Digital Twin Market Trends

Growth Drivers

• Rise in the Demand for Digital Twin in the Healthcare and Pharmaceutical Sector - Digital twin in the healthcare and pharmaceutical sector is expected to reduce the time and cost spend in case of research experiments, and humans/animals testing. Hence the demand is anticipated to increase in the forecast period. Therefore, major key players are focusing on introducing digital twin in healthcare facilities for betterment and enhancement in patient’s experience. For instance, Philips has developed a heart model software with the help of digital twin technology which will create a virtual model of a patient’s heart. Owing to this a doctor would get a guidance in case of complex surgery from a cardiovascular specialist located in remote area.

• Increasing Adoption of Digital Twin for Better Biopharma Logistics Efficiency - BioTwin, a company based in Canada, introduced BioTwin AI biomarkers and biometrics to create a simulated human copy. These digital twins enable the early detection and prediction of numerous diseases, as well as an infinite number of simulations. Through a "toolbox" ecosystem, this technology will revolutionize the wellness and healthcare sectors, allowing for personalized and preventive medicine.

• Increasing Focus on Partnership and Product Launch - L&T Technology Services Limited announced the launch of next generation IoT-based engineering practice for manufacturing industry. LTTS has partnered with Microsoft and Bentley Systems to establish a Center of Excellence (CoE) that will address and accelerate new-age manufacturing companies' Digital Twin and Digital Thread requirements.

• Favorable Government Initiatives for Transitioning Towards Digitalization – Governments of different nations are focusing on adopting internet services and integration of technologically advanced programs such as digital twin technology for advancement of businesses and growth. Thus, such favorable initiatives are expected to introduce new opportunities for market growth in the next few years. The European Commission is dedicated to creating a Europe fit for the digital age by equipping people, businesses, and governments with a new generation of technologies, where the digital transformation will benefit everyone.

• Rise in Adoption of Industry 4.0 Around the World – Industry 4.0 has been in constant rise owing to its adoption in companies for revolutionizing of manufacturing process, improving and distributing their services and products. As a result, manufacturers are integrating new technologies, including Industrial Internet of Things (IIoT), cloud computing and analytics, AI, machine learning, and digital twin to facilitate their operations. In 2021, it was estimated that the global industry 4.0 generated almost USD 115 billion and is projected to grow and reach almost USD 400 billion in 2029 with a CAGR of 16% during the period.

Challenges

• Rising Concerns for Cyber Crime Related Incidents
• High Cost Associated with Implementation of Digital Twin
• Risks of Data Theft Threats - Keeping the data safe is a huge challenge for the security team. Digital twin allows two-way communication which brings in together the physical and digital world. Hence the virtual resources of organizations are on constant threats of being exploited. Therefore, it is expected to hinder the growth of the market during the forecast period.