In the rapidly evolving landscape of Industry 4.0, digital twin technology stands at the forefront of innovation, revolutionizing the way industries operate and paving the way for the seamless integration of artificial intelligence. This advancement heralds a significant shift towards Industry 5.0, emphasizing a deeper collaboration between humans and machines.
Digital twins serve as an advanced virtual representation of physical assets, processes, or systems, offering an unparalleled real-time glimpse into their operations. These dynamic models mirror the life cycle of their physical counterparts, providing an accurate, synchronized view that goes beyond a mere static representation.
“In today’s industries landscape, digital twins are emerging as indispensable tools for forging paths to success. From fostering intelligent collaboration to testing and predicting the success of groundbreaking ideas, digital twins are key to unlocking competitive advantages,” says Silvia Piai, research director, IDC Health Insights Europe, and co-lead of IDC’s Industries Digital Twin Taskforce.
IDC research highlights the widespread adoption and recognition of digital twin technology across various sectors, extending its reach far beyond the traditional, asset-heavy industries. A comprehensive survey conducted by IDC reveals notable familiarity with digital twins in resources and construction (52%) and manufacturing (40%), but also in professional services (40%), transportation and logistics (37%), energy (37%), and finance (36%). This broad applicability underscores the technology’s role in enhancing operational efficiency and decision-making in cross-industry ecosystems.
The impact of digital twins is set to expand significantly, with IDC forecasting that by 2027, 35% of G2000 companies will employ supply chain orchestration tools featuring digital twin capabilities, with the aim of boosting supply chain responsiveness by 15%. Furthermore, by 2029, it is expected that 80% of auto insurers leveraging digital twin technology for claims processing will focus on accident recreation, potentially reducing casualty claims adjustment expenses and fraud losses by 40%.
As new use cases continue to emerge and digital twin projects grow in complexity and reach, organizations need to define their course with strategic clarity for a future of boundless possibilities. The transition to interconnected ecosystems necessitates a comprehensive approach to digital twin strategy development, spanning from individual entities to the entire ecosystem.
Recognizing this need, IDC has developed a robust framework to guide the formulation of digital twin strategies across various industries. This initiative seeks to empower businesses to leverage digital twins for competitive advantage and operational benefits, affirming their relevance in asset-intensive sectors like manufacturing, as well as such industries as insurance, healthcare, and transportation.
IDC’s Cross-Industry Digital Twin Framework encourages a strategic shift from “egosystems” to holistic ecosystems, ensuring that digital twin strategies are thoughtfully developed to cover all bases with an end-to-end approach.
