The Global Electrical Digital Twin Market size is expected to reach $1.8 billion by 2029, rising at a market growth of 12.2% CAGR during the forecast period.
The electrical digital twin allows utilities to facilitate the process of data maintenance as well as exchange. An object or system's "digital twin" is essentially a virtual representation that spans its lifecycle, is updated with real-time data, and employs simulation, machine learning, and reasoning to support decision-making. The demand for real-time healthcare services is likely to increase. Predictive maintenance using digital twins is also becoming more popular to prevent unplanned outages.
Additionally, it is anticipated that the market will increase during the projected period due to the increasing acceptance of advanced technologies for implementing digital twin applications. By adding an information layer to smart grids, AI makes it possible for utilities and consumers to communicate with each other via electrical networks. In addition, this layer enables interaction between the various grid parts so they can better react to sudden changes in energy demand or emergencies.
Installing smart meters & sensors, which enable data collecting, storage, analysis, and the development of a digital twin, establishes this information layer. Power system and utility operators should be able to examine the sizable amount and varied structure of the datasets produced by digital twins with the aid of virtual reality, AI, IoT, machine learning, and other emerging technologies.
This analysis can be utilized for several tasks, such as seamless problem detection in meters, anticipatory maintenance requirements, quality monitoring of sustainable energy, and forecasting for renewable energy. Additionally, machine learning and artificial intelligence (AI) can automatically provide insights to power system operators and enhance business outcomes.
The COVID-19 outbreak has dealt a fatal blow to the world economy & the energy industry, upsetting supply networks and stifling demand. The power industry faced several difficulties, including a smaller and more distant workforce, declining commercial energy demand, rising customer calls, and using digital or self-serve channels amid lockdowns. Utility companies and grid operators were compelled by these difficulties to speed up their operations' automation, digitalization, and decentralization. The shift in working habits brought on by COVID-19-related limitations has accelerated utilities' and grid operators' efforts to convert into digital businesses. The market has so greatly profited from COVID-19's widespread use.
In order to monitor, regulate, automate, and run their power networks, utilities, and grid operators need quicker and more effective solutions, such as electrical digital twins. The challenges posed by grid modernization programs, particularly DER integration, can be addressed by electrical digital twins. These tools aid in planning, analyzing, and developing the grid modernization process as well as assessing the impact of DER. As a result, utilities are able to simplify the DER interconnection procedure, which enhances customer response times, makes cost-effective investments possible, and boosts operational effectiveness. In light of this, the electric digital twin market is estimated to witness significant growth during the projection period.
Electric utilities globally are adopting advanced technologies such as machine learning, AI, Industrial Internet of Things (IIoT), and cloud computing to enhance their predictive & prescriptive maintenance, smart metering, asset performance monitoring & management, automation of distributed energy resources (DER), and analysis of fluctuations in decentralized renewable generation systems. Implementing an electrical digital twin empowers utility companies to proactively anticipate, evaluate, and optimize various transmission, power generation, and distribution models, as well as renewable energy integration scenarios.
A digital twin should be supplied with information on equipment failure modes to predict failures. Maintaining the digital duplicate becomes more challenging when there are adjustments to the equipment, assets, or operating status. Any change to the physical system would necessitate equivalent adjustments to its digital model & algorithms. Since modeling some scenarios, such as the installation of new parts at the machine level or operational level modifications, may not be accurate, the likelihood of errors may increase as complexity levels rise. These issues limit many power industry players' widespread use of electrical digital twins.
By type, the electrical digital twin market is segmented into product digital twin, process digital twin and system digital twin. The system digital twin segment registered the maximum revenue share in the electrical digital twin market in 2022. The necessity for network-level optimization is the reason behind this. A group of goods and procedures that operate together to carry out system- or network-wide tasks make up the system digital twin. Substations, wind farms, power plants, and distributed energy resources are a few examples of systems or networks that can be stimulated using this technique.
Based on application, the electrical digital twin market is fragmented into asset performance management, and business & operations optimization. Businesses use digital twins to evaluate the performance of their physical assets under circumstances or to monitor the performance of assets in real time. Using data from sensors attached to actual assets enables the creation of reliable failure models. The vast array of commercial digital twin software offerings developed by numerous companies is estimated to increasingly support market growth in this segment.
On the basis of end user, the electrical digital twin market is divided into utilities and grid infrastructure operators. In 2022, the utilities segment held the highest revenue share in the electrical digital twin market. The increasing use of renewable energy sources and cutting-edge digital technologies is responsible for the segment's expansion. To establish strong long-term asset management and business strategies and minimize operational costs, several utilities have invested in installing electrical digital twins. These twins can analyze and visualize data in real-time.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 835.8 Million |
| Market size forecast in 2029 | USD 1.8 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2029 |
| Revenue Growth Rate | CAGR of 12.2% from 2023 to 2029 |
| Number of Pages | 228 |
| Number of Table | 333 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Type, Application, End User, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the electrical digital twin market is analyzed across North America, Europe, Asia Pacific and LAMEA. In 2022, the North America region led the electrical digital twin market by generating the maximum revenue share. The development of the North American market is fueled by the rise in investments being made to adopt cutting-edge digital technologies to update aging power generation and distribution infrastructure. Additionally, two significant aspects that encourage investments in digital technology like electrical digital twins are the rising demand for clean, dependable energy and the strong emphasis on renewable energy generation.
Free Valuable Insights: Global Electrical Digital Twin Market size to reach USD 1.8 Billion by 2029
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix, Microsoft Corporation is the forerunner in the Electrical Digital Twin Market. Companies such as Siemens AG, Schneider Electric SE, and IBM Corporation are some of the key innovators in Electrical Digital Twin Market.
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include ABB Group, Emerson Electric Co., General Electric Company, IBM Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, Schneider Electric SE, Siemens AG, and Bentel Systems, Inc.
By End User
By Application
By Type
By Geography
The Market size is projected to reach USD 1.8 billion by 2029.
Advent of energy 4.0 supporting growth are driving the Market in coming years, however, Complexity in systems and access to accurate models restraints the growth of the Market.
ABB Group, Emerson Electric Co., General Electric Company, IBM Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, Schneider Electric SE, Siemens AG, and Bentel Systems, Inc.
The expected CAGR of this Market is 12.2% from 2023 to 2029.
The Asset Performance Management segment is leading the Market by Application in 2022 thereby, achieving a market value of $1.1 billion by 2029.
The North America market dominated the Market by Region in 2022 and would continue to be a dominant market till 2029; thereby, achieving a market value of $631.6 million by 2029.
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