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.

12 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

Published on June 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Autodesk, Inc.

ADSK

Current price

$320.91

Provides essential 3D design, engineering, and entertainment software used to create the detailed models that form the basis of digital twins.

PTC Inc.

PTC

Current price

$203.02

Delivers industrial IoT and augmented reality platforms like ThingWorx, enabling companies to build and manage digital twins of their physical assets.

Unity Software

Current price

$39.14

Provides a real-time 3D development platform used to create interactive digital twins and simulations across numerous industries.

Bentley Systems Inc

BSY

Current price

$55.95

Trimble Navigation Limited

TRMB

Current price

$79.41

NVIDIA Corporation

NVDA

Current price

$188.95

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+35.60%

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About This Group of Stocks

Our Expert Thinking

Digital twins are revolutionizing how businesses operate by creating virtual versions of physical assets that can be tested and optimized before real-world implementation. These technologies help companies reduce costs, minimize risks, and accelerate innovation by bridging the physical and digital worlds with detailed, functional virtual models.

What You Need to Know

This collection offers exposure to a transformative technology trend that spans multiple sectors including manufacturing, construction, healthcare, and infrastructure. While established in some industries, digital twin technology is still in early adoption phases in many others, offering significant growth potential as IoT sensors and AI analytics continue to advance.

Why These Stocks

We've selected companies that provide the essential software, platforms, and technologies needed to design and operate sophisticated digital twins. This mix includes established leaders in engineering simulation, 3D design, industrial IoT platforms, and emerging specialists in reality capture and visualization technologies.

Group Performance Snapshot

35.17%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 35.17% over the next year.

11 of 12

Stocks Rated Buy by Analysts

11 of 12 assets in this group are rated Buy by professional analysts.

7.6% vs 4%

Group Growth vs Bank interest

This group averaged a 7.6% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🚀

Early Days of a Massive Shift

Digital twins are still in the early adoption phase for many industries. As more businesses realize the cost-saving potential, these companies are positioned at the starting line of a technological revolution.

💡

The AI Acceleration Effect

The combination of artificial intelligence and IoT sensors is supercharging digital twin capabilities, making these virtual models more valuable than ever before. Companies in this space are riding this powerful convergence.

🌐

Universal Business Application

Unlike some tech trends, digital twins have practical applications across virtually every industry—from healthcare to manufacturing to urban planning—creating an unusually broad market opportunity.

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