Demand for digital twin technology for businesses is growing at an exceptional rate – and it’s not just manufacturing and industrial companies that are leading the charge.
Digital twins – going beyond the basics of traditional simulation and 3D models teams can explore with screens – are addressing countless business challenges. They’re helping organizations plan more cost effective and engaging office spaces for hybrid teams, eliminating inefficient workflows, and enabling proactive decision-making.
Digital twins are even supporting organizations to achieve sustainability goals, minimize wasted resources, and improve both employee and customer experiences.
So, what exactly makes digital twins a critical resource for today’s organizations? Here’s your ultimate guide to the impact of digital twin technology for businesses.
What is Digital Twin Technology for Businesses?
Digital twins are pretty much exactly what they sound like: virtual replicas of an object or system, created with cutting edge technology, such as RT3D software, AI, and IoT sensors.
Digital twin technology for businesses started life with traditional simulations – 3D programs used across industries to help organizations test products, systems, and concepts. However, digital twins take this idea to the next level. They don’t just give users models they can interact with on a screen.
Instead, they draw real-time information from physical sensors, to provide up-to-date insights into how systems work. These sensors or data feeds send information to the virtual model (your twin).
Then, using algorithms, analytics tools, and machine learning, this twin keeps learning and updating, helping you see what’s happening right now, what might go wrong later, and how different tweaks could impact outcomes.
Today’s teams can also interact with model digital twins through extended reality technologies, such as mixed or virtual reality headsets, and AR smart glasses.
The introduction of “immersive” wearables means employees can safely, and effectively experiment with digital twins in real-time, tweaking designs, learning how to use new systems, and collaborating with teams in a digital space.
Businesses are flocking to this technology because it lowers risk and accelerates innovation. You can run experiments in the digital world – pushing a machine beyond its usual capacity or testing new floor plans – without disrupting your actual operations.
The Types of Digital Twin Technology for Businesses
Notably, there isn’t just “one type” of digital twin. Across industries, companies are experimenting with different modes of digital twins intended for different purposes. For instance, the most common type of digital twin is the “product twin” – a virtual representation of a product.
This type of twin allows users to experiment with and gain insights into a product throughout its life cycle. For instance, an automotive company could use a product twin to gain real-time insights into a new vehicle’s performance and potential mechanical issues.
Next, there are data twins – Google Maps is a good example here. It gathers real-time data from smartphones and GPS devices to help drivers plan their route.
Plus, there are systems twins – which model how various processes and assets interact. For instance, you could create a twin mapping out all of the steps involved in a supply chain. Finally, infrastructure twins help users manage massive physical environments, like highways or smart cities.
XR and Digital Twin Technology for Businesses: The Perfect Match
While digital twin technology for businesses doesn’t always have to leverage XR, immersive solutions are becoming increasingly popular – particularly with the rise of new tools, like Varjo Teleport. XR gives users a new way to interact with digital twins.
Instead of looking at a 3D model on a flat monitor, you can step right into it. That immersive experience is a game-changer for digital twin technology for businesses.
Picture a design team reviewing a virtual copy of their manufacturing plant. Through an AR headset, they can walk around virtual conveyor belts, see performance metrics in real-time, and make collaborative decisions to optimize layouts.
Companies are also using XR for immersive training. Rather than learning in a risky or time-consuming real-world environment, employees can practice tasks in a virtual space.
All of this extends to customer experiences, too. With XR plus IoT devices, you can troubleshoot products or deliver interactive demos without needing a field technician on site. These “smart” interactions save both time and money.
The Market for Digital Twin Technology for Businesses
The global digital twin market is set to reach a value of more than $259.32 billion by 2032 – that’s a CAGR of around 40.1%. Additionally, according to some studies, by 2024, more than 75% of enterprises had already adopted digital twin technology for businesses.
While digital twins initially took off in manufacturing and industrial settings (thanks to Industry 4.0), adoption has spread across finance, energy, healthcare, real estate, and beyond.
Obviously, there are still challenges to adopting digital twins. Companies need robust data infrastructures that feed accurate, real-time streams into their digital twins. Talent is another key factor. It’s not just about hiring programmers or data scientists; you need system integrators, analytics experts, and industry specialists who understand how to interpret simulation results.
