Sim2Real domain transfer offers a cost-effective and scalable approach for developing LiDAR-based perception (e.g., object detection, tracking, segmentation) in Intelligent Transportation Systems (ITS). However, perception models trained in simulation often under perform on real-world data due to distributional shifts. To address this Sim2Real gap, this paper proposes a high-fidelity digital twin (HiFi DT) framework that incorporates real-world background geometry, lane-level road topology, and sensor-specific specifications and placement. We formalize the domain adaptation challenge underlying Sim2Real learning and present a systematic method for constructing simulation environments that yield in-domain synthetic data. An off-the-shelf 3D object detector is trained on HiFi DT-generated synthetic data and evaluated on real data. Our experiments show that the DT-trained model outperforms the equivalent model trained on real data by 4.8%. To understand this gain, we quantify distributional alignment between synthetic and real data using multiple metrics, including Chamfer Distance (CD), Maximum Mean Discrepancy (MMD), Earth Mover's Distance (EMD), and Fr'echet Distance (FD), at both raw-input and latent-feature levels. Results demonstrate that HiFi DTs substantially reduce domain shift and improve generalization across diverse evaluation scenarios. These findings underscore the significant role of digital twins in enabling reliable, simulation-based LiDAR perception for real-world ITS applications.