Samil PwC: "Digital Twin, a Game Changer for Korean Manufacturing to Overcome Structural Crises"

Publication of Digital Twin Business Application Report
"Leap Forward Through Standardization, Infrastructure, and Incentives"

Amid rapidly changing domestic and global environments, such as shifts in the global trade order and supply chain restructuring, the strategic adoption of digital twin technology is being analyzed as a key solution for the Korean manufacturing sector to overcome structural crises like supply chain uncertainty and low profitability, while also securing high value-added future competitiveness.

On November 20, Samil PwC announced the publication of its "White Paper on Digital Twin Business Applications for Manufacturing Innovation." The report provides an in-depth analysis of the current status of digital twin adoption, technological challenges, and strategies for strengthening competitiveness across major industries, including automotive, chemicals, bio, healthcare, and energy.

A digital twin is a technology that precisely replicates real-world objects or systems in a virtual space, enabling pre-simulation of various scenarios, prediction of problems, and derivation of optimal solutions. Integrating advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), and big data, digital twins can collect and analyze real-time data from actual equipment or processes, allowing for the pre-experimentation of diverse scenarios in a virtual environment. As a result, digital twins are emerging as a core tool for manufacturing innovation. According to the report, the global digital twin market is projected to grow at a high average annual rate of 37.29%, expanding approximately 24-fold over the next decade, reaching 2034.

Leading global companies are rapidly expanding innovations using digital twins in a wide range of fields, including production line monitoring, minimizing defect rates, shortening new vehicle development periods, plant safety diagnostics, process optimization, and personalized treatment simulations. They are also maximizing strategic value by linking digital twins with AI-based predictive maintenance and ESG management initiatives.

In contrast, the report notes that although the adoption of digital twins in Korea is gradually expanding, mainly among large corporations, many cases remain at the level of pilot projects or trial initiatives, with limited diffusion to small and medium-sized enterprises. The report points out, "For digital twins to be stably realized in industrial settings, advanced core technologies such as sophisticated IoT must be in place. However, Korea faces a significant gap in core technological capabilities-such as AI, big data, and high-performance computing (HPC)-compared to advanced countries like the United States."

The report emphasizes that, given Korea's high proportion of manufacturing, a full-scale industrial innovation through digital twins requires not only the advancement of essential technologies for digital twin implementation but also strategic approaches from both government and businesses. On the government side, the report recommends strengthening policy foundations, including: establishing standardization systems for industry-wide adoption, promoting private sector expansion through public projects, and providing financial infrastructure support. It particularly highlights the urgency of building an ecosystem through data standardization and integration by industry, establishing demonstration infrastructure, and expanding global cooperation.

From a corporate perspective, the report diagnoses that a phased approach is needed-one that goes beyond the goals of individual companies to drive innovation across entire industries. It calls for practical execution capabilities, such as: ensuring data-driven reliability for digital twin implementation, developing business models tailored to real-world operations, and achieving global-level quality and standards.

Jae Guk Jung, Technology, Media & Telecommunications (TMT) Industry Leader (Partner) at Samil PwC, stated, "Digital twins are a strategic solution for Korean manufacturing to overcome structural crises and secure future competitiveness." He emphasized, "To gain a competitive edge in the global digital twin market, Korea needs a systematic and strategic approach that includes policy support from the government, phased adoption by companies, ensuring data reliability, and responding to global standards."

This content was produced with the assistance of AI translation services.