Digital Twin for Buildings Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2032

Market Scenario 

The global Digital Twin for Buildings Market was valued at US$ 1.6 billion in 2023 and is projected to reach a market size of US$ 20.2 billion by 2032 at a CAGR of 32.6% during the forecast period 2024–2032.

Digital twins for buildings have become a prominent trend in the architecture, engineering, and construction (AEC) industry. A digital twin is a digital replica of a physical asset or system, including buildings, that incorporates real-time data and computer-aided design (CAD) to simulate performance and aid in decision-making. The digital twins for buildings market is evolving rapidly due to the widespread adoption of digital technology. Recent developments in the market have been shaped by advancements in technologies such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML). These technologies have enabled building owners, architects, and construction managers to create and maintain more accurate digital replicas of their physical assets. Moreover, with the proliferation of Building Information Modeling (BIM), digital twins have become more accessible, enabling the creation of smarter, more energy-efficient buildings.

There is a growing demand for data-driven decision-making processes in construction, design, and building management. This has led to an increase in the adoption of digital twin technology. Additionally, as buildings become more complex, the need for accurate digital representation of buildings for simulation, analysis, and optimization has become more critical. Furthermore, the COVID-19 pandemic has spurred digital transformation efforts in various industries, including the AEC sector, leading to increased adoption of digital twin technology for remote monitoring and operation of buildings.

Primary end users in the global digital twins for the building market are construction companies, real estate developers, architects, building managers, and facility operators. The trends among these consumers are driven by the need for improved operational efficiency, cost savings, and better management of building lifecycles. These consumers have recognized the benefits of having a digital replica of a building, allowing them to predict issues, optimize building performance, and reduce maintenance costs.

Opportunities in the digital twins for the building market are immense. The increasing focus on sustainability, green building practices, and smart cities will likely drive further adoption of digital twin technology. Additionally, the growing importance of data analytics, predictive maintenance, and the integration of digital twins with other technologies like augmented reality (AR) and virtual reality (VR) presents lucrative opportunities for market players. 

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Market Dynamics 

Driver: Integration of IoT with Digital Twins

The integration of the Internet of Things (IoT) with digital twins is a major driver in the global digital twins for buildings market. IoT devices provide real-time data that is fed into the digital twin, enhancing the ability to monitor, analyze, and optimize building performance. The data collected from IoT sensors can be used to improve energy efficiency, security, and overall building operations. With an estimated 75 billion IoT devices expected to be in use by 2025, the adoption of IoT in the market is poised for substantial growth. Astute Analytica projects that the IoT market will reach a value of $581 billion by 2025, primarily driven by applications in manufacturing, transportation, and utilities. Within the building sector, the potential for IoT integration with digital twins is significant. For instance, a report by the American Council for an Energy-Efficient Economy (ACEEE) found that commercial buildings could achieve energy savings of up to 25% by implementing IoT-based energy management systems. This further underscores the importance of IoT integration in driving the digital twins for buildings market.

Trend: Adoption of AI and Machine Learning

The adoption of artificial intelligence (AI) and machine learning (ML) in the digital twins for buildings market is a prominent trend. AI and ML enhance the functionality of digital twins by enabling predictive analytics, anomaly detection, and automated optimization of building systems. These technologies allow for real-time analysis of the vast amounts of data collected from IoT sensors, which can be used to identify patterns, make predictions, and generate insights that help in making data-driven decisions for building management. According to a report, AI has the potential to add up to $5.8 trillion annually to the global economy. In the context of the digital twins for buildings market, AI and ML have applications in areas such as energy management, predictive maintenance, and occupancy analytics. According to our report, the global AI in the construction market is expected to reach $4.51 billion by the end of 2023. This growth is attributed to the increasing need for operational efficiency and the rising adoption of AI and ML technologies in the construction sector. As the adoption of AI and ML continues to grow, their integration with digital twins will play a crucial role in shaping the future of the digital twins for buildings market.

Opportunities: Growing Demand for Smart Cities

The growing demand for smart cities presents significant opportunities for the global digital twins for buildings market. Smart cities use digital technology and data analytics to enhance the quality of life, improve infrastructure, and promote sustainable development. Digital twins are an integral part of the smart city ecosystem, providing a digital representation of physical assets and enabling real-time monitoring and analysis of urban infrastructure. The adoption of digital twins in smart cities has applications in areas such as urban planning, energy management, transportation, and waste management. In the context of buildings, digital twins can be used to optimize energy consumption, improve building performance, and enhance occupant comfort. 

The growing emphasis on sustainability and the need for efficient urban infrastructure will drive the demand for digital twins in the smart cities market. According to a report by the World Economic Forum, smart cities are expected to create business opportunities worth $2.46 trillion by 2025. As cities continue to adopt smart technologies and focus on sustainability, the opportunities for the digital twins for buildings market will continue to expand.

Segmental Analysis

By Component 

By component, the Software segment holds the highest share, accounting for 77.30% of the market. It is also projected to grow at the highest CAGR of 32.8% during the forecast period. This growth is attributed to the increasing demand for advanced software solutions for simulation, analysis, and optimization of building performance. Software platforms for digital twins enable building owners, architects, and construction managers to create accurate digital replicas of their physical assets, incorporate real-time data, and simulate performance. As the adoption of digital twin technology continues to grow, the demand for software solutions will likely increase, further driving the growth of the Software segment.

