Annual Municipal Digital Twin Revenue Is Expected to Grow at a Compound Annual Growth Rate of 25% by 2031
Lack of knowledge of digital twins and their applications and insufficiently digitized municipal data pose barriers to adoption
A new report from Guidehouse Insights analyzes the global market for digital twins used in the smart city context, analyzing emerging trends, drivers, and barriers, and providing market estimates for five global regions through 2031.
Digital twins, which are one-to-one digital recreations of real-world objects or systems, can help translate city data into solutions that improve urban livability. Common in the engineering and manufacturing worlds, city digital twins can render every street, building, tree, and fire hydrant into a photo-realistic digital model that can manage both live and historical data, allowing cities to project how change will affect the urban environment and how assets are performing in real time. According to a new report from Guidehouse Insights, annual municipal digital twin revenue is projected to grow to $2.5 billion by 2031, representing a compound annual growth rate (CAGR) of 25.2%.
“Due to the ability of digital twins to thoroughly monitor the present and simulate the future and digital twins’ relatively low cost, cities are beginning to make them a standard tool for urban planning and design,” says Grant Samms, research analyst with Guidehouse Insights. “Digital twins are proving useful for decarbonization and climate resilience efforts because they can guide energy efficiency efforts while modeling the impacts of climate-affected disasters.”
The primary barrier to adoption is expected to be the lack of knowledge of digital twins and their applications among municipal staff; however, this impediment will likely reduce as adoption grows and twins become more commonplace. There are also challenges surrounding insufficiently digitized municipal data and ensuring that data from a wide array of Internet of Things (IoT) devices owned by varying municipal departments is made available for digital twin use.
The report, Digital Twins for Smart Cities, analyzes the global market for digital twins used in the smart city context. The market projection provides an analysis of market issues, including emerging trends, drivers, and barriers for the deployment of these software. Global market estimates are included for five world regions, including breakouts by digital twin type, and extend through 2031. An executive summary of the report is available for free download on the Guidehouse Insights website.
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*The information contained in this press release concerning the report, Digital Twins for Smart Cities, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.