Design World – August 2019

D

Internet of Things

36 August 2019 http://www.designworldonline.com DESIGN WORLD

Forecasters predict a $20 B digital

twin market by 2025

Digital twins play a major role in the adoption of IoT and IIoT.

Thus, forecasters, such as Global Market Insights Inc., are forecasting

the growth of this market to reach more than $20 billion by 2025.

Digital twin applications can be found in manufacturing, automotive,

and healthcare industries. Digital twins enable real-time and

predictive analytics, and help in cost and time savings. For example,

in the aviation sector, GE helps client companies understand airline

routes and dynamically optimize maintenance schedules of jet

engines, and maintenance shop availability with the help of its digital

twin Predix platform.

The growth of digital twins is driven by a rising demand for less

asset downtime, optimizing process time, reducing time-to-market,

and improving operational efficiency. The process support and

service application are anticipated to exhibit a growth at a CAGR of

more than 30% between 2019 and 2025. This application includes

inventory management services and supply chain management

services. Digital twins in these application help organizations reduce

inventory up to a considerable percentage to free up the working

capital from unnecessary inventory buffers. They also help reduce

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 and analytics with machine learning and helps to

streamline operations and 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 and analyze these log messages

for early warning signs of impending technical issues.

The manufacturing sector is expected to secure a market share

of more than 25% in digital twin market by 2025. This growth is

attributed to the growth of the manufacturing sector after Industry

4.0 and the emergence of automation systems in the manufacturing

sector to rapidly increase production capacities. According to the

World Bank, manufacturing globally contributed to 16% of the total

economic value in 2016. This steady growth of the sector is expected

to further fuel the demand for digital twins to streamline and

optimize the manufacturing process flows.

The Asia Pacific digital twin market is projected to register a

growth with a CAGR of around 30% between 2019 and 2025. The

growing adoption of the IoT and IIoT due to increasing internet

penetration coupled with the proliferation of smartphones is fueling

the market. The presence of prominent automotive players in the

countries including Japan, South Korea, and India is contributing to

the digital twin market growth.

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Additionally, this growth can be attributed

to the rapidly evolving e-commerce

ecosystem along with heavy investments

from venture capitalists to leverage the

growing demand for the online market. In

2017-2018, the retail shrinkage percentage of

sales in the Asia Pacific region was estimated

at around 1.75%, amounting to nearly USD

24 billion. To tackle the growing concerns

related to inventory shrinkage, the uptake of

digital twin in the region is expected to grow

consistently over the forecast timeline.

The companies operating in the digital

twin market are focusing on technological

innovations, strategic acquisitions, and

mergers to strengthen their market position

and acquire new customers. For instance,

in May 2019, Bentley Systems acquired

Keynetix, a UK-based provider of cloud-

based software for capturing, modeling,

visualizing, and sharing geotechnical data to

build subsurface digital twins. These models

of underground assets and environments

for infrastructure projects will be easily

monitored in real-time.

Some of the key players operating in the

digital twin market are ABB Group, Ansys

Inc., Autodesk Inc., Dassault Systèmes,

General Electric, IBM Corporation, Microsoft

Corporation, Oracle Corporation, Robert

Bosch GmbH, SAP SE, Siemens AG, and Wipro

Limited. DW

Global Market Insights Inc.

http://www.gminsights.com

DESIGN WORLD August 2019 37

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