Microsoft has announced a preview digital twin builder tool in its Fabric platform, which it says could “significantly enhance an organisation’s ability to make informed decisions” by bringing the physical world into the digital world.
Acting as a virtual representation of a real-world physical object, system, or process, digital twins can be applied across multiple industries — from healthcare to construction.
“In today’s data-driven world, there is a growing need for tools that can easily integrate and manage the vast amounts of data generated by the physical world,” the company said in a statement.
Having a digital twin can significantly enhance an organisation’s ability to make informed decisions by bringing the physical world into the digital world. ”
“Digital twin builder in Microsoft Fabric is designed to make this process simpler and more efficient, enabling organisations to harness the power of their data like never before.”
The builder is a preview feature designed to help organisations model, integrate, and contextualise their environments for real-time insights and improved operational efficiency.
The tool will enable the creation of digital representations of physical assets, processes, or systems, allowing for better decision-making and optimisation.
What Are the Key Capabilities?
The digital twin builder is a new capability within real-time intelligence in Microsoft Fabric, currently in preview. It will provide a simple way to build and manage digital representations of real-world environments.
It will offer a no-code/low-code interface, making it easy for nontechnical users to create and manage digital twins. Additional features will include:
- Allowing customers to easily connect, map data from physical assets, processes and systems and contextualise it as a digital twin.
- Democratising and scaling digital twins by making them more accessible and actionable for operators and decision makers.
- Using the digital twin data as an AI-ready foundation to enhance deep analytics, what-if analysis and AI-powered automation leveraging Fabric native capabilities.
How Will This Empower IT Leaders?
For IT and UC leaders, the capacity to create digital twins bridges data with operational reality. By virtually replicating physical assets, processes, or environments, digital twins produce new levels of visibility, predictive insight, and optimisation.
This is especially valuable in industries where uptime, efficiency, and responsiveness are critical, from healthcare to manufacturing to smart buildings.
Integrated within Microsoft Fabric, the tool offers a unified data foundation, making it easier to model complex systems and drive real-time collaboration across departments. For those leaders shaping digital strategy, it’s a hugely compelling way to future-proof operations and stay competitive.
Implementation and Challenges
The global digital twin market was valued at $17.73 billion in 2024 and is projected to grow to $259.32 billion by 2032.
Microsoft has made significant investments in digital twin technologies, primarily through its Azure Digital Twins platform.
Last November, the company partnered with the Vatican on the creation of a digital twin of St. Peter’s Basilica, which involved the implementation of advanced photogrammetry and artificial intelligence to create an ultra-precise 3D replica of the basilica, incorporating 22 terabytes of data.
“It is literally one of the most technologically advanced and sophisticated projects of its kind that has ever been pursued,” Microsoft President Brad Smith said at the time.
Yet despite all their promise, digital twins come with challenges — namely around data security, high implementation costs, and the need for continuous data streams.
In addition, the need to ensure accuracy in the digital representation is critical since an outdated or incorrect digital twin can be more harmful than helpful.
But with advancements in AI, the technology has the potential to not only simulate but also self-correct and optimise their real-world counterparts.
