Europe Digital Twin Financial Services and Insurance Market – Industry Trends and Forecast to 2030

Europe Digital Twin Financial Services and Insurance Market, By Type (System, Process, Product), Technology (Internet of Things (IoT) and Industrial Internet of Things (IIoT), Artificial Intelligence and Machine Learning, 5G, Big Data Analytics, Blockchain and Augmented Reality, Virtual Reality, Mixed Reality), Deployment (Cloud, On-Premises), Application (Bank Account Funds Checking, Digital Fund Transfer Checks, Policy Generation, Other Applications) – Industry Trends and Forecast to 2030.

Europe Digital Twin Financial Services and Insurance Market Analysis and Size

Digital Twin technology has been around for years. Nowadays, there are various solutions based on the digital twin technology available in the market that insurers can acquire to realize the benefits. The financial services and insurance industry has always been a data-rich sector, a huge amount of data is collected during the underwriting, rating and claim process at different stages of policy's life cycle. With the help of digital twin technology, insurers can apply machine learning and artificial intelligence to simulate "what-if" situations on data in the insurer's landscape. This helps in making data-driven decisions. As a result, the demand for the digital twin financial services and insurance increase, enhancing the market growth.

Data Bridge Market Research analyses that the digital twin financial services and insurance market is expected to reach USD 1,003.70 million by 2030, which is USD 295.80 million in 2022, at a CAGR of 16.50% during the forecast period. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Europe Digital Twin Financial Services and Insurance Market Scope and Segmentation

Market Definition

The digital twin financial services and insurance is a technology used to assist customers with loan management, policy buying, mitigating risks and management, and more. Digital twins work in real-time, especially in insurance, because they rely heavily on this data being up to date to make major business decisions. Digital twins also take advantage of many other technologies, such as AI solutions, IoT sensors, or data monitoring systems, to support insurers

Europe Digital Twin Financial Services and Insurance Market

Drivers

• Increasing usage of digital twin financial services and insurance for a better understanding of their customers

Digital twins can change the dynamics of financial and insurance industry, both in its business operations and customer engagement and revenue generation. Insurers already use data to understand the customer and cross-sell other products where possible. They have made great developments in creating digital copies of their book of business, but with the help of digital twins, they can go a step further. As a result, consumer behavior patterns are simulated, allowing executives better to understand practice-relevant sales across the Omni channel spectrum.

• Rising demand for digital twin in the banking sector

Digital banking channels such as apps and online banking have a digital replica of a customer's financial life and allow customers to transact remotely. Digital twins have played a vital role in the banking sector in eliminating counterfeits such as fake cards or many other objects that can be duplicated. Therefore, the increasing demand for digital twin in the banking sector is expected to drive the market growth during the foretaste period.

Opportunities

• Increasing integration of advanced technology in digital twins

Digital twin financial services and insurance connected technologies such as IoT, sensors, real-time data monitoring systems help insurers to define new policies or packages, reduce administration costs, mitigate risks and enhance core insurance operations such as fraud detection, customer assets evaluation, underwriting, claims processing, new policy creation and other. Thus, the increasing integration of advanced technology in digital twins leverage will create lucrative opportunities for the market growth.

• Increasing usage of digital twin financial services and insurance to identify a cross-sell upsell opportunity

Existing data in the insurer landscape can be leveraged to find the cross-sell upsell opportunity. Digital technology will increase revenue for the insurers by upsell and cross sell. Machine learning models can tap into customer data such as buying patterns and other factors to identify a cross-sell upsell opportunity. Thus, the increasing usage of digital twin financial services and insurance to identify a cross-sell upsell opportunity will create ample opportunities for the market growth of the market.

Restraints

• The issue associated with the affordability of digital twin technology for small companies

Digital twin technologies have become more prevalent across all industries, but the installation and adoption cost is very high. As a result, small companies are not able to afford digital twin technology. The cost of digital twin technology is also high due to the presence of expensive integrated software and digital twin software which will hamper the market growth.

• Growing concern regarding data security and privacy

Increasing concern regarding data security and privacy in the financial services and insurance sector because of the high usage of cloud platforms and internet of things (IoT) which will obstruct the growth of the digital twin financial services and insurance market during the forecast period.

This digital twin financial services and insurance market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the digital twin financial services and insurance market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Development

• In 2020, Oracle Health Insurance chosen HBF to serve as core platform for its health insurance products. This platform will allow HBF to improve the operational efficiency. Oracle helps the health insurers in improving billing accuracy, lowering administrative expenses, improving their operational performance, streamlining claim processing, and enhancing member satisfaction.
• In 2021, EcoDomus's digital twin software has acquired by Siemens Smart Infrastructure acquired platform for an undisclosed amount. Through this acquisition, EcoDomus's digital twin software company will help Siemens to increase their digital building offerings with the support of cloud-based building operations twin software.

Europe Digital Twin Financial Services and Insurance Market Scope

The digital twin financial services and insurance market is segmented on the basis of type, technology, deployment and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• System
• Process
• Product

 Technology

• Internet of Things (IoT) and Industrial Internet of Things (IIoT)
• Artificial Intelligence and Machine Learning
• 5G
• Big Data Analytics
• Blockchain and Augmented Reality
• Virtual Reality
• Mixed Reality

Deployment

• Cloud
• On-Premises

Application

• Bank Account Funds Checking
• Digital Fund Transfer Checks
• Policy Generation
• Other Applications

Digital Twin Financial Services and Insurance Market Regional Analysis/Insights

The digital twin financial services and insurance market is analyzed and market size insights and trends are provided by country, type, technology, deployment and application as referenced above.

The countries covered in the digital twin financial services and insurance market report are Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe.

Germany dominates the digital twin financial services and insurance market because of the strong growth of banking sector and increasing utilization of advanced technologies in this region. Moreover, the growing presence of large number of banks and huge requirement for automated banking services will further boost the market growth in this region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Digital Twin Financial Services and Insurance Market Share Analysis

The digital twin financial services and insurance market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to digital twin financial services and insurance market.

Some of the major players operating in the digital twin financial services and insurance market are:

• Microsoft (U.S.)
• IBM (U.S.)
• SAP (Germany)
• Siemens (Germany)
• General Electric (U.S.)
• Atos SE (France)
• ABB (Switzerland)
• TIBCO Software Inc. (U.S.)
• Oracle (U.S)
• Robert Bosch GmbH (Germany)
• DXC Technology Company (U.S.)
• Hexaware Technologies Limited (India)
• Tata Consultancy Services Limited (India)
• Infosys Limited (India)
• AVEVA Group plc (U.K.)
• Altair Engineering Inc. (U.S.)
• NTT DATA, Inc. (Japan)
• KELLTON TECH (India)
• AVEVA Group plc (U.K.)
• ANSYS, Inc. (U.S.)