When we have a sense of failure in dreams this may be highlighting depression or spiritual frustration. Such a feeling may indicate, before we are consciously aware of it, that we have not come up to our own expectations and feel we have let others down.
Psychological / emotional perspective: The fear of failure is almost universally present in one form or another.
To dream of failure at least gives us the opportunity to face that fear in a manageable fashion.
Material aspects: Personal failure in a dream indicates a degree of competitiveness and will also highlight different ways of operating in everyday life. Failure in a dream is not necessarily personal. If, for instance, lights fail or refuse to work, we need to be aware of a lack of energy, power or enthusiasm around us.