Supply Chain Digital Twin Market Size, Share & Trends Analysis Report By Component, By Deployment Mode (On-premise, Cloud), By Enterprise Size, By Industry Vertical, By Region, And Segment Forecasts, 2023 - 2030

Supply Chain Digital Twin Market Size, Share & Trends Analysis Report By Component, By Deployment Mode (On-premise, Cloud), By Enterprise Size, By Industry Vertical, By Region, And Segment Forecasts, 2023 - 2030

Supply Chain Digital Twin Market Growth & Trends

The global supply chain digital twin market size is expected to reach USD 5.98 billion by 2030, registering a CAGR of 12.0% from 2023 to 2030, according to a new report by Grand View Research, Inc. Digital twin adoption has been fueled by the industry's rapid growth and the demand for cutting-edge technology. This technology enables better monitoring, analysis, and operation optimization by providing a complete and real-time picture of the whole supply chain.

A digital twin is the creation of a digital replica of the complete supply chain or certain components within it. This replica contains physical assets such as manufacturing facilities, storage facilities, transportation vehicles, processes, data flows, and relationships between different pieces. Furthermore, the digital twin incorporates IoT devices, sensors, and other data sources. Temperature, humidity, location, and production parameters are all collected in real time by these devices at various points in the supply chain. This information is then input into the digital twin, which allows for a dynamic and accurate simulation.

Unforeseen operational halts pose significant disruptions and financial burdens for industrial manufacturers, amounting to more than 15 hours of lost time per week and exceeding USD 50 billion annually, even before the pandemic. A substantial portion of these interruptions, nearly half, stem from equipment malfunctions. To counteract these challenges, the strategy of predictive maintenance, involving the anticipation and preemptive repair of assets before they malfunction, has emerged as a compelling approach. Its implementation promises substantial cost reductions and heightened productivity, benefiting both manufacturers and logistics providers.

The potency of digital twins in furnishing real-time insights into the status of physical objects positions them as an optimal solution for predictive maintenance. For instance, in 2022, Kraft Heinz joined forces with Microsoft to develop digital twins for all 34 manufacturing facilities in North America. Among the primary aims was the curtailment of mechanical downtime across each establishment.

Beyond just comprehensive warehouses, digital twins can also be effectively deployed for individual assets, even on a smaller scale. Forward-thinking logistics entities and equipment service providers are crafting digital replicas of items such as singular robots, trucks, and tools. This emulation approach enables consistent monitoring of their conditions, identifying wear and tear that necessitates timely attention to avert breakdowns. Employing digital twins to facilitate predictive maintenance yields substantial benefits for logistics providers, including the potential to diminish reactive maintenance by around 40% within a given year. This not only amplifies operational throughput but also substantially reduces operational expenditure.

Supply Chain Digital Twin Market Report Highlights

• Based on component, the hardware segment dominated the overall market, accounting for a market share of 42.0% in 2022. The segment is expected to be driven by the gathering, transfer, and processing of real-world data to produce accurate and dynamic virtual representations
• Based on deployment mode, the on-premise segment dominated the overall market, accounting for a market share of 52.1% in 2022. With on-premises implementation, the firm keeps full control of its data and can install its security measures to protect sensitive supply chain information
• Based on enterprise size, the large enterprises segment is anticipated to grow at a CAGR of over 12.5% from 2023 to 2030. Large corporations can use supply chain digital twins to improve operational efficiency, lower costs, and improve decision-making across the whole supply chain
• Based on industrial vertical, the automotive segment is anticipated to witness strong growth with a CAGR of nearly 13.3% over the forecast period, owing to the optimization of inventory levels by taking into account real-time demand variations, production plans, and lead
• North America dominated the industry, contributing to over 29.3% of the global revenue in 2022. The region is home to many leading technology companies, research institutions, and universities that have been actively developing and advancing digital twin technology for supply chain

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