What exactly is a digital twin?

A digital twin is a virtual replica of a physical object, process, or system. Think of it as a highly detailed computer model that mirrors something in the real world, from a single machine part to an entire factory. What makes digital twins special is that they're dynamic—they can be updated with real-time data from sensors on the physical object and used to run simulations, predict outcomes, and optimize performance without making physical changes first.

How do companies make money from digital twin technology?

Companies in this collection generate revenue in several ways: selling software platforms that create and manage digital twins, providing consulting services for implementation, offering cloud-based solutions where customers pay subscription fees, developing the IoT sensors that feed data to digital twins, and creating visualization tools that make the data useful. The business model is attractive because it often includes recurring revenue from subscriptions and updates rather than one-time sales.

Why would businesses invest in creating digital twins?

Digital twins deliver significant cost savings and efficiency improvements. For example, manufacturers can detect potential equipment failures before they happen, saving on maintenance costs; pharmaceutical companies can test drug interactions virtually before expensive physical testing; and urban planners can simulate traffic patterns before building new roads. In many cases, the return on investment comes from preventing expensive problems before they occur and optimizing operations without disrupting existing processes.

What does IoT mean and how does it relate to digital twins?

IoT stands for Internet of Things, which refers to physical objects embedded with sensors, software, and other technologies that connect and exchange data with other devices over the internet. IoT is essential to digital twins because these sensors collect real-world data from physical objects and send it to the digital model. This continuous data flow enables the digital twin to accurately reflect current conditions of the physical object, making simulations and predictions more accurate.

How do 3D printing companies fit into the digital twin theme?

3D printing companies bridge the gap between digital and physical worlds. After creating and optimizing a design using digital twin technology, 3D printing allows for rapid physical prototyping or production. This creates a powerful workflow: engineers can perfect a design virtually using digital twins, then immediately produce it with 3D printing. Companies like DDD and SSYS provide the technologies that turn these optimized digital designs into physical reality, completing the digital-to-physical loop that makes digital twins especially valuable in product development.

16 handpicked stocks

Digital Twin Creators

Discover companies building virtual replicas of real-world objects and systems that are transforming how industries operate. These carefully selected stocks represent leaders in simulation, 3D modeling, and data analytics that are unlocking major efficiency gains across the global industrial landscape.

Han Tan | Market Analyst

Updated 2 days ago | Published at जून 17