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Zawya
a day ago
- Business
- Zawya
Powerful new AI models knock the wind out of European adopter stocks
LONDON - A rout in shares of European companies embracing artificial intelligence deepened this week, as powerful new AI models raise questions about whether sectors from software to data analytics could find themselves overtaken by the technology. European software stocks, including Germany's SAP and France's Dassault Systemes, tumbled on Tuesday as worries that AI will disrupt the software sector spread through the market. That followed a downgrade to U.S. rival Adobe on Monday by broker Melius Research. Since mid-July, shares in markets and data group LSEG , UK software firm Sage, and French IT consulting group Capgemini have dropped 14.4%, 10.8% and 12.3% respectively. Such companies - dubbed AI adopters by analysts - are investing heavily in the technology to beef up their products and services. Amid a dearth of European AI companies and suppliers, their shares had benefitted as investors in the region sought a way to tap the AI boom powering U.S. markets. But the release of ever more powerful AI tools appears to have prompted a rethink among some market players. Last week, OpenAI launched its GPT-5 model, the latest iteration of the AI technology that has helped transform global business and culture since ChatGPT arrived in late 2022. Kunal Kothari, a fund manager at Aviva Investors, also pointed to the July 15 release of Anthropic's Claude for Financial Services. "The app that came out has now challenged an investment case around London Stock Exchange (LSEG), around the provision of financial data," he said. "We're at the stage now with every iteration of GPT or Claude that comes out ... it's multiples more capable than the previous generation. The market's thinking: 'oh, wait, that challenges this business model'." The drop in European adopter stocks contrasts with broader market gains. Since mid-July, London's FTSE 100 is up 2.5% and Europe's STOXX 600 up 0.6%, while U.S. indexes have scaled record highs, largely powered by tech stocks. Exacerbating matters is the fact that many European adopter stocks trade on high multiples, making them vulnerable to any potential negative news, according to Bernie Ahkong, Chief Investment Officer at hedge fund UBS O'Connor. The STOXX 600 trades at an average price-to-earnings multiple of 17 times, while SAP - whose shares are down 7.2% since mid-July after posting their biggest daily drop since late 2020 on Tuesday - trades at around 45 times. WILL AI 'EAT SOFTWARE'? Although many AI adopter stocks are struggling, some investors say markets will eventually take a more systematic approach, picking out potential winners and losers. "At the moment, it feels like the market's just shooting first and putting them all in a 'challenged basket'," said Aviva's Kothari, referring to the decline in UK AI adopters. The hype around new AI models has led to the resurfacing of 2017 comments from Jensen Huang, the CEO of AI chipmaking behemoth Nvidia, that "AI is going to eat software". "We don't disagree, but we believe some delineation is warranted here, as not all software companies are equally exposed," said Steve Wreford, portfolio manager on the global thematic equity team at Lazard Asset Management. He said those with software deeply embedded into client company workflows, or with hard-to-replicate proprietary data, still had strong competitive advantages. Paddy Flood, portfolio manager and global sector specialist, technology, at Schroders, said it was important to distinguish between different types of software. "Enterprise-grade applications are less exposed, given their mission-critical nature, the complexity involved in replacing them, and the value of a trusted vendor ensuring ongoing service," he said. Aviva's Kothari also flagged the benefits of having software deeply embedded with customers, citing UK credit data firm Experian as an example. "It has lots of data unique to it, but it's also hugely embedded in the workflows of financial institutions. They want to make a loan, they need Experian," he said, also highlighting Britain's Sage. He holds both stocks, along with LSEG, but cautioned that proprietary data alone may no longer be enough to protect businesses. "I just don't think data is a big enough moat anymore," he said. The selloff in AI adopter stocks could be an opportunity for investors to pick the winners, said UBS O'Connor's Ahkong. "Some of the affected names will actually be able to use AI as an opportunity and tailwind for earnings, but need to prove that from here and that will take time," Ahkong said. But how much time the companies have is unclear. Some investors were already warning earlier this year that the clock was ticking for big spenders on AI to show returns. (Reporting by Lucy Raitano. Editing by Amanda Cooper and Mark Potter)
Yahoo
04-08-2025
- Business
- Yahoo
Digital Twin Market worth $149.81 billion in 2030 - Exclusive Report by MarketsandMarkets™
DELRAY BEACH, Fla., Aug. 1, 2025 /PRNewswire/ -- The global digital twin market size is expected to grow from USD 149.81 billion in 2030 to USD 21.14 billion in 2025, at a CAGR of 47.9% during the forecast period according to a new report by MarketsandMarkets™. The digital twin market is rapidly evolving, driven by the convergence of advanced simulation technologies, IoT, and data analytics. A key trend shaping this space is the growing integration of real-time data with virtual replicas, enabling businesses to optimize asset performance, predict failures, and reduce operational risks across manufacturing, energy, healthcare, and infrastructure sectors. As industries prioritize efficiency and agility, digital twins are emerging as critical tools for lifecycle management-from design and production to maintenance and end-of-life decisions. Moreover, the increasing emphasis on sustainability is accelerating the adoption of digital twins to model energy consumption and carbon footprints, facilitating more responsible decision-making. The synergy with artificial intelligence and machine learning further enhances their predictive