According to GlobalData, a leading data and analytics company, the global market for digital twins, spanning software and services, is anticipated to exceed $150 billion by 2030, propelled by advancements in IoT, cloud computing, AI, and data analytics.
GlobalData’s latest thematic report, titled “Digital Twins,” underscores the dominance of the services segment within the global digital twins market, projected to contribute over 60 percent of the total market revenue by 2030.
Despite the growing array of applications for digital twins, such as remote asset monitoring, 3D design, and simulating the impacts of drugs on patients, interoperability remains a pressing concern.
Pinky Hiranandani, Senior Thematic Intelligence Analyst at GlobalData, emphasizes, “The adoption of digital twins is on the rise across various industries, yet challenges related to security and interoperability persist. Standardizing data formats, communication protocols, and interfaces is essential for seamless integration across different platforms, software, and hardware. While efforts are underway to tackle these challenges, achieving full interoperability necessitates collaboration among industry stakeholders, technology providers, and standardization bodies.”
Despite the manifold benefits of digital twins, their complexity and implementation costs pose barriers to widespread adoption, particularly for intricate use cases. Digital twins entail substantial upfront investments, with returns realized over an extended period. However, some companies offer composable digital twin platforms that can be linked, reused, and customized to develop tailored solutions.
Businesses can adopt a modular approach to implementing digital twins, facilitating incremental successes that can be scaled up. Organizations like the Digital Twin Consortium (DTC) are developing reference architectures to simplify complexities. Establishing clear objectives and use cases, coupled with robust data governance and security measures, will be crucial for unlocking the full potential of digital twins.
