As highlighted by Stratview Research, the digital twin market stood at around US$7.2 billion (€6.80 billion) in 2021 and is expected to exceed US$92 billion (€86.89 billion) by 2028, growing at an impressive 44% annually. This surge is fueled by strong cross-industry adoption, faster innovation cycles, and deeper integration with technologies such as AI, IoT, and advanced analytics.
How would you react upon seeing a replica of a what-if scenario for your product, or simulated structure of a plan? Wouldn’t it be surprising to process all the upgrades you wished to in a product before it steps into the real-world?
Well, that’s what a digital twin promises. Here, in this piece, we’ll take a closer look at this revolutionary technology and know what makes it vital for the industrial world.
In simple words, this hottest tech trend is a replica, or a digital avatar of a living or non-living physical object. Or say, a digital twin serves as a proxy for the current condition of anything it represents. This helps in attaining a real-time data with which, one can see the current progress or bottlenecks and plan ways to resolve or improve them.

Fig. 1: Chart Showing the Key Benefits of Digital Twin Technology
When a twin of a physical product is created and displayed digitally, smart sensors are used to collect and create real-time representation from the real product to digital twin. This transferred data not only replicates the physical product, but also mimics its behaviour.
Let us take a deeper dive into what technologies are embraced while applying a digital twin.
Digital Twins are broad in scope and its application incorporates the red-hot tech-trends such as Artificial Intelligence (AI), Internet of Things (IoT), Blockchain, Machine Learning (ML), Big Data Analytics, and more.

Fig. 2 :Image Depicting the Working Mechanism of Digital Twins
Not only products, but this tech-trend can replicate multiple objects, processes, etc. It comes in various forms, but is distilled across three basic sectors including –

Fig. 3 : Key Technologies Enabling Digital Twin Functionality
Knowing this technology can be beneficial to businesses in several ways (refer to Fig.3.), Digital Twins are now being widely applied across all industries including Aerospace & Defense, Automotive & Transportation, Healthcare, and more.
In the year 2021, the market of Digital Twins accounted for ~US$ 7.2 Billion (€6.80 billion), which is expected to cross US$ 92 Billion (€86.89 billion) by 2028, charting a whopping annual growth of 44%. The rise is majorly due the benefits it provides to the businesses, and multiple industries using them, rapid technological advancements in this field, and the integration of this technology with other hot trends like AI, IoT, etc.
Below given are a few use cases how different industries make use of Digital Twins:
Gaining certainty in such uncertain times can deliver major benefits to all major sectors. Studies state that Digital Twin technology has the ability to increase the revenue by 10% and improve product quality by 25%.
It may seem far-fetched to assume that digital twin solutions may one day assist all the industries in becoming smarter, but the fact is, they are already doing it.
But despite many benefits, a few challenges seem to hinder the widespread adoption of the trend, making Digital Twins limited just on the drawing boards of many companies. Since this technology is in exploratory stage, and requires high investments, several organisations still have not included this in their operations. Although, as soon as this trend starts budding and blooming, it will start gaining traction. Real and growing like a wildfire, this technology is taking the shape of hierarchy.
Authored by Stratview Research. Also published on – iot-now