Artificial Intelligence (AI) in Energy and Power Global Market Report 2024

The artificial intelligence (AI) in energy and power market size has grown exponentially in recent years. It will grow from $4.03 billion in 2023 to $5.24 billion in 2024 at a compound annual growth rate (CAGR) of 30.1%. Historical growth in the energy and power sector can be attributed to factors such as increased availability and quality of data, regulatory support, cost reduction initiatives, enhanced connectivity, and growing demand for renewable energy sources.

The artificial intelligence (AI) in energy and power market size is expected to see exponential growth in the next few years. It will grow to $13.62 billion in 2028 at a compound annual growth rate (CAGR) of 27%. The forecasted growth in the energy and power sector can be attributed to advanced analytics and predictive modeling, optimization of smart grids, the adoption of decentralized energy systems, resilience planning initiatives, and the global transition towards renewable energy sources. Major trends in the forecast period include technological advancements, increased collaboration and standardization efforts, widespread adoption of AI technologies globally, enhancements in cybersecurity measures, and the implementation of predictive maintenance strategies.

The increasing investments in the energy sector are poised to drive the expansion of the artificial intelligence (AI) in energy and power market in the foreseeable future. These investments involve allocating resources, typically monetary funds, with the aim of generating returns or profits over time. Within the energy and power sectors, investments have been instrumental in harnessing artificial intelligence (AI) in various capacities to enhance decision-making, optimize operations, improve energy management, and elevate the reliability and quality of services across the industry. For example, projections from the International Energy Agency in 2023 indicate an expected investment of around USD 2.8 trillion in the energy sector, with over USD 1.7 trillion directed towards clean energy, marking a significant increase of 24% in yearly renewable energy investment compared to 2021. Consequently, the escalating investments in energy sectors are serving as a catalyst for the growth of the artificial intelligence (AI) in energy and power market.

Leading companies operating in the artificial intelligence (AI) in the energy and power markets are at the forefront of developing innovative AI advancements to cater to the evolving energy needs of commercial customers. One such advancement is Gridmatic Retail, an AI-enabled power marketer designed to optimize clean energy procurement and offer predictability and automation to commercial and industrial clients with sophisticated energy requirements. Recently introduced by Gridmatic in January 2023, Gridmatic Retail streamlines renewable energy procurement while providing customers with next-generation retail energy products, including time-matched renewables, 24/7 carbon-free energy, and load variability contracts. By leveraging industry-leading AI capabilities, Gridmatic Retail facilitates the transition to net-zero and promotes a balanced renewable-powered grid by offering advanced, time-matched renewable contracts and tailored products for customers with diverse and complex energy needs.

In May 2022, Schneider Electric SE, a prominent France-based electrical and electronics manufacturing company, completed the acquisition of Autogrid Systems Inc., a US-based software company specializing in AI-powered energy resource software. This strategic acquisition positions Schneider Electric to expand into new markets and equip energy businesses worldwide with the necessary resources to integrate over 1,000 GW of distributed and renewable energy resources into the grid. Autogrid Systems Inc.'s expertise in AI-powered energy resource software enhances Schneider Electric's capabilities in driving innovation and efficiency across the energy landscape.

Major companies operating in the artificial intelligence (AI) in energy and power market report are Google LLC, Microsoft Corporation, Mitsubishi Electric Corporation, Bosch.IO, Siemens AG, General Electric Company, Intel Corporation, International Business Machines Corporation, Cisco Systems Inc., Schneider Electric SE, Honeywell International Inc., SAP SE, ABB Group, NVIDIA Corporation, Toshiba Corporation, Emerson Electric Co, Rockwell Automation Inc., SAS Institute Inc, DNV GL, Sierra Wireless Inc., C3.AI Inc., Vayyar Imaging Ltd., Uptake Technologies Inc., Verdigris Technologies Inc., ClearPath Robotics, Aurora Solar Technologies, SenseHawk.

North America was the largest region in the artificial intelligence (AI) in energy and power market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in energy and power market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (AI) in energy and power market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence (AI) in the energy and power market includes revenues earned by entities by providing services such as smart grid management, renewable energy forecasting, grid management and optimization, and energy trading. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The artificial intelligence (AI) in the energy and power market consists of sales of smart meters, energy storage systems, building energy management systems, and distribution management 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).

Artificial intelligence (AI) in energy and power involves utilizing AI technologies to optimize energy systems, reduce costs, and enhance efficiency within the energy and power sectors. It encompasses improving predictions of supply and demand, optimizing renewable energy systems such as wind and solar power, and optimizing energy production such as oil and gas exploration and production.

The primary types of technologies in AI for energy and power include machine learning, natural language processing, and computer vision. Machine learning (ML) is a subset of AI that focuses on developing algorithms and statistical models enabling computer systems to enhance their performance on specific tasks over time without explicit programming. It finds applications in various areas, including demand forecasting, energy production and distribution optimization, energy management, smart grids, smart meters, among others. End-users of AI in energy and power span across commercial, industrial, and residential sectors.

The artificial intelligence (AI) in energy and power market research report is one of a series of new reports that provides artificial intelligence (AI) in energy and power market statistics, including artificial intelligence (AI) in energy and power industry global market size, regional shares, competitors with an artificial intelligence (AI) in energy and power market share, detailed artificial intelligence (AI) in energy and power market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in energy and power industry. This artificial intelligence (AI) in energy and power 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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