Digital Twin Market in Australia: Growth, Trends, and Future Outlook

Digital twin market in Australia

BIMScaler Blog – It looks like the digital twin market in Australia is set for some big growth in the next few years. It’s on the brink of a major change. 

The market has huge potential, driven by the country’s increasing investments in cutting-edge technologies like AI, machine learning and data analytics.

So, let’s take a look at how the digital twin market in Australia is doing right now.

Market Size and Growth

We don’t have exact figures for the Australian digital twin market, but the global landscape shows us what it could be worth.

The latest report from Grand View Research, called “Digital Twin Market Size, Share And Growth Report, 2030,” says that the global market was worth USD 16.75 billion in 2023 and is set to grow at a compound annual growth rate (CAGR) of 35.7% from 2024 to 2030.

This impressive growth shows how digital twins are becoming a game-changer across industries.

In Australia, we’re seeing a similar pattern with big investments in digital twin projects.

The Digital Twin White Paper from Standards Australia shows that state governments are putting money into this technology.

New South Wales has invested $40 million, while Western Australia has invested $140 million.

These investments, along with the emergence of 25 digital twin-focused startups across Australia and New Zealand, show that the market is growing fast and has a lot of potential.

Learn more: Digital Twin Market in 2024: Growth, Trends, and Future Outlook

Key Market Drivers in Australia

There are a few reasons why the digital twin market is growing in Australia.

The growing use of the Internet of Things (IoT) and big data analytics is a big reason for this.

As companies collect huge amounts of data from all these connected devices and sensors, digital twins are a great way to analyse, understand, and gain useful insights from this data.

In addition, the need to improve business operations, make processes more efficient, and get products to market faster is driving the use of digital twins across industries.

Businesses can gain a competitive edge by simulating and optimising real-world systems in a virtual environment.

Furthermore, new tech like AI, ML and cloud computing are making digital twins even more powerful.

AI and ML integration gives digital twins the power to do more than just represent things.

They can now predict what might happen in the future, spot potential problems, and help us make decisions before we even have to.

The Standards Australia report highlights the crucial role these digital technologies will play.

New developments in this area are expected to contribute a whopping $315 billion to the Australian economy by 2028.

Another big factor is investment from state governments.

For instance, New South Wales is leading the way with its Spatial Digital Twin Program, which aims to improve decision-making through comprehensive 4D mapping.

Victoria is also investing heavily in DT technologies. In fact, it has set aside AUD 37.4 million for projects that will help with urban planning and disaster response.

Key Players in the Australian Digital Twin Market

Local Companies

BIM Scaler, which started out in building information modelling (BIM), has now branched out into digital twins. It focuses on construction and infrastructure.

BIM Scaler BIM Management Support helps its clients get the best results by building digital replicas of physical assets.

This is especially vital in Australia’s current infrastructure projects, where effective management and maintenance are key to keeping things running smoothly long-term.

The company’s mix of BIM and digital twin tech has helped it land some big projects, including partnerships with state governments on smart city initiatives.

Interscale is another Australian company that’s made a name for itself by focusing on data analytics and visualisation tools that power digital twin applications.

Interscale’s tech helps to integrate data in real time and do predictive analytics, so it’s a big player in sectors like urban planning and transportation.

The company’s involvement in some of the key state-led digital twin programmes has been really important in helping to make better decisions about infrastructure planning.

Interscale’s advanced data models help make the best use of resources, improve service delivery and support disaster management.

These contributions are especially relevant as the Victorian government is investing $37.4 million in building a digital foundation for the future.

International Players in Australia

While local companies are making great progress, the Australian digital twin market is also seeing some big international players.

Big names like ABB Group, Microsoft, and General Electric are actively operating in Australia, offering their expertise and solutions to various sectors.

They’ve got loads of experience and are really tech-savvy, so they bring some great insights and capabilities to the Australian market, which makes things more competitive and encourages further innovation.

Government and Research Institutions

The driving forces here are Digital Twin Victoria and the NSW Spatial Digital Twin program.

These programmes show how the government is using this technology to make better decisions, plan more effectively and manage infrastructure more efficiently. 

Next up is Standards Australia, which has been really active in setting guidelines and frameworks for digital twins across the country.

Research institutions like the University of Melbourne are leading the way in academic contributions to digital twin development.

The university’s Centre for Spatial Data Infrastructures and Land Administration has been looking into urban digital twins, especially how they can be used in smart city projects.

The University of Melbourne’s digital twin research has had a big impact on the development of urban digital twins (UDT), which are all about creating real-time, data-driven models for managing cities more efficiently.

In addition, we have CSIRO’s Data61, the data science arm of Australia’s national science agency, which is another big player in the field.

Data61 has been working on some pretty innovative digital twin tech for a whole range of industries, from agriculture to cybersecurity.

Digital Twin Implementation in Australian Industries

Leading Sectors

The Digital Twin Victoria initiative, which got off the ground with a $37.4 million investment, is all about using geospatial data for asset management and city planning.

Similarly, Western Australia’s Spatial WA Program got $140 million to make planning processes more efficient and improve decision-making by integrating data in real time.

In both states, digital twins are being used to simulate urban growth, monitor infrastructure and manage disaster response more efficiently.

