Digital Twins in Automotive Market
Visiongain has published a new report entitled Digital Twins in Automotive Market Report 2025-2035 (Including Impact of U.S. Trade Tariffs): Forecasts by Vehicle Type (Passenger Vehicles, Commercial Vehicles), by End-User (OEM, Tier 1 suppliers, Smart Manufacturing Companies), by Application (Design & Prototyping, Predictive Maintenance & Diagnostics, Predictive Maintenance & Diagnostics, Other), by Type (Product Digital Twin, Process Digital Twin, System Digital Twin, Vehicle-as-a-Service Digital Twin, Hybrid Digital Twin), by Technology (IoT-enabled Digital Twins, AI-driven Digital Twins, AR/VR-supported Digital Twins, Cloud-based Twins, Blockchain-enabled Twins, Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.
The global digital twins in automotive market is estimated at US$5,563.7 million in 2025 and is projected to grow at a CAGR of 33.2% during the forecast period 2025-2035.
Impact of US Trade Tariffs on the Global Digital Twins In Automotive Market
The imposition of U.S. tariffs on automotive imports and related technologies has far-reaching implications for the global digital twin in automotive market. Since digital twin solutions often rely on cross-border collaboration between automakers, software providers, and component manufacturers, tariffs create cost pressures along the value chain. These barriers not only affect the import of vehicles and parts but also impact the procurement of high-tech equipment, cloud infrastructure, and simulation software essential for digital twin implementation. The effect of tariffs can vary significantly depending on the global economic recovery pattern, with three main scenarios—V-shaped, U-shaped, and L-shaped—offering different outlooks for adoption and growth.
Tariff Impact: V-shaped Recovery
In a V-shaped recovery scenario, the global automotive industry quickly adapts to tariff challenges through supply chain diversification and rapid adoption of advanced technologies. Automakers may accelerate the use of digital twins to reduce costs, optimize production, and mitigate the impact of higher tariffs on imported parts. The U.S. itself, with its strong technological base and partnerships with software firms, is likely to see continued investment in digital twin platforms, while international players look to expand local production and digital capabilities. This recovery path suggests a short-term slowdown but a strong rebound in digital twin adoption as companies seek resilience and efficiency.
The Virtual Factory Becomes a Core Asset
Automotive leaders are scaling factory twins from pilot to platform. BMW says its “Virtual Factory is rapidly evolving,” now using human simulation to optimize manual steps and automated environment maps from 3D scans to orchestrate smart transport systems across million-square-meter sites built in NVIDIA Omniverse/OpenUSD. The company emphasizes that planners make changes “every day” in a persistent virtual factory years before SOP, shrinking ramp time and collision risks while improving ergonomics and material flow—tangible ROI that generalizes across greenfield and brownfield plants.
Mercedes-Benz reports similar gains, integrating digital twins into MO360 to simulate new production steps so conversions proceed “quickly and cost-efficiently without having to interrupt ongoing operation for longer periods.” In June 2025, Mercedes linked MO360 with MB.OS on the shopfloor “Digital, sustainable, efficient” as it launched the new CLA at Rastatt. These examples show digital twins are no longer isolated process models; they are enterprise systems of record for production planning, commissioning and continuous improvement, directly influencing capex timing and OEE.
How will this Report Benefit you?
Visiongain’s 426-page report provides 126 tables and 158 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the digital twins in automotive market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for digital twins in automotive. Get financial analysis of the overall market and different segments including vehicle type, end-user, application, type, and technology, and capture higher market share. We believe that there are strong opportunities in these fast-growing digital twins in automotive market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.
What are the Current Market Drivers?
EV Battery Lifecycles Demand Continuous, Data-Driven Twins
EV profitability hinges on battery cost, safety and residual value—domains ideally served by operational twins. AWS and MHP documented a Level-4 vehicle twin ingesting live fleet data to monitor and analyze battery health with AI, turning field telemetry into insight for warranty risk, second-life routing and customer experience. In practice, battery twins unify cell genealogy, usage profiles and thermal behavior, enabling early anomaly detection, chemistry-specific charging guidance and OTA calibrations that extend life and cut claims.
As EV volumes rise, these twins become a cross-functional asset: engineering learns from the field to improve pack architectures; service networks use predictions to schedule maintenance; finance teams price residuals and warranties with higher confidence. By closing the loop between design, manufacturing and operations, battery twins create a structural information advantage that compounds with every vehicle shipped—one reason cloud platforms continue to position digital twins as the operational “brain” of electrified fleets.
