North America $46+ Bn Digital Twin Market Forecast to 2031: Integration of AI, AR, VR, and Other Advanced Technologies Fuels Growth
The North America digital twin market was valued at US$ 3.65 billion in 2023 and is expected to reach US$ 46.05 billion by 2031; it is estimated to register a CAGR of 37.3% from 2023 to 2031.
Integrating technologies such as AI, machine learning, VR, and AR with digital twins enhances the decision-making capabilities of users and businesses. Virtual reality and augmented reality enable a more immersive experience, allowing users to interact with virtual models and thoroughly analyze all aspects related to them. Artificial intelligence and machine learning provide meaningful insights into the data generated from these simulations. This enables better decision-making while designing, developing, and optimizing complex industrial systems.
The North America digital twin market is segmented into the US, Canada, and Mexico. In terms of revenue, North America dominated the North America digital twin market share in 2023. North America is one of the fastest-growing regions in terms of technological innovations and adoption of advanced technologies. The region has witnessed huge adoptions of technologies such as machine learning (ML), artificial intelligence (AI), and blockchain in the past three years across all the major industry verticals. With the rising penetration of digitization in various industries, the digital twin has become a vital component of business. In addition, the region is home to a majority of key market players such as IBM Corporation; Oracle; Microsoft; ANSYS, Inc; and PTC, leading to the North America digital twin market growth.
Moreover, North America is focused on introducing digital twin technology for the semiconductor industry. The government authorities are investing in fostering the semiconductor industry. In May 2024, the Biden-Harris Administration issued a Notice of Funding Opportunity (NOFO) seeking proposals from eligible applicants for activities to establish and operate a CHIPS Manufacturing USA institute focused on digital twins for the semiconductor industry. Digital twins are virtual models that mimic the structure, context, and behavior of a physical counterpart.
The CHIPS for America Program anticipates ?US$ 285 million for a first-of-its-kind institute focused on the development, validation, and use of digital twins for semiconductor manufacturing, advanced packaging, assembly, and test processes. The CHIPS Manufacturing USA Institute is the first Manufacturing USA institute launched by the Department of Commerce under the Biden Administration.
The North America digital twin market players are expanding their businesses in North America, which is contributing to the regional market growth. In April 2024, Datech, the specialist design software business of TD SYNNEX, and Unity, the platform of tools for creators to build and grow real-time apps, games, and experiences across multiple platforms, announced an agreement for Datech to offer Unity Pro and Unity Industry across North America and Europe, alongside its existing Unity offering in Asia Pacific and Japan. Unity is used to create dynamic digital twins, resulting in highly realistic models of products and constructions for simulation and testing. The result helps accelerate business decision-making, forecasting, and experimentation.
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