Digital Twin Market Size

Digital Twin Market size was over USD 20.07 billion in 2024 and is expected to reach USD 1.05 billion by the end of 2037, witnessing around 37.1% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of digital twin is assessed at USD 26.06 billion. The primary growth factor of the market during the forecast period is the increasing digitalization of data and increasing use of the smart technology such as IoT (Internet of Things), AI (Artificial Intelligence, cloud, big data, and other advanced technologies in various areas of businesses. Globally, about 8 billion Internet of Things (IoT) devices are expected to exist in 2020, almost tripling to more than 28 billion IoT devices in 2030. As the creation of digital twin entails the virtualization of the physical twin using a variety of IoT sensors and above-mentioned digital technologies, the rising adoption of IoT devices is considered to be a positive factor influencing market growth in the upcoming years.

In the recent period, digital twin has been significantly adopted by manufacturing industries to reduce cost and improve supply chain operations. This factor is thus anticipated to bring in lucrative growth opportunities for market expansion during the forecast period. Also, digital twin is being highly adopted in the healthcare and life science sector owing to its great advantage in estimating the conclusion of procedures which results in fewer physical and real-world tests or process completions. Therefore, the rapid growth of the pharmaceutical industry is estimated to increase the adoption of digital twin in various healthcare facilities. Apart from high utilization rate in the healthcare industry, digital twin is also very much beneficial in other areas such as aerospace, military, aeronautical, biomedical, automotive, and maritime sectors. Various advantages of digital twin which includes high level of dependability and accuracy, accelerated risk assessment and production time, predictive maintenance, improved customer satisfaction and product quality have also increased the adoption rate of digital twin in various spectrum of across numerous industries which is projected to drive market growth during the forecast period.