The generative AI in energy market size has grown exponentially in recent years. It will grow from $0.95 billion in 2024 to $1.21 billion in 2025 at a compound annual growth rate (CAGR) of 26.7%. The growth in the historic period can be attributed to the rise of renewable energy sources, demand forecasting, increasing energy storage systems, demand response optimization, and increasing risk management and resilience.
The generative AI in energy market size is expected to see exponential growth in the next few years. It will grow to $3.07 billion in 2029 at a compound annual growth rate (CAGR) of 26.3%. The growth in the forecast period can be attributed to increasing accuracy, demand for improved electricity distribution, increasing focus on customer engagement, increasing adoption of solar and wind energy, and rising asset management. Major trends in the forecast period include real-time forecasting, dynamic adaptation and optimization, enhanced predictive analytics, integration of advanced data sources, predictive maintenance and asset management, and smart grid management.
The increasing generation of solar electricity is expected to drive the growth of the generative AI market in the energy sector. Solar electricity generation involves converting sunlight into power using photovoltaic (PV) panels or concentrated solar power (CSP) systems, and its adoption is being propelled by declining technology costs and growing awareness of its environmental benefits, such as reduced carbon emissions compared to fossil fuels. The integration of solar electricity with generative AI technologies presents significant opportunities to enhance the efficiency, reliability, and sustainability of energy systems, thereby supporting the transition to a cleaner and more resilient energy future. For instance, in March 2023, the U.S. Energy Information Administration (EIA) projected that solar energy would account for over half of new power capacity additions in the U.S. for the year, while renewables are expected to increase their share of the global power generation mix from 29% in 2022 to 35% by 2025. Although CO2 emissions from the global power sector peaked at around 13.2 gigatons (Gt) in 2022, they are anticipated to stabilize through 2025. In the U.S., utility-scale solar power accounted for 73.5 gigawatts (GW) as of January 2023, representing about 6% of the total power capacity, while wind power stood at 141.3 GW, or approximately 12%. Additionally, U.S. developers plan to expand wind capacity by 7.1 GW and add 8.6 GW of battery storage this year, effectively doubling the nation’s battery storage capacity. Therefore, the increasing generation of solar electricity is a key factor driving the generative AI market in the energy sector.
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 report are Google LLC; Microsoft Corporation; Engie SA; Enel Green Power S.p.A.; Huawei Technologies Co. Ltd; Amazon Web Services Inc; Siemens AG; General Electric Company; Intel Corporation; International Business Machines Corporation; Deloitte Touche Tohmatsu Limited; Cisco Systems Inc; Schneider Electric SE; Honeywell International Inc.; Flex Ltd; ABB Ltd; Duke Energy Corporation; Nvidia Corporation; Atos SE; Zen Robotics Ltd; Freshworks Inc.; C3 AI Inc; Databricks Inc; AppOrchid Inc; Verdigris Technologies; Ecube Labs Co. Ltd; Bidgely Inc.
North America was the largest region in the generative AI in energy market in 2024. 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, 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, 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).
Generative AI in energy involves leveraging artificial intelligence techniques, like generative adversarial networks (GANs), to create synthetic data or models simulating energy-related processes. These AI systems aid in optimizing energy production, forecasting demand, enhancing grid stability, and developing efficient energy management strategies, thus advancing sustainability and reliability in the energy sector.
The primary components of generative AI in energy include solutions and services. Generative AI solutions in energy utilize artificial intelligence models to tackle various challenges and optimize operations within the energy sector. These solutions find applications in demand forecasting, renewable energy output prediction, grid management, energy trading, customer offerings, energy storage optimization, and more. End users encompass energy transmission, generation, distribution, utilities, and related sectors.
The generative AI in energy market research report is one of a series of new reports that provides generative AI in energy market statistics, including generative AI in energy industry global market size, regional shares, competitors with a generative AI in energy market share, detailed generative AI in energy market segments, market trends and opportunities, and any further data you may need to thrive in the generative AI in energy industry. This generative AI in energy market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
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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Table of Contents
Executive Summary
Generative AI In Energy Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on generative ai in energy market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for generative ai in energy? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The generative ai in energy market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) By Component: Solutions; Services2) By Application: Demand Forecasting; Renewable Energy Output Forecasting; Grid Management And Optimization; Energy Trading And Pricing; Customer Offerings; Energy Storage Optimization; Other Applications
3) By End User: Energy Transmission; Energy Generation; Energy Distribution; Utilities; Other End Users
Subsegments:
1) By Solutions: Energy Demand Forecasting; Predictive Maintenance Solutions; AI-Driven Energy Optimization Tools; Renewable Energy Management Solutions2) By Services: Consulting Services; Implementation And Integration Services; Support And Maintenance Services; Training Services
Key Companies Mentioned: Google LLC; Microsoft Corporation; Engie SA; Enel Green Power S.p.A.; Huawei Technologies Co. Ltd
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
Some of the major companies featured in this Generative AI in Energy market report include:- Google LLC
- Microsoft Corporation
- Engie SA
- Enel Green Power S.p.A.
- Huawei Technologies Co. Ltd
- Amazon Web Services Inc
- Siemens AG
- General Electric Company
- Intel Corporation
- International Business Machines Corporation
- Deloitte Touche Tohmatsu Limited
- Cisco Systems Inc
- Schneider Electric SE
- Honeywell International Inc.
- Flex Ltd
- ABB Ltd
- Duke Energy Corporation
- Nvidia Corporation
- Atos SE
- Zen Robotics Ltd
- Freshworks Inc.
- C3 AI Inc
- Databricks Inc
- AppOrchid Inc
- Verdigris Technologies
- Ecube Labs Co. Ltd
- Bidgely Inc
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 200 |
Published | March 2025 |
Forecast Period | 2025 - 2029 |
Estimated Market Value ( USD | $ 1.21 Billion |
Forecasted Market Value ( USD | $ 3.07 Billion |
Compound Annual Growth Rate | 26.3% |
Regions Covered | Global |
No. of Companies Mentioned | 28 |