By Type 

By type, the Informative Twin segment is projected to keep dominating the global digital twins for buildings market, generating the highest market revenue of 27.51%. Informative twins provide a digital representation of a building's physical assets, incorporating real-time data for monitoring and analysis. They are used to optimize building performance, improve energy efficiency, and reduce maintenance costs. On the other hand, the Autonomous Twin segment is projected to grow at the highest CAGR of 33.2% during the forecast period. Autonomous twins are capable of making independent decisions and automating actions based on real-time data and predefined algorithms. Their ability to automate building operations and optimize performance without human intervention makes them an attractive option for building owners and facility managers looking to improve operational efficiency and reduce costs.

By Application

By application, the resource management and logistics segment hold the highest share of the global digital twins for buildings market, accounting for 21.87% of the market. Digital twins are used in this segment to optimize resource allocation, improve logistics operations, and enhance supply chain management. They enable real-time tracking of resources, predictive maintenance of equipment, and simulation of logistics operations, leading to improved efficiency and cost savings. Whereas, the Safety Monitoring segment is projected to grow at the highest CAGR of 33.3% in the years to come. Digital twins in the Safety Monitoring segment are used to monitor building safety, identify potential hazards, and take preventive measures. They incorporate data from sensors, cameras, and other IoT devices to detect anomalies, assess risks, and improve building safety. As safety becomes a top priority for building owners, construction managers, and facility operators, the demand for digital twins for safety monitoring is expected to increase, driving the growth of this segment.

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By Industry 

By industry, the digital twins for buildings market can be segmented into construction, real estate, architecture, and facility management, among others. The construction industry is expected to be a major consumer of digital twins, driven by the need for accurate digital representation of buildings for simulation, analysis, and optimization. The real estate industry is likely to use digital twins for marketing and sales purposes, providing potential buyers with virtual tours and insights into building performance. Architects can use digital twins to optimize building designs and improve energy efficiency. In the facility management industry, digital twins are used for predictive maintenance, resource management, and energy optimization.

Regional Analysis 

North America is expected to dominate the global digital twins for buildings market with a share of 46.82%, driven by its strong technological infrastructure and the presence of major digital twin market players. Leading companies such as General Electric Company, Bentley Systems, IBM Corporation, and ANSYS are headquartered in the region, contributing to the widespread adoption of digital twin technology. These companies have invested heavily in the digital twin industry, further propelling its growth. The use of process digital twins, AI, and machine learning technology helps identify problems, understand their root causes, forecast future performance, and automate actions. Over the past few years, the North American regional market has grown due to the early availability and adoption of new technology. Moreover, according to a report by the National Institute of Standards and Technology (NIST), the U.S. construction industry could save more than $15.8 billion annually through the integration of advanced technologies like digital twins.

In Europe, the digital twins for buildings market growth is anticipated to be driven by the promising expansion of the biotechnology sector and significant investments in manufacturing and automotive R&D. According to a report by the European Commission, the EU's manufacturing sector contributes approximately 2.1 trillion euros to the EU economy, representing 15.6% of total value-added. With the increasing adoption of Industry 4.0 and smart manufacturing practices, digital twins are poised to play a crucial role in optimizing production processes and improving product quality. Additionally, the automotive industry, a key driver of Europe's economy, is leveraging digital twin technology for product development, testing, and simulation. The European automotive industry accounts for 20% of global automotive production, according to the European Automobile Manufacturers Association (ACEA). As digital twin technology gains traction in the automotive and manufacturing sectors, the European market is expected to witness substantial growth.

Asia-Pacific is also expected to see significant growth in the digital twins for buildings market, driven by rapid urbanization, infrastructure development, and increasing investments in smart city projects. According to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), 55% of the region's population will be living in urban areas by 2030. This rapid urbanization is driving the demand for smart, sustainable infrastructure, creating opportunities for the digital twin market. Moreover, governments in the region are promoting the adoption of advanced technologies and investing in smart city initiatives. For instance, China's "New Infrastructure" plan aims to invest approximately $1.4 trillion in technologies such as 5G, IoT, and artificial intelligence by 2025, according to a report by the China Academy of Information and Communications Technology (CAICT). As Asia-Pacific countries continue to invest in digital transformation and smart city projects, the digital twins for buildings market in the region is poised for significant growth.

Top Players in the Global Digital Twin for Buildings Market 

• ABB
• Accenture PLC
• Ansys, Inc.
• Priori Technologies, Inc.
• Bentley Systems, Incorporated
• Cisco Systems, Inc.
• Dassault Systems, Inc.
• DHL International GmbH.
• DXC Technology Company
• GE Digital (Predix)
• IBM Corporation
• Microsoft Azure
• Oracle Corporation
• PTC Inc.
• Robert Bosch GmbH
• SAP SE
• Siemens AG
• Other Major Players

Market Segmentation Overview:

By Component

• Software
  • Cloud
  • On-premise
• Services
  • Professional
  • Managed

By Type

• Descriptive twin
• Informative twin
• Predictive twin
• Comprehensive twin
• Autonomous twin

By Application

• Automated Progress Monitoring
• As-executed Vs. As-planned Models
• Resource Management and Logistics
• Safety Monitoring
• Quality Assessment
• Optimization Of Equipment Usage
• Monitoring And Tracking Of Workers

By Industry

• Manufacturing
• Aerospace & Defense
• Oil & Gas
• Utilities
• Healthcare & Life Sciences
• Automotive
• Construction
• IT & Telecom
• Retail
• Consumer Goods & Packaging
• Transportation
• Smart Cities
• Other

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America