The global market for Power System Simulator is projected to reach US$1. 3 billion by 2025, driven by the growing focus shed on optimizing performance of electrical power systems at a time when energy efficiency is pinned to a sustainable future. In electric power generation facilities, significant power is lost on the grid as power repeatedly switches between wires, different voltages, and is converted from AC to DC and vice versa. Approximately 65% of energy consumed to generate electricity is wasted as conversion losses. Simulation helps analyze the power system and its behavior in hypothetical scenarios to identify opportunities for improvement in the real world. Power systems simulation programs use mathematical optimization techniques like quadratic programming, linear programming and mixed integer programming. Few of the elements for simulation include cable ampacity analysis; DC auxiliary power system analysis; Ground mat analysis; Harmonic analysis; Motor-starting analysis; Protective device coordination analysis; Short-circuit analysis; Stability analysis; Switching transients analysis. The basic premise of using simulation for a real power system is to observe and transform the system in a model, which involves formulating mathematical equations to describe a phenomenon. Power systems simulation programs use mathematical optimization techniques like quadratic programming, linear programming and mixed integer programming. An important aspect of power system modeling/ simulation is the proper selection of hypotheses and simplifying the way in which proper balance accuracy and computational cost are achieved. Major elements of electrical power systems for which modeling/simulation is undertaken include cable ampacity analysis, dc auxiliary power system analysis, ground mat analysis, harmonic analysis, motor-starting analysis, protective device coordination analysis, reliability analysis, short-circuit analysis, stability analysis, switching transients analysis.

Using simulators makes it possible to carry out testing of different system topologies in industrial power systems, commercial facilities, renewable energy systems, utility transmission systems, and railway power systems. Rising investments into power infrastructure development in developing economies and the growing efforts to cut down overall cost and time involved in projects are fueling market growth. Also fostering growth in the market is the increasing investments in smart power technologies and the constant rise in adoption of IoT (Internet of Things) and cloud platforms for simulation of electrical power systems. By type of module, load flow module segment represents the largest market. Load flow (power flow) analysis is the computational procedure used for studying normal steady state operation of power systems. The load flow analysis is mainly aimed at ascertaining the steady state operating characteristics of a power system with regard to a specific load and voltage conditions. Using load flow analysis, it is possible to analyze power flow and calculate voltage drops in a reliable and accurate manner. Load-flow calculation is among the most common power system tools for examination of disturbed and undisturbed networks. By using transmission line parameters, network topology, load location and compensation, transformer parameters and generator location and limits, load flow calculation offers voltage magnitudes as well as angle for various nodes and loading of network components such as transformers and cables. The information enables assessment of compliance to various operating conditions.