Digital Thread Market Size, Share, Growth, And Industry Analysis By Type (Parts Type, System Type) By Application (Aerospace & Defense, Automotive & Transportation, Machine Manufacturing, Energy & Utilities, Others) and Regional Forecast By 2031

Updated On: 22 April 2024

Digital Thread Market Report Overview

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The global digital thread market size was 497.6 million in 2021. As per our research, the market is expected to reach USD 14428.09 million by 2031, exhibiting a CAGR of 39.7% during the forecast period.

The COVID-19 pandemic has been unprecedented and staggering, with the Digital Thread market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The framework known as the "Digital Thread" links the data flow and provides an integrated picture of the asset's data across the course of the asset's life. It symbolizes the entire end-to-end business process that links data and information across the entire product lifecycle. Digital Twins, digital replicas of physical assets or collections of assets, are linked via Digital Thread. This makes it possible for businesses to stay connected via the digital thread, improving timely delivery, advancing customer happiness, boosting profitability, gaining more productivity, and generating income. Delivering the appropriate information at the appropriate time and location is made easier with the aid of Digital Thread. To optimize products, people, processes, and locations, a digital thread establishes a tight loop between the digital and physical worlds. With today's technology, a holistic digital thread may connect suppliers, customers, products, and employees in the field to the complete product lifecycle that occurs within a corporation. The term "digital thread" describes the structure for communication that enables a continuous data flow and an integrated view of the asset's data throughout its lifespan beyond conventionally compartmentalized functional viewpoints. The notion of a digital thread elevates the standard for providing "the right information to the right place at the right time." An integrated picture of an asset throughout the production lifespan is provided by the digital thread communication infrastructure, which links previously isolated components in manufacturing processes. The development of a digital thread involves business procedures that integrate data-driven decision making into the production culture in addition to technology.

COVID-19 Impact: COVID-19 pandemic has affected the economy hence decreased Digital Thread market growth

According to World Bank data, the COVID-19 pandemic has caused a 3.5% decrease in the global GDP in 2020. As 2021 approaches, the economy in many nations has begun to recover and has largely adapted to pandemic limitations. These initiatives, particularly in the United States, are likely to give the economy a significant boost, but the outlook for sustainable growth varies greatly between nations and industries. Although the world economy is emerging from the COVID-19-induced downturn, it will lag behind pre-pandemic averages for a considerable amount of time. The hazards connected with the decade-long surge of increased global debt have been made worse by the epidemic. Additionally, it is likely to make the long-anticipated downturn in potential growth over the following 10 years worse.

Latest Trends

"Emerging trend in the healthcare and life science industries propel the Digital Thread market growth"

One of the newest developments is the integration of dual solutions in the healthcare and life sciences industries. There are fewer physical tests and process closures as a result of the pharmaceutical industry's quick adoption of these solutions to project process completion. These elements aid in the creation and certification of drug candidates for medical users. According to the Swedish Digital Thread Consortium, product thread solutions are in the development stage and might be used for individualized healthcare. This aids in the creation of secure network models and the subsequent analytical matching of those Digital Thread. Companies are working to introduce new digital life science R&D models as awareness of digital solutions grows. For instance, Hewlett Packard Enterprise and the Ecole Polytechnique Federale de Lausanne (EPFL) worked together to develop digital models of the brain for scientific study using EPFL's supercomputers. The market share of digital thread will so expand as industrial expansion and demand for cutting-edge technology both grow.

Digital Thread Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into parts type, system type. Parts Type is anticipated to be the leading segment.

• By Application Analysis

Based on application, the market can be divided into aerospace & defense, automotive & transportation, machine manufacturing, energy & utilities, others. aerospace & defense will be the dominating segment.

Driving Factors

"3D simulation and 3D printing software are becoming more widely used, driving the Digital Thread market's expansion"

A growing variety of materials are now 3D printable thanks to the quick development of 3D printing. It may take a lot of trial and error because some materials may warp while being 3D printed. As a result, both the price and time associated with printing parts rise. Digital Thread can be used to mimic the manufacturing process of 3D printing. The Digital Thread ability to foresee potential distortions allows for their correction on the 3D model. As a consequence, an entirely optimized new model is developed to account for the discrepancies.

"Increase in IT Project Investment Increased Product Demand Leading Digital Thread Market Growth"

The performance of the product will be further optimized through technological innovation and improvement, increasing its usage in downstream applications. When taking into account a number of early signs from the post-COVID-19 era, a fall in the general demand for digital solutions across several industries was seen. Additionally, due to the epidemic, a number of company plans, anticipated investments, and others were put on hold due to the lack of operability. However, major market players used a number of initiatives during the first quarter of 2021 to reorganize their company models and increase their worldwide commercial reach.

Restraining Factors

"Privacy and security issues might prevent the use of dual solutions hence hamper the Digital Thread market growth"

In several industries, there is an increasing need for Digital Thread solutions built on technologies such the Internet of Things (IoT), Big Data, cloud computing, and artificial intelligence. The approach calls for the use of several IoT sensors and other digital technologies for creating the physical Digital Thread. There is a higher danger of security, compliance, data protection, and regulation when there are more IoT sensors and programmable electrical devices.

Digital Thread Market Regional Insights

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"North America Is Anticipated to Dominating region During the Forecast Period"

Over the course of the projection period, North America is anticipated to grow at a sizable CAGR. The use of part Digital Thread and product Digital Thread by end users in the US healthcare, real estate, and other industries are likely to accelerate the growth of this market. Large suppliers with a substantial presence in nations like the United States and Canada include IBM Corporation, Cisco Systems, Inc., Microsoft Corporation, and Oracle Corporation. To improve their product offerings and grow their consumer base, market participants are forming mergers and partnerships with technology suppliers.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• General Electric
• PTC (U.S.)
• Siemens (Germany)
• Dassault Systèmes (France)
• IBM Corporation (U.S.)
• ANSYS (U.S.)
• Microsoft Corporation (U.S.)
• Oracle Corporation (U.S.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.