Platform Ecosystems Make Twins Easier to Build and Trust
Digital twins are scaling because the toolchain is maturing. NVIDIA has positioned Omniverse as an OpenUSD-based platform for “physical AI-enabled applications,” and in late 2024 announced real-time physics “Blueprints,” with Ansys the first adopter to accelerate CFD and sensor simulation—evidence that major CAE vendors are coalescing around interoperable, real-time pipelines. On the PLM side, Dassault Systèmes’ 3DEXPERIENCE continues to expand in automotive; Reuters reported a strategic partnership with Volkswagen to standardize engineering and manufacturing and speed the shift to SDVs, while Dassault has also publicized platform deployments for Volvo Cars to “streamline enterprise-wide collaboration” in EV development.
Even motorsport is signaling mainstreaming: the FIA selected Siemens as “Official Digital Twin Sponsor,” citing the ability to assess aerodynamics digitally and cut physical prototyping’s footprint. When the sanctioning body that prizes validated performance adopts twin-centric workflows, it normalizes virtual-first development for OEMs and suppliers alike. Together, these platform moves reduce integration friction, increase model fidelity, and—critically—improve audibility and governance of twin data across the vehicle lifecycle.
Where are the Market Opportunities?
ADAS/AV Scenario Factories at Enterprise Scale
There is immediate demand for scenario-based validation twins that combine synthetic and replayed data to accelerate perception, planning and controls. Ansys announced its AVxcelerate Sensors is accessible within NVIDIA DRIVE Sim, and NVIDIA continues to invest in real-time physics and OpenUSD interoperability—together enabling OEMs and Tier-1s to curate vast libraries of edge-case scenes. With regulators scrutinizing virtual evidence chains, vendors that deliver trustworthy, explainable scenario pipelines and coverage metrics can capture multi-year platform contracts across global programs.
Commercially, the play is not only licenses but also managed services: data curation, synthetic data generation, continuous calibration and KPI dashboards for release readiness. As ADAS stacks move to centralized compute, the same twins can inform HW/SW partitioning and post-SOP performance tuning, improve safety while reduce field test costs.
Factory Energy, Throughput and Changeover Optimization
Twin-driven factories can squeeze energy and capex out of complex lines. Mercedes-Benz notes that simulating new steps in MO360 allowed plant conversions to be “implemented quickly and cost-efficiently” without prolonged downtime, and the brand’s “Digital First” approach couples twins with AI to raise OEE. Replicating these results at scale—across paint shops, body-in-white robotics and final assembly—supports sustainability targets while freeing capacity for EV launches. Vendors who package optimization apps (layout, AGV routing, robot timing, ergonomic validation) atop standard data models will find receptive buyers. (Mercedes-Benz Group)
As energy becomes a board-level KPI, twins that co-simulate production schedules with utility tariffs and carbon intensity can drive measurable reductions in Scope-2 emissions and support green financing. The same models improve resilience by rehearsing supply or workforce disruptions before they hit the line.
Competitive Landscape
The major players operating in the digital twins in automotive market are
ABB Ltd., Altair Engineering Inc., Autodesk, Inc., AVEVA, Cisco Systems, Inc, Dassault Systèmes (DS), General Electric Vernova Company, Honeywell International Inc., International Business Machines Corp., Microsoft Corporation, Mitsubishi Electric Iconics Digital Solutions, Inc. (MEIDS), Rockwell Automation, Inc., SAP SE, Schneider Electric SE, Siemens AG. These major players operating in this market have adopted various strategies comprising M&A, collaborations, investment in R&D, regional business expansion, partnerships, and new product launch.
Recent Developments
24-Jul-25, Mitsubishi Electric Iconics Digital Solutions (MEIDS) earned ISO/IEC 27001:2022 certification, affirming enterprise-grade information security for its industrial/digitalization software portfolio used in factory and asset digital twins. The certification was issued by BSI and publicly announced by MEIDS.
Notes for Editors
If you are interested in a more detailed overview of this report, please send an e-mail to contactus@visiongain.com or call +44 207 336 6100.
About Visiongain
Visiongain is one of the fastest-growing and most innovative independent media companies in Europe. Based in London, UK, Visiongain produces a host of business-to-business reports focusing on the automotive, aviation, chemicals, cyber, defence, energy, food & drink, materials, packaging, pharmaceutical and utilities sectors.
Visiongain publishes reports produced by analysts who are qualified experts in their field. Visiongain has firmly established itself as the first port of call for the business professional who needs independent, high-quality, original material to rely and depend on.
