A new study by Hexagon reveals a compelling paradox in the digital twin technology landscape. While organizations that have adopted digital twins report significant benefits—such as a nearly 20% reduction in costs and notable environmental improvements—a surprisingly small number of executives plan to make substantial investments in the technology within the next two years.
A digital twin is a virtual representation of a physical object, system, or process that is used to simulate, predict, and optimize its performance in real-time. This concept involves creating a highly accurate and dynamic digital model that mirrors the characteristics and behaviors of its real-world counterpart, allowing for analysis, experimentation, and improvements without impacting the physical version.
The integration of artificial intelligence (AI) with digital twin technology is reshaping the industry, setting new expectations and capabilities. Hexagon surveyed 660 global executives, and 80% noted an increase in interest in digital twins due to AI’s growing role. This rising interest is leading to real action, with 43% of companies planning to enhance their digital twins with AI-powered features within the next year.
AI integration is proving transformative for businesses, allowing them to process large datasets and generate deeper insights. Burkhard Boeckem, Hexagon’s Chief Technology Officer, emphasizes, “Leaders are realising that AI is not just a feature but the key to maximising the potential of digital twins. From processing massive data sets to driving smarter decision making, AI has become a core component of digital twin strategies. Organisations embracing AI will reap the rewards in efficiency, innovation and long-term growth.”
The study highlights a clear gap between the perceptions of businesses using digital twins and those yet to adopt the technology. Only 20% of non-users anticipated collaboration benefits, while 44% of actual users reported enhanced team coordination and communication. This trend holds true for other business areas, such as proactive problem-solving and operational reliability.
The impact on sustainability is particularly striking, with 78% of organizations reporting reduced carbon emissions after implementing digital twins—achieving an average reduction of 15%. These results underscore the immediate value of implementing digital twin technology, with potential long-term gains as businesses improve data integration and implementation maturity.
The adoption of digital twins varies by sector, with aerospace, defense, and public safety leading the charge in digital transformation. Meanwhile, sectors like architecture, engineering, and construction (AEC) still have considerable room for growth. This divergence in adoption highlights both the versatility of digital twins and the need for industry-specific strategies to maximize their potential.
