Why the spotlight is shifting from “Pure AI” to Digital Twins in manufacturing

The buzz around “AI” in manufacturing is giving way to a more grounded, high-value reality: digital twins (virtual replicas of factories, production lines or critical assets) are increasingly recognized as the next frontier for industrial performance and resilience.

What the data says:

• The global market for digital twin technology is growing at an exceptionally fast pace: from an estimated USD 17.7–18 billion in 2024 to a projected ~USD 260 billion by 2032. Manufacturing stands out as the fastest-growing segment.

• According to a recent sector survey, approximately 65% of organizations using digital twins report reductions in downtime and operational costs. Over half (55%) highlight improvements in predictive maintenance; many report gains also in planning efficiency and operational collaboration.

• Peer-reviewed studies confirm that digital twins — especially when combined with real-time data and analytics — significantly improve factory decision-making, throughput, and layout/process optimization, while enabling “what-if” scenario modelling without disrupting production. (Source: McKinsey)

Why the shift from “pure AI hype” to digital twin adoption?

While generic “AI” once promised disruptive transformation, real factories require stability, reproducibility and reliability. Digital twins translate data into actionable insights, simulations and decision support, not abstract predictions.

Digital twins unify data from machines, sensors, MES/ERP systems, operator logs etc., giving a holistic, real-time view of the production process, bottlenecks, quality issues, maintenance needs, resource usage, and more.

Moreover, in uncertain times (supply chain disruption, labor shortages, demand fluctuations), digital twins enable simulation of alternative scenarios e.g. “what happens if we add a shift?”, “what if we change product mix?”, “what if a machine fails?” — all before executing changes and optimizing for resource optimization!

In short, digital twins combine the power of data, real-time visibility, and simulation, giving companies the control they need to be resilient and lean in a fast-changing industrial environment. For factories seeking efficiency, agility, and sustainability, this is not just the future, it’s happening now.