The market is in a phase of rapid acceleration, moving beyond conceptual models to practical, data-rich applications. A strong focus on integrating AI and IoT is creating more intelligent, predictive, and autonomous building management systems.
Chicago, Nov. 17, 2025 (GLOBE NEWSWIRE) — The global digital twin for buildings market was valued at US$ 2.07 billion in 2024 and is expected to reach US$ 26.23 billion by 2033, growing at a CAGR of 32.6% during the forecast period 2025–2033.
The digital twin for buildings market is exceptionally well-positioned, transitioning from an emerging technology to an essential strategic tool. Its foundation is solidified by significant corporate validation, including CoStar Group’s acquisition of Matterport for approximately US$ 1.6 billion, and robust investor confidence, demonstrated by US$ 5.72 billion raised by funded companies in the sector. Future growth will be defined by the integration of generative AI for predictive optimization and a massive push into retrofitting the vast stock of existing buildings. These drivers are unlocking new efficiencies and enabling compliance with stringent sustainability mandates, moving the technology beyond new constructions and into mainstream asset management.
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The growth potential of the digital twin for buildings market is immense, with clear opportunities for market players. The primary opportunity lies in specialization. Companies that develop targeted solutions for high-demand niches, such as retrofitting older buildings or enabling the circular economy through “Digital Building Logbooks,” will capture significant market share. Another key opportunity is in creating advanced AI-driven platforms that offer not just monitoring but true predictive and autonomous capabilities, simulating thousands of scenarios to optimize energy and operations. For market players, success will hinge on moving beyond simple visualization to delivering quantifiable financial and environmental returns through these sophisticated, data-driven applications.
Key Findings in Digital Twin for Buildings Market
| Market Forecast (2033) | US$ 26.23 billion |
| CAGR | 32.6% |
| Largest Region (2024) | North America (46.82%) |
| By Component | Software (77.30%) |
| By Type | Informative Twin (27.51%) |
| By Application | Digital Twins For Buildings (21.87%) |
| By Industry | Construction Industry (Largest) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Venture Capital and Corporate Investment Fuel Unprecedented Innovation and Expansion
Confidence in the Digital twin for buildings market is exceptionally high. Venture capital and corporate investors are injecting substantial capital into promising technology platforms. In a landmark move, Italian PropTech startup EKORE secured EUR 1.3 million in a 2024 Seed funding round. A funding event of such magnitude was the largest digital twin investment in Italy for 2024. The investment was notably co-led by strategic investors SOM S.p.A. and Habismart. Furthermore, broader trends show PropTech startups in the construction sector securing an impressive US$ 4.50 billion in 2024 investments.
The investment momentum is widespread across related sectors. For instance, the office PropTech segment attracted US$ 2.25 billion in 2024 funding. Venture capital funding into Artificial Intelligence & Automation within PropTech also exceeded US$ 3.2 billion. German startup Tomorrow Things raised US$ 1.5 million in March 2024 for its intelligence platform. Similarly, Looq AI has raised US$ 3.75 million in total funding. In other areas, Munich-based RobCo secured US$ 42.5 million in Series B funding in February 2024, while medical research startup Unlearn raised a US$ 50 million Series C in the same month.
A Competitive Surge is Evident in Digital Twin For Buildings Market as Key Players Achieve Major Milestones
Key players are demonstrating remarkable growth, solidifying their positions in the market. In a significant achievement, Matterport announced it had reached one million subscribers to its cloud platform in April 2024. Such a figure represents a stunning 75-fold subscriber growth in just five years. The company’s platform now hosts digital twins of buildings in more than 177 countries, showcasing its global reach. The acquisition of Matterport by CoStar Group, valued at approximately US$ 1.6 billion and completed on February 28, 2025, further underscores the sector’s immense value.
