A digital twin (DT) is a virtual representation of a physical object. One of the earliest examples of a DT was used by NASA engineers in the 1970s as part of its Apollo moon landing program to test strategies to fix a distressed Apollo 13 Spacecraft (called “the twin”). Later, they were used in product lifecycle management in the early 2000s. Since then, the application of DTs has spread to other sectors, including automotive, construction, power, and utilities. Use cases such as equipment maintenance, assembly line monitoring, building management and design, and commercial planning have emerged with an emphasis on cost savings.

Although DTs date back to the 1970s, recent advancements in IoT sensors, computing infrastructure, artificial intelligence (AI)/machine learning (ML), and analytics have led to a maturing of its underlying technology, which has laid the foundation for the next stage of its growth. In this Insight, we explore what DTs are and how they are being used, factors making them relevant today, prominent startups, growth headwinds, and what the future holds.