Global Electrical Digital Twin Market – Industry Trends and Forecast to 2029

Market Analysis and Size

The utilities and grid infrastructure operators across the globe are increasingly turning to digital technologies, such as electrical digital twins, to help streamline the integration of renewable energy technologies into their operational mix. Moreover, the electrical digital twin market has largely gained momentum owing to the increased acceptance of innovative technologies such as internet of things (IoT) and cloud for digital twin applications, as well as attractive digital twin prospects in industries such as aerospace and defense, healthcare, automotive, and transportation. These factors will favor the market growth during the forecast period.

Global Electrical Digital Twin Market was valued at USD 820.0 million in 2021 and is expected to reach USD 2103.94 million by 2029, registering a CAGR of 12.50% during the forecast period of 2022-2029. The market report curated by the Data Bridge Market Research team includes technological advancements, regulatory framework, PESTEL, porter's five forces analysis, industry standards-at a glance, raw material costs/ operational expenditure-overview, supply chain analysis, vendor selection criteria, pricing analysis, production analysis, and climate chain scenario.

Market Definition

The electrical digital twin allows utilities to streamline data maintenance and exchange. Data from various systems is synchronized and then standardized into a single multi-user database using standards-based adapters or interfaces. It is essentially a virtual representation of an object or system that spans its lifecycle, is updated using real-time data, and uses simulation, machine learning, and reasoning to aid decision-making.

Report Scope and Market Segmentation

Electrical Digital Twin Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• Integration of Variable Renewable Energy

Renewable energy technologies such as wind and solar PV are critical to decarbonizing the power sector while meeting rising energy demand. Governments around the world have established policies and financial incentives to support long-term decarbonization of the electricity grid through the use of renewable energy sources. According to the International Energy Agency, renewables will account for 29% of global electricity generation in 2020, up from 27% in 2019. Renewable electricity generation is expected to increase by 8% to 8,300 TWh in 2021. Even as the COVID-19 pandemic disrupted the power industry, global capital expenditure for renewables increased by around 7% in 2020 compared to 2019. As a result, the surge in renewable energy demands further requires necessitates the integration of variable renewable energy, which further boosts the demand for the electrical digital twin market.

• Increased Demand Across Healthcare Sector

The healthcare sector is largely implementing digital twins to improve and optimize their operations. A digital twin is useful for monitoring a patient's health, the impact of tablets, and other parameters. It is widely used in the healthcare industry because it is dynamic and receives real-time updates from physical assets, systems, or processes. It aids in the collection of continuous data from the individual regarding various vitals, medical condition, and response to drug, therapy, and surroundings. It also models many aspects of a hospital facility, such as the movement of doctors and patients and real-time location tracking of systems, assets, and people. These factors are propelling the market forward.

Furthermore, the decentralization of distributed energy resources using electrical digital twin is also anticipated to boost the market growth over the forecast period. In addition to this, the factors such as the increase in efficiency and optimization of operations of power sector coupled with the reduction in unplanned downtime and operation as well as the maintenance costs are also driving the global market.

Opportunities

• Energy 4.0's Emergence

The various electric utilities around the world have begun to incorporate the Industrial Internet of Things (IIoT), machine learning, artificial intelligence (AI), and cloud computing into their operations. The increased incorporation can be attributed for utilization across applications such as asset performance monitoring and management, smart metering, predictive and prescriptive maintenance, operations and automation of distributed energy resources (DER), and planning and analysis of fluctuations in decentralized renewable generation systems. Moreover, these technologies aid in the prevention of power mismanagement, inefficiency, and a lack of transparency, while also increasing the use of renewable energy sources. Utilities experts and technology vendors have begun to refer to this trend as Energy 4.0 in order to emphasize the magnitude of the digital transformation that these technologies will bring to the electrical power industry. Therefore, the emergence of energy 4.0 is estimated to further extend profitable opportunities to the market players in the forecast period of 2022 to 2029.

• Research and Development for Cutting-Edge Technologies

Additionally, the increased research and development (R&D) activities in the Internet of Things (IoT) and Industrial Internet of Things (IIoT) fields due to high demand for efficient and cost-effective power utility technologies are estimated to further provide growth opportunities for the electrical digital twin market.

Restraints/Challenges

• System Complexities

An electrical digital twin should be able to model simple and complex objects as well as their relationships by accurately capturing physical properties and simulating behaviors. The development of an electrical digital twin necessitates multiple inputs from operators such as facility managers, design engineers, electrical engineers, equipment vendors, and other parties, which adds to the deployment's complexity. Another difficulty stems from the complexity of the physical item to be replicated. Therefore, to maintain a digital twin, operators must establish the necessary technology infrastructure, such as robust Internet of Things (IoT) deployments and simulation platforms, as well as integrate data sources across departments and Internet of Things (IoT) contextual systems. These factors limit the widespread adoption of electrical digital twins by various power industry stakeholders, thus creating global market growth hindrances.

