Ryan Bellefontaine
2025-04-09 12:17:00
www.visualcapitalist.com
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Charted: The Return on Investment of Digital Twins
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A digital twin is a virtual representation of a real-world object, system, or process. It continuously updates with real-time data, enabling companies to simulate, test, and optimize operations.
When integrated with artificial intelligence (AI), digital twins gain advanced capabilities. But with those new AI advancements, is investing in a digital twin genuinely worth it?
In this graphic, we analyze Hexagon’s survey data from 660 executives across 11 countries to show the return on investment of digital twins.
The Business Case for Digital Twins
Executives using digital twins report significant gains across key business metrics. The survey data highlights a clear financial impact:
| ROI From Digital Twin | Survey Response Rate |
|---|---|
| 1-10% | 7% |
| 11-20% | 37% |
| 21-30% | 34% |
| 31-40% | 16% |
The survey says 92% of companies tracking ROI see returns above 10%, while half of companies reported returns above 20%.
Beyond immediate ROI, 74% of surveyed executives expect to increase their spending on digital twins next year. Companies that embrace this technology early already see the rewards, positioning themselves ahead of competitors that are slower to adapt.
The AI Factor: A Game-Changer for Digital Twins
Meanwhile, artificial intelligence is accelerating the adoption of digital twins, with 80% of executives stating that AI has increased their interest in the technology. AI enhances digital twins in three key ways:
- Creating more detailed digital replicas by processing complex datasets.
- Reducing update times and costs by automating data collection.
- Making digital twins more intuitive with AI-powered analytics and insights.
With tangible cost savings, operational efficiencies, and strategic advantages, digital twins are proving to be more than just hype—they are a fundamental driver of modern business success.
The data for this visualization was sourced from The Digital Twin Industry Report, a publication by one of our data partners, Hexagon. Our data partnerships are commercial agreements that may or may not include compensation, and partners are not involved with our editorial or graphical processes in any capacity.
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