Global Digital Twin Market Size and Share Analysis 2023-2028

Market Overview

The digital twin market is projected to reach USD 91.92 billion by 2028, growing at a CAGR of 36.94% during the forecast period (2023-2028) from an estimated size of USD 19 billion in 2023.

Digital twin solutions have the potential to revolutionize manufacturing processes by providing innovative approaches to cost reduction, maintenance optimization, asset monitoring, downtime reduction, and the creation of connected products. Although the digital twin model is not new, it has gained rapid adoption in manufacturing and other industries. This adoption has been driven by technologies like IoT and cloud-based platforms.

Product Type

Market Report

No. of Pages


Release Date

April 2023

Base Year


Forecast Period


Market Size

USD 14 billion in 2021

Market Segments

Application and Geography



No. of Companies Mentioned


Digital twins are a key component of Industry 4.0, incorporating AI, big data, ML, and IoT. They are primarily used in the industrial internet of things (IIoT), engineering, and manufacturing sectors. The widespread use of IoT has made digital twin technology more accessible and cost-effective for businesses. Manufacturing companies expect that around 40% of IoT platform vendors will integrate simulation platforms, systems, and capabilities to create digital twins.

In the manufacturing industry, digital twin technology is being used to simulate the entire manufacturing process, particularly in 3D printing. This technology can identify potential distortions and their locations in the 3D model, enabling corrections to be made. This results in fully optimized models that compensate for discrepancies and achieve the best possible printing results.

However, the presence of traditional systems in underdeveloped countries poses a significant challenge to the growth of the digital twin market. These legacy systems were designed to operate without connectivity and cannot incorporate advanced sensor technology for real-time data. This limits the adoption of advanced technologies.

The COVID-19 pandemic has presented new opportunities for the digital twin market, particularly in healthcare diagnosis. Digital twins are transforming traditional healthcare by modeling specific patient conditions and attributes using machine learning data from multiple patients. This technology enables healthcare practitioners to better understand patient conditions, including the impact of novel diseases like COVID-19 on the lungs.

Market Segmentation

The market is segmented based on various factors, including application and geography.

Segmentation by Application
Energy and Power
Oil and Gas
Others Applications

Segmentation by Geography
North America – United States, Canada
Europe – United Kingdom, Germany, France, and Rest of Europe
Asia-Pacific – China, Japan, India, and Rest of Asia-Pacific
Rest of the World

Digital twin solutions have the potential to revolutionize manufacturing processes and provide cost-saving opportunities, maintenance optimization, asset monitoring, reduced downtime, and the creation of connected products. The adoption of digital twin models has been rapidly increasing in the manufacturing and other industries, largely driven by technologies such as IoT and cloud-based platforms.

Major cloud providers have recently introduced significant digital twin capabilities. Microsoft has unveiled its digital twin ontology for construction and building management, while Google has launched its digital twin service for logistics and manufacturing. AWS has introduced IoT TwinMaker and FleetWise to simplify the creation of digital twins for factories, industrial equipment, and vehicle fleets. Nvidia has also launched a metaverse for engineers as a subscription service through its partner network.

Furthermore, digital twin players are expected to transition from using existing tools on IaaS infrastructure to native PaaS offerings, which will reduce barriers for enterprises. Prominent manufacturers like Volkswagen are already collaborating with cloud providers to develop the next generation of industrial cloud services. These cloud-native services will enable enterprises to build their digital twin infrastructure regardless of the cloud platform they choose.

Moreover, IoT and digital twins are set to transform the interaction between the digital and physical worlds. IoT facilitates the connection and access to intelligence in the physical world, which is represented virtually by digital twins. The adoption of IoT has been driven by emerging applications, business models, and decreasing device costs, leading to a growing number of connected devices and endpoints worldwide. Technologies like NB-IoT and Cat-M1 are being rolled out globally to support massive IoT deployments.

The recent COVID-19 outbreak has also accelerated the adoption of cloud solutions by end-users, which has further fueled investment in the digital twin market. Additionally, many organizations are modernizing their infrastructure, with 80% of new applications expected to be deployed in the cloud or at the edge. Cloud applications are likely to be either SaaS or cloud-native containerized applications, contributing to the demand for cloud-based digital twin solutions.

As cloud applications become more accessible and convenient, industrial automation is undergoing significant transformation. The market’s growth is expected to be driven by various partnerships.

In the United States, modern manufacturing facilities are embracing digital twin technology to produce higher quality products at lower costs. The early adoption of technologies like IoT, big data, DevOps, and mobility has paved the way for the integration of digital twin technology, which offers deeper insights and streamlines processes.

