Artificial Intelligence (AI)-Powered Simulation And Digital Twins Market Set To Reach $20.37 Billion By 2029

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The Business Research Company's Artificial Intelligence (AI)-Powered Simulation And Digital Twins Market Set to Reach $20.37 Billion by 2029

LONDON, GREATER LONDON, UNITED KINGDOM, September 25, 2025 /EINPresswire / -- "Get 30% Off All Global Market Reports With Code ONLINE30 – Stay Ahead Of Trade Shifts, Macroeconomic Trends, And Industry Disruptors

What Is The Expected Cagr For The Artificial Intelligence (AI)-Powered Simulation And Digital Twins Market Through 2025?
In the last few years, the market size for artificial intelligence (AI)-fueled simulation and digital twins has seen impressive expansion. It's projected to progress from a market worth $3.89 billion in 2024 to a valuation of $5.43 billion in 2025, translating to a compound annual growth rate (CAGR) of 39.6%. Factors such as the escalating demand for system-level simulation, mounting complexity in product design, higher usage of predictive maintenance, broadening of industrial automation, and the increasing requirement for virtual prototyping have all significantly contributed to its growth during the historical period.

The market size for AI-enabled simulation and digital twins is forecasted to witness a surge in the upcoming years, with an expectation to reach $20.36 billion by 2029, growing at a CAGR of 39.2%. The growth during the forecast period is predicted to be driven by factors such as the introduction of smart manufacturing, the surge in real-time data analytics adoption, increasing usage in the energy and utilities sector, the proliferation of digital transformation strategies, and a heightened emphasis on operational efficiency. Key trends for the forecast period encompass technological progress, perpetual innovation in AI models, the evolution of cohesive digital twin ecosystems, investments in research and development, and progress in generative design technologies.

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What Are The Key Factors Driving Growth In The Artificial Intelligence (AI)-Powered Simulation And Digital Twins Market?
The projected growth of the artificial intelligence (AI)-powered simulation and digital twins market is being driven by the rise in digitization in manufacturing. This refers to the conversion of information, objects, or procedures from their physical or analog format into a digital one that can be stored, processed, and transmitted by computers or digital systems. The escalation of this trend in manufacturing operations is spurred by the increased push for operational efficiency due to manufacturers being given the mandate to produce larger quantities in less time, with fewer resources and at lower costs. AI-powered simulation and digital twins facilitate this digitization. For example, the Information Technology and Innovation Foundation (ITIF), a nonprofit organization based in the US, revealed that by July 2025, South Korea aims to invest $2.2 billion in manufacturing and service robotics by 2028. Their goal is to deploy one million robots worldwide by 2030. Hence, the surge in digitization in manufacturing is fuelling the growth of the AI-powered simulation and digital twins market .

What Are The Top Players Operating In The Artificial Intelligence (AI)-Powered Simulation And Digital Twins Market?
Major players in the Artificial Intelligence (AI)-Powered Simulation And Digital Twins Global Market Report 2025 include:
. SAP SE
. ABB Ltd.
. Siemens AG
. Autodesk Inc.
. SymphonyAI LLC
. Rescale Inc.
. OroraTech GmbH
. Sight Machine Inc.
. Travancore Analytics Pvt. Ltd.
. Cosmo Tech SAS

What Are The Key Trends And Market Opportunities In The Artificial Intelligence (AI)-Powered Simulation And Digital Twins Sector?
Major corporations involved in the artificial intelligence (AI)-stimulated simulation and digital twin market are concentrating their efforts on creating sophisticated solutions like the industrial copilot. These endeavors aim to improve decision-making capabilities, simplify operational procedures, and speed up the implementation of intelligent digital twin solutions. The industrial copilot is an AI-enabled aid that functions at the periphery of manufacturing networks, facilitating real-time decision-making by processing local data and delivering actionable insights to operators and engineers. For instance, in January 2025, Siemens AG, a technology conglomerate based in Germany, rolled out a series of AI-powered tools and collaborations targeted at revolutionizing manufacturing through the use of edge computing, digital twins, and immersive engineering solutions. The launch primarily featured the Industrial Copilot for real-time AI decision-making, integration with Nvidia Omniverse for 3D digital twin simulation, and a novel mixed reality system in partnership with Sony. These innovative tools and collaborations are designed to hasten the progression towards intelligent, efficient, and eco-friendly industrial operations.

Comprehensive Segment-Wise Insights Into The Artificial Intelligence (AI)-Powered Simulation And Digital Twins Market
The artificial intelligence (AI)-powered simulation and digital twins market covered in this report is segmented

1) By Component: Solution, Services
2) By Type Of Digital Twin: Product Digital Twins, Process Digital Twins, System Digital Twins, Human Digital Twins, City And Infrastructure Digital Twins, Other Type Of Digital Twins
3) By Deployment Model: Cloud-Based Digital Twins, On-Premises Digital Twins
4) By Industry Vertical: Manufacturing And Industrial Automation, Healthcare And Pharmaceuticals, Automotive And Transportation, Aerospace And Defense, Energy And Utilities, Retail And E-Commerce, Other Industry Verticals

Subsegments:
1) By Solution: Simulation Software, Digital Twin Platforms, Artificial Intelligence Algorithms And Models, Visualization And 3D Modeling Tools, Integration And Data Management Tools
2) By Services: Consulting Services, System Integration Services, Support And Maintenance, Training And Education, Managed Services

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Global Artificial Intelligence (AI)-Powered Simulation And Digital Twins Market - Regional Insights
In 2024, North America dominated the global market for AI-powered simulation and digital twins. The region projected to experience the most rapid growth is Asia-Pacific. The report encompasses several regions worldwide, including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

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