Power System Simulation Software Market Report 2024

The power system simulation software market size has grown strongly in recent years. It will grow from $1.21 billion in 2023 to $1.31 billion in 2024 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historical period can be attributed to increasing power demand, government regulations and standards, the proliferation of renewable energy sources, adoption of international standards and interoperability, the emphasis on energy efficiency, and the aging of existing power infrastructure.

The power system simulation software market size is expected to see strong growth in the next few years. It will grow to $1.84 billion in 2028 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to the expansion of electric vehicles and their integration into the grid, heightened emphasis on grid resilience and reliability, evolving energy policies and regulatory frameworks, adoption of digital twin technologies for virtual modeling and simulation, and the rise of decentralized energy systems. Major trends anticipated in this period include advancements in computational power, modeling techniques, and simulation algorithms, progress in communication technologies, the widespread adoption of data analytics and big data technologies, and the increasing prominence of microgrids as decentralized energy solutions.

The power system simulation software market is poised for growth driven by increasing demand for electricity. This demand surge is attributed to rising industrialization, urbanization, and the expanding use of electric-powered devices and vehicles. Power system simulation software plays a crucial role in meeting this escalating demand by optimizing grid performance, integrating renewable energy sources, and improving grid reliability efficiently and sustainably. For instance, the International Energy Agency (IEA) reported in January 2024 that global electricity demand grew by 2.2% in 2023 and is projected to increase at an average annual rate of 3.4% through 2026. Therefore, the growing need for electricity is a key driver fueling the expansion of the power system simulation software market.

Leading companies in this market are focusing on developing advanced technologies such as droop simulation technology to enhance their competitive position. Droop simulation technology involves computational methods and models used in power system simulation software to simulate and analyze droop control strategies. These strategies are crucial for regulating load sharing and maintaining stability in interconnected power systems. For example, in April 2024, Flextronics International Ltd., based in Singapore, launched version 4.5 of their Flex Power Designer (FPD) software. This updated version includes enhancements such as a new 3D visualization tool for better understanding power system physical layouts and performance, support for Xilinx Versal Adaptive Compute Acceleration Platform (ACAP) devices, and features for optimizing bus voltage to improve system efficiency. Additionally, the software update introduces more accurate thermal models for specific power modules, enabling precise thermal simulations.

In May 2023, Powersys, a French software company, acquired SIMBA to further its mission of accelerating progress in electrification industries. This acquisition strengthens Powersys' ability to deliver innovative solutions that reduce time-to-market, enhance design robustness, and promote sustainability in power system simulation software.

Major companies operating in the power system simulation software market are Siemens AG, General Electric Company, Schneider Electric SE, ABB Ltd, Eaton Corporation plc, ANSYS Inc., Bentley Systems, ESI Group, Operation Technology Inc., OPAL-RT Technologies Inc, GSE Systems Inc., Cyme International, Modelon Inc., Neplan AG, DigSILENT, RTDS Technologies, PowerGEM LLC, EMTP-RV, PowerWorld Corporation, SKM Systems Analysis, Nayak Power Systems Pvt. Ltd., Omicron Lab.

North America was the largest region in the power system simulation software market in 2023. The regions covered in the power system simulation software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the power system simulation software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Power system simulation software is specialized software used for modeling, analyzing, and optimizing electrical power systems. It enables engineers and researchers to simulate different scenarios, predict system behavior, assess reliability, optimize performance, and plan for future expansions or modifications. These tools are crucial for designing, operating, and maintaining efficient and reliable power grids, ensuring stability and resilience in electricity distribution.

The main categories of power system simulation software include transmission, distribution, and other specialized types. Key modules within these software packages include power flow analysis, short circuit analysis, device coordination, arc flash analysis, dynamic state studies, renewable energy integration, energy storage system modeling, and others. These software solutions can be deployed either on the cloud or on-premise, catering to various industries such as industrial manufacturing, commercial enterprises, and public utilities.

The power system simulation software market research report is one of a series of new reports that provides power system simulation software market statistics, including power system simulation software industry global market size, regional shares, competitors with a power system simulation software market share, detailed power system simulation software market segments, market trends and opportunities, and any further data you may need to thrive in the power system simulation software industry. This power system simulation software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The power system simulation software market includes revenues earned by entities by providing services such as custom solutions, assisting utilities and industries with inefficient grid planning, analysis, and operational optimization. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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