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Evolution of Digital Twins’ Market space

Digital Twins apply and support a variety of activities in the enterprise processes. In the figure are shown as mirroring controllers, wired and wireless edge devices –associated to operation activities- and computing platforms, internet IoT Platforms, Business Transactional platforms, and third party platforms. Source: LNS Research

The Digital Twin market is possibly one of those with the highest growth, and part of the reason is that it is both fuelling the digital transformation and it is fuelled by the digital transformation. Another reason is that the success of digital twins in areas like manufacturing and operation is pushing their adoption in other areas, with healthcare expected to adopt them in the next decade and education knowledge management following suit. In a way, Digital Twins are both a consolidated technology and an emerging one, both in terms of application areas and in terms of technology. Standardization is ongoing and will play a role in their adoption and in market development.

The global market value, as of 2018, is around 3B$ (actually, digital twins include several software and hardware components and there is no unanimous agreement on what to count – e.g. are CAD systems to be counted? -, so different boundaries result in different market estimates) and are expected to grow to 26B by 2025.

Currently, 2019, Digital Twins are becoming a consolidated reality in several enterprises in the value chain of product manufacturing, as show in the figure. Notice in the figure how digital twin can mirror the operation through mirroring sensors (and most IoTs are now expected to be connected to the cyberspace through Digital Twins) and on the other side Digital Twins can mirror enterprise processes. Several Industries are now developing and providing platforms that become aggregators of third party applications by sharing services and data through Digital Twins (like Siemens Mindsphere). This is important since these platforms stimulate Digital Twins adoption and creation of value out of Digital Twins fostering the growth of the market.

Main players as of 2019 in the Digital Twins area are: Allerin, Altair, Amazon Web Services, ANSYS, Aucotec, Autodesk, CADFEM, HP, CoSMo Company SAS, Dassault Systems, DNV GL, FEINGUSS BLANK, GE, IBM, Mevea, Microsoft, Oracle, Bosch, SAP, Siemens, Sight Machine, TIBCO Software, Toshiba, Virtalis.

Autonomous systems are already mirrored by Digital Twins (think of a Tesla car) and we can expect most, if not all, autonomous systems in the coming years being associated with a Digital Twin. In the next decade Digital Twin can move to stage 4, where they are becoming an integral part of a product delivering part of its functionality through the cyberspace.

About Roberto Saracco

Roberto Saracco fell in love with technology and its implications long time ago. His background is in math and computer science. Until April 2017 he led the EIT Digital Italian Node and then was head of the Industrial Doctoral School of EIT Digital up to September 2018. Previously, up to December 2011 he was the Director of the Telecom Italia Future Centre in Venice, looking at the interplay of technology evolution, economics and society. At the turn of the century he led a World Bank-Infodev project to stimulate entrepreneurship in Latin America. He is a senior member of IEEE where he leads the Industry Advisory Board within the Future Directions Committee and co-chairs the Digital Reality Initiative. He teaches a Master course on Technology Forecasting and Market impact at the University of Trento. He has published over 100 papers in journals and magazines and 14 books.