The cartoonish 3-dimensional consumer metaverse may have retreated, but the industrial metaverse - where businesses invest in digital twins and build solid use cases around AR/VR and IoT interconnectivity - continues to develop strongly and attract investor interest.

So, what is it precisely? According to Thierry Klein, president of Bell Labs Solutions Research at Nokia, “The industrial metaverse combines physical-digital fusion and human augmentation for industrial applications and contains digital representations of physical industrial environments, systems, assets and spaces that people can control, communicate, and interact with.”

Transparency Market Research says the global value of the industrial metaverse grew to around $22bn in 2022 and is expected to expand at a robust 17.5 percent CAGR between 2023 and 2031 - by which time the researchers say it will likely be worth almost $94bn.

The researchers note, “The use of the industrial metaverse has increased because it provides a virtual environment for monitoring, controlling, and optimising manufacturing operations, supply chains, as well as logistics. Real-time data analysis, remote monitoring, proactive maintenance, and other abilities are made possible by it, which boosts productivity and operational effectiveness.”

Global technology giants like Apple, Nvidia, Google, Siemens, SAP and Autodesk are well-placed to grab a healthy chunk of the growth from the sector, as are mid-scale tech firms like TeamViewer - a remote connectivity business (and SAP partner) whose IoT integrations have it well placed to benefit from the rise of the commercial utilisation of digital twins.

Not surprisingly given the outlook, the industrial metaverse is spawning a new wave of startups.

For instance, China’s Beijing Freedo Technology, which specialises in Digital Twin Technology (see below), raised US$15.6m in late 2021 with CEO Song Bin telling Nikkei the funds would be used to “…improve and research our core technologies, including digital twin and building information modelling, which is a 3D design system, and for promoting innovative products.” 

In Australia, Capsifi makes digital twins of business models and has been recognised as a leader in Gartner’s Magic Quadrant for Enterprise architecture, receiving $11m in funding from Australian Business Growth Fund in 2022.

Another Australian business, Melbourne-based Setmetrics measures the energy footprint of a building by creating a digital twin, leading to strategies to reduce its carbon footprint.

Next stage

The industrial metaverse is really the next logical step that will see the convergence of a set of now-maturing technologies and methodologies, according to Jacques Bacry at Capgemini. These include IT, automation, cognitive models, natural language processing, lean manufacturing, and what he describes as failure prediction in mission-critical systems, (often involving predictive analytics.) 

“As opposed to the static spaces of the consumer metaverse, the dynamic spaces of the industrial metaverse are complex and layered. This ever-evolving reality involves interactions on a deeper, more collaborative level. We suggest the dynamic experiences of the industrial metaverse are best exemplified by the next generation of digital twin technology.”

In a paper called ‘On the way to the industrial metaverse’, Capgemini identified five key business use cases: production level simulations, collaborative R&D, health and safety training, smart cities and personal support services (robots, basically).

It’s twins!

Indeed, many organisations, especially in manufacturing, construction, and design are already immersed in the world of industrial metaverse - and are generating strong business benefits through the use of digital twins.

Digital twins are virtual replicas or simulations of physical assets, systems, or processes. They offer businesses in the industrial sector a range of benefits including: 

• Enhanced operational efficiency: Companies can monitor real-time data, and identify inefficiencies that can lead to cost savings, improved productivity, and increased profitability

• Predictive maintenance: By analysing data collected from digital twins, companies can reduce downtime, prevent costly breakdowns and optimise maintenance schedules through the use of predictive analytics leading to improved asset reliability and longevity

• Risk mitigation: By running simulations, companies can identify vulnerabilities and test mitigation strategies that help minimise risks and enhance the overall risk management process

• Product design and innovation: Organisations can simulate and test product designs in a virtual environment to identify design flaws, optimise performance, and accelerate the innovation process

• Remote monitoring and control: For businesses with assets spread across multiple locations, digital twins allow for centralised monitoring and control, reducing the need for on-site personnel

• Training and simulation: Virtual replicas can be used to train personnel on operating procedures, safety protocols, and emergency response strategies

• Lifecycle management: With a comprehensive view of an asset's lifecycle, from design and manufacturing to operations and maintenance companies get improved asset management, optimised resource allocation, and informed investment decisions throughout the lifecycle

By leveraging digital twins, business leaders can gain deeper insights into industrial operations, and optimise decision-making. The goal is to increase efficiency, improve risk management, enhanced innovation, and deliver better overall asset performance.

McKinsey says the use of digital twins can lead to 60 percent reductions in time to deploy AI, a 15 percent reduction in capital and operating expenses, and a 10 percent increase in commercial efficiency.

In the emerging world of the industrial metaverse, digital twins are already a maturing technology. That’s reflected in the growth outlook. Forecasters believe the digital twin market will grow from roughly $7bn today to $73bn by the end of the decade.