Strategic partnerships are also shaping the competitive dynamics of the Digital twin for buildings market. In April 2024, Siemens and Mercedes-Benz announced the co-creation of a Digital Energy Twin. A creation tested at the innovative ‘Factory 56’ in Germany. A powerful partnership built upon a strategic alliance for sustainable automotive production established back in 2021. Meanwhile, Matterport’s continued expansion is supported by a growing team, with its employee count increasing to 455 in 2024. These milestones reflect a healthy and intensely competitive environment driving innovation.
Foundational IoT Infrastructure Expansion Creates a Data-Rich Environment for Growth
The effectiveness of a digital twin hinges on real-time data in the digital twin for buildings market. Consequently, the expansion of Internet of Things (IoT) infrastructure is a critical growth driver. The installed base of IoT devices in commercial buildings was projected to approach 2 billion by the end of 2024. An impressive number representing a significant increase from the 1.55 billion installed devices recorded in 2022. Forecasts indicate a continued upward trend, with the installed base expected to reach approximately 4.12 billion devices by 2030.
A vast network of sensors provides the lifeblood for the Digital twin for buildings market. Globally, there will be over 40 billion total IoT devices by 2025, creating a massive data ecosystem. Singapore’s pioneering “Virtual Singapore” digital twin already incorporates over 50 terabytes of detailed urban data. Projects like Schneider Electric’s IntenCity net-zero building in France are equipped with 4,000 square meters of photovoltaic panels. The same building also features two vertical wind turbines, showcasing advanced energy infrastructure integration.
Large-Scale Project Deployments Demonstrate Tangible Value in Complex Building Environments
The practical application of digital twins is now evident in large, complex projects worldwide. For example, a digital twin project in Abu Dhabi focuses on a 6-story medical facility. The building has approximately 11,400 square meters of occupied space. Its system became fully operational in the second quarter of 2023. A milestone achieved after beta testing began in the third quarter of 2022. Another case study of a Cairo office building highlights a five-story, 47,000-square-meter facility. A structure designed to accommodate 2,000 employees.
These ambitious projects prove the technology’s scalability and strategic importance in the digital twin for buildings market. The KAFD Digital Twin project involved more than 1,500 scans for its outdoor areas and utility tunnels alone. In another major corporate initiative, Siemens and Heineken announced a partnership in 2024. A collaboration to create digital twins of over 15 production sites. A partnership of such scale demonstrates deep enterprise commitment to the technology. These examples showcase the growing trust in the Digital twin for buildings market to manage critical and large-scale infrastructure assets effectively.
Significant Operational Efficiency Gains and Cost Savings Drive Strong Investment Returns
Digital twins deliver substantial financial and operational benefits beyond sustainability. A University of Liverpool study identified potential operational cost savings of GBP 25,000 from its digital twin implementation. For industrial packaging systems, Schneider Electric’s digital twin platform resulted in a 40% savings in energy management. The platform also helped a client, the SOMIC group, produce double the output in half the space. Schneider’s EcoStruxure Machine Expert Twin can reduce commissioning time by an impressive 60%.
Automation and predictive capabilities are core to these savings in the digital twin for buildings market. The EcoStruxure platform can also lead to a 20% reduction in overall costs. In Cairo, an office building using PARA OS’s digital twin improved operational efficiency by 20%. Startups like RIIICO use digital twins to reduce factory retrofit costs by 40-60%. Meanwhile, Matterport’s AI-powered tools automate tedious tasks. A new tool generates property descriptions in seconds, saving agents between 30 minutes and 2 hours of manual work. Contractors can spend up to 10 hours on manual measurements, a task now automated.
Robust Startup Ecosystem and Consistent Funding Rounds Indicate a Healthy Market
The vitality of the Digital twin for buildings market is reflected in its dynamic startup scene. Globally, there are 904 companies operating in the Digital Twin sector. Of these, 362 are funded companies that have collectively raised an impressive US$ 5.72 billion. As of September 2025, digital twin companies had raised US$ 319 million in equity funding across 20 rounds for the year. A figure that follows a strong 2024, when companies raised US$ 424 million across 31 rounds.
