Generative Artificial Intelligence (AI) in Utilities Market Report 2024

This Generative Artificial Intelligence (AI) In Utilities market 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 generative artificial intelligence (AI) in the utilities market size has grown exponentially in recent years. It will grow from $0.75 billion in 2023 to $1.03 billion in 2024 at a compound annual growth rate (CAGR) of 36.4%. The growth observed during the historic period can be attributed to several factors, including the increasing demand for energy efficiency, the integration of renewable energy sources, regulatory pressures, advancements in smart grid technologies, enhancements in computing power, and the reduction in costs associated with AI technologies.

The generative artificial intelligence (AI) in the utilities market size is expected to see exponential growth in the next few years. It will grow to $3.57 billion in 2028 at a compound annual growth rate (CAGR) of 36.5%. The anticipated growth during the forecast period can be attributed to several factors, including a rising demand for predictive maintenance, improved grid management, optimized energy consumption, the integration of renewable energy sources, advancements in AI algorithms, increased investments in AI technologies, and regulatory support for digital transformation. Key trends expected to emerge include advancements in smart grid management, personalized energy solutions, enhanced simulation capabilities, improved customer engagement through AI-powered support, promotion of sustainable practices, and streamlined regulatory compliance processes.

The growing use of renewable energy sources is anticipated to drive the expansion of generative artificial intelligence (AI) within the utilities sector. Renewable energy, which includes solar, wind, hydro, geothermal, and biomass, is increasingly utilized due to its scalability, declining costs, and broad adoption. Generative AI supports utilities by delivering data-driven insights that optimize energy management and reduce dependence on fossil fuels. For example, the European Environment Agency reported in March 2024 that renewable energy accounted for 23% of EU energy consumption in 2022, up from 21.9% in 2021. This rising adoption of renewable energy sources is consequently fueling the growth of generative AI in the utilities market.

Key players in the generative AI utilities market are focusing on providing real-time insights through data-driven approaches, such as comprehensive platforms for the energy sector, to enhance operational efficiency and advanced data analytics. These unified platforms integrate various technologies to optimize operations, improve data analysis, and support better decision-making. For instance, in April 2024, Databricks Inc., a US-based data and AI company, introduced a data intelligence platform featuring large language model (LLM)-powered chatbots for personalized support, IoT predictive maintenance to optimize uptime and reduce costs, real-time data processing with digital twins, AI/ML models for wind turbine maintenance, and grid-edge analytics to improve grid performance and prevent outages. The platform also includes a real-time data ingestion platform (RTDIP) offering a cloud-native framework for data standardization and predictive analytics.

In January 2023, Snowflake Inc., a US-based cloud computing and data cloud company, acquired Myst AI Inc. for an undisclosed amount. This acquisition is part of Snowflake's strategy to integrate machine learning capabilities into its data cloud and enhance its time series forecasting abilities. Myst AI Inc., a US-based provider of generative AI technologies for electricity demand and forecasting, contributes to this strategic goal.

Major companies operating in the generative artificial intelligence (AI) in utilities market are Microsoft Corporation, Hitachi Ltd, Amazon Web Services Inc., Siemens AG, General Electric Company, IBM Corporation, Schneider Electric SE, Honeywell International Inc., SAP SE, ABB Ltd., NVIDIA Corporation, Capgemini SE, Eaton Corporation, Infosys Limited, Emerson Electric Co., Wipro Limited, Rockwell Automation Inc., The Tata Power Company Ltd., AVEVA Group plc, C3.ai Inc., SparkCognition Inc., Bidgely Inc.

North America was the largest region in the generative artificial intelligence (AI) in the utilities market in 2023. The regions covered in the generative artificial intelligence (AI) in utilities market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the generative artificial intelligence (AI) in utilities market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence (AI) in utilities involves leveraging advanced AI algorithms to enhance and innovate various aspects of utility management. This includes applications such as predictive maintenance, forecasting energy consumption, optimizing smart grids, and integrating renewable energy sources. By analyzing extensive data sets, generative AI can boost efficiency, cut costs, and improve service reliability, helping utilities manage resources in a more effective and sustainable manner.

The main types of generative AI in utilities encompass electricity generation, transmission and distribution, customer engagement and energy efficiency, water and wastewater management, gas and oil utilities, and renewable energy integration. Electricity generation covers the production of electrical power from sources such as coal, natural gas, nuclear, solar, wind, and hydropower. Deployments of this technology include on-premises, cloud-based, hybrid, edge computing, collaborative, and customized in-house solutions, catering to various applications such as enhancing customer experiences, improving asset management, developing new products and services, and boosting safety.

The generative artificial intelligence (AI) in utilities market research report is one of a series of new reports that provides generative artificial intelligence (AI) in utilities market statistics, including generative artificial intelligence (AI) in utilities industry global market size, regional shares, competitors with a generative artificial intelligence (AI) in utilities market share, detailed generative artificial intelligence (AI) in utilities market segments, market trends and opportunities, and any further data you may need to thrive in the generative artificial intelligence (AI) in utilities industry. This generative artificial intelligence (AI) in utilities market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The generative artificial intelligence (AI) in the utilities market includes revenues earned by entities through customer service automation, energy consumption forecasting, smart grid optimization, and load forecasting. 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 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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