File Photo
FMI predicts the global electrical digital twin market valuation to grow from US$ 1,085.9 million in 2023 to US$ 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.
What are the Key Trends & Opportunities for the Electrical Digital Twin Service Providers?
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 US$ 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.
What are the Restrictions Faced by Electrical Digital Twin Market Players?
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.
Advancement towards Smart Grids is the Key Strategy Adopted by Leading Market Players
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
Digital twin modeling and simulation technology was developed by ABB and Corys in 2020 using ABB Ability 800xA Simulator and Indices Plus process modeling.
A visual computing platform was designed in 2022 by a collaboration of Siemens and Threedy to provide access to visual digital twin information.
In 2021 the on-premises analytics software of General Electric was upgraded which can now utilize artificial intelligence and machine learning technologies. AI and ML can be used for the quick identification of problems and suggest remedies fast for better performance.
How can Manufacturers Scale their Businesses in the Global Electrical Digital Twin Market?
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.
These insights are based on a report on
Electrical Digital Twin Market
by Future Market Insights
Source: Email/GFMM
Comment Now