The Economic Impact of Digital Twin Technology on Manufacturing Systems

Digital Twin technology is rapidly advancing, offering a virtual representation that models and connects complex physical systems for diverse purposes like simulation, monitoring, maintenance, and optimization. In contrast to traditional approaches limited to simulating specific physical processes, simulations within a digital twin comprise polymorphic environments that accurately depict large-scale systems. These digital twins remain connected to their physical counterparts through real-time data and feedback loops. While the benefits of implementing digital twins are numerous, the resources, effort, and investment required can vary for each use case. Manufacturers often must assess the return on investment (ROI) before committing to these initiatives. However, digital twins' intricate, multidimensional nature poses challenges in accurately evaluating their ROIs. This research assesses the economic impact of developing digital twins for manufacturing systems and presents a practical framework for assessing ROI. This systematic approach can help stakeholders enhance the financial viability of digital twin projects.