What is a Digital Twin & How This Technology Benefits Every Business

Ask a book lover why they read, and you might hear the famous George R.R. Martin quote: “A reader lives a thousand lives before he dies. The man who never reads lives only one.” Stories have the power to capture countless experiences and bring them to life in a single mind.

Now, imagine if you could capture not just stories, but the full scope of physical processes, systems, and structures—not just one, but hundreds—all at once and at scale.

That’s the promise of digital twin technology. It creates virtual replicas of real-world operations, letting us observe, analyze, and optimize them in ways that were once impossible. Yet, despite its potential, the concept of digital twins is still widely unknown to many.

So, let’s break down what digital twins are and explore how they can drive value for businesses across all industries.

What is a digital twin? 

In simple terms, a digital twin is an accurate, virtual replica of a physical object, space, system, person, or process from the real world. It’s meant to help companies simulate, test, validate, and maintain different behaviors or results and, in turn, make (present and future) decisions more confidently—without the physical costs or risks involved. 

The history—and story—behind digital twins

The idea of a "digital twin" emerged in 2002 when Dr. Michael Grieves, now known as the father of digital twins, introduced it at the University of Michigan as part of his vision for product lifecycle management (PLM). 

His model outlined a real-world system with a virtual counterpart, creating a “twin” relationship between them. This design allowed information to flow both ways, so every physical system had a digital mirror or reflection that held all its details—essentially, a twin in virtual space.

Grieves designed his model to track and manage a product’s entire lifecycle. And at each stage, the digital twin facilitated data exchange, meaning insights from the real world constantly informed the virtual model and vice versa. 

Initially, he referred to this as the "mirrored spaces model" and later the "information mirroring model." However, in 2011, the term “digital twin” took hold, mostly because of the emphasis on the twin-like connection between physical and virtual spaces. 

But Grieves wasn’t the only one to think along these lines.

^{History of digital twin technology Source: Tennessee Technological University}

In 1991, David Gelernter introduced a similar idea called “mirror worlds,” where software models mimic reality using data from the physical world. 

And decades earlier, NASA had actually used a twin model to help save Apollo 13. After an oxygen tank exploded early in the 1970 mission, engineers on Earth needed a way to solve the life-threatening issues faced by astronauts nearly 200,000 miles away. They used a “living model” of the spacecraft to simulate solutions, ultimately turning a dire situation into one of history’s most famous rescue missions.

That said, Grieves’ model laid the groundwork for linking physical systems with digital simulations in real time. 

Today, digital twins are a cornerstone in product lifecycle management and beyond, helping industries like real estate, architecture, engineering, and construction (AEC), manufacturing, transportation, aerospace, healthcare, and more.

What are the different types of digital twins? 

Even after decades of innovation, there isn’t a single universal definition of digital twins. Across fields—whether healthcare, supply chains, or manufacturing—digital twins typically adapt to meet the unique demands of each industry.

In short, the “type” of digital twin depends on the use case or application.

For instance, in manufacturing, digital twins are often used to track a product’s lifecycle, from design and production to maintenance. And in healthcare, digital twins might function as “digital patients” that monitor health and model treatment outcomes. 

Similarly, a digital twin in warehousing may be used to boost transparency and analyze processes or even in production to monitor equipment and ensure quality. However, despite these differences, digital twins share common features, like real-time updates and continuous data flow between the physical and digital versions.

To keep things simple, we’ll turn to McKinsey, which states digital twins come in four main types:

1. Product twins

A product twin digitally represents a product throughout its lifecycle with real-time data—from the initial design and engineering phases to when it’s in use. This means you get an active view of a product’s status like it’s right in front of you. For example, Tesla uses digital twins of their cars to test performance in real time, predict maintenance needs, and even troubleshoot issues remotely.

2. Infrastructure twins

Infrastructure twins model whole systems of connected assets—like a city’s transportation network, utility grids, airports, or even smart cities. Typically, they integrate data from multiple sources to give you a detailed view of infrastructure performance, which makes it easier to identify areas for improvement and optimize operations.

3. Data twins 

Data twins are digital models that replicate real-world data streams to give you live insights instantly. These models continuously pull data from sources like sensors or databases to mirror specific conditions or activities. For example, think of your weather app as a data twin; it’s a digital replica of atmospheric conditions, as it pulls in real-time data from satellites and ground stations to provide accurate forecasts.

4. Systems twins

Systems twins represent the interactions between physical and digital processes. These help manage things like warehouse operations or optimize supply chains by capturing the interplay of each part of the system. Amazon uses digital twin technology to improve its warehouse operations. 

Digital twins for the as-built world

Digital twins for the as-built world significantly advance how we capture, model, and use information about physical structures and infrastructure. 

Specifically, an as-built digital twin is a digital replica of a physical asset that shows its actual and current state at any point that it is captured—not just the original design or blueprint. It reflects the real-world condition of an asset as it stands today.