However, digital twins also deliver countless benefits.
The Benefits of Digital Twins in the Enterprise
As global competition tightens, companies need real-time insights to make effective, informed moves. Digital twins let you experiment without risk, test product changes on the fly, and prepare for unexpected disruptions. The top benefits include:
- Virtual Testing and Design: With twins, companies can try new features or processes in a sandbox environment. Even failures offer opportunities to learn. For instance, Emirates in New Zealand uses digital twins to experiment with boat designs without building them.
- Predictive Maintenance: Digital twins help companies spot potential breakdowns before they derail production. That way, you can avoid unplanned downtime and costly repairs. Plus, you can improve the safety of your team members.
- Enhanced Customer Experiences: Digital twins help companies fine-tune personalization strategies, offer better service packages, and create new value propositions based on data.
- Greater Efficiency: Digital twins help firms mirror complex workflows to identify bottlenecks. This means they can implement improvements to keep operations lean.
- Strategic Data Use: Digital twins feed off and produce oceans of data. With the right analytics and governance in place, you get a “single source of truth.” This leads to better business growth.
Digital Twin Technology for Businesses: Use Cases
As mentioned above, historically, digital twin technology for businesses was mostly tied to heavy industry and manufacturing workflows. Now, that’s starting to change, as new organizations across sectors discover new ways to leverage digital twin systems.
Here are some major use cases for digital twins in various industries.
Construction: Eliminating Bottlenecks
Supply chain delays. Labor shortages. Soaring material costs. The construction sector faces countless challenges that can slow a project to a crawl. Bad data often makes this worse, leading to poor decisions and costly rework. Digital twins and augmented reality (AR) change the game by capturing and visualizing real-time information from every phase- design, construction, and maintenance.
Digital twins allow construction companies to view designs in real-time, with XR solutions that overlay BIM data onto the physical world. They can streamline construction workflows, by capturing issues and identifying bottlenecks within a 3D model. Plus, they can improve safety training, and enable more proactive maintenance strategies.
For instance, DPR Construction uses Unity and digital twin technology to bring BIM data into the field. Field teams catch and resolve design errors with just a few clicks, dramatically reducing costly rework and ensuring that office and on-site teams stay aligned.
Finance: Upgrading Banking Systems
Financial institutions are applying digital twin technology for businesses to model entire banking operations. They create virtual replicas of transactions, systems, and workflows, then run stress tests without risking disruption to daily operations. This approach streamlines everything from regulatory reporting to operational risk management.
For example, a bank can simulate a surge in loan defaults under different economic scenarios without putting real money at stake. Beyond risk, financial organizations use digital twins for optimizing customer journeys, analyzing transaction data, and enhancing cybersecurity.
Energy: Improving Efficiency
Energy companies usually deal with huge volumes of data, thanks to extensive IoT sensors, drone footage, and AI-driven cameras. Digital twin technology for businesses transforms this raw data into visually rich and interactive 3D models. They allow companies track everything from pipeline pressure to staff safety metrics.
Energy firms can use digital twins for design visualization and collaboration, learning, training and safety initiatives, and even field service optimization. Plus, digital twins can help energy companies with site operations, and maintenance, reducing costs, downtime, and carbon emissions.
BP has built digital twins to optimize production and reduce downtime. These twins also contribute to BP’s net-zero goals, cutting annual emissions by about 500,000 tons of CO2 equivalent when scaled across their operational assets.
Automotive: Optimizing Product Design
Numerous companies, from Ford, to BMW, have embraced digital twin technology for businesses in the automotive industries. Many organizations use this technology to streamline 3D car design and product development processes, or create intuitive human-machine interfaces for drivers.
Some are even experimenting with digital twins for autonomous driving simulations, training and customer service. Plus, some major vendors are turning to digital twins to minimize carbon emissions. For instance, Rolls-Royce uses digital twin technology to discover new ways of reducing waste. They’ve managed to reduce their CO2 emissions by 22 million tons.
Architecture: Building the Future
For years, architects and infrastructure designers relied on static 2D blueprints, then basic 3D models presented on screens. Now, digital twin technology for businesses allows architects to immerse clients and stakeholders in true-to-scale models of buildings and environments.
