BIMScaler Blog – The Asia Pacific digital twin market is gaining serious traction as industries across the region embrace this tech to boost operational efficiency and strategic decision-making.
As sectors like manufacturing, healthcare and smart city development grow fast, digital twins are becoming a must-have tool for businesses that want to simulate, analyse and optimise their physical assets in real time.
So, let’s break down the Asia Pacific (APAC) market here.
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ToggleAsia Pacific Digital Twin Market Size and Growth
The Asia Pacific region is not merely adopting digital twin technology; it’s spearheading its growth on a global scale.
According to the Fortune Business Insights report “Asia Pacific Digital Twin Market Size, Share & COVID-19 Impact Analysis,” the market is projected to expand at an impressive Compound Annual Growth Rate (CAGR) of 45.9% from 2023 to 2030.
The global market was valued at USD 8.60 billion in 2022, and projections suggest it could soar to USD 137.67 billion by 2030.
This exponential growth trajectory underscores the region’s appetite for digital twin solutions and the transformative impact they are expected to have across various industries.
Australia is a key player in this regional growth, along with countries like Japan and Singapore.
Its energy and infrastructure sectors are leading the way, with digital twins helping to boost performance and sustainability.
Market Drivers in Asia Pacific
Rapid Industrialization
One of the main reasons the digital twin market is growing so fast in Asia is because the region is still industrialising, especially in countries like India and Southeast Asia.
We’re seeing industries change quickly by using digital twins to monitor their production lines, reduce downtime, and improve operational efficiency.
For instance, India is using digital twins in urban development projects, such as the new capital city of Amaravati, which was designed using this technology.
In manufacturing, digital twins let you simulate and optimize processes in real time, which can lead to big cost savings and better results.
Government Initiatives for Digitalization
Governments across the Asia-Pacific region, particularly in Australia, Japan and Singapore, are actively promoting digital transformation through policies that encourage the adoption of digital twins.
Australia’s smart city projects, along with investments in infrastructure, have made it easier to use digital twins in urban planning and utilities management.
For example, digital twins help make water management systems more efficient. Sydney is one city that has implemented them for real-time monitoring and optimisation.
These government-backed initiatives are key to speeding up the uptake of digital across industries, from healthcare to transportation.
Increasing Adoption of IoT and IIoT
Another big reason for the rise of digital twins in the region is the growing integration of the Internet of Things (IoT) and the Industrial Internet of Things (IIoT).
IoT-enabled sensors provide real-time data that feed into digital twins, which means we can do predictive maintenance and system optimisation.
This is particularly the case in sectors like utilities, manufacturing and logistics, where IoT-connected digital twins make a big difference when it comes to monitoring, forecasting and decision-making processes.
Singapore and Japan are two countries where IoT-driven digital twins are being used to improve urban mobility and manage energy consumption more effectively.
Growing Demand for Predictive Maintenance
The need for predictive maintenance is on the rise, especially in industries that rely heavily on assets, like manufacturing and energy.
This is driving the growth of digital twins.
Using real-time data to predict when equipment might fail, digital twins help to cut down on downtime and make assets last longer.
In Australia, businesses are starting to use digital twins to improve the reliability of critical infrastructure like energy grids and transport networks.
Digital Twin Implementation Across Asia Pacific Industries
It’s becoming clear the Asia Pacific region is a hotspot for digital twin adoption, with lots of different industries seeing the potential this technology has to transform the way they work.
From making operations more efficient to improving customer experiences, digital twins are proving their worth in a wide range of sectors.
Leading Sectors
While digital twins have applications across a broad spectrum of industries, certain sectors in the Asia Pacific are leading the charge in adoption.
As per the insights shared by Zhi Tao, Ng during the Matterport webinar, “Digital Twin Adoption in Asia Pacific,” the retail, travel and hospitality, commercial real estate, and residential real estate sectors are at the forefront of this digital revolution.
The Fortune Business Insights report further substantiates this trend, highlighting the prominence of sectors like aerospace & defence, automotive & transportation, manufacturing, healthcare, retail, and energy & utilities.
In Japan and Singapore, the automotive and smart city sectors are also getting on board with digital twins.
Japanese carmakers are using digital twins to create simulations of their production processes.
Meanwhile, Singapore is using technology to manage urban mobility and infrastructure in its smart cities.
In India, digital twins are being used in big infrastructure projects like the Amaravati city development.
Industry-Specific Use Cases
There are so many different ways digital twins can be used, depending on the industry they’re in.
Take the commercial real estate sector, for example. There, digital twins are helping designers and space planners to work together more effectively.
The Matterport webinar says you can improve collaboration efficiency by 80% using photorealistic 3D models.
In the residential real estate sector, digital twins are helping people visualise properties better.
