Generative AI in Energy Market Report 2026

The generative ai in energy market size has grown exponentially in recent years. It will grow from $1.18 billion in 2025 to $1.47 billion in 2026 at a compound annual growth rate (CAGR) of 24.1%. The growth in the historic period can be attributed to rising need for efficient energy management, growth in renewable energy adoption, advancements in energy grid technologies, increasing electricity demand, deployment of early ai-based monitoring solutions.

The generative ai in energy market size is expected to see exponential growth in the next few years. It will grow to $3.46 billion in 2030 at a compound annual growth rate (CAGR) of 23.9%. The growth in the forecast period can be attributed to expansion of smart grid initiatives, increasing investments in ai energy platforms, growth in energy storage optimization solutions, rising adoption of predictive maintenance across utilities, advancements in renewable energy output forecasting. Major trends in the forecast period include increasing adoption of ai-driven energy optimization tools, growth of predictive maintenance solutions in energy infrastructure, expansion of renewable energy management solutions, integration of ai for grid management and optimization, enhanced energy demand forecasting using generative ai.

The rising generation of solar electricity is expected to drive the growth of the generative AI in energy market in the coming years. Solar electricity generation converts sunlight into electricity using photovoltaic (PV) panels or concentrated solar power (CSP) systems. Its increasing adoption is fueled by declining solar technology costs and growing awareness of its environmental benefits, including lower carbon emissions compared to fossil fuels. Integrating solar electricity generation with generative AI technologies provides significant opportunities to improve the efficiency, reliability, and sustainability of energy systems, supporting the transition toward a cleaner and more resilient energy future. For example, in September 2025, the International Energy Agency (IEA), a US-based intergovernmental organization, reported that total net electricity generation in the OECD reached 922.6 TWh in June, reflecting a 1.4% increase compared to June 2024. Consequently, the growth in solar electricity generation is a key factor driving the generative AI in energy market.

Key players in generative AI in the energy market are focusing on developing innovative products, such as real-time asset performance management solutions, to optimize energy production, distribution, and consumption processes. Real-time asset performance management involves monitoring, analyzing, and optimizing the performance of assets like machinery, equipment, or infrastructure in real-time or near real-time. For instance, in April 2024, Databricks Inc., a leading US-based global data, analytics, and artificial intelligence company, introduced the data intelligence platform for the energy sector. This unified platform harnesses the power of AI to empower data-driven decision-making in the energy industry. It addresses critical industry challenges through features like real-time asset performance management, renewable energy forecasting, and grid optimization, enabling organizations to enhance energy infrastructure and manage market volatility effectively. The Databricks data intelligence platform operates on a lakehouse architecture, providing an open, unified foundation for data and governance, and is driven by a data intelligence engine designed to understand data uniqueness.

In January 2023, Snowflake Inc., a prominent US-based cloud computing-based data cloud company, acquired Myst AI Inc. in an undisclosed transaction. This acquisition is part of Snowflake's strategy to integrate machine learning capabilities into its data cloud and strengthen its time series forecasting capabilities. Myst AI Inc. specializes in generative AI solutions tailored for the energy sector, contributing to Snowflake's efforts to enhance its offerings in the energy analytics domain.

Major companies operating in the generative ai in energy market are Google DeepMind, Microsoft Corporation, International Business Machines Corporation (IBM), Siemens AG, General Electric Company, Schneider Electric SE, Honeywell International Inc., ABB Ltd, C3 AI Inc, Oracle Corporation, Accenture plc, Enel Group, Tesla Inc, AutoGrid Systems Inc, Verdigris Technologies, Dotnitron, Alpiq AG, AppOrchid Inc, Energi Mine, Capalo AI.

North America was the largest region in the generative AI in energy market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative ai in energy market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative ai in energy market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The generative AI in energy market consists of revenues earned by entities by providing services such as optimizing energy and utility grid management and performance, production capacity, demand patterns, streamlining operations and maintenance, predictive maintenance, energy trading and market analysis, and carbon emissions reduction. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative AI in energy market also includes sales of Internet of Things (IoT) devices, sensors, smart meters, weather stations, voltage sensors, data acquisition systems, energy management systems, edge computing devices, and energy storage systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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