Asset Twins for Utilities Market Report 2026

The asset twins for utilities market size has grown exponentially in recent years. It will grow from $2.23 billion in 2025 to $2.67 billion in 2026 at a compound annual growth rate (CAGR) of 20.1%. The growth in the historic period can be attributed to increasing investments in utility infrastructure modernization, expansion of smart grid deployments, rising demand for operational visibility, growing adoption of asset performance management tools, improvements in data integration technologies.

The asset twins for utilities market size is expected to see exponential growth in the next few years. It will grow to $5.61 billion in 2030 at a compound annual growth rate (CAGR) of 20.4%. The growth in the forecast period can be attributed to increasing focus on predictive maintenance strategies, rising investments in renewable energy integration, expansion of advanced grid analytics, growing emphasis on infrastructure resilience, increasing adoption of cloud-native utility platforms. Major trends in the forecast period include increasing adoption of predictive asset monitoring platforms, rising deployment of real-time utility digital twins, growing integration of iot sensor networks, expansion of cloud-based asset twin platforms, enhanced focus on grid reliability and resilience.

The rising adoption of the Internet of Things is expected to drive the growth of the asset twins for utilities market going forward. The Internet of Things (IoT) is a network of interconnected devices that automatically collect, share, and act on data over the internet. IoT adoption is increasing due to growing demand for intelligent, connected systems that enable automation, real-time monitoring, and enhanced efficiency. Asset twins for utilities support IoT by creating digital replicas of physical utility assets, enabling real-time monitoring, predictive maintenance, and optimized operations through connected sensors and data analytics. For example, in July 2025, the European Commission, a Belgium-based governing body, reported that in 2023, the number of installed IoT-connected devices reached around 40 billion and is projected to grow to 49 billion by 2026, representing an annual growth rate of 7%. Therefore, the growing adoption of the Internet of Things is propelling the growth of the asset twins for utilities market.

Companies operating in the asset twins for the utilities market are focusing on developing technological innovation, such as AI-driven survey-grade 3D reconstruction, to enable high-accuracy digital representations of utility assets, improve infrastructure visibility, and support data-driven asset management at scale. AI-driven survey-grade 3D reconstruction refers to the use of artificial intelligence and computer vision algorithms to capture and convert visual data into highly accurate, measurement-grade three-dimensional models that meet professional surveying and engineering standards. For example, in February 2024, Looq AI, a US-based technology company, launched an AI-enabled digital twin platform to enable real-time simulation and optimization of physical assets. That enables rapid, survey-grade 3D reconstruction and large-scale digitization of critical utility assets, allowing surveyors, engineers, contractors, and asset owners to generate geometrically precise, georeferenced digital twins efficiently and support accurate asset intelligence, infrastructure diagnosis, and long-term sustainability across utility networks.

In January 2026, Bentley Systems Incorporated, a US-based infrastructure engineering software company, acquired Talon Aerolytics Inc. and Pointivo Inc. for an undisclosed amount. Through this acquisition, Bentley Systems aims to strengthen its asset analytics capabilities by advancing AI-driven digital twin workflows, drone data processing, and infrastructure inspection technologies, supporting grid modernization, telecommunications expansion, and large-scale utility asset optimization. Talon Aerolytics Inc. is a US-based asset intelligence firm, and Pointivo Inc. is a US-based AI-focused company providing utility asset twins.

Major companies operating in the asset twins for utilities market are Microsoft Corporation, Siemens AG., IBM Corporation, Oracle Corporation, Schneider Electric SE., Honeywell International Inc., SAP SE, ABB Ltd., Emerson Electric Co., Xylem Inc., Dassault Systèmes SE, Autodesk Inc., PTC Inc., Bentley Systems Inc., Gradyent, Neara, Akselos SA, blueOASIS, Cintoo Cloud, General Electric Company, Maverick IQ, Twinify Technologies LLC, and Waltero.

Tariffs are influencing the asset twins for utilities market by increasing costs of imported smart sensors, communication modules, edge computing devices, and monitoring hardware used across electricity, water, and gas networks. Utilities in North America and Europe are most affected due to reliance on imported electronic components, while Asia-Pacific faces cost pressures on hardware manufacturing and deployment. These tariffs are raising capital expenditure for digital twin projects and slowing rollout timelines. However, they are also encouraging local hardware sourcing, regional software innovation, and greater emphasis on cloud-based and analytics-driven asset twin solutions.

The asset twins for utilities market research report is one of a series of new reports that provides asset twins for utilities market statistics, including asset twins for utilities industry global market size, regional shares, competitors with a asset twins for utilities market share, detailed asset twins for utilities market segments, market trends and opportunities, and any further data you may need to thrive in the asset twins for utilities industry. This asset twins for utilities 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.

Asset twins for utilities describe digital solutions that create virtual replicas of utility assets by integrating real-time operational data, historical records, and advanced analytical models. This approach allows ongoing monitoring, simulation, and performance evaluation to enhance asset reliability and operational effectiveness. The technology delivers predictive insights, reduces risk, and supports informed decision-making throughout utility infrastructure networks.

The major components of asset twins for utilities are software, hardware, and services. Software comprises digital solutions that generate virtual replicas of physical utility assets to monitor, analyze, and optimize their performance in real time. Deployment is offered via on-premises and cloud platforms and supports different utility sectors, including electricity, water, gas, renewable energy, and others. These solutions enable applications such as asset management, predictive maintenance, performance monitoring, risk management, and more, serving end users such as public utilities, private utilities, municipal utilities, and other stakeholders.

The asset twins for utilities market consists of revenues earned by entities by providing services such as simulation and scenario analysis, system implementation and deployment, platform customization, cybersecurity and data protection, maintenance and technical support services, and consulting and training services. The market value includes the value of related goods sold by the service provider or included within the service offering. The asset twins for utilities market includes sales of digital meters, smart sensors, transformers, circuit breakers, switchgears, capacitors, power cables, distribution panels, substations, voltage regulators, energy storage units, control panels, protective relays, utility poles, and monitoring devices. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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