Digital Twin for Construction Market

Digital Twin for Construction Market Overview

The global Digital Twin for Construction market size was valued at USD XX billion in 2024 and is predicted to reach USD XX billion by 2030 with a CAGR of XX% from 2025-2030.

The market for digital twin for construction is expanding with increased urbanization, greater focus on green buildings, and the growing trend towards smart infrastructure. However, the expensive nature of digital twin software serves as a market barrier. On the contrary, integration of AI in digital twin for building industry probably open new paths for industry expansion.

Major players such as Trimble Inc. and Hexagon are continuously introducing new solutions and making acquisitions to establish a base of customers. As digital construction technology continues to evolve, digital twins are going to become more of a key enabler to assist builders in designing, managing, and optimizing infrastructure with greater accuracy and ease.

Urbanization Driving Growth in Digital Twin for Construction Market

As cities are growing at a high pace, the need for digital twin for construction in building infrastructure is growing because of the increasing demand for improved infrastructure planning. According to reports published by World Bank Group, 2023, 56% of the global population, that is close to 4.4 billion individuals, are already living in cities. By 2050, it will reach almost 70%, that is twice the size of the present urban population. As urbanization is expanding at a rapid rate, digital twin software is becoming an increasingly vital tool for building wiser and sustainable cities.

Growing Demand for Green Building Boosting the Digital Twin for Construction Market

The rising interest in green building led to a growing demand for sustainable construction practices, that in turn is driving the expansion of the digital twin software industry to improve planning and resource management. For example, in October 2024, 68% of infrastructure-focused businesses now provide sustainable solutions, signalling a change in greener ways of building. As digital twin for construction gets better at saving energy and reducing waste materials, it becomes more useful in designing eco-friendly buildings for the future.

Innovations in Smart Buildings Driving Digital Twin for Construction Market Growth

The rapid development in smart buildings is propelling digital twin for construction market as builders turn to innovative solutions to plan, manage, and optimize new infrastructure. For instance, in August 2024, ABB Ltd. expanded its portfolio of intelligent building solutions when it acquired Eve Systems GmbH and solidified its position in the marketplace. Similarly, in September 2024, Hitachi Ltd. integrated its smart building solutions with smart city programs. This integration was achieved through its Lumada platform, that leverages IoT, AI, machine learning, and big data to optimize building operations. As the technology development of smart buildings continues by companies, the adoption of digital twin methodology is accelerating to establish future-proof intelligent infrastructure.

High Cost of Digital Twin Based Applications Restrains the Market Growth

The significant upfront costs associated with digital twin software, hardware, and training pose a major challenge. This high investment makes it difficult for many companies to adopt digital twin solutions, restricting widespread use and slowing market expansion.

AI Driven Analytics Shaping Digital Twins in Construction

The future of digital twins in construction lies in AI-driven predictive analytics, enabling real time simulations for better project planning. This reduces material waste, optimize timelines, and improve structural efficiency. Such advancements drive cost savings and sustainable growth in the industry.

Market Segmentations and Scope of the Study

The digital twin for construction market report is segmented on the basis of component, deployment mode, application, technology used, end-users, and region. On the basis of component, the market is bifurcated into software, hardware and services. Further the software is bifurcated into, digital twin platforms, simulation & visualization software, BIM (building information modelling) software and others. On the basis of hardware, the market is segmented into, IoT sensors & smart devices, drones & lidar scanners, edge computing devices and others.

Further based on services, the market is divided into, consulting & integration, and support & maintenance. On the basis of deployment mode, the market is segmented into cloud based and on-premises. Based on application, the market is segmented into design & planning, construction & monitoring, asset management & maintenance, sustainability & energy management and others. Further, on basis of technology used, the market is classified into AI & machine learning (ML), big data & cloud computing, blockchain and others. On the basis of end-users, the market is bifurcated into residential construction, commercial construction, and industrial construction. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and Rest of The World (Row).

Geographical Analysis

North America region holds the dominant digital twin for construction market share and is expected to continue to its dominance during the forecast period. Government investment in green building initiatives in the region, designed to minimize carbon footprints, is fuelling demand for digital twin solutions to optimize design and construction workflows. According to reports by Clean Energy Canada, 2024, the Canadian government aims to construct 3.87 million houses by 2030 and retrofit millions of others, creating even more demand for digital twin solution to enhance efficiency and sustainability in the developments. As regulations on sustainability continue to tighten, digital twin for building continues to be an essential tool in the creation of green buildings with enhanced energy performance.