While manufacturing has embraced digital twin technology, the construction industry is still largely reliant on 2D methods. However, 3D visual digital twin technology has the potential to revolutionize the industry by providing off-site experts with detailed views of projects. This technology goes beyond what Google Street View offers.

For example, the Orlando Economic Partnership recently announced plans to fund a fully realized digital twin of the area, covering 800 square miles across Orange, Seminole, and Osceola counties in Florida. This 3D technology will allow users to include dynamic, real-time data to map out climate changes, infrastructure, real estate, and other scenarios. Unity, a platform for developing real-time 3D content, has been contracted to create this digital twin project.

In Canada, digital twin technology is being widely adopted in the manufacturing, construction, and automotive industries. Organizations in these sectors are using digital twins to evaluate the performance of physical assets and identify areas for improvement.

For instance, the AECO Innovation Lab is collaborating with four Canadian institutions on the project AI-enabled Digital Twins for Automation of Regulatory Processes in the Built Environment. This project aims to promote innovation and digital transformation in the architectural, engineering, and construction (AEC) industries, as well as related government sectors. It will explore how new ideas, digital tools, and technology can enhance and revolutionize the approval processes for development. Additionally, the project will investigate how Canadian regulatory bodies can leverage BIM and digital twins to make better-informed decisions.

Competitive Landscape

The digital twin market is characterized by fragmentation, with notable players such as ANSYS Inc., Cal-Tek SRL, Cityzenith Inc., General Electric Company, and IBM Corporation. These market participants are implementing strategies like partnerships and acquisitions to augment their service offerings and achieve sustainable competitive advantage.

In October 2022, an announcement was made regarding a collaboration between Nuve-Lab, a laboratory at the University of Oulu, and Mevea. The objective of this collaboration is to develop autonomous and sustainable vehicles. Mevea Ltd, a partner of Nuve-Lab, provides physics-based digital twins that can be utilized within the laboratory. The demonstration sites established in the lab allow exploration of various aspects, including modeling with Mevea’s Digital Twins, the integration of different components, and the use of a dynamometer to load the device being tested for operational evaluation.

In September 2022, HighByte, an industrial software provider, unveiled the availability of HighByte Intelligence Hub version 2.5. This version enhances access to Microsoft Azure services, such as Azure IoT Edge and Azure IoT Central, and introduces support for importing DTDL models from Azure Digital Twins. HighByte Intelligence Hub version 2.5, offered by a commercial software provider, enhances the management of business IT systems and facilitates seamless connectivity to cloud resources.

Key companies profiled in this report include ANSYS Inc., Cal-Tek SRL, Cityzenith Inc., General Electric Company, IBM Corporation, Lanner Group Limited (Royal Haskoning DHV), Mevea Ltd, Microsoft Corporation, Rescale Inc., SAP SE.

Recent Industry Developments

In October 2022, Capgemini, an IT services and consulting firm, made an announcement regarding the launch of a novel and advanced digital twin platform called ReflectIoD. This platform, developed in collaboration with Microsoft, is serverless and cloud-native. It has the capability to enhance the operational and maintenance efficiency of companies, enabling intelligent industry and generating long-term economic value. The platform is highly secure and scalable, utilizing the architecture and technology components of the Azure portfolio.

In June 2022, Adani Ports and Special Economic Zone Ltd (APSEZ) selected Mevea’s next-generation training simulators to significantly improve the efficiency and safety of its port equipment. These simulators, based on physics-based digital twin technology, possess a unique advantage in the market. They facilitate faster and more effective learning, while also bringing a heightened level of realism to operator competence development. The contract for Hazira and Kattupalli Ports includes training simulators for STS, RTG, and MHC cranes, all of which have been customized to meet Adani’s specific requirements.

Key Questions Answered

What is the projected size of the Digital Twin Market?
The Digital Twin Market is projected to reach a size of USD 19.09 billion in 2023 and is expected to grow at a CAGR of 36.94% to reach USD 91.92 billion by 2028.

What is the current size of the Digital Twin Market?
The current size of the Digital Twin Market is expected to reach USD 19.09 billion in 2023.

Who are the major players in the Digital Twin Market?
The major companies operating in the Digital Twin Market include ANSYS Inc., Cal-Tek SRL, Cityzenith Inc., General Electric Company, and IBM Corporation.

Which region is experiencing the fastest growth in the Digital Twin Market?
Asia Pacific is estimated to experience the highest compound annual growth rate (CAGR) over the forecast period (2023-2028).

Which region holds the largest market share in the Digital Twin Market?
In 2023, North America accounts for the largest market share in the Digital Twin Market.

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Global Digital Twin Market Size and Share Analysis 2023-2028

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Global Digital Twin Market Size and Share Analysis 2023-2028

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