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Future Perspective: Key Trends Shaping the Digital Thread Market Up to 2030

02-16-2026 09:20 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Digital Thread Market

Digital Thread Market

The digital thread market is on the brink of remarkable expansion, driven by advancements in connected technologies and increasing demands for seamless data integration across industrial processes. As companies seek to enhance product lifecycle management and operational efficiency, this market is set to experience significant transformations in the coming years.

Projected Growth Trajectory and Market Size of the Digital Thread Market
The digital thread market is poised for rapid growth, expected to reach a value of $45.35 billion by 2030. This corresponds to an impressive compound annual growth rate (CAGR) of 24.2%. The surge during this period is fueled by several key factors, including the widespread implementation of connected industrial sensors, the growing push for transparency across the product lifecycle, and an increasing focus on predictive maintenance. Additionally, the expansion of cloud and edge computing, broader adoption of digital twin technologies, a shift toward service-oriented business models, and heightened emphasis on supply chain resilience all contribute to this robust growth. Important trends influencing the market include real-time data integration, comprehensive traceability, predictive analytics, lifecycle optimization, and the development of collaborative digital platforms.

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Top Companies Leading the Digital Thread Market
The digital thread industry features numerous influential players shaping its direction. Prominent companies include Microsoft Corporation, Siemens AG, accenture* plc, International Business Machines Corporation (IBM), Oracle Corporation, Schneider Electric SE, Honeywell International Inc., SAP SE, ABB Ltd., Tata Consultancy Services Limited, Capgemini SE, Infosys Limited, Emerson Electric Co., HCL Technologies Limited, Wipro Limited, Rockwell Automation Inc., Dassault Systèmes SE, Hexagon AB, Autodesk Inc., Trimble Inc., Ansys Inc., PTC Inc., Bentley Systems Incorporated, Altair Engineering Inc., and Aras Corporation.

Strategic Acquisition by Siemens AG to Boost Digital Thread Capabilities
In July 2025, Siemens AG, a technology and engineering leader based in Germany, acquired US-based software firm Dotmatics for $5.1 billion. This acquisition is aimed at strengthening Siemens' AI-driven Siemens Xcelerator portfolio by embedding Dotmatics' expertise in research data management and R&D software. The integration supports an end-to-end digital thread that links research data to production, enhancing lifecycle integration, ensuring continuous data flow, and fostering innovation across life sciences workflows. Dotmatics is recognized for its software solutions that streamline scientific research and development and is backed by Insight Partners, a software investment firm.

View the full digital thread market report:
https://www.thebusinessresearchcompany.com/report/digital-thread-market-report?utm_source=OpenPR&utm_medium=Paid&utm_campaign=Feb_PR

Emerging Trends Highlighted by Photorealism-Enhanced Digital Twins
Industry leaders are increasingly focused on introducing cutting-edge innovations such as photorealism-enhanced digital twins to improve product visualization, boost design accuracy, and minimize errors in manufacturing and engineering workflows. These advanced digital twins are highly realistic, physics-based digital replicas of physical products, providing interactive representations of complex data throughout the lifecycle. For example, in January 2025, Siemens Digital Industries Software launched the Teamcenter Digital Reality Viewer. This new software integrates NVIDIA's Omniverse platform and accelerated computing technology with Teamcenter, enabling high-performance real-time ray tracing and photorealistic visualization of large engineering datasets. This capability allows organizations to visualize, interact with, and validate physics-based digital twins seamlessly, reducing inefficiencies and errors while supporting better decision-making in design, engineering, and manufacturing.

Breakdown of Key Segments Fueling Digital Thread Market Growth
This report categorizes the digital thread market into several essential segments:
1) By Technology: including Product Lifecycle Management (PLM), Computer-Aided Design (CAD), Computer-Aided Manufacturing (CAM), Application Lifecycle Management (ALM), Material Requirements Planning (MRP), Enterprise Resource Planning (ERP), and other related technologies.
2) By Deployment Method: on-premises solutions and cloud-based systems.
3) By Application or Lifecycle Stage: covering design and engineering, manufacturing, maintenance and services, and supply chain management.
4) By End-User Industry: such as automotive, energy and utilities, consumer electronics, industrial sectors, medical devices and pharmaceuticals, and others.

Detailed Subsegment Insights
Within these broader categories, technology-specific subsegments are identified:
- PLM comprises data governance, workflow management, product configuration, change control, and compliance management.
- CAD involves two-dimensional and three-dimensional design, simulation and analysis, drafting tools, and product visualization.
- CAM includes computer numerical control machining, toolpath generation, production planning, process simulation, and robotics integration.
- ALM covers requirements management, software development oversight, quality assurance, release management, and continuous integration and deployment.
- MRP focuses on inventory planning, production scheduling, capacity management, procurement, and order handling.
- ERP addresses financial, human resource, supply chain, manufacturing, and customer relationship management functions.
- Other technologies encompass digital simulation, Industrial Internet of Things (IIoT) integration, data analytics, digital twin platforms, and workflow automation systems.

These comprehensive segments illustrate the multifaceted components driving the digital thread market as it evolves toward more integrated and intelligent industrial ecosystems.

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Learn More About The Business Research Company
With over 17500+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Armed with 1,500,000 datasets, the optimistic contribution of in-depth secondary research, and unique insights from industry leaders, you can get the information you need to stay ahead.Our flagship product, the Global Market Model (GMM), is a premier market intelligence platform delivering comprehensive and updated forecasts to support informed decision-making.

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