with model auditing, Revit modelling, and coordinating 4D and 5D planning.
These services make it easy for your business to manage your digital twin models.
Simply put, we’ve got you covered, but we’ll introduce them gradually, where they’ll give you the biggest return on your investment.
Want to see how this all works in the real world? Kindly take a look at what we do on our BIM Management Support page.
Or, even better, let’s grab lunch.
We’ll talk through any issues you’re facing – there’s no sales pressure – and see how we can make those digital dreams a reality, one step at a time.
In Closing
The digital twin market is growing fast, and we can use this technology to boost our productivity, efficiency, and innovation.
But, it’s important to think about what you need, choose the right solutions, and make sure you can deal with any issues that might come up during implementation.
That’s why we at BIM Scaler can help you keep up with these digital twin market trends and make sure you’re taking a suitable strategic approach.
