The lack of innovation in electric power generation that could have led to its abundance and the need to efficiently manage electric power is emerging as a priority for future generations. Power system analysis software enables utility providers to minimize the loss of energy during electricity generation and distribution, and in turn optimize their efficiency. With rapid urbanization across developing nations as well as emerging economies, the demand for power system analysis software is surging. According to a recent study by Transparency Market Research (TMR), the global market for power system analysis software stood at a valuation of US$3.5 bn in 2015. Rising at a robust CAGR of 12.6% during the forecast period 2016–2024, the value of the global market is estimated to reach US$10.2 bn by 2024.
Which are the factors driving the global power system analysis software market?
Rising level of investments on smart grid systems is the most prominent factor that is driving the global market for power system analysis software. The TMR report also credits the advancements in Big Data analytics and the Internet of Things (IoT) for the expanding demand for these software during the forecast period. Since these software help conserve energy in the long term, several governments across the globe are favoring the deployment by regulating encouraging long-term policies, which is another factor driving the growth rate.
Which key regions should the players focus on?
Geographically, North America contributes to the most significant market for power system analysis software. According to the TMR report, the region accounted for nearly 33.0% of the revenue in the global market in 2015. However, rapid urbanization in several emerging economies in Asia Pacific is expected to make the region the most lucrative market soon. Countries such as China, India, Australia, Japan, and South Korea are among the prominent country-wide markets with vast populations and high unmet demand for power.
Press Release: http://www.transparencymarketresearch.com/pressrelease/power-system-analysis-software-market.htm
Which product segment is most promising?
The global market for power system analysis software can be segmented on the basis of implementation model and application. By implementation model, the market is segmented into on-premise and cloud-based software. The TMR report finds that the on-premise software segment accounted for 82.0% of the revenue in the overall market in 2015 and will continue to surge at a strong CAGR of 12.3% during the forecast period 2016–2024. However, cloud-based software are also expected to gain demand steadily due to the widespread outreach of the Internet. By application, the global power system analysis software market is classified into distribution and transmission. In 2015, the distribution segment accounted for 62.0% of the overall revenue and is expected to remain most in demand in the near future.
Who are the prominent players?
The global market for power system analysis software is highly fragmented with the presence of several domestic players. However, a few companies such as General Electric Company, Siemens AG, ETAP, and ABB Ltd have established themselves via mergers and acquisitions. For example, General Electric Company acquired Alstom in 2016 and has been investing heavily in India to build smart cities, process industries, mission critical facilities, and government operations.