The global electrical digital twin market size was valued at $1267.8 million in 2020, and is expected o reach $4161.8 million by 2030, registering a CAGR of 12.7% from 2021 to 2030.
Electrical digital twin enables utilities to simplify the data maintenance and data exchange process. A digital twin is basically a virtual representation of an object or system that spans its lifecycle, is updated from real-time data, and also uses simulation, machine learning and reasoning to help in decision-making.
The rising demand in healthcare sector to cover real time aspects, and rising use of digital twin for predictive maintenance to avoid unexpected interruption are expected to fuel the electrical digital twin market growth. Moreover, the growing adoption of advanced technologies for implementation of digital twin applications is also expected to boost the market during the forecast period.
In the coming years, the electrical digital twin industry is expected to generate cash output with the investments in development, research, and tests. However, the electrical digital twin market is nearing the maturing stage, and is expected to generate modest revenue for key players in the coming years.
Factors such as rising demand in healthcare sector to cover real-time aspects, and rising use of digital twin for predictive maintenance to avoid unexpected interruption are expected to drive the growth of the market in the future. However, higher system complexities act as major barriers and hamper the market growth. Furthermore, the growing adoption of advanced technologies for implementation of digital twin applications are expected to offer lucrative opportunities for the electrical digital twin market players.
The electrical digital twin market share is analyzed on the basis of type, application, end user and region. By type, the market is divided into product digital twin, process digital twin, and system digital twin. By application, it is classified into asset performance management, and business & operations optimization. By end user, it is categorized into utilities, and grid infrastructure operators. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA along with their prominent countries.
COVID-19 Impact Analysis
The ongoing spread of COVID-19 has become one of the biggest threats to the global economy and is causing widespread concerns and economic hardship for consumers, businesses, and communities across the globe. The “new normal” that includes social distancing and working from home has created challenges with daily activities, regular work, needs, and supplies, causing delayed initiatives and missed opportunities.
System Digital Twin segment generated the highest revenue in 2020.
The COVID-19 pandemic has impacted the society and overall economy across the globe. The impact of this outbreak increased day-by-day that affected the supply chain. This has created uncertainty in the stock market; decreased business confidence, slowed supply chain, and increased panic among customers. European countries under lockdown have suffered a major loss of business and revenue due to shutdown of manufacturing units in the region. Operations of production and manufacturing industries have been heavily impacted by the outbreak of COVID-19, which led to decrease in growth of the electrical digital twin market in 2020.
According to the electrical digital twin market trends, the COVID-19 pandemic has severely impacted the global manufacturing and industrial sectors as production facilities have stalled, which, in turn, led to significant demand in industries.
Asset Performance Management segment generated the highest revenue in 2020.
Emergence of COVID-19 declined the growth of the electrical digital twin market revenue in 2020, and is estimated to witness slow growth till the end of 2021. Implementation of partial or complete lockdown across various countries globally is the prime reason for decline in growth rate of the market. As industries were temporarily shut, it reduced the need for maintenance from various industries.
Top Impacting Factors
The significant factors that impact the global electrical digital twin market include rising demand in healthcare sector to cover real time aspects, and rising use of digital twin for predictive maintenance to avoid unexpected interruption. In addition, higher system complexities is the key hurdle for the market growth. Moreover, the growing adoption of advanced technologies for implementation of digital twin applications has affected the market growth to a certain extent. Each of these factors is anticipated to have a definite impact on the global electrical digital twin market during the forecast period. These factors are expected to offer lucrative opportunities for the market growth in the coming years.
By End User
Utilities segment generated the highest revenue in 2020.
Rising demand in healthcare sector to cover real-time aspects
Many industry verticals including healthcare sector, are implementing digital twin to improve and optimize their operations. Digital Twin embraces four technologies such as IoT, Extended Reality (XR), Cloud, and Artificial Intelligence (AI) to create visual representation, capture, store, analyze data and provide valuable insights. Moreover, it is widely adopted in healthcare sector as it is dynamic and get real-time updates from physical asset, system, or process. Digital twin helps to capture continuous data from the individual about various vitals, medical condition, and response to the drug, therapy, and surrounding. Also, it models many dimensions of hospital facility including the movement of doctors, patients and more with real-time location tracking of systems, assets, and people. These factors are driving the growth of the market.
Higher System complexities
The development of an electrical digital twin requires multiple inputs from operators such as facility managers, design engineers, electrical engineers, and other parties, it adds complexity to the deployment. Also, obtaining the asset data pose a challenge. Another challenge is the complexity of the physical item that is to be replicated for instance, processes such as customer relationship management, service delivery funnels, and more. In addition, any modification made to the physical system requires similar changes to its digital model and algorithms and the risk of errors may escalate with the increasing levels of complexity. Moreover, it includes software, hardware and process, which increases system complexity. These factors are the key hurdle for the market growth.
Asia-Pacific would exhibit the highest CAGR of 15.4% during 2020-2030
The key players profiled in the electrical digital twin market, such as ABB GROUP, AVEVA, EMERSON, GENERAL ELECTRIC, IBM CORPORATION, MICROSOFT CORPORATION, ORACLE CORPORATION, SAP, SCHNEIDER ELECTRIC, SIEMENS AG are provided in this report. Market players have adopted various strategies such as product launches, and acquisitions, to expand their foothold in the electrical digital twin market.
Key Benefits for Stakeholders
- This study comprises analytical depiction of the electrical digital twin market size, opportunity along with current trends and future estimations to depict imminent investment pockets.
- The overall electrical digital twin market analysis is determined to understand profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The electrical digital twin market outlook forecast is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates potency of buyers and the market share of key vendors.
- The report includes the trends and the electrical digital twin market share of key vendors.
Electrical Digital Twin Market Report Highlights
By END USER
Key Market Players
EMERSON, SCHNEIDER ELECTRIC, IBM CORPORATION, ABB GROUP, ORACLE CORPORATION, MICROSOFT CORPORATION, AVEVA, SAP, GENERAL ELECTRIC, SIEMENS AG
The electrical digital twin market is highly competitive, owing to strong presence of existing vendors. Electrical digital twin technology vendors who have access to extensive technical and financial resources, are anticipated to gain a competitive edge over their rivals as they have the capacity to cater to the global market requirements. The competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by key vendors.
The electrical digital twin market exhibits high growth potential in automobile, healthcare, utility, commercial and industrial sectors. The current business scenario is witnessing an increase in demand for energy, particularly in developing regions such as China and India, owing to surge in population and rise in demand for energy. Companies in this industry are adopting various innovative techniques, such as mergers and acquisitions to strengthen their business position in the competitive matrix.
The market growth is supplemented by proactive industrialization efforts and surge in manufacturing output, owing to technological advancements. These factors have allowed emerging markets to evolve as largest markets during the forecast period both from the demand as well as the supply side. Public & private organizations have substantially invested in R&D activities and fabrication techniques to develop cost-effective electrical digital twins. North America is the major revenue contributor to the global market, followed by Europe. The market growth in Asia-Pacific and Europe is expected to significantly increase during the forecast period. The electrical digital twin market provides numerous growth opportunities to the market players such as General Electric, ABB, Emerson, Siemens, AVEVA, Schneider, and others. These companies are engaged in the process of product innovation, collaboration, and acquisition to expand their services across various regions.