Artificial Intelligence (AI) In Energy And Power Market Size, Share, Opportunities, And Trends By Technology (Machine Learning, Natural Language Processing, Computer Vision, Others), By Application (Demand Forecasting, Energy Production And Distribution Optimization, Energy Management, Smart Grids, Smart Meter, Others), By End-User (Commercial And Industrial, Residential), And By Geography - Forecasts From 2024 To 2029
- Published : Sep 2024
- Report Code : KSI061614652
- Pages : 152
Artificial Intelligence (AI) in the energy and power market is projected to witness a CAGR of 24.54% during the forecast period to reach US$17.745 billion by 2029, up from US$5.923 billion in 2024.
Artificial intelligence (AI) has been increasingly becoming a significant tool in the energy and power markets. It can automate and improve energy-related processes and provide more efficient operation at lower cost by providing better energy management. Additionally, it reduces adverse environmental impacts and fully initiates better enhancements. In energy sectors, AI is used mainly for demand forecasting.
Moreover, by analyzing the wealth of data available on consumer behavior, weather patterns, and other variables, AI systems can give a much more accurate idea of how energy is used, allowing utility companies to manage their resources better. AI is used to create more cost-effective energy production and distribution systems. For example, machine learning algorithms can analyze solar or wind energy systems data to detect patterns and predict how much power will be generated.
Additionally, AI-powered systems can monitor and analyze energy-consuming processes in buildings, identify where it is being wasted or used inefficiently, and how they can be replaced with an energy-saving solution. This has the potential to reduce greenhouse gas emissions as well as achieve capital cost savings for building owners and tenants. However, insufficient or outdated data could result in wrong AI models, leading to poor operationalization, financial loss, and safety danger. Hence, the system must be effectively dealt with for the market to grow without any hindrances.
What are the artificial intelligence (AI) in the energy and power market growth drivers?
- The growing energy demand is anticipated to boost AI in global power and energy market growth.
AI tools such as machine learning, natural language processing, and computer vision can help utility businesses in several areas, including demand estimation, energy production optimization & distribution improvement, and quicker identification & rectification of equipment issues. Facilities can significantly improve the reliability of services and process quality as well as reduce costs, leading to growth in demand for AI in the power and energy sector during the projected period.
Furthermore, this market growth is made possible by the growing energy demand. Utilities must proactively generate power or manage electricity to handle the increasing demand while ensuring their systems remain reliable and cost-effective. This creates significant opportunities for businesses that offer AI and machine learning solutions. In addition, Our World In Data reported a consistent rise in the world's energy consumption from 179.819 TWh in 2022 to a value of 183,230 TWh in 2023, which is a rise of 2.02%. Moreover, global energy consumption is expected to grow at an average rate of at least 1%-2% annually, as per the same source.
Additionally, AI can improve how energy-related problems are solved by estimating the output of renewable energy in advance, enabling more renewable power to be integrated into power generation and governing energy transmission & distribution. This would enable cost-effective and sustainable energy generation, increasing reliability and stability in the power system. Consequently, there is a need for and support for renewable energy in this market. The International Energy Agency (IEA) reported that an estimated 507 GW of renewable electricity capacity additions were made in 2023, nearly 50% as much as the previous year, driven by supportive policies for these technologies to upscale deployment in more than 130 countries.
- Increasing smart grid deployment is expected to drive AI in the energy and power market growth.
One of the prominent applications is smart grids, where AI is employed in the energy and power sectors. Smart grids use advanced sensors, communication technologies, and automation systems while providing electricity to ensure an efficient delivery of these services. Comparing large volumes of data in real-time as they come to a decision helps the utility make decisions better with AI, which is applied for smoother execution and performance improvement.
For instance, in January 2024, Spain's Iberdrola España is teaming with BCAM on the AI Innovation Data Space project targeting grid optimization. The initiative is part of the Global Smart Grids Innovation Hub, an interoperable workspace aimed at enhancing the access and quality of grid services in terms of distribution capacity and efficiency, especially for renewable integration and economic electrification.
What are the key geographical trends shaping the artificial intelligence (AI) in the energy and power market?
- The North American region is expected to hold a substantial market share.
North America is expected to experience one of the fastest growth rates in the AI energy and power market due to high incremental changes in renewable energy adoption and smart grid technologies dominantly across countries such as the United States. The growth in the use of renewable energy sources by the United States government has facilitated an increase in AI applications across its power and energy industry.
The U.S. Energy Information Administration reported that renewable energy generated approximately 13 percent of the entire U.S. electricity supply in 2022. Additionally, about 61% of all U.S. renewable energy consumption in 2022 was in the electric power sector, and renewables accounted for more than a fifth, i.e., 21% of U.S. electricity generation last year. Additionally, this region boasts some of the top utilities and AI technology providers, with a vertical focus on smart grid and green energy technologies, leading to regional market growth in the years ahead.
