Up to 150 billion US dollars Acceptance for digital twins is rising, but...

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More digital twins should save costs in companies and improve processes in production and manufacturing. However, incompatible data formats and interfaces hinder the use of digital twins. Experts estimate that the volume of digital twins will rise to 150 billion US dollars by 2030.

Digital twins are virtual replicas of physical objects that are used in manufacturing or health care. They revolutionize network management and enable automation and security. Despite their advantages, digital twins face challenges due to the lack of interoperability and non-centralized cloud environments.

Digital twins are increasingly important as businesses place greater emphasis on fail-safe operations and digital transformation. These virtual replicas improve operational efficiency, cost savings, and predictive analytics while enabling collaboration across great distances.

According to GlobalData, the global market for digital twins is expected to reach a volume of 150 billion USD by 2030, with services making up more than 60 percent of market revenue. Despite the increasing use of digital twins in applications such as remote monitoring of plants and 3D construction, interoperability remains a major issue restricting broad acceptance.

Increased acceptance of digital twins.

Although digital twins offer benefits for the industry, the reality often looks different. This is because their use is complex and implementation costs inhibit acceptance. Significant upfront costs are often necessary to implement digital twins, with their value only being realised much later. Some companies offer platforms for composable digital twins that can be connected, reused and adapted. Such custom solutions are practical and save companies costs.

"Digital twins are still far from being ubiquitous, but their acceptance is increasing in all sectors, even though security and interoperability continue to be a problem," says Pinky Hiranandani, Senior Thematic Intelligence Analyst at GlobalData.

"Standardization of data formats, communication protocols and interfaces for seamless integration across various platforms, software and hardware is essential for digital twins to effectively communicate with each other. To achieve full interoperability, actors from all industries, technology providers and standardization bodies must work together," says Hiranandani.

Modular approach to digital twins

Companies can take a modular approach to implementing digital twins. This allows them to achieve successes on a small scale that can then be replicated on a larger scale.

"Industry associations like the Digital Twin Consortium (DTC) are developing reference architectures to reduce complexity. Defining clear objectives and use cases, as well as a solid foundation for data management and security, are essential to leverage the benefits of digital twins," concludes Hiranandani.