The future of digital twins: Trends, use cases, and benefits

Imagine creating a digital copy of something real—a machine, a person, or even a city—and using it to test ideas, solve problems, or predict what might happen in the future.  That is exactly what a digital twin does. It is a virtual version of a physical object or system, and it is changing how businesses operate.

Companies use digital twins to save money, improve performance, and make smarter decisions.  From factories and hospitals to concert stages and smart cities, digital twins are appearing in more industries than ever.  This article explains what they are, how they work, where they are used today, and what the future of digital twins may look like.

What is a digital twin?

A digital twin is a virtual version of something real—such as a person, product, machine, or place—that shows how the real thing is performing right now.  It functions like a “living” digital copy that updates in real time, letting you spot problems, test ideas, or understand how things work without directly interacting with the physical object.

For example, a digital twin can:

• Help a company test how a new product will perform before building it
• Show how a machine is running and alert teams before it fails
• Act as a virtual assistant or live avatar for customer service or sales

The three key components of a digital twin

1. The physical object or person
   This is the real-world version—a machine, system, human, building, or environment.
2. The digital model
   A computer-generated copy that looks and behaves like the original, such as a 3D model, live portrait, or simulation.
3. Real-time data connection
   Sensors, devices, or software continuously send data from the physical object to the digital one, so the twin always reflects the current state.

Together, these components make the digital twin smart, responsive, and practical.  It is not just a static image—it is continuously updated and can help predict what might happen next, forming the foundation for powerful business applications.

How digital twins are transforming business strategy

Digital twins enable businesses to work smarter, not harder.  By creating a live virtual version of a product, system, or person, companies can test ideas, catch issues early, and optimize performance without wasting time or resources.

Instead of guessing what might go wrong, organizations can see issues in real time and take action before they become expensive problems.  That is why digital twins are being deployed in car manufacturing, healthcare, real estate, retail, marketing, and more.

Digital twins support business strategy by helping companies:

• Save money by identifying problems early and reducing downtime
• Speed up innovation by testing virtually before investing in physical changes
• Improve customer experiences using smart, personalized digital interfaces
• Train staff safely in simulated environments before they handle real systems
• Stay competitive by using real-time data for better decision-making

With platforms like Kaltura, it is now possible to create a digital twin of a person—not just of machines or buildings.  These AI-powered live portraits look, speak, and behave like the real person and can represent them in:

• Video calls
• Customer service chats
• Sales outreach
• Onboarding or training sessions

A personal digital twin can match your tone, language, and brand, making it a powerful way to scale personalized communication without hiring more staff or sacrificing quality.  These digital humans are setting a new standard for how brands interact with customers online.

In short, digital twins are becoming a strategic advantage that helps businesses achieve more with fewer resources—while keeping human connection at the center.

Industry snapshot: Where digital twins are used today

Across industries, digital twins provide real-time visibility, smarter automation, and predictive insights.  The scope of digital twin technology is broad and expanding rapidly.  Key areas where digital twins are used include:

• Manufacturing – testing and improving machines and production lines
• Healthcare – modeling treatments, planning surgeries, and optimizing hospital operations
• Smart cities – managing traffic, air quality, and energy usage
• Real estate – simulating building layouts and guiding virtual tours
• Entertainment – recreating performers as lifelike digital versions
• Marketing – using digital humans to speak, react, and represent brands online
• Customer support – deploying AI-powered avatars for 24/7 live chat or FAQ handling

 Real-world examples across industries:

Manufacturing

• General Electric (GE): Creates digital twins of jet engines to track real-time data such as temperature and pressure, predict failures early, and reduce maintenance costs. ​
• Siemens: Uses digital twins in smart factories like its Amberg facility to simulate production lines, test changes virtually, reduce downtime, and boost efficiency. ​
• Tesla: Applies digital twins to vehicles and production lines to monitor performance and enhance over-the-air updates and automation. ​

Healthcare

• Siemens Healthineers: Builds digital twins of organs, such as the heart, to simulate surgeries using patient data, improving outcomes and lowering risk. ​
• Dassault Systèmes – Living Heart Project: Simulates human hearts for testing surgeries, drugs, and devices, and is recognized by regulators for modeling.
• Philips: Creates hospital-level twins to manage ICU workflows, optimize bed usage, and improve operations—especially visible during the COVID-19 crisis.

Entertainment

• ABBA Voyage: Uses hyper-realistic digital avatars created via motion capture to recreate 1970s-style live performances.
• Whitney Houston Hologram Tour: Features a holographic twin of Whitney Houston performing live on stage.
• James Dean digital twin: A CGI twin of James Dean is cast in a new film decades after his death, highlighting how digital twins could reshape acting.

Real estate and architecture

• City of Singapore – Virtual Singapore: Models entire neighborhoods to simulate airflow, traffic, and energy usage before making planning decisions.
• Willow at Hudson Yards: Uses real-time building data on lighting, HVAC, and security to power digital twins that improve tenant experience and reduce costs.
• Microsoft & Bentley: Use Azure Digital Twins to manage building lifecycles from design through energy forecasting.
• Helsinki 3D+: Maps historical and future buildings to simulate growth, optimize solar access, and support sustainable urban planning.

Aerospace and defense

• NASA: Simulates spacecraft systems and mission environments to predict maintenance needs and optimize designs before launch.
• Boeing: Uses aircraft digital twins to monitor sensor data, improve maintenance, and enhance safety across the lifecycle.
• U.S. Air Force: Monitors aging aircraft with IoT-connected twins to reduce unexpected repairs and extend service life.

