Digital twin is an emerging technology that has gradually become the focus of industry in recent years. This technology is driven by six key technologies：modeling，simulation，Internet of Things（IoT），cloud computing，edge computing，and artificial intelligence. The essence of digital twin is to build a virtual image of a physical entity or physical process and coupling the two as much as possible. The real-time state of the physical object or process will be transmitted to the virtual image through the IoT technology and synchronized. The system can improve user’s work efficiency by providing users with the corresponding functions like simulation，data analysis，prediction and calculation. At present，the domestic digital twin market is growing rapidly，but the main projects are mostly smart cities and there is still a large market gap in other fields. For the future development of China’s digital twin industry，this article proposes that we should innovate from the hardware industry ecology and vigorously develop IoT chips. For software industry，our country should independently develop the industrial modeling simulation software and the digital twin platform，so as to break the current situation of foreign monopoly.