Electrical Digital Twin Market: Current Analysis and Forecast (2023-2030)

The electrical digital twin market refers to the concept of creating virtual replicas (digital twins) of electrical systems or assets. These digital twins simulate real-world electrical components and systems, allowing for real-time monitoring, analysis, and predictive maintenance. This market is driven by the increasing demand from sectors like healthcare, where real-time monitoring is crucial, as well as industries seeking to use digital twins to predict and prevent unexpected breakdowns.

The Electrical Digital Twin Market is expected to grow at a strong CAGR of 38.0% during the forecast period owing to the rising advancements in the 5G technology globally. MorLeover, the adoption of advanced technologies to implement these digital twin solutions further contributes to the growth of this market. Moreover, various collaborations, innovations and investments by major key players is further fueling the demand of this market. For instance, Mercedes-Benz Group AG collaborates with NavVis, a leading provider of digital factory solutions and reality capture, to further advance the digitization of the production network and enable global interaction in the best possible conditions.

Based on the deployment type, the market is bifurcated into on-premise, and cloud. The cloud segment is expected to witness significant growth during the forecast period. The cloud-based services sector is anticipated to grow significantly during the forecast period. It offers a scalable infrastructure that can handle the large volumes of data generated by digital twins as electrical digital twins rely on vast amounts of data collected from sensors, devices, and other sources. Therefore, secure and reliable solutions by this segment are driving the demand of the electrical digital twin market.

Based on the applications, the market is segmented into predictive maintenance, product design & development, business optimization, inventory management, and performance monitoring. The predictive maintenance segment is expected to have a significant impact on the market. This is due to the shift from reactive or preventive maintenance methods to more proactive and cost-effective solutions. By utilizing electrical digital twins, businesses can improve their maintenance practices, increase asset reliability, and minimize downtime, leading to substantial cost savings and improved operations.

Based on the end-users, the market is segmented into aerospace & defense, manufacturing, energy & utilities, real estate, IT & telecom and others. Among these, the energy & utilities segment hold a significant share in the market this is due to the increasing demand for efficient and reliable energy systems, as well as the growing focus on sustainability and reducing carbon emissions as digital twin technology allows energy companies to create virtual replicas of their power generation, transmission, and distribution systems. By doing so, they can simulate and optimize the performance of their systems, identify potential issues before they occur, and reduce downtime.

For a better understanding of the market adoption of the electrical digital twins, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Korea, and Rest of Asia-Pacific), Rest of World. North America's is anticipated to hold the largest share of the market over the forecasted period. North America is known for its advanced manufacturing industries, including aerospace, automotive, and electronics. Therefore the region is focusing on the adoption of digital twin technology which can help companies to optimize operations, detect anomalies, and make informed decisions, leading to cost savings and increased productivity. The adoption and integration of advanced digital technologies like (fifth-generation (5G) mobile networks, the Internet of Things (IoT), cloud computing, artificial intelligence, big data analysis, robotics, etc.) are driving the market in North America. For instance, on 08 June 2023, Matterport, a publicly traded company on the NASDAQ, has recently expanded its presence in Latin America by partnering with CompuSoluciones, a prominent value-added distributor of technology in the region. As part of this partnership, CompuSoluciones will serve as a key distributor of Matterport's digital twin technologies in Mexico and Colombia.

Some of the major players operating in the market include: Amazon Web Services, Inc.; Oracle; IBM; Microsoft; Siemens; Cisco Systems, Inc.; Honeywell International Inc.; Dassault Systemes; GE DIGITAL; Bentley Systems, Incorporated.