United States Power System Simulation Market 2025 | Growth Drivers, Trends & Market Forecast, Competitive Landscape & Investment Opportunities

Market Size and Growth

The Global Power System Simulation Market is expected to grow at a high CAGR during the forecasting period (2024-2031).

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Key Development:

United States: Recent Power‐System Simulation / Grid Modeling Developments

✅ In November 2025, simulation‐software vendor DIgSILENT GmbH released the preview version of PowerFactory 2026, signaling upcoming enhanced capabilities for power flow, stability, and grid‐integration studies useful for utilities and planners dealing with renewables and dynamic grid conditions.

✅ In November 2025, the widely used PowerWorld Simulator version 24 received multiple patches (on Nov 6, 7, 11, 13, 17), reflecting active maintenance and continuous support valuable for ensuring simulation accuracy and reliability for large-format grids including full‐topology cases.

✅ In November 2025, the team behind RE‐INTEGRATE presented findings showing the platform can simulate large‐scale modern grids with power‐electronic devices at lower computational cost, enhancing reliability analysis and planning for U.S. utilities.

✅ In September 2025, the Oak Ridge National Laboratory (ORNL) unveiled a new high‐fidelity simulation platform called RE‐INTEGRATE enabling faster, large‐scale Electromagnetic Transient (EMT) simulation for grids with many power‐electronics components. The tool promises more accurate simulation of fault scenarios, grid behavior under stress, and cascading blackout risks.

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Japan: Recent Power‐System Simulation / Grid Stability Developments

✅ In November 2025, a new academic framework titled Systemic Smart Grid Model was proposed, offering integrated simulation of a "smart grid" combining generation, demand-side management, market operations, and network topology changes enabling flexible scenario planning for modern grids.

✅ In Late 2025, researchers published a study on Hybrid‐Compatible Grid‐Forming Inverters (HC‐GFIs) showing through dynamic simulation (on IEEE‐standard test systems) that HC‐GFIs can significantly improve frequency stability, transient fault recovery, and voltage regulation in low‐inertia and mixed-generation grids (renewables + conventional).

✅ In April 2025, Hitachi Industrial Equipment Systems Co., Ltd. (HIES) began operation of a next‐generation Grid Forming Inverter (GFM) system at its Narashino Works facility a development that helps simulate and provide the stabilizing effects of traditional rotating generators, supporting frequency and voltage stability in grids with high renewable penetration.

✅ In 2025, the nationwide grid‐statistics report from JEPIC (Japan Electric Power Information Center) updated interconnection topology and transmission network data supporting improved simulation, modeling, and planning by utilities and developers across Japan's interconnected 50 Hz / 60 Hz grid networks.

Key Players:

=> ABB, Schneider Electric, Eaton, Siemens, GE, and ETAP.

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Key Segments:

By Module

Load Flow analysis leads with 35% share, driven by demand for efficient power distribution, grid optimization, and reliability studies in power generation and industrial facilities. Short Circuit modules account for 25%, supported by safety assessments and protection coordination requirements. Device Coordination Selectivity holds 20%, reflecting the need for proper relay coordination and fault mitigation in complex electrical networks. Arc Flash modules represent 20%, fueled by growing emphasis on workplace safety and compliance with electrical safety standards across industries.

By Offering

Software dominates with 45% share, driven by increasing adoption of simulation, monitoring, and analytics tools for power system management. Hardware accounts for 25%, supported by deployment of smart sensors, relays, and monitoring devices integrated with software solutions. Services hold 30%, reflecting demand for consulting, implementation, maintenance, and managed solutions for efficient power system operations.

By End-User

Power generation leads with 40% share, driven by thermal, hydro, nuclear, and renewable power plants requiring system analysis for operational efficiency and reliability. Industrial end-users account for 35%, supported by manufacturing, mining, and heavy industry facilities deploying power system analysis for energy efficiency and safety. Other end-users hold 25%, including commercial, infrastructure, and specialized applications where power system reliability is critical.

By Region

North America - 30% Share
North America leads with 30%, driven by smart grid initiatives, renewable energy integration, and industrial modernization in the U.S. and Canada.

Europe - 25% Share
Europe holds 25%, supported by grid modernization, regulatory compliance, and industrial adoption in Germany, France, U.K., Italy, Spain, and surrounding countries.

Asia Pacific - 30% Share
Asia Pacific accounts for 30%, fueled by rapid industrialization, growing power generation capacity, and renewable energy projects in China, India, Japan, South Korea, and Southeast Asia.

Latin America - 7% Share
Latin America holds 7%, driven by power system modernization, industrial development, and energy efficiency initiatives in Brazil, Mexico, and neighboring countries.

Middle East & Africa - 8% Share
The Middle East & Africa represent 8%, supported by investments in energy infrastructure, industrial projects, and grid reliability in GCC countries, South Africa, and other emerging markets.

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