In fact, 76% of organisations say they can see things more clearly with 3D models.
The retail industry is using digital twins to help employees quickly learn their new roles, which helps cut costs and improve efficiency.
The Matterport webinar shows how using digital twins to communicate standard operating procedures can cut onboarding time and training costs by 61%.
In the travel and hospitality sector, digital twins are being used to create immersive 3D experiences for customers, which helps them engage with the brand and drive bookings.
The webinar says around 74% of organisations in this sector have created 3D-ready materials for their digital content.
On the other side, the presentation of “SWAN Asia-Pacific Digital Twin Webinar,” also looks at how digital twins are being used in the water utility industry.
Anglian Water and other companies are using digital twins to get a better understanding of how their systems are performing.
This helps them to predict when maintenance is needed, make the most of their resources and provide a better service to customers.
The SWAN webinar also shows how digital twins can help with asset management across different industries, from planning and design to operation and maintenance.
Key Players in the Asia Pacific Digital Twin Market
Now, let’s take a closer look at some of the key players shaping the future of digital twins in the Asia Pacific.
Regional Companies
In Australia and the Asia-Pacific region, companies like BIM Scaler and Interscale have played a big part in getting digital twins adopted, especially in construction and infrastructure.
BIM Scaler has become a serious player in the market by offering Building Information Modelling (BIM) management services integrated with digital twin technology for asset management and urban planning.
The company’s solutions are used in Australia’s growing smart projects, where accurate, real-time data is crucial for managing infrastructure efficiently.
Similarly, Interscale has made a name for itself in the Australian market by focusing on connecting the dots between digital twin technology and 3D spatial data integration.
Interscale combination of realistic images with up-to-date data has been a real game-changer for commercial real estate.
Their technology helps property managers make the most of their space and improve the experience for tenants.
This focus on what works in the real world has made Interscale a trusted partner in Australia’s real estate and construction industries. Its technology is used in urban and rural projects all over the country.
Global Players with Strong Regional Presence
There are some big names investing in the Asia Pacific digital twin market, including Matterport, ABB Group, IBM, and GE. They’re offering a wide range of digital twin solutions and services.
Matterport is a top spatial data company with a focus on creating 3D digital twins of buildings and spaces that really bring them to life.
Matterport is growing fast in the region, with more and more customers in various industries looking for digital twin solutions.
ABB Group, which is based in China, has also made some big moves in the Asia-Pacific market by offering digital twin solutions for the energy and utilities sectors.
ABB has a great track record of combining IoT data with real-time analytics, so it’s a go-to for companies looking to optimize their power grids and reduce energy consumption.
GE is another big player in the manufacturing and aerospace sectors. They provide digital twin solutions that help companies streamline production processes and reduce downtime through predictive analytics.
Learn more: Global Digital Twin Market: Growth, Trends, and Future Outlook
Government and Research Institutions
Australia, Japan and Singapore are leading the way in the region when it comes to government-backed initiatives that support digital twin adoption, particularly in infrastructure and urban planning.
Sydney Water has come up with a complete digital twin of its water management system to keep an eye on things and make sure it’s all running smoothly, while looking after resources in a growing urban landscape.
This project, backed by local government agencies, shows how public institutions can lead the way in digital twin innovation.
In Japan, digital twins are used to simulate entire city ecosystems, helping urban planners make data-driven decisions about things like transportation, energy consumption, and public services.
Singapore’s Smart Nation initiative has embraced digital twins to improve mobility, cut carbon emissions and optimise energy use across the city-state.
Along with government projects, research institutions across the Asia-Pacific region work closely with industry leaders to develop cutting-edge digital twin technologies.
Fujitsu Asia and Carnegie Mellon University are working together to develop better digital twin solutions for smart cities.
Their “Social Digital Twin Technology” is designed to make community planning and environmental sustainability easier.
Country-Specific Market Analysis
China
When it comes to the digital twin market in the Asia-Pacific region, China is leading the way.
China’s rapid industrialisation, coupled with the government’s strong support for digital technologies, has created a great environment for adopting digital twins.
The Fortune Business Insights report says the Chinese market is set to grow a lot in the next few years, especially in manufacturing, automotive and aerospace.
The Chinese government is also focusing on developing smart cities and promoting Industry 4.0, which is driving up demand for digital twin solutions.
Companies like ABB Group, which has a strong presence in China, are playing a big part in providing the latest digital twin technologies to support the country’s industrial transformation.
Japan
Japan has always been at the cutting edge of technology, and now it’s embracing digital twins in manufacturing and urban development.
Japanese carmakers like Toyota and Nissan are leading the way, using digital twin tech to try out production processes, test vehicle designs and make assembly lines more efficient.
