By Infinium Global Research Aug, 2020
The Global Digital Twin Market is expected to grow at a CAGR of 35.20% between 2019 and 2025 in terms of value. The increasing digitization of manufacturing processes to enable better industrial outcomes is the major growth factor of the digital twin market. Digital twins enable companies to understand, predict, and optimize the performance of their machines and their business by reducing asset downtime, cycle times, and maintenance costs and to improve plant and factory efficiency and increase market agility. Thus, the growing pressure on industries to reduce the time and cost of product development and unplanned downtime is expected to increase the adoption of digital twins in the manufacturing sector. In addition, increasing adoption of the Internet of Things (IoT) and big data analytics is fueling the growth of the market. It is possible to manufacture extremely high-quality products by using a digital twin. Furthermore, factors such as increasing need for cost-efficient operations, enhancing the processes, and reducing the Time to Market are also driving the growth of the market. The demand for digital twins is increasing in the manufacturing sector due to increased reliability of equipment and production lines and improved productivity. Innovations in the field of Virtual Reality (VR) and Augmented Reality (AR) are boosting the demand of the market. However, the risks associated with data security owing to the use of IoT and cloud platforms are restraining the market growth. Moreover, rising applications of digital twin technology in the healthcare sector are expected to provide intensive growth opportunities to the market.
Geographically, North America dominates the global digital twin market due to rapidly expanding e-commerce landscape, growing adoption of industrial internet of things (IIoT), and the availability of extensive cloud infrastructure. Asia-Pacific is the fastest growing market for digital twins due to the increasing government initiatives for digitalization and smart city projects in countries such as China, India, and Japan.