A technology that was considered experimental just five years ago is rapidly becoming a contract requirement on major infrastructure and industrial engineering projects worldwide, and Ireland is better positioned than most to capitalise on it. According to The Business Research Company, the global digital twin market will grow from US$28.9 billion (approximately €24.8 billion) in 2025 to US$122.24 billion (approximately €105.2 billion) by 2030 at a compound annual growth rate of 37.6%. For engineering firms operating in Ireland's capital-intensive FDI and infrastructure economy, this is not a distant technology trend to monitor. It is an active commercial opportunity with a defined and closing window.

The case for digital twin adoption among Irish engineering firms is compelling, and the supporting evidence points firmly toward action rather than hesitation. IDA Ireland's 2025 annual results recorded a landmark 323 investments, a 38% increase on 2024, with IDA client companies spending €13.2 billion on capital expenditure in 2024 alone. The IDA Ireland Strategy 2025 to 2029 identifies AI and digitalisation, engineering, and high value manufacturing as core growth drivers. This capital pipeline represents precisely the project environment in which digital twin specifications are becoming standard, and firms that can demonstrate proven capability will be first in line for the most technically demanding contracts.

McKinsey research on infrastructure digital twins confirms that the technology has the potential to improve capital efficiency, accessibility of services, and operational performance of public sector investments by 20 to 30%. In manufacturing and supply chain applications, McKinsey data shows digital twins cut development times by up to 50%, reduce labour costs by 10%, and deliver a 5% revenue increase through optimised operations. These are returns that project owners and sponsors notice, and they are increasingly using them to inform how they select and evaluate engineering partners. Ireland already has a nationally significant proof of concept to build from. Dublin City Council's Smart Dublin programme, working with Bentley Systems, has deployed multiple live digital twin applications since 2016, including an emergency management twin for Dublin Fire Brigade and, in November 2025, a real-time city-scale AI digital twin for active travel and road safety. The programme demonstrates that Irish institutions understand the technology and can implement it at scale.

The engineering skills challenge is real but manageable. ManpowerGroup Ireland's 2025 Talent Shortage Survey found that 82% of industrials and materials employers struggle to find candidates with the skills they need, and engineering skills rank among the hardest to source. However, the Generation Ireland and McKinsey Tech Skills Gap Report of September 2025 projects 40,000 new roles across engineering and technology between 2025 and 2030, confirming that the pipeline is expanding. Engineers Ireland's Digital Skills Partners programme provides a structured CPD pathway through which firms can build digital twin literacy within their existing workforce without waiting for the broader talent market to resolve.

Three actions will position Irish engineering firms ahead of the curve. Firms should initiate a structured digital twin capability assessment, identifying which project types in their current pipeline are most susceptible to client digital delivery requirements, and prioritising investment accordingly. Second, firms should engage formally with the Engineers Ireland Digital Skills Partners network to develop structured digital twin training programmes aligned to their specific sector, whether infrastructure, pharmaceuticals, data centres, or energy. Third, Irish engineering firms should seek early involvement in public sector contracts under the NDP Sectoral Investment Plan for Transport 2026 to 2030 as a proving ground for digital twin methodology, building the reference project portfolio that future multinational clients will require as evidence of capability.

Ireland has the investment pipeline, the institutional proof of concept, and the policy scaffolding to make its engineering sector a genuine leader in digital twin delivery. The firms that move decisively now will not merely keep pace with global expectations. They will set the standard against which their competitors are measured.

(The views expressed by the writer are his/her own and do not necessarily reflect the views or positions of BusinessRiver.)