This means companies deal with fewer miscommunications, and don’t have to tackle as many design revisions in the long-term. Architectural companies use digital twins for design reviews and visualization workflows, and even on-site guidance, through XR headsets and smart glasses.
SHoP Architects, in partnership with JDS Development Group, is a perfect example. For The Brooklyn Tower project, they used real-time data integrated with Unity to visualize design changes faster, saving time and reducing their carbon footprint.
Manufacturing: Streamlining Processes and Maintenance
Although manufacturing companies aren’t the only groups exploring digital twin technology for businesses anymore, this industry is still a major adopter. As manufacturing grows more complex, digital twin technology for businesses helps leaders refine product lifecycles, from development to production and even end-of-life processes.
Manufacturing firms can use digital twins to optimize factor design and layouts, run simulations with robotics, train operators, and enhance proactive maintenance. Already, countless companies are seeing the benefits. For instance, software giant SAP is investing heavily in XR and digital twins to enhance factory operations.
Companies like Boeing are even using AR and digital twins to streamline inspections of planes, and improve team training initiatives.
Retail: Increasing Profitability
The retail sector has gone through an extreme makeover in the last few years. Companies have been forced to rethink how they design stores, manage supply chains, and engage customers. Digital twins help dramatically. They can replicate store layouts, track inventory in real time, or create immersive virtual shopping experiences.
Retailers can use digital twins to create 3D virtual stores, and streamline operations. For instance, digital twins of product SKUs can be linked to your logistics platform for faster, more accurate inventory management.
Plus, retailers experimenting with XR can enhance customer experiences with digital twins. For example, when eBay added its AI-enabled 3D TrueView feature for sneaker sellers, it allowed customers to inspect items from any angle, boosting buyer confidence and reducing return rates.
Office Environments: Upgrading Hybrid Work
When it comes to digital twin technology for businesses, offices are one of the biggest frontiers. As hybrid work reshapes traditional office life, many organizations are left with half-filled desks and underutilized meeting rooms.
An office-focused digital twin uses data from IoT sensors, security badges, and even environmental systems to mirror your workplace in real time. You can see which rooms are in use, how many employees are on-site, and where resources (think printers, whiteboards, or even coffee machines) are most in demand.
Armed with that information, companies can right-size their offices, cut down on energy bills, and create flexible, user-friendly spaces. They can even find unique ways to improve collaboration, employee engagement, and training strategies.
Future Trends in Digital Twin Technology for Businesses
As demand for digital twin technology for businesses grows, new trends are beginning to emerge. We’ve already mentioned how many companies are beginning to use XR and digital twins together, taking advantage of metaverse as a service solutions, and affordable headsets to embed team members into unique simulations.
The evolution of the metaverse will continue to drive this trend forward, allowing companies to create fully interactive mirror worlds where teams can collaborate, interact with customers, and design.
Digital twin adoption will also be further enhanced by:
- Artificial Intelligence: AI makes digital twins more accurate. Machine learning models comb through enormous data sets to pinpoint anomalies or predict maintenance cycles. Companies can also use generative AI to enhance digital twin designs, or workplace simulations. Plus, they can leverage real-time decision support and guidance from AI copilots.
- Edge Computing and 5G: Growth in enhanced connectivity options like edge computing and 5G mobile connections are strengthening digital twin technology for businesses. These solutions allow companies to access data faster, improving responsiveness in fast-paced industries like the automotive and manufacturing sectors.
- Sustainability-Focused Twins: With stricter environmental regulations looming, digital twins help companies track carbon footprints, reduce waste, and optimize resource usage. From automotive to heavy industry, digital twins are helping organizations hit their ambitious green targets.
Beyond that, constant evolutions, such the rise of more efficient IoT solutions, more intuitive software for digital twin development, and even multi-asset digital twins are introducing new opportunities.
Embracing Digital Twin Technology for Businesses
The growing potential of digital twin technology for businesses is something no organization can afford to ignore. Regardless of which sector you serve, digital twin solutions can help you boost efficiency and productivity, reduce costs, and unlock new levels of innovation.
