Report : Asia Pacific Digital Twin Market Forecast to 2031 - Regional Analysis - by type (Asset Twin, System Twin, Process Twin, and Parts/Component Twin), Enterprise Size (Large Enterprises and SMEs), and End User (Manufacturing Sector, Automotive Sector, Aerospace & Defense Sector, Healthcare Sector, Retail Sector, and Others)

At 40.6% CAGR, Asia Pacific Digital Twin Market is Projected to be Worth US$ 41,661.58 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the Asia Pacific digital twin market was valued at US$ 2,725.60 million in 2023 and is expected to reach US$ 41,661.58 million by 2031, registering a CAGR of 40.6% from 2023 to 2031. Rising number of smart city projects, 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 Asia Pacific digital twin market growth.

The reliance on technology for a more comfortable living is increasing with the evolving lifestyles of consumers and communities worldwide. Smart cities have gained huge traction in the last few decades as they can potentially facilitate a new way of living with optimized city functions, in turn enabling economic growth and improved quality of life for consumers by using smart technologies and data analysis. According to TWI Ltd., 54% of the world's population lives in cities, and the number is expected to rise to 66% by 2050. The projected population growth indicates an increasing need to manage the environmental, social, and economic sustainability of resources with the help of smart cities. Governments of various countries are increasingly investing in smart city projects to improve the quality of life of their citizens and overall public safety. According to the Indian Ministry of Housing and Urban Affairs (MoHUA), 100 smart cities had issued work orders for 7,978 projects as of July 2023, of which 5,909 projects were completed. In December 2023, a Chinese property development consortium announced an investment of approximately US$ 1.85 trillion in a new smart city in Brazil. Digital twins can be used to help smart cities meet their environmental, economic, and social sustainability goals. Virtual models guide planning decisions and offer solutions to various complex challenges faced by smart cities. Smart city planners can use digital twin technology to design, monitor, and manage infrastructures such as transportation systems, water and wastewater networks, energy grids, and telecommunications. Thus, the rising number of smart city projects would provide growth opportunities for the digital twin market in the coming years.

On the contrary, high development cost hampers the growth of Asia Pacific digital twin market.

Based on type, the Asia Pacific digital twin market is segmented into asset twin, system twin, process twin, and parts/component twin. The asset twin segment held 42.9% share of Asia Pacific digital twin market share in 2023, amassing US$ 1,168.78 million. It is projected to garner US$ 20,130.29 million by 2031 to register 42.7% CAGR during 2023-2031.

In terms of enterprise size, the Asia Pacific digital twin market is bifurcated into large enterprises & SMEs. The large enterprises segment held 78.1% share of Asia Pacific digital twin market in 2023, amassing US$ 2,129.92 million. It is anticipated to garner US$ 33,304.41 million by 2031 to expand at 41.0% CAGR during 2023-2031.

Based on end user, the Asia Pacific digital twin market is categorized into manufacturing, automotive, aerospace & defense, healthcare, retail, and others. The manufacturing segment held 27.3% share of Asia Pacific digital twin market in 2023, amassing US$ 743.82 million. It is predicted to garner US$ 11,081.08 million by 2031 to expand at 40.2% CAGR between 2023 and 2031.

Based on country, the Asia Pacific digital twin market is categorized into China, Japan, South Korea, India, Australia, and the Rest of Asia Pacific. Our regional analysis states that China captured 32.4% share of Asia Pacific digital twin market in 2023. It was assessed at US$ 882.28 million in 2023 and is likely to hit US$ 15,008.20 million by 2031, registering a CAGR of 42.5% during 2023-2031.

Key players operating in the Asia Pacific 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.; and Autodesk, Inc. among others.

  • In 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.
  • In 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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