Digital twins: A key driver of industrial competitiveness
The integration of digital twins into industrial processes has emerged as a key factor in maintaining global competitiveness, particularly in the German manufacturing sector. Digital twins – virtual representations of physical systems such as machines or entire production facilities – have evolved from novel technological innovations into indispensable tools for modern industry. Since 2022, their use in manufacturing has increased by around 50 per cent, underlining their growing strategic importance.
These digital replicas enable a range of functions previously limited to physical environments. With a single digital interaction, companies can now initiate production processes, simulate the manufacture of new products, or predict and prevent machine failures. This real-time interface between the physical and digital worlds is made possible by embedded sensors that continuously transmit operational data. As a result, companies benefit from improved fault detection, more efficient resource management and increased production flexibility.
A recent representative survey conducted by Bitkom Research on behalf of the German digital industry association Bitkom provides compelling insights into this trend. The survey, which polled 552 manufacturing companies with at least 100 employees, found that 63 percent of respondents consider digital twins to be critical to securing a competitive edge in the international arena. Even among those not yet using digital twins in production, half recognise their importance. Recognition is particularly strong in the engineering (73 per cent) and automotive (67 per cent) sectors, both traditionally at the forefront of industrial innovation.Beyond operational improvements, digital twins are also catalysing the development of new business models. More than half of the companies surveyed (56 percent) report that the technology has enabled them to explore previously unattainable commercial opportunities. Currently, 48 per cent of industrial companies are actively using digital twins in their production processes – a significant increase from 33 per cent in 2022.
Despite their widespread adoption and proven benefits, a minority of industrial companies remain sceptical. Around 18 per cent of companies still consider digital twins to be a passing trend. However, this view is becoming increasingly marginal as more companies recognise the tangible benefits and long-term potential of virtual-physical integration.
In summary, digital twins are rapidly becoming a fundamental part of the operational and strategic framework of industrial companies. Their ability to bridge the physical and digital worlds not only increases efficiency and innovation, but also strengthens the global competitiveness of the manufacturing sector. As the technology continues to mature, its role in shaping the future of industry will only become more central.