Digital twins in industry: investment potential for modernization of production in Ukraine

Abstract

The article explores the investment potential of implementing digital twin technology in Ukraine’s industrial sector within the context of global digital transformation. The author justifies the relevance of the topic by highlighting systemic challenges in domestic industry: outdated equipment, low automation levels, weak digital integration, and limited adaptability to international standards of efficiency and quality. It is established that digital twins–virtual models of physical objects and processes–enable a new level of analytics, failure prediction, and production cost optimization. The international experience of digitalization leaders (Germany, the USA, Japan) is presented, where digital twins have already proven their economic viability in energy, mechanical engineering, and pharmaceuticals. Special attention is given to implementation barriers in Ukraine: high initial costs, lack of skilled personnel, underdeveloped digital infrastructure, and absence of regulatory frameworks. Nevertheless, the author emphasizes that with state support, pilot projects, educational programs, and the creation of digitalization centers, the technology could become a driver for modernizing capital-intensive sectors such as metallurgy, mechanical engineering, and agriculture. A multi-level implementation strategy is proposed, encompassing short-, medium-, and long-term measures, including integration with IoT, artificial intelligence, and blockchain. The study concludes that successful execution of these solutions would enhance Ukraine’s economic competitiveness and integrate it into the industrial standards of the Fourth Industrial Revolution.