Additionally, the existence of prominent market players in the region, including Open Space Labs, Inc. and Autodesk Inc., also propels regional in digital twin for construction market growth via initiatives namely product launches. The companies contribute value to the industry by creating new solutions that enhance project productivity, foster better collaboration, and offer advanced visualization tools. For instance, in June 2023, OpenSpace launched OpenSpace BIM+, a series of tools to enhance building information modelling coordination for virtual and field design teams. These technologies are helping grow the digital twin market by equipping construction crews with software that streamlines tasks and provides improved project results.

On the other hand, Asia-Pacific is expected to witness a steady growth in the industry during the forecast period. This is due to the rise in urbanization in the region is significantly propelling the digital twin for construction market as cities strive for smarter infrastructure and efficient resource management.

With an anticipated surge in urban population, the need for advanced simulations and digital models becomes critical. As per reports released by the World Bank Group in 2024, India's cities and towns will be inhabited by 600 million, or 40%, of the population by 2036, and urban regions will be contributing nearly 70% towards GDP. The growing needs of urbanization and economic growth reflect the importance of digital twin technology for the sustainable development of the city and quality of life.

Moreover, increasing infrastructure investment across the region is driving the digital twin for construction industry as it is driving greater demand for advanced project management and coordination software. This investment inspires developers to embrace digital twin solutions to enhance design accuracy and construction efficiency.

According to reports published by International Trade Administration, 2023, total investment in new infrastructure in China during the 14th Five-Year Plan period (2021-2025) amount to approximately USD 4.2 trillion. This rising infrastructure expenditure indicates the increased digital twin for construction market demand for solutions to drive project performance optimization and reduce construction complexity.

Competitive Landscape

Various key players operating in the digital twin for construction industry includes Trimble Inc., Bentley Systems Incorporated, Dassault Systemes, Siemens AG, Autodesk Inc., ANSYS, Inc., Hitachi, Ltd., Altair Engineering Inc., ABB Group, Hexagon AB and others. These companies are adopting strategies such as collaboration and acquisition to remain dominant in the market.

For instance, In June 2024, Hexagon acquired Voyansi to expand its BIM solutions portfolio and speed up the digitization of the construction industry. This strategic acquisition enables Hexagon to leverage Voyansi’s expertise and advanced technologies, fostering more efficient project execution and seamless integration in construction processes.

Moreover, in April 2024. Trimble Inc. partnered with Hyundai Engineering Co. to jointly develop a building information modelling process management solution to enhance construction productivity. The project is all about using the latest 3D modelling technology to enhance steel structure and precast concrete construction management 

Key Benefits

• The report provides quantitative analysis and estimations of the digital twin for construction industry from 2025 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future digital twin for construction market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the digital twin for construction market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Digital Twin for Construction Market Key Segments

By Component

• Software

  • Digital Twin Platforms

  • Simulation & Visualization Software

  • BIM (Building Information Modelling) Software

• Hardware

  • IoT Sensors & Smart Devices

  • Edge Computing Devices

• Services

  • Consulting & Integration

  • Support & Maintenance

By Deployment Mode

• Cloud Based 

• On-premises

By Application

• Design & Planning

• Construction & Monitoring

• Asset Management & Maintenance

• Sustainability & Energy Management

By Technology Used

• AI & Machine Learning

• Big Data & Cloud Computing

• Blockchain

By End Users

• Residential Construction

• Commercial Construction

• Industrial Construction

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The U.K.

  • Germany

  • France

  • Italy

  • Spain 

  • Denmark

  • Netherlands 

  • Finland

  • Sweden

  • Norway 

  • Russia 

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• Rest of the World (RoW)

  • Latin America

  • Middle East

  • Africa

Key Players

• Trimble Inc.

• Bentley Systems, Incorporated

• Dassault Systemes 

• Siemens AG

• Autodesk Inc. 

• ANSYS, Inc. 

• Hitachi, Ltd.  

• Altair Engineering Inc.

• ABB Group 

• Hexagon AB

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD XX Billion
Revenue Forecast in 2030	USD XX Billion
Growth Rate	CAGR of XX% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	•    The rising urbanization drives the market expansion. •    Growing demand for green building boosts the market growth •    Mankind inclination towards smart building propels the market rise
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.