Internet of Things (IoT) in Energy

Internet of Things (IoT) in Energy

Global Internet of Things (IoT) in Energy Market to Reach US$54.3 Billion by 2030

The global market for Internet of Things (IoT) in Energy estimated at US$24.3 Billion in the year 2023, is expected to reach US$54.3 Billion by 2030, growing at a CAGR of 12.2% over the analysis period 2023-2030. Oil & Gas Application, one of the segments analyzed in the report, is expected to record a 11.7% CAGR and reach US$24.8 Billion by the end of the analysis period. Growth in the Smart Grid Application segment is estimated at 13.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$8.5 Billion While China is Forecast to Grow at 14.5% CAGR

The Internet of Things (IoT) in Energy market in the U.S. is estimated at US$8.5 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$6.8 Billion by the year 2030 trailing a CAGR of 14.5% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 10.9% and 12.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 11.1% CAGR.

Global Internet of Things (IoT) in Energy Market - Key Trends & Drivers Summarized

What Is IoT in Energy and Why Is It Transformative for the Energy Sector?
The Internet of Things (IoT) in energy refers to the integration of connected devices, sensors, and advanced data analytics into energy production, distribution, and consumption processes. By enabling real-time monitoring, predictive maintenance, and intelligent control of energy systems, IoT transforms the way energy is managed, ensuring efficiency, sustainability, and resilience. Applications of IoT in energy include smart grids, remote asset monitoring, energy management systems, and predictive analytics for renewable energy sources, making it a key driver of the digital transformation in the energy sector.

The transformative potential of IoT in energy lies in its ability to enhance operational efficiency and reduce costs across the value chain. IoT sensors and devices collect vast amounts of data from energy assets such as turbines, solar panels, and power lines, enabling operators to monitor performance, detect anomalies, and prevent failures. This data-driven approach improves reliability and minimizes downtime, ensuring a stable energy supply while reducing maintenance expenses. For utilities, IoT facilitates demand-response programs that adjust energy distribution based on real-time consumption patterns, optimizing grid performance and reducing energy waste.

Moreover, IoT plays a crucial role in advancing sustainability goals by integrating renewable energy sources into the grid and enabling smart energy management. IoT-powered solutions optimize the performance of solar and wind energy systems by predicting output based on weather conditions and adjusting energy storage and distribution accordingly. These systems also support energy consumers in tracking and reducing their carbon footprint through connected energy management devices and applications. By driving efficiency, resilience, and sustainability, IoT in energy is essential for modernizing the sector and meeting the demands of a rapidly changing energy landscape.

How Are Technological Advancements and Industry Demands Shaping the IoT in Energy Market?
Technological advancements in edge computing, artificial intelligence (AI), and connectivity are revolutionizing the IoT in energy market, making systems more efficient, scalable, and intelligent. Edge computing enables faster data processing at or near the source of data generation, such as power plants or substations, reducing latency and improving decision-making speed. This capability is critical in energy systems where real-time monitoring and rapid responses to anomalies are essential for maintaining grid stability. By reducing reliance on centralized data centers, edge computing also enhances system reliability and lowers operational costs, supporting the widespread deployment of IoT solutions in energy.

AI and machine learning are further transforming IoT in energy by enabling predictive analytics and advanced decision-making. These technologies analyze vast datasets collected by IoT devices to predict equipment failures, optimize energy usage, and enhance the integration of renewable energy sources. Predictive maintenance powered by AI minimizes unplanned downtime and extends the lifespan of critical assets such as turbines, transformers, and generators. Additionally, AI-driven demand forecasting helps utilities balance energy supply with consumption, ensuring optimal grid performance and reducing the need for expensive energy storage solutions.

Advances in connectivity, including 5G networks and low-power wide-area networks (LPWAN), are expanding the capabilities of IoT in energy by enabling the seamless connection of millions of devices across large geographic areas. These technologies support the deployment of smart grids, remote monitoring of energy assets, and real-time energy analytics in even the most remote locations. With faster data transfer speeds, lower latency, and improved energy efficiency, advanced connectivity solutions ensure that IoT systems can handle the growing complexity of modern energy networks. Together, advancements in edge computing, AI, and connectivity are driving the evolution of IoT in energy, enabling smarter, more sustainable energy systems that meet the demands of the digital age.

