Digital twins is a combination of various technologies such as machine-to-machine connection (M2M), machine learning, artificial intelligence (AI), sensor telemetry, and predictive analytics. Digital twin is used to create digital replicas of physical machines, including their characteristics and activities, depending on the data that is gathered from real-time.
Development of IoT technology is the major driving factor for growth of the global digital twin market
Increasing utilization of internet of things (IoT) is the major factor expected to boost growth of the global digital twin market. Internet of Things is used to protect and secure network connecting IoT devices to back-end systems on the Internet. IoT technology aids in connecting physical and digital world. It can track an object; collect data, and analyze it and then take required actions. It can also be used to monitor activities of that object along with its progress in a specific time period. Owing to these features, advent of IoT technology has led to increased adoption of smart devices such as smart watch, intelligent traffic lights, and smart buildings among others. For instance, according to IHS Markit — a database provider — the number of total IoT connected device were about 15.4 billion in 2015 across the globe. According to Coherent Market Insights’ analysis, around 28 million units of wearable devices were sold in 2016.
Additionally, it provides endpoint security such as antivirus and antimalware along with firewalls and interruption prevention and detection systems. IoT security aids in authenticating an IoT device by managing multiple users of a single device platform, for example, a connected car. Moreover, the authentication ranges from simple static password or pins to more robust authentication mechanisms such as two-factor authentication, digital certificates, and biometrics.
According to Coherent Market Insights’ analysis, in 2016, IoT in manufacturing accounted for about US$ 170 billion, and IoT in transportation sector accounted for over US$ 72 billion.
However, high initial cost of implementation, which includes high investment in IoT infrastructure is the major restraining factor for growth of the global digital twin market. In addition to lack of awareness regarding cost benefit of the adoption of digital twins, and lack of skilled workforce and technical knowledge high cost of implementation, are also expected to restrain the global market growth.
Digital Twin Market Taxonomy:
On the basis of application, the global digital twin market is segmented into:
- Product Design and Development
- Predictive Maintenance
- Machine and Equipment Health Monitoring
- Dynamic Optimization
On the basis of end-user industry, the global digital twin market is segmented into:
- Aerospace and Defense
- Home and Commercial
- Electronics and Electrical
- Automotive and Transportation
- Energy and Utilities
- Retail and Consumer Goods
- Others (Agriculture and Chemical)
Digital Twin Market: Regional Insights
The global digital twin market is segmented on the basis of regions into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. The market for digital twin in North America accounted for the largest share in 2016. This is attributed to increasing adoption of IoT in a single smart interface of smartphones, PCs, and tablets. According to Coherent Market Insights analysis, in 2015, about 15.4 billion IoT installed base were there, globally. Also, rising cybercrimes is another factor expected to fuel demand for integrated IoT security solutions for application in various sectors such as government, defense, and healthcare. For instance, in May 2017, the WannaCry Ransomware attack affected number of computers from Taiwan to the U.K. and the U.S. Therefore, increasing cyber threat demands IoT security solutions. This is expected to accelerate growth of regional IoT market, which will have a positive impact on the global digital twin market growth.
Digital Twin Market: Competitive Background
Major players operating in the global digital twin market include General Electric, IBM Corporation, PTC, Inc., Siemens AG, SAP SE, Microsoft Corporation, Alphabet Inc., Dell, Oracle Corporation, Robert Bosch GmbH, and AT&T.