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Digital twin (DT) is one of the most promising enabling technologies for realizing smart manufacturing and Industry 4.0. DTs are characterized by the seamless integration between the cyber and physical spaces. The importance of DTs is increasingly recognized by both academia and industry. It has been almost 15 years since the concept of the DT was initially proposed. To date, many DT applications have been successfully implemented in different industries, including product design, production, prognostics and health management, and some other fields. However, at present, no paper has focused on the review of DT applications in industry. In an effort to understand the development and application of DTs in industry, this paper thoroughly reviews the state-of-the-art of the DT research concerning the key components of DTs, the current development of DTs, and the major DT applications in industry. This paper also outlines the current challenges and some possible directions for future work.