Recent developments in artificial intelligence (AI) in the energy and power market
- February 2024- ChatGrid™ is a new AI tool Pacific Northwest National Laboratory developed for power grid visualization. It provides an intuitive and interactive data interaction experience that supports the nation's grid safety while serving as one practical application of the exascale computing efforts made by the Department of Energy (DOE).
- January 2023- Gridmatic, a market-leading AI-enabled power marketer, unveiled Gridmatic Retail to streamline the purchase of renewable energy while offering predictability and automation to business and industrial clients. Through these mechanisms, Gridmatic Retail helps businesses achieve their carbon reduction goals while helping them save on costs and advance predictability with cleaner energy contracts that offer stability.
Artificial Intelligence (AI) In Energy And Power Market Scope:
| Report Metric | Details |
AI in Energy and Power Market Size in 2024 |
US$5.923 billion |
AI in Energy and Power Market Size in 2029 |
US$17.745 billion |
| Growth Rate | CAGR of 24.54% |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2024 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
|
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
List of Major Companies in AI in Energy and Power Market |
|
| Customization Scope | Free report customization with purchase |
Market Segmentation:
The Artificial Intelligence (AI) in Energy and Power Market is segmented and analyzed as below:
- By Technology
- Machine Learning
- Natural Language Processing
- Computer Vision
- Others
- By Application
- Demand Forecasting
- Energy Production and Distribution Optimization
- Energy Management
- Smart Grids
- Smart Meter
- Others
- By End-User
- Commercial and Industrial
- Residential
- By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- UK
- Germany
- France
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- Israel
- UAE
- Others
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Vietnam
- Indonesia
- Others
- North America
Frequently Asked Questions (FAQs)
The global AI in the energy and power market is projected to grow at a CAGR of 24.54% during the forecast period.
The AI in the energy and power market is projected to reach a market size of US$17.745 billion by 2029.
Artificial Intelligence (AI) In Energy And Power Market was valued at US$5.923 billion in 2024.
The North American region is expected to hold a substantial share of the AI in the energy and power market.
The growing energy demand is anticipated to boost AI in global power and energy market growth.
1. INTRODUCTION
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.5. Currency
1.6. Assumptions
1.7. Base and Forecast Years Timeline
1.8. Key benefits for the stakeholders
2. RESEARCH METHODOLOGY
2.1. Research Design
2.2. Research Process
3. EXECUTIVE SUMMARY
3.1. Key Findings
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
4.5. Analyst View
5. AI IN ENERGY AND POWER MARKET BY TECHNOLOGY
5.1. Introduction
5.2. Machine Learning
5.3. Natural Language Processing
5.4. Computer Vision
5.5. Others
6. AI IN ENERGY AND POWER MARKET BY APPLICATION
6.1. Introduction
6.2. Demand Forecasting
6.3. Energy Production and Distribution Optimization
6.4. Energy Management
6.5. Smart Grids
6.6. Smart Meter
6.7. Others
7. AI IN ENERGY AND POWER MARKET BY END-USER
7.1. Introduction
7.2. Commercial and Industrial
7.3. Residential
8. AI IN ENERGY AND POWER MARKET BY GEOGRAPHY
8.1. Introduction
8.2. North America
8.2.1. By Technology
8.2.2. By Application
8.2.3. End-User
8.2.4. By Country
8.2.4.1. USA
8.2.4.2. Canada
8.2.4.3. Mexico
8.3. South America
8.3.1. By Technology
8.3.2. By Application
8.3.3. End-User
8.3.4. By Country
8.3.4.1. Brazil
8.3.4.2. Argentina
8.3.4.3. Others
8.4. Europe
8.4.1. By Technology
8.4.2. By Application
8.4.3. End-User
8.4.4. By Country
8.4.4.1. UK
8.4.4.2. Germany
8.4.4.3. France
8.4.4.4. Spain
8.4.4.5. Others
8.5. Middle East and Africa
8.5.1. By Technology
8.5.2. By Application
8.5.3. End-User
8.5.4. By Country
8.5.4.1. Saudi Arabia
8.5.4.2. Israel
8.5.4.3. UAE
8.5.4.4. Others
8.6. Asia Pacific
8.6.1. By Technology
8.6.2. By Application
8.6.3. End-User
8.6.4. By Country
8.6.4.1. China
8.6.4.2. Japan
8.6.4.3. India
8.6.4.4. South Korea
8.6.4.5. Australia
8.6.4.6. Vietnam
8.6.4.7. Indonesia
8.6.4.8. Others
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Market Share Analysis
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Competitive Dashboard
10. COMPANY PROFILES
10.1. General Electric
10.2. Siemens Energy
10.3. Schneider Electric
10.4. ABB Ltd.
10.5. Honeywell International Inc.
10.6. C3.ai Inc.
10.7. Eaton Corporation Plc
10.8. IBM Corporation
General Electric
Siemens Energy
Schneider Electric
ABB Ltd.
Honeywell International Inc.
Eaton Corporation Plc
IBM Corporation
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