As the Grand View Research report shows, the automotive and transportation sector is leading the way, accounting for around 21% of the global digital twin market in 2023. 

In Australia, we can see this trend in action with the NTT IndyCar Series using digital twins to provide real-time race insights.

This shows how the technology could transform fan engagement and operational efficiency.

Meanwhile, the Australian healthcare industry is looking into how digital twins could be used for personalised medicine and hospital management.

Using digital twins in medical research, especially for predictive analytics in patient treatment, is still pretty new. But it shows promise in reducing healthcare costs and improving patient outcomes.

Industry-Specific Use Cases

In infrastructure, digital twins are used to manage transport networks, which means we can predict when something might need maintenance and make real-time adjustments to traffic flows.

The NSW Spatial Digital Twin is a great example of this in action. It brings together real-time data from lots of different sources to create 3D models that help with planning and developing infrastructure.

In the mining sector, companies like Rio Tinto are using digital twins to create simulations of their mining operations.

This helps them to optimize the extraction processes and improve safety standards. 

The manufacturing industry has also started using digital twins to make product development cycles more efficient.

By creating digital prototypes, manufacturers can test different variables without disrupting actual production lines.

Using digital twins speeds up the product development phase while cutting down on waste and reducing costs, especially in sectors like aerospace and automotive manufacturing.

In the adoption of smart cities, digital twins create virtual copies of urban areas, helping make data-driven decisions about urban planning, traffic management and resource allocation. 

Learn more: Global Digital Twin Market: Growth, Trends, and Future Outlook

Future Outlook and Opportunities

Looking ahead, the digital twin market in Australia is ripe with opportunity.

Standards Australia has said it’s important to have one national plan to coordinate all the efforts happening in different states.

The development of consistent standards will be key to ensuring Australia gets the most out of digital twins.

That could mean better infrastructure resilience or even enhanced national security.

Looking ahead, we can expect to see more industries, such as manufacturing, healthcare, and agriculture, use digital twin technologies to improve their operations and cut costs.

Also, Australia’s work to combat climate change through digital twins provides a great example of how predictive modelling can be used in environmental management.

If Australia can get the right mix of national leadership, technology investments, and data governance improvements, it’ll be in a great position to lead the global digital twin movement in the coming years.

What is the Global Forecast for the Digital Twin Market?

The global digital twin market is really taking off, and it looks like it’s here to stay.

And yes, it’s a great time to be involved in this technological revolution, with endless possibilities.

Grand View Research reckons the market will grow at a compound annual growth rate (CAGR) of 35.7% from 2024 to 2030.

Just to give you an idea of how big this is going to get, the market is currently worth USD 16.75 billion and is expected to reach a massive USD 155.84 billion by 2030.

This isn’t just hype; there are some solid trends behind it. More and more industries are turning to digital twins because they offer a practical way to make things work better.

It’s like a high-tech simulation that helps companies make smarter decisions, improve efficiency and come up with new ideas.

The rapid advancement of technologies like AI, ML, and cloud computing is making this even more of a reality.

These technologies are making digital twins even more powerful and versatile.

It’s like going from a basic flight simulator to one that can accurately predict turbulence and suggest the best course of action.

How Australia’s Digital Twin Market Compares to Other Regions

In the United States, digital twins are now a key part of industrial operations, especially in sectors like aerospace, automotive, and urban development.

Many big US companies are using digital twins to improve their operations, reduce downtime, and develop products more efficiently. 

Similarly, Germany, a pioneer in Industry 4.0, has made the most of digital twins to make manufacturing processes more efficient and bring smart tech into urban infrastructure.

German manufacturers are using digital twins to make their production lines more precise and efficient, which has led to big improvements in productivity and reduced production costs.

On the other hand, Australia’s digital twin scene is still growing and a bit fragmented, but it’s definitely evolving.

The country has made some big steps forward thanks to state-led initiatives like Digital Twin Victoria and Spatial WA, which are investing millions in developing smart infrastructure.

These initiatives are all about modelling cities and critical infrastructure digitally. This helps with things like urban planning, disaster management and asset monitoring.

However, unlike the US and Germany, Australia is still working on integrating digital twin technology across multiple industries and building a cohesive national strategy.

Australia has really made a name for itself in the mining and resources sector. Companies like Rio Tinto and BHP are using digital twins to make resource extraction and equipment maintenance more efficient.

These digital models let companies test out mining operations, predict problems, and make production more efficient. This gives Australia an edge in this field.

That said, Australia is still behind in using digital twins across sectors like healthcare and advanced manufacturing, where countries like the US and Germany are further ahead.

This is partly down to Australia’s smaller tech ecosystem and the need for more private sector involvement and investment in digital twin development.

While government projects have helped get things off the ground, Australia’s challenge is to build stronger links between the public and private sectors so that digital twins can be used to their full potential across all industries.

In Closing

The country has made great strides, but there’s still plenty of room to grow in healthcare, manufacturing, and beyond.

If the public and private sectors work more closely together and come up with a unified national strategy, Australia can unlock the full potential of digital twin technology.

If we all pull together, the digital twin market in Australia is going to become a global force to be reckoned with.

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