There are a few notable factors that define digital twins for the as-built world:

• They are super accurate virtual representations, i.e., they record exact visual details like dimensions, materials, and other features that often differ from the original plans.

• They can integrate data from various sources, including sensors, cameras, and other digital tools, to create a comprehensive virtual model.

• Unlike traditional as-built drawings, as-built digital twins are captured and recaptured to reflect any changes to the asset over time, much like updated street scans by Google Earth.

Where Matterport comes in

At Matterport, we’re experts in digital twins for the as-built world.

Our digital twins offer an accurate 3D model of your asset or space with all its internal components—giving you a powerful way to document and manage real-world processes. 

With a compatible camera, you can create high-detail digital models of spaces, whether it’s a single office or a large construction site, that feels almost as if you’re on-site. These photo-realistic, fully navigable models are powered by our patented Cortex AI, which combines computer vision with artificial intelligence to capture spaces with clarity and accuracy.

And our models are used across industries—be it real estate, construction, manufacturing, travel and hospitality, insurance, or government.  

For instance, real estate teams see the value of our all-in-one platform across both residential and commercial properties. Residential agents use digital twins to showcase listings and attract motivated buyers. On the other hand, commercial real estate firms lean on our models to scan their entire portfolios to optimize property marketing and asset management processes. 

Put simply, our digital twin technology makes it easier than ever to collaborate, generate leads, cut costs, and work more efficiently. 

What are the benefits of digital twins for the built world?

As we’ve covered, digital twins have endless applications, some of which are still being discovered. So far, the built world has seen significant gains from our models. 

Below, we’ve covered some of the benefits:

Give a photorealistic virtual tour of any space

Our digital twin can be used to give anyone a true-to-life virtual walk-through of any space. For instance in real estate or other industries, clients can explore a property or location in detail from anywhere —without ever stepping inside.

Take Jones Lang LaSalle (JLL), a global leader in commercial real estate, for instance. When COVID-19 hit, in-person property tours came to a halt, and JLL needed a way to keep deals moving remotely. Our digital twin technology helped them switch to virtual tours, cutting the need for physical visits. 

And the results spoke for themselves: JLL sped up transaction times by 85%, saw zero-touch deals, plus saved on costs and CO2 emissions with fewer site visits.

Make remote collaboration easier for everyone

With digital twins, it’s much simpler for teams to work together no matter where they are, even if it’s across countries. Whether you’re in real estate, construction, or facilities management, your team can access the same up-to-date model, add comments, and point out areas that need attention.  For example, ID Plans, a leader in commercial real estate services, needed a better way to document properties and keep property management and leasing teams aligned. With our digital twins, it was easy for stakeholders to access a shared, interactive model for planning and inspection.

“It was clear early on that Matterport is the best technology to produce digital twins and fully immersive 3D virtual tours,” says CPO of ID Plans, Jordan Hearin. “In evaluating the best technology, we went through a series of complicated projects and unique scenarios, and Matterport did a fantastic job.”

And this didn’t just speed up leasing and sales; it also improved communication across teams and shortened project planning timelines by up to 30%.

Boost cost-efficiency on projects

With digital twins, you can keep projects on track and stick to the budget by planning—and pivoting—more thoughtfully. 

This means you can catch design or construction issues in AEC early and reduce rework. Similarly, real estate teams that manage renovations can optimize resources and avoid unexpected extra costs. Put simply, you can work smarter with the information right at hand.

Case in point: When Cushman & Wakefield needed a better way to list and rent commercial properties across their huge global portfolio, they turned to our digital twins. With Matterport Capture Services, they digitized over 1,000 properties across 21 countries—all in less than 12 months. As a result, they 53% in costs by reducing travel and speeding up the time it took to get properties on the market.

Preserve historical or heritage buildings carefully

Digital twins are particularly useful when it comes to preserving heritage buildings—they capture the property in startlingly accurate detail, preserving finishes, architectural, and structural details exactly as they are.

Essentially, this works as a digital record and gives conservators a reliable way to test their restoration ideas virtually, i.e., explore potential impacts without physically altering the actual structure. 

Plus, digital twins can layer in historical data, documenting past changes and restorations. Together, these features create a rich, interactive record of the building’s full history and evolution, all in one place.

The bright future of digital twins

The potential of digital twins in the built world is just starting to unfold. 

The way we see it, as this technology evolves, its use will extend beyond individual buildings to encompass entire cities and industrial networks. And with real-time data from internet of things (IoT) sensors, AI analytics, and machine learning, this technology can—and will—deliver insights into everything from performance optimization to predictive maintenance. 

Most importantly, as digital twins become more accessible and widely adopted, it could reshape urban environments to be smarter, more sustainable, and resilient for the future.