FMI predicts the global electrical digital twin market valuation to grow from USD 1,085.9 million in 2023 to USD 3,342.7 million by 2033. During this forecast period, the global electrical digital twin market growth is predicted to rise at a robust CAGR of 11.9%.
To address the demand for uninterrupted electricity, utilities use an electrical digital twin to anticipate and predict numerous power generation, transmission, and distribution models. However, their adoption and incorporation of electrical digital twin modeling are in their infancy representing huge opportunities in the coming days. Moreover, utility companies are diversifying their sources including the use of renewable energy sources to establish more secure business models.
Many market stakeholders initially resisted the adoption of electrical digital twins due to perceived dangers associated with electrical digital twin implementation. Potential higher upfront costs and uncertainty regarding effective outcomes can be regarded to have resulted in this confinement of the market.
The Rising Decentralization of Distributed Renewable Energy Resources Could Generate Higher Demand for Electrical Digital Twins.
Globally, the electrical digital twin market is being driven by the rising decentralization of dispersed energy resources via electrical digital twin. Utilities and grid infrastructure operators are increasingly adopting digital technologies to streamline the incorporation of renewable energy technologies into their operating mix. Furthermore, the development and the growing acceptance of sophisticated technologies to execute digital twin applications provide substantial potential for market expansion.
Electrical digital twin technology for the manufacturing sector is also gaining traction these days. As more integrated technologies complete the virtual twins it would result in a digital thread that standardizes the entire process and produces optimal results.
Due to the sheer widespread use of Industry 4.0, the market is likely to increase significantly in the coming days. Industry 4.0 is the fourth industrial revolution, and it is a current trend primarily emphasizing automation and data collection and exchange.
Digital twin platform developers also use IoT to improve operations, increase system productivity, and drive revenue. In addition, the proliferation of IoT devices provides developers with new digital twin market opportunities for growth. As a result, the developers are focusing on IoT-enabled digital twin solutions to boost their market position.
| Attributes | Details |
|---|---|
| Global Electrical Digital Twin Market Size (2022) | USD 987.2 million |
| Global Market Share (2023) | USD 1,085.9 million |
| Global Market CAGR (2023 to 2033) | 11.9% |
| Global Market Forecasted Value (2033) | USD 3,342.7 million |
| Overall Market Attraction | Upgrading old electricity generating and distribution infrastructure with advanced digital technologies are driving the market expansion in Asia Pacific. |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
Based on the market survey report, the net worth of electrical digital twins adopted globally in 2017 was USD 644.6 million. The outbreak of the Covid-19 pandemic actually had a positive impact on the overall market. After the comprehensive restrictions on the movement of workers utility companies opted for digital transformation, including the implementation of digital twin technology. Given the essentiality of energy supplies, grid operators increased their demand for electrical digital twin services during that period.
The average rate of growth for the overall market during the period from 2017 to 2022 was around 8.9%. The net valuation of the market ultimately reached USD 987.2 million. Operators are increasingly adopting this substation digital twin technology to stay ready for any possibility of other market disruptions in the future.
Wire-to-grid Digital Twins Allow Grid Operators to Interconnect Designating Engineering Representatives securely. Interconnecting DER can help in better Serving Customers and Save Money for End Users.
Principal Consultant
Installing smart meters and sensors creates many information layers, allowing better data gathering, storage, and analysis. This could allow power systems and utility operators to examine the massive datasets created by electrical digital twins efficiently.
To fulfill the rising energy demand, manufacturers are moving on to renewable energy sources emphatically. Also, the aim of bringing the global mean surface temperature above pre-industrial levels by the end of the century has accelerated this trend. As a result, global investment in renewable energy technology is expected to climb to USD 3.13 billion through 2032.
As of 2020, global renewable energy contribution was 27% to 29%. It is projected that solar (utility-scale), distributed generation and storage, grid-scale energy storage, and wind may rise significantly during the forecast period. Global efforts can be seen through electrical digital twin adoption trends; governments have enacted laws and incentives for decarbonizing industries.
The higher cost of deploying an electrical digital twin is a notable hindrance to market expansion in many parts of the world. Also, the unavailability of sufficient manpower with technical know-how to utilize digital technique techniques has limited its adoption in some parts.
To access asset data, a supply chain requires high levels of connectivity, so complicated physical items present another issue. So, the adoption of electrical digital twins requires significant operator effort, coordination, and dedication. Due to these issues, the power industry has yet to embrace the electrical digital twin at the market potential level.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
The utility segment holds immense growth potential as renewable energy sources have diversified the operations performed at the power supply units.
Utility service providers are the prominent end-users of digital twin technology, including a digital motor twin. Grid Infrastructure operators also require natural time asset management of assets and could increase their usage of digital twin technology in coming years.
The general electric asset performance management segment could experience higher growth during the forecast period based on various digital twin applications. The other major applications, like business & operations optimization, are also likely to favor the assimilation of electrical digital twins. Distribution of energy resources is another type of electrical digital twin type emerging as a new competitor against the other segments.
| Category | By Twin Type |
|---|---|
| Top Segment | Digital Grid |
| Market Share in Percentage | 21.9% |
| Category | By Usage Type |
|---|---|
| Top Segment | System Digital Twin |
| Market Share in Percentage | 43.1% |
According to several reports on digital twin technology, both production and process are interdependent and necessary for successfully maintaining power supply production. So the system digital twin segment that combines both these usages is likely to be the popular segment for the digital twin electric grids.
