Global Supply Chain Digital Twin Market Size, Share & Industry Trends Analysis Report By Enterprise Size, By Component (Hardware, Software and Services), By Deployment Mode (On-premise and Cloud), By Vertical, By Regional Outlook and Forecast, 2023 - 2030

Global Supply Chain Digital Twin Market Size, Share & Industry Trends Analysis Report By Enterprise Size, By Component (Hardware, Software and Services), By Deployment Mode (On-premise and Cloud), By Vertical, By Regional Outlook and Forecast, 2023 - 2030

The Global Supply Chain Digital Twin Market size is expected to reach $5.3 billion by 2030, rising at a market growth of 11.5% CAGR during the forecast period.

Services are a vital component in the market, offering expertise in implementation, integration, and ongoing support. Thus, the Services segment would achieve a $1.2 billion market share by 2030. Service providers assist businesses in customizing digital twin solutions to their unique supply chain needs. They offer consulting, training, and maintenance services, ensuring seamless adoption and maximizing the benefits of digital twin technology. These services also encompass data analysis, helping companies derive actionable insights from digital twin models. Service providers play a crucial role in troubleshooting, updates, and scaling digital twin applications, enabling businesses to adapt to changing market dynamics efficiently. Their expertise ensures that organizations harness the full potential of Supply Chain Digital Twins, optimizing operations and enhancing overall supply chain efficiency.

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For Instance, in February, 2021, IBM joined hands with Siemens and Red Hat. This collaboration aims to utilize a hybrid cloud designed to provide a flexible, open and safe solution for manufacturers & plant operators to lead the real-time value from operational data. Moreover, In February, 2019, Dassault Systemes SE came into partnership with ABB Ltd., a Swedish Swiss multinational corporation. Under this partnership, both companies aimed to develop and offer customers advanced digital twins, allowing customers to run ABB’s solutions and their operations with improved overall efficiency, flexibility, and sustainability.

Based on the Analysis presented in the KBV Cardinal matrix; Oracle Corporation is the major forerunner in the Market. In April, 2022, Oracle Corporation partnered with Maplesoft, the leading provider of high-performance software tools for engineering, science, and mathematics. This partnership aimed to integrate Oracle’s cloud technology and Maplesoft’s simulation software for customers to create extremely versatile digital twins at scale with physics-based models on operational data. Companies such as Siemens AG (Siemens Digital Industries Software), Schneider Electric SE (AVEVA Group PLC) and SAP SE are some of the key innovators in the Market.

Market Growth Factors

Rising complexities in the global supply chain

As global supply chains expand and become more intricate, companies face the challenge of managing a vast network of suppliers, manufacturers, distributors, and logistics providers. This complexity makes having a clear and real-time view of the supply chain difficult. SCDTs offer a comprehensive and unified view of the supply chain, allowing stakeholders to monitor all process aspects in real-time. Additionally, complexity often leads to inefficiencies in supply chain operations. With numerous stakeholders and processes involved, optimizing production, inventory, transportation, and distribution becomes challenging. SCDTs provide advanced analytics and modeling capabilities that allow companies to identify opportunities for improvement and optimization. These factors will drive the future expansion of the market.

Rapid expansion of e-commerce

E-commerce's rapid rise has led to an increase in supply chain complexity. With the proliferation of online marketplaces, the diversity of products, and the need for rapid order fulfillment, supply chains have become more intricate. Supply chain digital twins provide a dynamic and detailed representation of these complex supply chain networks, enabling organizations to manage and optimize their operations efficiently. In addition, e-commerce relies heavily on data-driven decision-making. It provides advanced data analytics and visualization tools that empower e-commerce companies to make informed decisions. By analyzing real-time data and simulating different scenarios, e-commerce businesses can optimize their supply chain operations, reduce costs, and enhance overall efficiency. Therefore, the growth of e-commerce has driven the demand for these solutions.

Market Restraining Factors

Challenges due to complex implementation processes

Implementing an SCDT often requires a significant upfront investment in technology, software, hardware, and personnel with expertise in digital twin development. For organizations with limited budgets, especially smaller businesses, the high initial costs can deter them from adopting SCDTs. Developing and integrating an SCDT demands specialized data analytics, IoT, software development, and supply chain management skills. Talent with these skills can be hard to come by and expensive to keep. Moreover, data quality is critical for the accuracy and reliability of an SCDT. Inconsistent or inaccurate data from various sources can compromise the effectiveness of the digital twin. Ensuring data quality and standardization across the supply chain ecosystem can be time-consuming and resource-intensive. The supply chain ecosystem often involves multiple stakeholders who use different software platforms and technologies. Ensuring interoperability between these systems and the SCDT can be a challenge. This can create friction in collaborations and slow down the adoption of SCDTs. These factors will impede the future growth of the market.

