Digital twins are transforming how companies manage complex operations, helping them cut costs and carbon emissions. But despite their growing popularity in critical industries such as energy, infrastructure and mining, some businesses have been reluctant to adopt digital twin technology over concerns about its complexity and hype.
Digital twins are transforming how companies manage complex operations, helping them cut costs and carbon emissions. But despite their growing popularity in critical industries such as energy, infrastructure and mining, some businesses have been reluctant to adopt digital twin technology over concerns about its complexity and hype.
Hexagon, a global software company specialising in digital reality solutions, said the technology could reduce carbon emissions and slash costs. A recent survey Hexagon conducted of 660 executives across 11 industries provides an in-depth view of the technology’s increasing appeal and tangible benefits. It revealed companies that adopted the technology achieved average emission reductions of 15% and cost savings of 19%.
The report found only 19% of non-adopters expected a digital twin to boost team collaboration. In contrast, 44% of adopters reported that digital twins enhanced collaboration within their teams. This gap highlights how the reality of digital twin technology often surpasses initial expectations.
Companies that implemented digital twins report substantial gains in efficiency and effectiveness. More than three-quarters of respondents noted positive impacts in areas such as cost reduction, risk mitigation, and carbon footprint reduction, indicating that digital twins improved operational and sustainability performance.
Digital twin technology helps industrial operators manage vast amounts of operational data generated by complex assets, such as a manufacturing facility, processing plant, solar farm or wind turbine installation. It creates a virtual copy of physical assets, processes or systems using real-time data. Companies can simulate, analyse and optimise performance across their operations because the 3D model gives a real world view of what’s happening with equipment, facilities and infrastructure.
“At its core, a digital twin helps organisations visualise and manage their physical assets more effectively,” said Fabio Yada, Senior Vice President Asia Pacific at Hexagon’s Asset Lifecycle Intelligence division. “Our technology transforms how industrial enterprises manage assets throughout their entire lifecycle.”
Hexagon provides software solutions across the lifecycle of major projects, from design to construction, operations, maintenance and security, and are used in mining, infrastructure, construction, oil and gas, chemical processing and data centres. Artificial intelligence (AI) plays a central role in its technology solutions, helping process the large amounts of data required to maintain the timeliness and accuracy of digital models.
“AI reduces the time and cost in keeping a digital twin up to date,” said Johannes Maunz, Vice President of AI at Hexagon. “For example, it takes 20 minutes to fly a drone over a construction site and then post-process the data. Previously, this would have taken hours.”
Digital twin technology in action
CERN, which operates the Large Hadron Collider (LHC) in Switzerland, uses Hexagon’s enterprise asset management technology to identify and manage every asset in a single database. This allows CERN to organise and carry out corrective maintenance on pieces of equipment that break down, increase the efficiency and speed of scheduled maintenance and increase safety throughout the organisation.
“We need to make sure we can design, simulate and optimise our technologies and machines in virtual environments before going into the real world,” said a CERN spokesperson. “We’re linking all information into what we call a ‘digital thread’ of equipment and engineering data.”
The technology is also used by Australia’s Intermodal Terminal Company (ITC), a platform group that includes the $400 million development of the Somerton Intermodal Terminal in Melbourne. ITC has applied Hexagon’s digital twin solution for the Somerton facility that is expected to handle more than 1 million shipping containers annually when operating at full capacity.
“With our asset management platform, ITC gains advanced capabilities to streamline maintenance processes, optimise resource utilisation and maximise asset performance,” said Supratim Mukhopadhyay, Vice President of Sales at Hexagon’s Asset Lifecycle Intelligence division.
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Sustainability benefits
According to Hexagon’s research, 40% of respondents experienced significant reductions in carbon emissions due to digital twin adoption, with the average reduction around 15%. This achievement goes beyond the expectations of many non-adopters, with 23% believing the technology could make a significant difference in emissions.
“Our solutions empower customers to behave efficiently, safely and effectively,” said Eva Carranza, Head of Sustainability at Hexagon.
Adoption rates vary significantly across industries. Aerospace, defence and public safety sectors lead in implementation, while architecture, engineering and construction lag behind. Only one in two construction industry leaders report using digital twins – the lowest among surveyed industries.
Alex Brihac, Vice President of AEC strategy at Hexagon’s Geosystems division, recommends companies start small when adopting the technology. “While some organisations push boundaries with advanced applications, most companies benefit from a pragmatic approach. Start with one specific use case and expand as the project progresses.”
Some 43% of executives cited data quality as their chief concern, followed by integration between different systems at 42%. In practice, 44% of organisations using digital twins report enhanced collaboration.
Companies using digital twins experience 19% higher rates of proactive problem-solving and 18% better reliability compared to expectations. The technology also extends asset lifespans beyond initial assumptions by 16%, according to Hexagon’s report.
Despite 96% of executives recognising the potential value, only 16% planned substantial investment increases in the next two years. This indicates many firms underestimated the technology’s benefits.
“Digital twins offer value at every stage of maturity,” said Mattias Stenberg, President of Hexagon’s Asset Lifecycle Intelligence division. “This technology is transforming how industrial enterprises manage their assets, enabling organisations to integrate workflows smoothly, maintain data integrity and achieve material gains in efficiency and sustainability.”
As organisations face increasing pressure to optimise operations and meet sustainability goals, the ability to create accurate virtual representations of physical assets offers clear advantages.
Download Hexagon’s Digital Twin Industry Report here.