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Decentralization, digitization, and decarbonization are transforming the global power and utilities industry. Of these three trends, digitization is the core enabler for decarbonization and decentralization in the industry, disrupting how electricity is produced, stored, distributed, and consumed by end users. Digitization also opens numerous new growth opportunities, innovative business models, and unique service offerings for stakeholders in the power and utilities value chain.

This study analyzes the digital twin (DT) technology market in the power and utilities industry. A DT is a virtual copy of a physical entity. In the real world, the entity can vary from a simple component or an asset to an entire network of bigger and more complex systems. DTs allow companies to simulate their asset or system operations in real time under different scenarios without making changes in the real world. This helps them to make clear, informed decisions.

DTs can address the power and utilities industry challenges, such as integrating and streamlining distributed energy resources (DERs) into the electricity grid; enabling smooth functioning of generation, transmission, distribution, and storage assets; and enhancing customer experience in real time.