Finance and insurance

• Ping An Insurance: Models customer behavior for dynamic pricing, fraud detection, and preventive health insights.
• KPMG: Builds enterprise financial twins for real-time simulations to support planning for mergers, disruptions, or regulatory changes.
• Allstate: Uses an AI virtual assistant (“Able”) to support business insurance agents, speeding up service and reducing workload.

Digital twins of people in business

• Accenture: Develops employee digital twins to optimize training, role matching, and performance improvement.
• BMW: Simulates human operators inside smart factories to improve ergonomics, safety, and production line design.
• Deloitte: Explores executive digital twins for leadership continuity, media interactions, and decision simulations.
• Infosys: Uses virtual onboarding agents modeled after HR staff to streamline and personalize new employee onboarding.
• Synthesia: Creates AI video avatars of employees for communication, training, and customer engagement in multiple languages.

Ten future trends of digital twins

As digital twin adoption grows, new trends are emerging across sectors.  These future uses are reshaping how organizations think about innovation and operations.

1. Smarter, self-updating twins
   Future digital twins will monitor themselves, learn from data, and adjust automatically.  In smart factories, this will further reduce downtime and enable continuous process optimization.
2. AI-powered human avatars
   Digital twins of people will act as assistants, trainers, and representatives.  In customer service and marketing, platforms like Kaltura create lifelike AI video avatars for calls, onboarding, and support.
3. Twin-as-a-service (TaaS)
   Instead of building twins from scratch, companies will subscribe to digital twin services like cloud software.  This model will help startups and SMEs adopt digital twins quickly without large IT teams.
4. Genomic and biological twins
   Digital replicas of the human body will be used to model health risks and simulate treatments.  In healthcare, personal digital twins will help doctors tailor surgeries, predict disease, and minimize side effects.
5. Smart homes with living twins
   Homes will have digital twins that understand habits and automate maintenance.  In real estate and consumer tech, these twins will manage appliances, energy, and security.
6. Immersive twins in the metaverse
   Digital twins will exist inside virtual environments for training, testing, and collaboration.  In education and remote work, people will train or meet within these virtual twin simulations.
7. Interconnected ecosystems
   Digital twins across supply chains or cities will communicate in real time.  In logistics and urban planning, interconnected twins will optimize deliveries, traffic, and utilities.
8. Digital twins for job training
   Workers will train using digital replicas of themselves and their tasks.  In HR and defense, such simulations will reduce training time and improve performance under pressure.
9. Personalized education with learning twins
   Students will have learning-focused digital twins that adjust to their pace and style.  AI tutors will support one-on-one learning and provide rich insights to teachers and parents.
10. Policy simulation and societal modeling
    Governments will test policies using digital versions of communities.  In public policy, leaders will simulate infrastructure projects, social programs, or emergency responses before implementation.

What powers the next generation of digital twins

These advanced applications rely on a stack of enabling technologies.

• Artificial intelligence (AI): Enables digital twins to learn, reason, and react.
• Smart sensors: Capture data from machines, environments, and people.
• High-speed networks (5G): Allow real-time updates and low-latency communication.
• Cloud services: Store and process the massive data streams twins generate.
• Virtual reality (VR) and augmented reality (AR): Let users interact with twins in immersive ways.
• Blockchain: Helps secure data and provide traceability.

Together, these technologies make digital twins smarter, faster, and more useful—and they sit at the core of future systems, from city infrastructure to personal AI assistants.

Shape the future of your business with digital twins

Digital twins are no longer science fiction; they are already transforming how companies of all sizes operate.  Whether the goal is to improve products, train teams, or connect with customers in new ways, digital twins offer powerful tools to get there.

Platforms like Kaltura enable businesses to create AI digital twins—digital versions of real people who can speak, interact, and work on behalf of the brand.  These solutions are designed to be fast to deploy, cost-effective, and realistic enough to feel genuinely human.

The future of business is increasingly digital, and digital twins sit at the center of this shift.  Adopting digital twin technology today helps organizations prepare for what is coming next.

Common questions about the future of digital twins

What industries will benefit most from digital twins?
Industries seeing the largest impact today include manufacturing, healthcare, aerospace, smart cities, and entertainment, with many others following closely behind.

How are digital twins evolving with AI?
AI allows digital twins to learn from data, make informed decisions, and improve over time instead of remaining static models.

What is the difference between a simulation and a digital twin?
A simulation is usually a one-time or occasional test, while a digital twin is continuously connected to real data and updates in real time.

Are digital twins the future?
Digital twins are becoming a core part of digital transformation strategies and are increasingly essential for innovation and operational excellence.

What is the potential of digital twins?
They can improve product quality, reduce costs, enhance training, and create more personalized customer experiences across many sectors.

Do digital twins use AI?
Most advanced digital twins are powered by AI, which helps them interpret data, recognize patterns, and adapt autonomously.

Why will digital twins be essential to industry in the future?
They provide real-time insight, reduce risk, and support more accurate planning and forecasting, making them central to data-driven operations.

What is the growth rate of the digital twin market?
Estimates suggest the global digital twin market could grow from around $10 billion in 2023 to over $110 billion by 2030.

Will digital twins revolutionize healthcare?
Yes. By letting doctors test treatments virtually and tailor care to individuals, digital twins are expected to significantly improve outcomes and patient safety. ​

What is the forecast for digital twins overall?
The outlook is extremely positive: more industries are investing in digital twins, and the underlying technologies continue to advance quickly, expanding both capabilities and adoption.