Artificial Intelligence (AI) in Energy and Power Market: Global Industry Analysis, Trends, Market Size, and Forecasts up to 2030

The report on the global Artificial Intelligence (AI) in energy and power market provides qualitative and quantitative analysis for the period from 2021-2030. The global Artificial Intelligence (AI) in energy and power market was valued at USD 4.80 billion in 2022 and is expected to reach USD 33.24 billion in 2030, with a CAGR of 23.90% during the forecast period 2023-2030. The study on Artificial Intelligence (AI) in energy and power market covers the analysis of the leading geographies such as North America, Europe, Asia Pacific, and RoW for the period of 2021-2030.

Artificial Intelligence (AI) in the energy and power market refers to the application of AI technologies and techniques to the energy and power sector to improve efficiency, reduce costs, enhance sustainability, and optimize operations. AI is being increasingly utilized in this industry to address various challenges and opportunities. AI can be used to optimize the generation, distribution, and consumption of energy. Machine learning algorithms can analyze historical data and real-time information to make predictions and recommendations for efficient energy use. Moreover, AI enables predictive maintenance of power generation and distribution infrastructure, such as turbines, transformers, and grid components. By analyzing sensor data, AI can predict equipment failures before they occur, reducing downtime and maintenance costs. In addition, smart grids are equipped with AI-driven systems to balance supply and demand, manage renewable energy sources, and respond to grid disturbances. AI helps in grid stability, load forecasting, and integration of renewable energy sources like solar and wind. AI technologies commonly used in the energy and power sector include machine learning, neural networks, predictive analytics, and natural language processing. These technologies help improve decision-making, reduce operational costs, enhance reliability, and promote sustainability in the energy industry. The adoption of AI in this sector continues to grow as it offers significant potential for efficiency and innovation.

The utilization of Artificial Intelligence (AI) in the energy and power industry is primarily motivated by the surging global energy demand. The increasing worldwide need for energy places significant pressure on the energy and power sector to discover efficient, dependable, and sustainable solutions. AI technologies play a pivotal role in addressing these challenges by enhancing energy generation, distribution, and consumption. They contribute to the energy sector's capacity to meet the growing energy demands while championing sustainability and environmental responsibility. Furthermore, the rising adoption of AI in the energy and power sector is driven by the expanding use of microgrids. AI technologies boost the performance, reliability, and sustainability of microgrid systems, rendering them more attractive and feasible for diverse applications, including remote communities, industrial complexes, and critical infrastructure. Nevertheless, there exists a shortage of skilled AI and data science professionals with expertise in the energy industry. This scarcity has the potential to impede the effective implementation of AI solutions in the sector. Despite this, ongoing advancements in AI technologies like deep learning and natural language processing present opportunities for even more sophisticated applications in the energy and power sector.

In the forthcoming forecast period, North America is anticipated to dominate the market, holding the largest share. This dominance is attributed to North America's robust and well-established energy infrastructure, featuring a blend of traditional and renewable energy sources. This provides a solid foundation for the seamless integration of AI technologies, aimed at optimizing energy production, distribution, and consumption. Additionally, North America has been a pioneer in embracing AI technologies within the energy and power sector, which has given it a competitive advantage in leveraging AI for various applications. Moreover, North America is home to key technology hubs, notably Silicon Valley in California and the Boston-Cambridge area, which host a thriving ecosystem of AI startups and tech firms at the forefront of innovating AI applications in the energy sector. Conversely, Europe is emerging as the fastest-growing region in the upcoming forecast period. Europe has made significant commitments to renewable energy sources like wind, solar, and hydropower. The integration of renewables into the energy grid necessitates advanced AI solutions to effectively manage intermittency, predict energy generation, and optimize grid operations. Furthermore, European nations have enacted stringent environmental regulations and ambitious sustainability objectives, incentivizing the adoption of AI technologies to enhance energy efficiency, reduce carbon emissions, and elevate the overall sustainability of the energy sector.

Report Findings

1) Drivers

• Artificial Intelligence (AI) in the energy and power market is driven by the increasing global demand for energy.
• The increasing use of microgrids is driving the adoption of Artificial Intelligence (AI) in the energy and power market.

2) Restraints

• A shortage of skilled AI and data science professionals with knowledge of the energy industry. This shortage can hinder the successful implementation of AI solutions in the sector.

3) Opportunities

• Ongoing advancements in AI technologies, such as deep learning and natural language processing, present opportunities for even more advanced applications in the energy and power sector.

Research Methodology

A) Primary Research

The primary research involves extensive interviews and analysis of the opinions provided by the primary respondents. The primary research starts with identifying and approaching the primary respondents.

The primary respondents approached include:

1. Key Opinion Leaders
2. Internal and External subject matter experts
3. Professionals and participants from the industry

The primary research respondents typically include:

1. Executives working with leading companies in the market under review
2. Product/brand/marketing managers
3. CXO level executives
4. Regional/zonal/country managers
5. Vice President level executives.

B) Secondary Research

Secondary research involves extensive exploring through the secondary sources of information available in both the public domain and paid sources. Each research study is based on over 500 hours of secondary research accompanied by primary research. The information obtained through the secondary sources is validated through the crosscheck on various data sources.

The secondary sources of the data typically include:

1. Company reports and publications
2. Government/institutional publications
3. Trade and associations journals
4. Databases such as WTO, OECD, World Bank, and among others.
5. Websites and publications by research agencies

Segments Covered

The global Artificial Intelligence (AI) in energy and power market is segmented on the basis of technology, and application.

The Global Artificial Intelligence (AI) in Energy and Power Market by Technology

• Machine Learning
• Natural Language Processing (NLP)
• Computer Vision

The Global Artificial Intelligence (AI) in Energy and Power Market by Application

• Demand Forecasting
• Energy Production and Distribution Optimization
• Energy Management
• Smart Grids
• Smart Meter

Company Profiles

The companies covered in the report include:

• C3.ai, Inc.
• Schneider Electric
• IBM Corporation
• General Electric
• Atos SE
• Alpiq
• App Orchid Inc.
• Siemens
• ABB Ltd.
• Honeywell International Inc.

What does this Report Deliver?

1. Comprehensive analysis of the global as well as regional markets of the Artificial Intelligence (AI) in energy and power market.

2. Complete coverage of all the segments in the Artificial Intelligence (AI) in energy and power market to analyze the trends, developments in the global market and forecast of market size up to 2030.

3. Comprehensive analysis of the companies operating in the global Artificial Intelligence (AI) in energy and power market. The company profile includes analysis of product portfolio, revenue, SWOT analysis and latest developments of the company.

4. The Growth Matrix presents an analysis of the product segments and geographies that market players should focus to invest, consolidate, expand and/or diversify.