According to our latest study on "Power System Analysis Software Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Deployment Model, Application, Voltage Type, and Industry Vertical," the market is projected to grow from US$ 7,844.15 million in 2022 to US$ 15,375.95 million by 2028; it is estimated to record a CAGR of 12.1% from 2023 to 2028.
Rising Demand for Electricity Fuels Power System Analysis Software Market Growth
There is growing demand for electricity globally. According to the International Energy Agency (IEA), the demand for electricity rose by 5% in 2021 compared to 2020. In addition, it is estimated that renewable sources such as wind power, solar power, and hydropower will generate 35% of global power by 2025. Moreover, the rise in industrialization is fueling the demand for electricity. For instance, as stated in Economic Times in October 2022, the demand for electricity is rising at a 3% annual increase in India. Thus, the increasing demand for electricity need constant, and efficient functioning of renewable or non-renewable power plants with the help of power system analysis software, which boost the demand for power system analysis software for better monitoring and management.
Power system analysis software plays an important role in effective electricity generation, transmission, and distribution. It ensures the safe, reliable, and efficient working of a power system. Software analysis helps design, simulate, monitor, optimize, control, and automate power systems. Hence, the adoption of such software in the power industry is increasing. Many industry players are engaged in providing power system analysis software. For instance, Siemens provides PSS power system simulation and modeling software, which helps the grid operators simulate, analyze, and optimize the power grids. Thus, the rising demand for electricity is contributing to the power system analysis software market growth.
The COVID-19 crisis drastically affected huge markets, such as India, Japan, and China, in the region. Shutdown of manufacturing facilities and supply chain disruptions were the primary implications of the pandemic, which greatly impacted several industries. This impact of the COVID-19 pandemic pushed industries to adopt digital solutions to simplify their processes. The pandemic has driven a dramatic adoption of cloud-based technologies, positively impacting the power system analysis software market. Furthermore, the pandemic accelerated the power system analysis software's growth due to factors such as increased demand for electricity. During the pandemic, many hospitals and healthcare centers were established to manage the huge number of patients across the globe. These establishments required electric supplies, which fueled the demand for power system analysis software from the healthcare industry during the pandemic.
Key Findings of Study:
The power system analysis software market is segmented based on deployment model, application, voltage type, industry verticals, and geography. Based on deployment type, the power system analysis software market is bifurcated into on-premise and cloud. Based on application, the power system analysis software market is segmented into electric power generation, electric power distribution, and electric power transmission. Based on voltage, the power system analysis software market is segmented into low voltage, medium voltage, and high voltage. In terms of industry verticals, the power system analysis software market is segmented into oil and gas, manufacturing, transportation, mining, renewables, non-renewables, and others. By geography, the power system analysis software market is segmented into North America, Europe, Asia Pacific, the Middle East, South America, and Africa.
Based on deployment model, the power system analysis software market is bifurcated into on-premise and cloud. In 2022, the on-premise segment dominated the power system analysis software market. On-premise software offers power plants and power distributors increased data protection, along with the feasibility of monitoring the whole process within the power system's premises. With on-premise software, a power plant can efficiently leverage the existing hardware by providing a cloud-like experience to its employees. However, implementing on-premise software incurs a high cost of installing, handling, updating, and maintaining complete systems that need higher performance than cloud computing environments. The on-premises power system analysis software deployment is mainly preferred by large and well-established companies that can afford huge capital to maintain the system. The on-premises power system analysis software deployment requires software licenses, integration capabilities, in-house server hardware, and IT technicians to operate, support, and manage complex issues that might arise during the software operations.
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