Where Is IoT Making the Greatest Impact Across Energy Industry Segments?
IoT is making a significant impact across various segments of the energy industry, including power generation, distribution, renewable energy, and industrial energy management, each benefiting from enhanced efficiency, reliability, and innovation. In power generation, IoT enables real-time monitoring and predictive maintenance of critical assets such as turbines, generators, and boilers. Sensors installed in these assets collect data on parameters such as temperature, pressure, and vibration, allowing operators to identify potential issues before they escalate into failures. By improving the reliability and efficiency of power plants, IoT reduces downtime, lowers maintenance costs, and increases overall energy output.

In energy distribution, IoT is transforming traditional grids into smart grids that dynamically manage electricity flow based on real-time data from connected devices. Smart meters, IoT sensors, and automated controls enable utilities to optimize energy distribution, detect outages, and respond to fluctuations in demand more effectively. For consumers, smart grids provide detailed insights into energy usage, allowing them to make informed decisions about reducing consumption and saving costs. By enhancing grid reliability and supporting demand-response programs, IoT improves the overall efficiency and resilience of energy distribution networks.

In renewable energy, IoT plays a crucial role in optimizing the performance of solar, wind, and hydroelectric systems. IoT devices monitor weather conditions, energy output, and equipment health, providing actionable insights that maximize energy production and efficiency. For example, IoT systems can predict wind patterns to adjust turbine operations or monitor solar panel performance to identify maintenance needs. These capabilities are essential for integrating renewable energy sources into the grid, ensuring consistent energy supply, and supporting global sustainability goals. Additionally, IoT-powered energy storage solutions enable the efficient use of surplus renewable energy, addressing challenges related to variability in energy generation.

In industrial energy management, IoT helps organizations monitor and optimize energy consumption across facilities, reducing operational costs and environmental impact. IoT sensors track energy usage in real time, providing detailed analytics that identify inefficiencies and suggest corrective actions. Industries such as manufacturing, mining, and logistics benefit from IoT-powered systems that automate energy-intensive processes, schedule equipment usage during off-peak hours, and integrate renewable energy sources. By enabling smarter energy management, IoT helps industries achieve sustainability targets while improving profitability and competitiveness. Across these segments, IoT enhances performance, reduces costs, and drives innovation, establishing itself as a cornerstone of the energy sector’s digital transformation.

What Are the Key Drivers Fueling Growth in the IoT in Energy Market?
The growth in the IoT in energy market is driven by several key factors, including increasing demand for energy efficiency, the integration of renewable energy sources, and advancements in smart grid technologies. The demand for energy efficiency is a primary driver, as utilities and industries seek to reduce operational costs, optimize resource usage, and minimize environmental impact. IoT solutions enable real-time monitoring, predictive maintenance, and data-driven decision-making, helping organizations identify inefficiencies and implement corrective measures. With energy costs and environmental concerns on the rise, IoT technologies provide actionable insights that support sustainable and cost-effective energy management.

The integration of renewable energy sources is another significant driver, as governments and organizations prioritize the transition to cleaner, greener energy systems. IoT plays a crucial role in addressing the challenges associated with renewable energy, such as variability in generation and grid integration. IoT-enabled systems monitor and optimize renewable energy assets, predict generation based on weather patterns, and facilitate energy storage and distribution. These capabilities ensure that renewable energy sources can be seamlessly integrated into existing grids, supporting the global push toward decarbonization and sustainable energy practices.

Advancements in smart grid technologies are also propelling market growth, as utilities and governments invest in modernizing energy infrastructure. Smart grids rely on IoT devices to collect and analyze data, enabling real-time control, outage detection, and demand-response programs. These grids improve energy reliability and resilience, supporting the increasing complexity of energy systems driven by distributed generation and electric vehicle adoption. As smart grids become more prevalent, the demand for IoT technologies that enable their functionality continues to grow, reinforcing the role of IoT in shaping the future of energy.

Together, these drivers—energy efficiency, renewable integration, and smart grid advancements—are fueling growth in the IoT in energy market. As the energy sector embraces digital transformation, IoT technologies are set to play an essential role in enabling sustainable, efficient, and resilient energy systems worldwide.

SCOPE OF STUDY:

The report analyzes the Internet of Things (IoT) in Energy market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Solutions Component, Services Component); Deployment (On-Premise Deployment, Cloud Deployment); Application (Oil & Gas Application, Smart Grid Application, Coal Mining Application)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Rest of Europe; Asia-Pacific; Rest of World.

Select Competitors (Total 83 Featured) -

• ABB Ltd.
• Actility SA
• Aeris Communications, Inc.
• Altair Engineering, Inc.
• Bosch Global Software Technologies GmbH
• Cisco Systems, Inc.
• Emerson Electric Co.
• Intel Corporation
• Schneider Electric SE
• Siemens AG

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