Manufacturing firms reduce downtime & operational costs with digital twins

Over 40 percent of manufacturing firms are piloting digital twin technology with full rollouts continuing to emerge, according to the Manufacturing IT/OT Trend Report 2025.

The report compiles the findings of a survey of decision-makers and senior managers ahead of the Manufacturing IT/OT Summit Europe in September. It details the most common benefits of adopting digital twins, with almost two-thirds of respondents citing reduced downtime and operational costs.

This is in the wake of separate research from IDS-INDATA which showed how the staggering financial and operational impact of unplanned manufacturing downtime emphasizes the critical need for digital transformation.

Digital twin investment is growing in manufacturing

The Manufacturing IT/OT Trend Report 2025 indicates cautious but growing investment digital twins in manufacturing. Just shy of 41 percent of organizations are in the pilot phase of digital twin implementation. Meanwhile, 20 percent report full integration and 15 percent use it in selected areas. Another 15 percent are planning implementation, with only 10 percent currently having no plans to do so.

Of the organizations that have used digital twin technology, 65 percent have seen downtime and operational costs reduced. More than half (55 percent) report improved predictive maintenance, while 40 percent have achieved better collaboration. Enhanced planning and efficiency (35 percent) and real-time simulation (25 percent) follow. Just 15 percent saw no measurable impact so far.

Manufacturing leads the way in digital twin adoption

Almost a third (30 percent) of organizations are spending over $10 million on digital twin technology, with manufacturing leading adoption. That’s according to recent research from Siemens and S&P Global.

The pair carried out a study of 907 businesses across seven countries, revealing a sharp increase in “industrial virtual metaverse” technology investments. These technologies provide a network of virtual replicas that mirror physical factories, supply chains and product development processes, using digital twins – detailed virtual models of physical objects and processes – in combination with real-time sensor data and artificial intelligence (AI) to optimize manufacturing processes, predict maintenance needs and simulate new product designs. 

“The fundamental technologies that enable the industrial metaverse are being rapidly developed worldwide,” commented Peter Koerte, CTO and chief strategy officer at Siemens AG. “Many companies are not only experimenting with these technologies but are already employing and scaling concrete use cases that demonstrate the added value of the industrial metaverse.”

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