IoT in Energy Market - Global IoT in Energy Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 - (By Application Coverage, By End-user Industry Coverage, By Component Coverage, By Geographic Coverage and Leading Companies)

IoT in Energy Market Set to Reach $114 Billion by 2030, Driven by Decarbonization Goals and Rising Investments

The global IoT in energy market is on an upward trajectory, poised to attain a remarkable valuation of $114 billion by the year 2030. This robust growth is anticipated to demonstrate a compelling CAGR of 19.4% during the period from 2023 to 2030.

Key Market Trends and Drivers:

1. Decarbonization and Energy Efficiency: The energy sector is undergoing transformative reforms, emphasizing decarbonization, energy efficiency, and the adoption of IoT technology. IoT enables efficient energy transfer, storage, and distribution, contributing to lower electricity production costs, enhanced reliability, and efficiency.

2. Rising Enterprise Investments: The increasing investment by enterprises in various IoT projects is expected to drive the IoT in energy market to nearly $35 billion in the next few years. IoT is increasingly integrated into commercial and residential setups to monitor and regulate energy consumption efficiently.

3. IoT Adoption by Energy Companies: Energy companies are embracing IoT to reduce waste, improve system efficiency, and enhance overall energy sustainability. IoT-enabled devices and data analytics help in slashing energy wastage and reducing overall energy demand and consumption.

Major Growth Determinants:

Decarbonization Targets: The energy sector's focus on decarbonization and the adoption of IoT technology to meet energy efficiency goals are driving market growth. IoT facilitates two-way energy transfer, reducing electricity production costs and enhancing reliability.

Rising Adoption in the Energy Sector: The increasing adoption of IoT and AI in the energy industry, along with the deployment of smart grids for energy optimization, presents lucrative growth opportunities for the IoT in energy market.

High Productivity and Automation: IoT solutions enable better compliance with carbon emission regulations, generate less wasted energy, and support the efficient use of energy storage. This results in reduced carbon emissions and lower energy costs.

Major Growth Barriers:

Architectural Challenges: The unique architectural demands of IoT in the energy sector pose challenges for industry participants. Achieving the desired architectural design to promote scalability and interconnections remains a growth impediment.

Integration Complexity: Integrating IoT seamlessly with existing subsystems remains a challenge, leading to inconsistencies and a lack of standardization in deployments.

Privacy and Security Concerns: Concerns around user privacy and the security of IoT devices remain primary growth challenges for the IoT in energy market.

Top Segments:

Oil & Gas Industry: The oil & gas sector dominated IoT investments, accounting for over 45% of the market in 2022. Major oil companies, including BP, Equinor, ExxonMobil, Shell, and TotalEnergies, have adopted IoT technology to enhance their operations and increase business value.

Service Packages: The services segment led the market in terms of components, with over 30% revenue share in 2022. Service bundles that include hardware and software have gained popularity for specific needs and applications.

Asset Monitoring Application: Asset monitoring accounted for 24% of the market in terms of applications in 2022. IoT devices continuously capture data and provide actionable insights, helping organizations reduce maintenance costs and predict equipment issues.

Regional Outlook:

North America and Asia Pacific: North America, particularly the US, is a prominent user and supplier of IoT systems in various sectors, including oil & gas. The region is expected to maintain a significant market share, with Asia Pacific registering a robust CAGR of 19.5% during 2023-2030.

Europe: Europe, known for its strong presence in renewable energy, is likely to witness IoT growth in the renewable power sector. The share of IoT in renewable power is expected to increase in Europe by 2030.

Market Players in Global IoT in Energy Industry Space

• SAP
• IBM
• Hiber
• HCL Technologies
• Accenture Plc
• CISCO
• Dell Technologies
• Siemens
• Intel
• Infosys
• Bosch
• Rockwell Automation