The Matterport webinar also points to Japan as one of the countries we looked at, with 60% of manufacturers in the retail and wholesale sector already using digital twins.
Japan is also leading the way in the smart city movement.
Cities like Tokyo and Yokohama are using digital twins to test out urban infrastructure and environmental conditions.
These efforts fit in with Japan’s wider aim of making cities more sustainable and resilient as part of its Smart Japan ICT Strategy.
India
One of the most ambitious projects is the development of a digital twin for Amaravati, a newly planned city in Andhra Pradesh.
This project is being led by architects Foster and Partners. The idea is to model the city’s infrastructure and make resource management more efficient by using real-time data analysis.
India’s digital twin market is also growing in the industrial and manufacturing sectors, where the technology is used to make things run more smoothly.
Indian companies are using digital twins to make their production processes more efficient, cut down on energy use and improve how they keep track of maintenance.
Companies like Accenture Plc and GE are really involved in India’s digital twin ecosystem.
They’re providing solutions and services to support the country’s digital transformation journey.
Australia
Australia’s got a mature economy and a focus on innovation, so it’s no surprise the country’s embracing digital twins across various industries.
In particular, the construction and infrastructure sectors are seeing a lot of uptake, with companies like BIM Scaler and Interscale offering tailored digital twin solutions.
Sydney Water has implemented a full digital twin to improve water management and guarantee the sustainable use of resources in a fast-growing urban area.
In the real estate sector, Australian companies are starting to use digital twins to manage large commercial properties.
The Australian government has also been a big supporter of digital twins.
Initiatives like the National Digital Twin Strategy aim to create an interconnected digital model of the nation’s infrastructure.
Learn more: Digital Twin Market in Australia: Growth, Trends, and Future Outlook
Other Key Markets
We’re also seeing some great potential for digital twins in other markets in the Asia Pacific region.
South Korea’s focus on smart manufacturing and Industry 4.0 has led to the adoption of digital twins across many industries, including automotive, electronics, and energy.
Meanwhile, Singapore is leading the way in digital twin technology in Southeast Asia, thanks to its Smart Nation initiative.
Digital twins are being used extensively in urban planning, helping city officials model infrastructure and make energy use more efficient in real time.
Singapore’s got a pretty advanced digital infrastructure, so it’s a great model for other countries in the region.
Across the other side of Southeast Asia, Thailand is also using digital twins to make its manufacturing processes more efficient.
Meanwhile, in Malaysia, the technology is starting to be used in smart city projects to improve urban infrastructure.
For sure, these markets are still in the early days of adoption, but there’s huge potential for growth, especially as governments start to focus more on digital transformation.
Challenges and Limitations
The Asia Pacific digital twin market is a big deal, but there are still some hurdles to overcome.
The Matterport webinar looks at some of the main hurdles to adoption, including a lack of talent or knowledge, difficulties in attributing performance and personalising experiences.
The cost of sensors and computing resources can also be a barrier, especially for smaller organisations.
Furthermore, many companies find it tricky to prove the return on investment from digital twin projects.
Businesses often find it challenging to justify the high upfront costs, especially in industries like healthcare and real estate, because measuring the financial impact can be tricky.
Industry stakeholders will need to work together to overcome these challenges.
This means we will need investment in skills development, clear performance metrics, and cost-effective solutions.
Future Outlook and Opportunities
The projected CAGR of 45.9% shows how digital twins are becoming an increasingly valuable tool for businesses in all kinds of sectors.
We’re going to see a lot more use of digital twins in the next few years, not just among the early adopters but also in other sectors, like construction, healthcare, and retail.
In Australia, where smart infrastructure projects are really taking off, digital twins will be key to making urban planning and sustainable development more efficient.
The rise of smart cities in the region is one of the best places to look for opportunities for digital twins.
As cities like Singapore and Tokyo push ahead with their smart city projects, digital twins will become essential for managing everything from energy use to traffic flow.
What’s more, we’ll see industries start to combine digital twins with augmented reality (AR) and virtual reality (VR) tech, which will make it easier to simulate complex environments.
This integration will not only make things more efficient but also change how we train, design, and maintain them.
This means more chances for Australian businesses to keep an eye on things remotely and work together, especially in sectors like mining and healthcare, where getting the right people on the ground and distances can make things tricky.
In Closing
The digital twin market in the Asia-Pacific region is changing fast. It’s being driven by strong industrial growth, government support and the increasing use of IoT and IIoT technologies.
Looking ahead, we’ll see digital twins combined with new technologies like augmented reality and virtual reality, which will open up new possibilities and transform how businesses operate and innovate.
The region is seeing some big changes and new plans, which shows us how much potential the Asia Pacific digital twin market has for the future.