Enterprise Size Outlook

Based on enterprise size, the market is bifurcated into large enterprises and small & medium size enterprises (SMEs). In 2022, the small & medium size enterprises (SMEs) segment garnered a significant revenue share in the market. SMEs often operate with limited budgets compared to larger corporations. Digital twin technology providers have recognized this and are offering cost-effective solutions catering to SMEs' budget constraints. These solutions typically come with lower upfront costs, subscription-based pricing models, and scalability options, making them more accessible to smaller businesses. SMEs often have niche or specialized supply chain requirements. Digital twin solutions are becoming more customizable, allowing SMEs to tailor the technology to their needs and processes. This adaptability ensures that SCDTs can address the unique challenges smaller enterprises face. Owing to these factors, there will be an increased demand in the segment.

Component Outlook

Based on component, the market is segmented into hardware, software, and services. In 2022, the software segment garnered a significant revenue share in the market. Software solutions enable companies to conduct scenario analysis and simulations, allowing them to assess the impact of various supply chain decisions, disruptions, or changes. This capability is crucial for optimizing supply chain strategies and resource allocation. Advanced software solutions seamlessly integrate real-time data from IoT sensors, RFID tags, and other sources, providing a comprehensive view of supply chain activities. This real-time integration enhances decision-making and responsiveness. AI and ML algorithms embedded in supply chain digital twin software offer predictive analytics capabilities. These algorithms can forecast demand, identify trends, and optimize inventory levels, leading to reduced costs and improved supply chain performance. As a result, the segment is expected to proliferate in the future.

Deployment Mode Outlook

On the basis of deployment mode, the market is divided into on-promise and cloud. In 2022, the cloud segment witnessed a substantial revenue share in the market. Cloud-based SCDT solutions can easily scale to accommodate the growing complexities of supply chains. Whether a business is a small startup or a multinational corporation, cloud platforms can adapt to their needs, making them suitable for various companies. Cloud-based SCDTs are accessible from anywhere with an internet connection. This accessibility enables supply chain stakeholders to access real-time data and collaborate seamlessly, even when geographically dispersed. Owing to this, the cloud segment will witness an increased demand in the coming years.

Vertical Outlook

On the basis of vertical, the market is divided into manufacturing, automotive, aerospace & defense, retail, pharmaceuticals, consumer goods, and others. In 2022, the manufacturing segment witnessed a substantial revenue share in the market. SCDTs enable manufacturers to create accurate demand forecasts by considering historical data, market trends, and real-time information. This, in turn, helps optimize production planning and align it with customer demand. SCDTs provide visibility into the availability of resources, including raw materials, machinery, and labor. Manufacturers can optimize resource allocation to meet production targets efficiently. Therefore, the demand is expected to rise in the manufacturing segment.

Regional Outlook

By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. The North America segment procured the highest revenue share in the market in 2022. Many of the world's largest and most influential companies, particularly in manufacturing, retail, and logistics, are headquartered in North America. These industry leaders have been early adopters of SCDT technology, driving awareness and setting industry standards for digital twin implementations. The region is home to companies with extensive and complex supply chains that span national and international boundaries. Managing these intricate networks requires advanced tools like SCDTs to optimize processes, enhance visibility, and mitigate risks. These factors are expected to boost the demand in the North America segment.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Oracle Corporation, SAP SE, Dassault Systemes SE, Kinaxis, Inc., Schneider Electric SE (AVEVA Group PLC), Siemens AG (Siemens Digital Industries Software), AnyLogic North America, LLC (The AnyLogic Company), Simio LLC and Logivations GmbH

Supply Chain Digital Twin Market Report Coverage:

Report Attribute Details

Market size value in 2022 USD 2.3 Billion

Market size forecast in 2030 USD 5.3 Billion

Base Year 2022

Historical period 2019 to 2021

Forecast Period 2023 to 2030

Revenue Growth Rate CAGR of 11.5% from 2023 to 2030

Number of Pages 299

Tables 463

Report coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Competitive Landscape, Companies Strategic Developments, Company Profiling

Segments covered Component, Deployment Mode, Enterprise Size, Vertical, Region

Country scope US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria

Growth Drivers • Rising complexities in the global supply chain

• Rapid expansion of e-commerce

Restraints • Challenges due to complex implementation processes

Recent Strategies Deployed in Supply Chain Digital Twin Market

Partnerships, Collaborations & Agreements

May-2023: SAP SE collaborated with Accenture plc, an Irish-American professional services company. This collaboration aimed to provide customers with increased transparency and visibility across assets and inventory, as well as faster value realization with SAP Business Network.