• Limited Support For Deployment from Stakeholders

The market has been witnessing resistance amongst power sector stakeholders regarding the adoption. The is due to the various perceived risks associated with the electrical digital twin, such as complexity of digital twin deployment, potential upfront costs, and uncertainty about successful outcomes following their integration. This factor is estimated to pose as a serious challenge to the growth of the electrical digital twin market.

This electrical digital twin market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the electrical digital twin market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Electrical Digital Twin Market

The recent outbreak of coronavirus had a negative impact on the electrical digital twin market, as it posed numerous challenges to the global power industry, including reduced and remote workforces, lower commercial energy demand, increased customer calls, and the use of digital and self-service channels during lockdowns. The decrease in energy demand posed a number of technical challenges, including voltage management, demand forecasting, and reactive level management to avoid hazards such as reactive shunts at distribution levels.

On the other hand, despite the pandemic posing numerous challenges to the global power industry, it has also accelerated market growth. The shift in working patterns caused by COVID-19-induced restrictions has boosted utilities' and grid operators' digital transformation efforts. Increasing investments in digital solutions, such as electrical digital twins, would allow businesses to maintain resilient supply chains, operations, and customer management while also reducing the load on their workforces. The use of digital twins enabled data flow, providing a complete picture of grid health and stability during the lockdowns. It also made distributed and mobile geospatial information available to the field workforce, allowing field engineers to find up-to-date information on the location and condition of nearby network assets. Moreover, it has also accelerated the digital transformation of utilities, creating numerous opportunities for emerging technologies such as electrical digital twins. The implementation of electrical digital twins improves workforce productivity and operational flexibility, which is likely to provide utilities with high growth opportunities.

Recent Development

• In December 2020, Emerson agreed to modernize and optimize its Magnolia power plant with Tennessee Valley Authority. Emerson will provide the Ovation automation system and software, as well as digital twin technologies, in order to enable advanced operations, cybersecurity, and digital twin-enabled training.
• In December 2020, ABB and Corys collaborated to develop digital twin modelling and simulation technology for the energy and process industries using the ABB Ability 800xA Simulator and the Indiss Plus process modelling simulator. The agreement reflects ABB and CORYS' strategic collaboration, with both companies committed to delivering advanced digital twin technology to help customers reduce capital and operational costs and risks.

Global Electrical Digital Twin Market Scope

The electrical digital twin market is segmented on the basis of type, twin type, deployment type, application and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Product Digital Twin
• Process Digital Twin
• System Digital Twin

Twin Type

• Digital Gas and Steam Power Plant
• Digital Wind Farm, Digital Grid
• Digital Hydropower Plant
• Distributed Energy Resources

Deployment Type

• Cloud
• On-premises

Application

• Asset Performance Management
• Business and Operations Optimization

End User

• Utilities
• Grid Infrastructure Operators

Electrical Digital Twin Market Regional Analysis/Insights

The electrical digital twin market is analyzed and market size insights and trends are provided by country, type, twin type, deployment type, application and end user as referenced above.

The countries covered in the electrical digital twin market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Poland, Norway, Finland, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Nigeria, Algeria, Angola, Ghana, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America dominates the electrical digital twin market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period. The increased growth of the market is attributed to the high economic growth and a large presence of vendors offering digital twins within the region in the forecast period of 2022 to 2029.

Asia-Pacific on the other hand, is estimated to show lucrative growth over the forecast period of 2022 to 2029 due to the dense population, rising per capita income as a result of large-scale industrialization and urbanization along with the increased adoption of internet of things (IoT) are driving the growth of the digital twin market.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Electrical Digital Twin Market Share Analysis

The electrical digital twin market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to electrical digital twin market.

Some of the major players operating in the electrical digital twin market are

• General Electric (U.S.)
• Siemens (Germany)
• ABB (Switzerland)
• Emerson Electric Co.  (U.S.)
• AVEVA Group plc (UK)
• Schneider Electric (France)
• Microsoft (U.S.)
• Wipro Limited (India)
• SAS Institute (U.S.)
• SAP (Germany)
• IBM (U.S.)
• ANSYS (U.S.),
• Oracle (U.S.)
• Robert Bosch GmbH (Germany)
• BENTLEY SYSTEMS, INCORPORATED (U.S.)
• Etteplan Oyj (Finland)
• Fujitsu (Japan)
• ACPD Services Ltd (UK)

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