Revenues from Digital Twins (a virtual representation of a connected physical product, process or service across its whole lifecycle) will reach $13 billion by 2023, according to a new study from Juniper Research. This is up from an estimated $9.8 billion in 2019, an average annual growth of 35 per cent.
The research found that increased deployments of advanced sensors to capture data, and technological advances such as Machine Learning, Artificial Intelligence and High-Performance Computing are deepening the advantages of using Digital Twins.
The Leaders in Digital Twins
Juniper ranked the leading players in the market and identified those companies that have bolstered their Digital Twin offerings by combining in-house Industrial IoT expertise, strong market reach and close collaborations with technology companies. The leading players are (in no particular order):
- General Electric
Digital Twins are expected to allow staff to deliver human aspects of operations effectively, according to Juniper. The new research found that advanced Digital Twin operations will help human workers to focus on maximising productivity in areas that the technology cannot address, such as customer service.
Manufacturing accounts for Lion’s Share of $3.3 billion Increase
The new research, Digital Twins in IoT: Market Strategies, Challenges & Future Outlook, 2019-2023, forecasts that Digital Twin revenues from manufacturing will reach an estimated $4.5 billion in 2023, up from $1.4 billion in 2019. Manufacturing, as the fastest growing sector, will account for over 34% of total Digital Twins revenue in 2023. Two other sectors leading growth in net incremental revenues over the forecast period are:
- Transportation: by $2.5 billion
- Energy and Utilities: by $1.1 billion
Research author, Elson Sutanto explains: “In future, we will see numerous trials combining IoT, Digital Twins and AI to justify time and investment in deploying the technology within and between enterprises. This holds true for multi-location operating industries such as supply chain’’.