Global electrical digital twin market is likely to exhibit a promising growth curve as far as the short-term outlook is considered. The report will uncover the insights into how the market growth will unfold in the next few years.
Need for Decentralization of DERs, and Renewable Energy Integration to Augur Well for Electrical Digital Twin Market
Digital twin technology has gained high traction and is one of the rapidly evolving concepts of industry 4.0. Several organizations that implement Internet of Things (IoT) projects use electrical digital twins. Advancements of technologies such as IoT and cloud along with the objective to reduce product development time and costs are few of the aspects influencing the electrical digital twin market. Other perceived benefits such as accelerated production time and risk assessment, predictive maintenance, enhanced team collaboration, real-time monitoring and improved financial decision making remain instrumental in driving the growth electrical digital twin market. On the back of growing concerns regarding carbon emissions, the need to harness energy sources with low carbon quotient has become imperative. Post the Paris Agreement carried out in 2015, both emerging and developed economies are putting efforts to ensure a carbon neutral environment by curbing greenhouse gas emissions. The goal to achieve a complete carbon neutral economy can be accomplished by increasing the deployment and adoption of renewable sources of energy.
Various renewable energy sources and technologies such as solar photovoltaics and wind can play a crucial role in achieving decarbonization of the energy and power sector alongside meeting the growing energy demand. In wake of this scenario, government authorities are extending their support to promote use of renewable energy systems by providing incentives. This has resulted in an increase in the use of renewable sources for electricity generation. For instance, according to International Energy Agency (IEA), renewable energy sources in electricity generation accounted for about 29% globally in 2020, a 2% increase as compared to the previous year. In addition, electricity generation using renewable sources is expected to increase by about 8% or more in the coming years.
In this backdrop, grid and utilities infrastructure operators are focusing on adopting digital technologies such as electrical digital twins to streamline the complete integration of renewable energy to their current operational mix. Moreover, electrical digital twins enable operators in stimulating different operational scenarios that can be used efficient, secure, and reliable maintenance and planning of electrical systems. Often, decentralization of distributed energy resource (DERs) results in an increase in complexities in grid maintenance and operations. That said, grid and utility operators rely on more efficient and less time consuming solutions such as electrical digital twins to automate, control, operate, and monitor power networks. By using an electrical digital twin, the complexity quotient in grid modernization can be reduced significantly, especially in DER integration. This further translates in a major improvement in customer response time, enhances operational efficiency and facilitates a cost efficient investment. Thus, use of digital twins in the renewable energy integration and DER decentralization is expected to bolster the growth of the electrical digital twin market worldwide.
System Digital Twins to Witness Increased Adoption in Electrical Digital Twin Market
The demand and use of system digital twin has been on an upswing across a several industrial applications since past few years. This scenario is expected to maintain status quo going forward on account of rising need for optimization at the network level. Since system digital twin is a combination of processes that carry out network wide functions, it is widely used in stimulation of networks and systems such as power plants, substations, distributed energy systems and wind farms. Using actual operational data, it provides complete visibility on connected view of end-to-end network of different assets. In this backdrop, the rising adoption of system digital twin is expected to largely contribute towards revenue growth of the electrical digital twin market.
North America Poised to Cement Dominance in Electrical Digital Twin Market
Electricity being a basic necessity, all utility companies across regions have been investing in advanced technologies for enhancing their operational efficiencies. This has paved new potential pathways of growth of the electrical digital twin market worldwide. Developed nations across North America are expected to account for significant revenue share in the electrical digital twin market. Availability of resources and funs being on the major criteria for the adoption of integration of electrical digital twin technology, the North America region has emerged as an attractive revenue pocket. Moreover, the robust infrastructure in the region plays a vital role in leveraging the benefits of electrical digital twins.
Countries such as the United States have invested in upgrading aging power generation infrastructure and distribution network. In addition, owing to increasing energy demand coupled with increasing reliance on renewable energy the role of electrical digital twins has become even more crucial. Integration of renewable energy with existing electric power systems has been increasing rapidly. For instance, according to National Renewable Energy Laboratory (NREL), the interconnection of renewable energy and electrical systems account for more than 20% of the total electricity production in the United States alone. This factor coupled with other macroeconomic aspects such as stable economic growth and rising government spending on energy and power continue to influence the growth of electrical digital twin market in the region.
Electrical Digital Twin Market: Competitive Scenario
Strategic collaborations, agreements, partnerships, and alliances by key players have been witnessed in the electrical digital twin market. For instance, in 2021, Threedy, and Siemens entered a collaboration to develop visual computing platform. As per the collaboration, visualization service of Threedy is expected to offer access to users to the visual electrical digital twin information. Same year in August, GE upgraded Proficy CSense, its on-premises analytics software. Proficy uses machine learning and artificial intelligence technologies alongside electrical digital twins to assess root causes of problems, forecast future performance and carry out automated actions. In December 2020, Corys, and ABB partnered to developed advanced electrical digital twin simulation and modelling technology by leveraging ABB’s Ability 800xA and Indiss Plus modelling simulator for process and energy industry.
Few of the major players in the electrical digital twin market include General Electric, ACPD Services, Siemens, Schneider Electric, ABB, Etteplan, Microsoft, Emerson, Wipro, and AVEVA Group.
The Global Electrical Digital Twin Market is Segmented as Below:
Key Elements Included In The Study: Global Electrical Digital Twin Market
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