Unlocking the Potential of Digital Twins: Insights from Hexagon’s Industry Report

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The transformative power of digital twin technology is no longer just a concept—it’s a reality reshaping industries worldwide. Hexagon’s Digital Twin Industry Report provides a comprehensive look into how this technology is driving efficiency, sustainability, and innovation across diverse sectors. By surveying 660 senior leaders and executives across 11 industries, Hexagon’s survey offers a detailed exploration of digital twins’ value, the challenges organizations face, and the untapped opportunities for future growth.

From Hexagon

Why Leaders Believe in Digital Twins

The report’s findings underscore the growing confidence in digital twins:

  • Widespread Benefits: A staggering 96% of leaders believe in the benefits of digital twins. The technology is credited with improving operational efficiency (49%), leading to proactive problem solving (47%), and reducing risk (46%).

  • Impressive ROI: Among organizations tracking ROI, 92% report returns exceeding 10%, with a notable 34% seeing returns in the 21–30% range.

  • Environmental Impact: Digital twins contribute to an average 15% reduction in carbon emissions, offering organizations a tangible way to meet sustainability goals.

From Hexagon’s Digital Twin Industry Report

These results affirm that digital twins are not just living up to expectations but exceeding them—especially in areas like collaboration, proactive problem-solving, and safety enhancements.

The Reality-Expectation Gap

One of the report’s most striking findings is the disparity between perceived and actual benefits of digital twins. For instance:

  • Only 19% of non-users expect digital twins to enhance collaboration significantly, yet 44% of users report this as a realized benefit.

  • While 28% of non-users anticipate improved proactive problem-solving, nearly half of users (47%) experience this advantage.

This gap suggests that skepticism about digital twins often stems from a lack of familiarity. The report emphasizes that organizations frequently underestimate the technology’s value until they see it in action.

AI and Digital Twins: A Perfect Pair

Another critical driver of digital twin adoption is artificial intelligence (AI). According to the report:

  • 80% of respondents say AI has increased their interest in digital twin technology.

  • Common AI uses include processing front-end data (59%) and enhancing user experience (56%).

From Hexagon’s Digital Twin Industry Report

Hexagon’s Vice President of AI, Johannes Maunz, explains that AI enhances every stage of a digital twin’s lifecycle—from initial creation to ongoing updates and user accessibility. This integration not only makes data more actionable but also democratizes its use, enabling frontline workers to make data-driven decisions with ease.

Overcoming Challenges: The Data Conundrum

Despite their potential, digital twins are not without challenges. Data-related issues top the list of obstacles:

  • Data Quality: 43% of organizations struggle with ensuring accurate and reliable data.

  • Integration and Interoperability: 42% face challenges connecting digital twins with existing systems.

However, many organizations are proactively addressing these issues. More than half (56%) plan to invest in improved data collection within the next year, underscoring a commitment to unlocking the full potential of their digital twins.

Looking Ahead: What’s Next for Digital Twins?

As digital twins continue to evolve, their integration with other technologies will only deepen. The report highlights key areas of planned enhancement over the next 12 months:

  • Improve data collection (56%)

  • Connecting digital twins together (49%)

  • Create digital twins for more systems/assets (48%)

These trends signal a future where digital twins become increasingly embedded in core business operations, driving not only efficiency but also innovation.

The Future of Digital Twins Is Now

Hexagon’s Digital Twin Industry Report makes it clear: digital twins are no longer optional—they are a strategic imperative. By addressing challenges, leveraging AI, and adopting a phased approach, organizations can unlock unparalleled value. Whether improving efficiency, enhancing sustainability, or enabling data-driven decisions, digital twins are reshaping the future of business.

Download the full report on Hexagon’s website.

Interested in diving deeper into the future of digital twins? Discover the latest real-world use cases, groundbreaking projects, and innovative technologies at the Industrial Digital Twin Forum at Industrial IMMERSIVE from March 3-4, 2025, in Houston, TX! Secure your spot today!