At 37.3% CAGR, North America Digital Twin Market is Projected to be Worth US$ 46,057.93 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the North America digital twin market was valued at US$ 3,651.00 million in 2023 and is expected to reach US$ 46,057.93 million by 2031, registering a CAGR of 37.3% from 2023 to 2031. Increasing adoption of IOT devices, large-scale digital transformation & industry 4.0 adoption across enterprises, and surging emphasis on predictive maintenance are among the critical factors attributed to drive the North America digital twin market growth.

The Internet of Things (IoT) describes an extensively broad network of interconnected devices along with technologies that enable communications between these devices and the cloud. Recently, there has been a huge surge in the adoption of IoT technologies due to advancements in mobile and wireless connectivity technologies, and a gradual drop in the cost of sensors and other components. Several industries are using IoT to improve efficiency and reduce the costs of their operations. According to Finance Online, there were approximately 14.76 billion connected IoT devices as of November 2023, and this figure is expected to rise to ~25.44 billion by 2030. As per a forecast by IoT Analytics, 75% of the total devices in use would be IoT by 2030. Furthermore, FinleyUSA estimated the global IoT spending at US$ 1.1 trillion in 2023.

The use of digital twins is increasing with the surging adoption of IoT. Digital twins require a continuous flow of data to accurately replicate their physical counterparts. IoT devices can fulfill this requirement with built-in sensors. These sensors facilitate real-time data collection from the environment, human interactions, or objects' functions. Digital twins rely on IoT sensor data to gather information from the real-world object to project it to create the digital-world object. The insights derived from these data allow organizations to react quickly to improve operational efficiency, customer satisfaction, and production quality, among others. As IoT devices transmit data, digital twins update the data in real time, which ensures that the virtual model is in sync with the physical entity. By leveraging IoT, a digital twin can represent a complex piece of equipment such as a wind turbine and processes such as customer activities in a retail shop. Thus, the increasing adoption of IoT devices drives the digital twin market.

On the contrary, high development cost hampers the growth of North America digital twin market.

Based on type, the North America digital twin market is segmented into asset twin, system twin, process twin, and parts/component twin. The asset twin segment held 40.3% share of North America digital twin market share in 2023, amassing US$ 1,469.59 million. It is projected to garner US$ 21,128.04 million by 2031 to register 39.5% CAGR during 2023-2031.

In terms of enterprise size, the North America digital twin market is bifurcated into large enterprises and SMEs. The large enterprises segment held 69.9% share of North America digital twin market in 2023, amassing US$ 2,552.41 million. It is anticipated to garner US$ 33,488.32 million by 2031 to expand at 38.0% CAGR during 2023-2031.

Based on end user, the North America digital twin market is categorized into manufacturing, automotive, aerospace & defense, healthcare, retail, and others. The manufacturing segment held 26.0% share of North America digital twin market in 2023, amassing US$ 950.28 million. It is predicted to garner US$ 11,376.97 million by 2031 to expand at 36.4% CAGR between 2023 and 2031.

Based on country, the North America digital twin market is categorized into the US, Canada, and Mexico. Our regional analysis states that the US captured 85.4% share of North America digital twin market in 2023. It was assessed at US$ 3,118.32 million in 2023 and is likely to hit US$ 39,991.07 million by 2031, registering a CAGR of 37.6% during 2023-2031.

Key players operating in the North America digital twin market are General Electric Co; Microsoft Corp; Siemens AG; Dassault Systemes SE; PTC Inc.; Robert Bosch GmbH; International Business Machines Corp; Oracle Corp; Ansys, Inc.; Autodesk, Inc.; among others.

- April-2024: In a collaborative move with the W3C Consortium, Siemens and Microsoft announced their commitment to converge the digital twin definition language (DTDL) with the Thing Description standard from international standards organization W3C. By unifying both languages, customers are offered consistent modeling experiences, mitigating fragmentation in an evolving IoT landscape. With customers typically deploying a mix of vendors in their infrastructure, leading to lock-in and high integration efforts, this convergence will allow for simpler system integration and interoperability.

- October-2023: A smart building complex that had its grand opening at Microsoft showcases the company's new Azure Digital Twins service. Microsoft is using Azure Digital Twins to manage its use of smart building technology in recently renovated Microsoft buildings. Microsoft has been aggressively building, deploying, and testing smart building technology on its buildings for years.



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