The digital twin market is poised to rise from USD 3 billion in 2018 to over USD 20 billion by 2025, according to a 2019 Global Market Insights, Inc. report. The market growth is attributed to increasing adoption of the IoT and IIoT and the rapidly growing digitalization in manufacturing, automotive, and healthcare industries.
The continuously rising adoption of the IoT that is empowered & backed by 3D simulation, deep learning, Artificial Intelligence (AI), and big data analytics will help in the cost-effective implementation of digital twin in aerospace & defense, healthcare, and retail & consumer goods sectors. The digital twin enables real-time and predictive analytics, helping in cost & time savings.
The rising demand for reducing asset downtime, optimizing process time, reducing time-to-market, reducing asset downtime, and improving operational efficiency is proliferating the growth of the digital twin market. The supportive government initiatives related to the construction of smart cities and energy-efficient smart buildings are anticipated to drive the market over the forecast timeline.
The process support & service application in digital twin market are anticipated to exhibit a lucrative growth at a CAGR of over 30% between 2019 and 2025. This application includes inventory management services and supply chain management services. The use of digital twin in these application enables effective inventory optimization by allowing organizations to reduce inventory up to a considerable percentage to free up the working capital from unnecessary inventory buffers. This also facilitates reduced inventory carrying costs and increased customer service performance.
The healthcare sector is anticipated to hold a significant market share in the digital twin market. The digital twin offers real-time monitoring & analytics with machine learning and helps to streamline operations & processes in hospitals, improving customer experience. For instance, a single MRI scanner produces an average of 800,000 log messages, which reflects how a system works technically. The proactive remote monitoring services with the digital twin of MRI scanner will help to track & analyze these log messages for early warning signs of impending technical issues.