Artificial Intelligence (AI) in Energy and Power Market Report 2026

The artificial intelligence (AI) in energy and power market size has grown exponentially in recent years. It will grow from $6.45 billion in 2025 to $7.95 billion in 2026 at a compound annual growth rate (CAGR) of 23.2%. The growth in the historic period can be attributed to early adoption of predictive maintenance tools, rise in renewable energy penetration, growth in demand forecasting systems, increased deployment of smart meters, expansion of digital monitoring infrastructure.

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 $18.31 billion in 2030 at a compound annual growth rate (CAGR) of 23.2%. The growth in the forecast period can be attributed to growth in AI driven grid automation, rising adoption of distributed energy resources, increasing need for real time load balancing, expansion of AI based energy analytics platforms, advancement in machine learning models for energy optimization. Major trends in the forecast period include growing use of AI for demand forecasting optimization, increasing adoption of AI enabled smart grid systems, rising deployment of AI in renewable energy integration, expansion of AI based energy management solutions, enhanced use of AI for power distribution and load balancing.

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, in October 2025, the International Energy Agency, a France-based intergovernmental organization, reported that capital investments in the energy sector are projected to reach USD 3.3 trillion in 2025, reflecting a 2% real-term increase compared to 2024. 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 January 2024, Electric Power Engineers, LLC, a U.S.-based provider of utility engineering, grid integration, and energy-transition consulting services, acquired ENER-i.AI for an undisclosed sum. This acquisition enables Electric Power Engineers to integrate ENER-i.AI’s advanced SaaS energy-intelligence platform into its offerings, enhancing capabilities in grid planning and operations optimization. ENER-i.AI, based in the U.S., provides software-as-a-service solutions for energy intelligence, including the ENER-i Energy Intelligence Platform and ENER-i InSights tools for modern power-grid planning and management.

Major companies operating in the artificial intelligence (AI) in energy and power market 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., Aurora Solar Technologies, SenseHawk.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on electronic components, sensors, and computing hardware used in AI based energy systems have raised production and deployment costs, particularly affecting smart grid and renewable energy applications in regions reliant on imported technologies. These tariffs most impact commercial and industrial end users, utilities, and smart meter deployments. Despite these constraints, tariffs encourage domestic hardware development, promote software centric AI innovation, and support localized manufacturing, creating selective opportunities for cost efficient AI energy solutions.

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.

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.North America was the largest region in the artificial intelligence (AI) in energy and power market in 2025. 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, South East Asia, 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, Taiwan, 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).

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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