Cloud-based solutions for power supply units have the advantage of fewer investment requirements over the on-premises deployment of digital twin facilities. Moreover, as the power grid establishments emphasize digitization of the whole process, the Cloud segment could be the preferred deployment type. The other benefits of a cloud-based electrical digital twin service are the storage of large amounts of data and easier accessibility.
The United States is expected to remain the leading country in terms of the growth of electrical digital twins during the forecast period. This market finding is backed by higher spending by the country on upgrading its aging power generation and distribution infrastructure.
Emerging Trends in the United States market include enabling AI with the digital twin software to increase productivity by repeated use of technology. Furthermore, AI can potentially interpret and examine data captured by digital twin IoT sensors, identify anomalies, and continue to learn and identify errors.
| Regional Markets | Global Market Share in Percentage |
|---|---|
| United States | 27.1% |
| Germany | 6.2% |
| Japan | 7.1% |
| Australia | 0.6% |
Higher integration of fluctuating renewable energy sources with conventional grids is the main force driving the expansion of the European market. Digital gas and steam power plants are widely implemented twin types in Europe for optimizing fuel consumption and emission of electricity-generating assets. Hydropower plants and wind farms are also increasingly spending on implementing digital twin technology that Europe’s market's growth would reflect during the forecast period. The United Kingdom holds a very lucrative growth opportunity for European electrical digital twin service providers under this aspect.
| Regional Markets | CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 9.8% |
| China | 13% |
| India | 12.5% |
Due to the improving standard of living and increased spending on public infrastructures, China is a leading country in the adoption of electrical digital twin technologies. However, to fully utilize the benefits of electrical digital twins, specific fundamental issues must be resolved.
Increasing government spending for providing electricity in India can substantially expand in the coming days, which is likely to benefit the market growth. As a result, market players in India can encourage early digital adoption of electrical digital twins by utilities and power system operators.
With electricity supply now a basic necessity, utility companies of all regions are eager to adopt newly developed technologies for efficiently providing services. Most of the market participants are investing in research and development for coming up with sophisticated versions of the components of the digital twin. In this context, there has been the development of advanced electrical digital twin software by integrating new IoT, AI, and ML software.
The strategy of coming up with various technologies to establish smart grids across several domains could remain at the forefront of business expansion. In addition to modeling essential and complicated items, electrical digital twins should be able to represent relationships between them.
Recent Developments by the Electrical Digital Twin Service Providers
Many utilities and grid operators are yet to adopt a digital twin general electric approach for asset management and business and operation optimization. Building managers, designers, electrical engineers, equipment vendors and others must all contribute to building a conducive environment for its higher adoption.
To expedite the implementation of digital twin technologies, firms, governments, and institutions must strengthen their research and development domain. Also, It is possible to reduce the risks of deploying electrical digital twin technologies by establishing unambiguous proof.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2017 to 2022 |
| Market Analysis | USD million for Value and Units for Volume |
| Key Regions Covered | North America; Latin America; Europe; Middle East & Africa; East Asia; South Asia and Oceania |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, Spain, Italy, France, United Kingdom, Russia, China, India, Australia & New Zealand, GCC Countries, and South Africa |
| Key Segments Covered | By Twin Type, By Usage Type, By Deployment, By End Use and By Region |
| Key Companies Profiled | Aveva Group; General Electrical; Siemens AG; Emerson Electric Manufacturing Co.; Etteplan Engineering Co.; Wipro Ltd.; Microsoft Corporation; International Business Machines Corporation (IBM); Schneider Electric. Co. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The power generation and utility industries are the primary consumers of electrical digital twins.
The Asia Pacific is poised to stay attractive, projecting USD 22.5 billion by 2033.
The market is estimated to secure a valuation of USD 1,085.9 million in 2023.
The market is estimated to reach USD 3,342.7 million by 2033.
The power generation and utility sector holds high revenue potential in the electrical digital twin market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Twin Type 5.1. Digital Gas & Steam Power Plant 5.2. Digital Wind Farm 5.3. Digital Grid 5.4. Digital Hydropower Plant 5.5. Distribution Energy Resources 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Usage Type 6.1. Production Digital Twin 6.2. Process Digital Twin 6.3. System Digital Twin 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Deployment Type 7.1. Cloud 7.2. On-premises 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 8.1. Utilities 8.2. Grid Infrastructure Operators 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 9.1. Asset Performance Management 9.2. Business & Operations Optimization 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. South Asia 10.5. East Asia 10.6. Oceania 10.7. MEA 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. Key Countries Market Analysis 19. Market Structure Analysis 20. Competition Analysis 20.1. Aveva Group 20.2. General Electrical 20.3. Siemens 20.4. Emerson 20.5. Etteplan 20.6. Wipro 20.7. Microsoft 20.8. IBM 20.9. Schneider Electric 20.10. SAP 21. Assumptions & Acronyms Used 22. Research Methodology
Explore Industrial Automation Insights
View Reports
Electrical Digital Twin Market