The creation of new ventures remains steady, signaling continuous innovation. Four new startups were founded in the Digital Twin sector in 2025 (as of September). A number that follows the 20 new startups founded in 2024 and the 34 startups founded in 2023. Geographically, the United States leads with 192 digital twin startups. Germany follows with a strong showing of 90 startups, and the United Kingdom is home to 77. This vibrant ecosystem fosters competition and accelerates the development of new solutions.
Strategic Mergers and Acquisitions Reshape the Competitive Landscape for Market Dominance
The market is currently in a phase of active consolidation. Larger corporations are acquiring innovative startups to integrate advanced digital twin capabilities. By September 2025, four acquisitions had already occurred in the sector for the year. A number that follows the 12 acquisitions that happened in 2024. Over its lifetime, the digital twin sector has seen 57 acquisitions and 8 IPOs, indicating a maturing and highly strategic market environment. Strategic partnerships are also a key trend shaping the Digital twin for buildings market.
Venture capital firms specializing in the built environment are driving M&A activity. Real estate technology VC firm MetaProp, founded in 2015, has invested in over 175 technology companies. Since 2019, Suffolk Technologies has backed 24 companies in the sector. Similarly, the European fund Proptech1 Ventures has completed 21 proptech investments since 2018. In April 2024, Nemetschek Group and Hexagon announced a strategic partnership to accelerate digital twin adoption. As part of the move, Nemetschek launched dTwin, a horizontal, cloud-based platform.
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Workforce Development and Technological Partnerships Signal a Maturing Digital Twin for Buildings Market and Ecosystem
As the industry matures, a focus on workforce development and high-level collaboration is emerging. The National Institute of Building Sciences (NIBS) is hosting its inaugural Digital Twins 2024 conference from December 9-11. An important event bringing together representatives from the White House National Security Council and the U.S. Department of Defense. Academic interest is also surging. A 2024 scientometric analysis of digital twins for energy reduction reviewed 466 articles. In 2024 alone, 130 new publications on the topic were logged.
Top-tier technology companies are forming partnerships to push the boundaries of innovation. Schneider Electric and ETAP are developing a digital twin to simulate the power needs of AI Factories. A groundbreaking project that leverages the powerful NVIDIA Omniverse platform. Siemens is using its Xcelerator open digital business platform to develop tailored solutions with partners. These initiatives demonstrate a sophisticated and collaborative approach, ensuring the continued evolution and standardization of the Digital twin for buildings market for years to come.
Global Digital Twin for Buildings Market Major Players:
- ABB
- Accenture PLC
- Ansys, Inc.
- Priori Technologies, Inc.
- Bentley Systems, Incorporated
- Cisco Systems, Inc.
- Dassault Systems, Inc.
- DHL International GmbH.
- DXC Technology Company
- GE Digital (Predix)
- IBM Corporation
- Microsoft Azure
- Oracle Corporation
- PTC Inc.
- Robert Bosch GmbH
- SAP SE
- Siemens AG
- Other Major Players
Key Market Segmentation:
By Component
- Software
- Cloud
- On-premise
- Services
- Professional
- Managed
By Type
- Descriptive twin
- Informative twin
- Predictive twin
- Comprehensive twin
- Autonomous twin
By Application
- Automated Progress Monitoring
- As-executed Vs. As-planned Models
- Resource Management and Logistics
- Safety Monitoring
- Quality Assessment
- Optimization Of Equipment Usage
- Monitoring And Tracking Of Workers
By Industry
- Manufacturing
- Aerospace & Defense
- Oil & Gas
- Utilities
- Healthcare & Life Sciences
- Automotive
- Construction
- IT & Telecom
- Retail
- Consumer Goods & Packaging
- Transportation
- Smart Cities
- Other
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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