capabilities, making digital twins indispensable for digital transformation initiatives and future-ready enterprise strategies. Download PDF Brochure: Browse in-depth TOC on "Digital Twin Market" 296 – Tables76 – Figures324 – Pages Digital Twin Market Report Scope: Report Coverage Details Market Revenue in 2025 $ 21.14 billion Estimated Value by 2030 $ 149.81 billion Growth Rate Poised to grow at a CAGR of 47.9% Market Size Available for 2021–2030 Forecast Period 2025–2030 Forecast Units Value (USD Million/Billion) Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends Segments Covered By enterprise, application, industry, and region Geographies Covered North America, Europe, Asia Pacific, and Rest of World Key Market Challenge Complexities associated with data collection and mathematical models Key Market Opportunities Development of human-centered digital twins Key Market Drivers Growing demand for predictive maintenance and asset optimization By application, the predictive maintenance segment is estimated to have the largest market in the digital twin market during the forecast period. Predictive maintenance holds the largest market share in the application segment because it is central to the value proposition of digital twin technology. It primarily anticipates equipment failures and maintenance needs by leveraging real-time data, advanced analytics, and virtual modeling. This enables organizations to transition from reactive to proactive maintenance strategies, significantly reducing unplanned downtime and maintenance costs. As a result, predictive maintenance is becoming indispensable across industries such as manufacturing, energy, transportation, and aerospace. The growing emphasis on operational efficiency, asset longevity, and cost savings is fueling its adoption. By enterprise, the large enterprises segment is expected to hold the largest share in the digital twin market during the forecast period. The large enterprises segment will dominate the digital twin market during the forecast period, driven by their strong financial capabilities, advanced digital infrastructure, and early adoption of Industry 4.0 technologies. These organizations are increasingly leveraging digital twin solutions to optimize complex operations, enhance product development, and enable predictive analytics across large-scale assets and global facilities. Digital twins empower large enterprises with real-time monitoring, simulation, and forecasting capabilities, which are critical for managing enterprise-level challenges such as supply chain disruptions, equipment failures, and sustainability goals. Industries such as aerospace, automotive, energy, and industrial manufacturing are leading adopters, investing heavily in digital twin platforms to drive innovation and competitiveness. Furthermore, large enterprises are more likely to have dedicated R&D budgets and partnerships with technology providers, accelerating the integration of AI, IoT, and cloud computing into digital twin ecosystems. Inquiry Before Buying: By region, Europe is projected to hold the second-largest market share of the digital twin market during the forecast period. Europe holds the second-largest market share in the global digital twin industry, driven by the region's strong focus on industrial automation, sustainable innovation, and digital transformation. Key economies such as Germany, France, and the UK are leading adopters, supported by robust manufacturing ecosystems and proactive government policies promoting Industry 4.0. Germany plays a critical role in this share due to its leadership in engineering and industrial digitalization, especially across the automotive, aerospace, and energy sectors. The European Union's emphasis on green technologies and smart infrastructure has further accelerated the deployment of digital twins for energy efficiency, predictive maintenance, and carbon footprint monitoring. The key companies in the digital twin companies include Siemens (Germany), ANSYS, Inc. (US), GE Vernova (US), Dassault Systèmes (France), and PTC (US). Get 10% Free Customization on this Report: Browse Adjacent Market: Semiconductor and Electronics Market Research Reports & Consulting See More Latest Semiconductor Reports: Supercapacitor Market by Type (Electric Double Layer Capacitors, Hybrid Capacitors, Pseudocapacitors), Capacitance Range (<100 F, 100-1,000 F, >1,000 F), Electrode Material (Carbon, Composites, Metal Oxides, Conducting Polymers) - Global Forecast to 2030 SCADA Market by Component (Programmable Logic Controllers (PLCs), Remote Terminal Units (RTUs), Human-machine Interfaces (HMIs), Communication Systems, Input/Output (I/O) Devices, Sensors, Actuators, Terminal Blocks, Connectors) - Global Forecast to 2030 About MarketsandMarkets™ MarketsandMarkets™ has been recognized as one of America's Best Management Consulting Firms by Forbes, as per their recent report. MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. With the widest lens on emerging technologies, we are proficient in co-creating supernormal growth for clients across the globe. Today, 80% of Fortune 2000 companies rely on MarketsandMarkets, and 90 of the top 100 companies in each sector trust us to accelerate their revenue growth. With a global clientele of over 13,000 organizations, we help businesses thrive in a disruptive ecosystem. The B2B economy is witnessing the emergence of $25 trillion in new revenue streams that are replacing existing ones within this decade. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing. Built on the 'GIVE Growth' principle, we collaborate with several Forbes Global 2000 B2B companies to keep them future-ready. Our insights and strategies are powered by industry experts, cutting-edge AI, and our Market Intelligence Cloud, KnowledgeStore™, which integrates research and provides ecosystem-wide visibility into revenue shifts. To find out more, visit or follow us on Twitter, LinkedIn and Facebook. Contact: Mr. Rohan SalgarkarMarketsandMarkets™ INC. 1615 South Congress 103, Delray Beach, FL 33445USA: +1-888-600-6441Email: sales@ Our Web Site: Insight: Source: Logo: View original content: SOURCE MarketsandMarkets
