The explosion in the number of IoT-connected devices— there will be 150 billion on the planet by 2030, according to IHS Markit research—has been a key driver of digital-twin adoption. Nearly half of all companies implementing IoT are already using, or plan to use, digital twins this year, according to Gartner research. By 2021, they will help those companies improve their efficiency by 10%, the firm predicts.
Companies across the spectrum are pouring money into developing digital-twin applications. The global market for digital twin technology is expected to grow 38% annually, reaching $16 billion by 2023, according to Deloitte.
The technology is already yielding significant payoffs, including a 15% to 30% gain in labor efficiency, according to Deloitte. “If I’m 30% more efficient, I have less work that I’m doing and I can actually create more new products,” says Brian Meeker, principal in product strategy and lifecycle management at Deloitte.
NASA developed the concept behind digital twins in the early days of space exploration, when engineers created physical twins of spacecraft and used them to test, monitor and repair systems during live missions. Today, NASA designers rely on the technology to create virtual models of equipment, which can be tested for optimal performance, stability and functionality before spending any money on physical prototypes.
Car manufacturers are using digital twins to conduct virtual tests on new car designs. Engineers can use a car’s digital twin to perform simulated crash tests to show the effects on an impact in extreme weather conditions or at high speeds. Maserati reports that the technology has cut development time for new models by 30%.
“In the past, you crashed 10 physical cars against a wall,” Ohnemus explains. “Today you do eight crash tests digitally, and at the end you run maybe one or two physical tests, and those two are already the optimized version of the model.”
Using a digital twin can also help streamline the design process by making it easier for engineers, product managers, marketers, supply-chain experts and others to participate at every stage. Customer feedback can be easily included in the design process. Designers can create virtual models of different versions of a product, and then test them with customers to find which one best satisfies their tastes and needs.
Once a product hits the market, data on customer complaints, failure rates and overall performance can be fed back into the digital twin to identify problems and improve designs for the next generation of the product.
“It’s about taking a more connected, open view of how you’re designing and developing products and improving them over time to improve the customer experience,” says Jeff Hojlo, program director of product innovation strategies at IDC.