AI in Energy Market By Component Type (Solutions, Services) , By Deployment Type (On-Premise, Cloud) By Application (Robotics, Renewables Management, Demand Forecasting, Safety & Security, Infrastructure, Others) By End-Use (Energy Transmission, Energy Generation, Energy Distribution, Utilities) : Global Opportunity Analysis and Industry Forecast, 2024-2029
The global AI in energy market was valued at $5.4 billion in 2023, and is projected to reach $26.4 billion by 2033, growing at a CAGR of 17.2% from 2024 to 2033.
AI is revolutionizing electricity technology by enhancing the efficiency of renewable power sources such as wind, solar, and hydroelectric power. In wind energy, AI algorithms predict weather patterns and wind speeds to optimize turbine operations. For instance, computer learning models adjust the perspective of wind turbine blades in real time to maximize power capture. AI enhances the functionality and upkeep procedures in photovoltaic (PV) power stations by identifying, sorting, and forecasting abnormalities while planning scheduled maintenance events.
The growth of the AI in energy market is driven by integration of renewable energy. AI algorithms process large datasets, along with historic climate patterns, energy production data, and real-time sensor data, to predict future energy generation from renewable sources. This predictive functionality is crucial for grid operators to plan and control energy resources efficiently. For instance, by forecasting periods of high solar or wind energy production, operators prepare to keep extra energy or distribute it more effectively. Conversely, during anticipated low production periods, AI activate backup power sources or deploy demand response techniques to keep grid stability.
However, data privacy and security are expected to restrain the growth of AI in the energy market during the forecast period. Data privacy and security are paramount considerations due to the vast amount of sensitive data collected and analyzed by AI systems. Nevertheless, rapid rise in the global renewable electricity generation capacity offers a lucrative opportunity. This growth opportunity is to meet the goal set by governments at the recent COP28 climate change conference to triple global capacity by 2030. In 2023, the addition of renewable energy capacity to energy systems increased by 50%, totaling nearly 510 gigawatts (GW). Solar photovoltaic (PV) technology dominated these additions, accounting for three-quarters of the global increase.
Segmentation Overview
The AI in energy market is segmented into component type, deployment type, application, end use, and region. Depending on component type, it is classified into solutions and services. By deployment type, the market is categorized into on-premise and cloud. According to the application, the market is fragmented into robotics, renewables management, demand forecasting, safety & security, infrastructure, and others. As per end use, it is divided into energy transmission, energy generation, energy distribution, and utilities. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsBy component type, the solution segment held the highest market share in 2023.Depending on deployment type, the cloud segment accounted for the largest share in the market in 2023.
According to the application, the safety & security segment gained the maximum market share in 2023.
As per end use, the utilities segment acquired the major share in the market in 2023.
Region wise, Asia-Pacific dominated the AI in energy market in 2023.
Competitive Scenario
Key market players in the AI in energy market include Atos SE, Siemens Energy, Schneider Electric, GE Vernova, Terex Corporation, Vestas, Iberdrola, S.A., JinkoSolar Holding Co., Ltd., AutoGrid Systems, Inc, and Constellation. These players have adopted several strategies, including mergers & acquisitions, collaborations, partnerships, product development & innovation, advertising, and marketing, to sustain their position in the competitive environment.Key Market SegmentsBy Component TypeSolutions
Services
By Deployment TypeOn-Premise
Cloud
By ApplicationRobotics
Renewables Management
Demand Forecasting
Safety Security
Infrastructure
Others
By End-UseEnergy Transmission
Energy Generation
Energy Distribution
Utilities
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Thailand
Malaysia
Indonesia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Argentina
Rest of LAMEA
Key Market PlayersAtos SE
Siemens Energy
Schneider Electric
GE Vernova
Terex Corporation
Vestas
Iberdrola, S.A.
JinkoSolar Holding Co., Ltd
AutoGrid Systems, Inc.
Constellation