Apr-2022: Oracle Corporation partnered with Maplesoft, the leading provider of high-performance software tools for engineering, science, and mathematics. This partnership aimed to integrate Oracle’s cloud technology and Maplesoft’s simulation software for customers to create extremely versatile digital twins at scale with physics-based models on operational data.

Feb-2021: IBM joined hands with Siemens and Red Hat. This collaboration aims to utilize a hybrid cloud designed to provide a flexible, open and safe solution for manufacturers & plant operators to lead the real-time value from operational data. In this joint initiative, Siemens Digital Industries Software would implement IBM's open hybrid cloud approach, based on Red Hat OpenShift, to expand the implementation flexibility of MindSphere, the industrial IoT as a service solution by Siemens.

Jan-2021: Siemens partnered with Ola, an Indian multinational ride-sharing company. In this partnership, Ola would get access to Siemens' integrated Digital Twin design and manufacturing solutions to get digitalize and authenticate product & production prior to actual operations.

Nov-2020: Siemens signed an agreement to acquire Culgi, a computational chemistry software company. This acquisition will expand the simulation capabilities of the Xcelerator portfolio with quantum & molecular chemistry models, which effortlessly integrate with the continuum approach in Simcenter STAR-CCM+ software.

Sep-2020: Siemens Digital Industries Software came into partnership with VSI Labs, a researcher of active safety and autonomous vehicle (AV) technologies. Under this partnership, Siemens’ PAVE360 platform would help in developing digital twin simulations for the authentication & testing of every processors, sensor, electronics, and systems empowering the VSI Labs Capability Demonstrator that is an improved AV development vehicle embedded with components from automotive technology leaders and combined by VSI solutions engineers.

Jul-2020: AVEVA, a subsidiary of Schneider Electric SE partnered with DORIS Group, a global Engineering and Project Management company in the energy industry. This partnership aimed to deliver Digital Twin technology for the upstream oil and gas markets. Additionally, the new solutions would support the aims of oil & gas organizations to improve asset performance, increase sustainability, and maximize return on capital on projects.

Jul-2020: Siemens formed a partnership with SAP, a German multinational software corporation. This partnership focuses on integrating their complementary software solutions for supply chain, product lifecycle, and asset management to boost the digital transformation for their customers.

May-2020: Siemens collaborated with Atos, a global leader in digital transformation. This collaboration aims to enhance production with an advanced solution based on a digital copy of the pharma production process. This advanced Process Digital Twin for pharma manufacturing powered by AI, IoT, and Advanced Analytics, which is developed to offer enhanced efficiency & flexibility in the manufacturing of pharmaceutical products.

Mergers & Acquisition

Feb-2020: Siemens Digital Industries Software took over MultiMechanics, developer of finite element software. This acquisition aimed to expand the Simcenter and Xcelerator portfolio of Siemens and Users would get the benefit from a solution that can virtually forecast the failure in materials at an unprecedented level of speed & accuracy.

Product Launches and Product Expansions

May-2022: Schneider Electric SE unveiled EcoStruxure Machine Expert Twin, a scalable digital twin software solution. The launched product would manage the entire machine lifecycle.

Scope of the Study

Market Segments covered in the Report:

By Enterprise Size

• Large Enterprises
• Small & Medium Size Enterprises

By Component

• Hardware
• Software
• Services

By Deployment Mode

• On-premise
• Cloud

By Vertical

• Automotive
• Aerospace & Defense
• Manufacturing
• Pharmaceuticals
• Retail
• Consumer Goods
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• IBM Corporation
• Oracle Corporation
• SAP SE
• Dassault Systemes SE
• Kinaxis, Inc.
• Schneider Electric SE (AVEVA Group PLC)
• Siemens AG (Siemens Digital Industries Software)
• AnyLogic North America, LLC (The AnyLogic Company)
• Simio LLC
• Logivations GmbH

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