This report describes and explains the AI in energy market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global AI in energy market reached a value of nearly $19.03 billion in 2024, having grown at a compound annual growth rate (CAGR) of 16.08% since 2019. The market is expected to grow from $19.03 billion in 2024 to $50.9 billion in 2029 at a rate of 21.75%. The market is then expected to grow at a CAGR of 20.56% from 2029 and reach $129.63 billion in 2034.
Growth in the historic period resulted from the strong economic growth, rising electricity generation, increased demand for solar energy systems, rise in deployment of solar energy systems and increase in energy asset management. Factors that negatively affected growth in the historic period were rising security concerns in the energy sector.
Going forward, rising residential building construction, increasing urban populations, increasing investments in the energy sector and increasing cloud-based services will drive the growth. Factor that could hinder the growth of the AI in energy market in the future include loss of jobs due to automation.
The global AI in energy market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 22.91% of the total market in 2023. Microsoft Corporation was the largest competitor with a 5.00% share of the market, followed by Amazon.com Inc. with 4.31%, NVIDIA Corporation with 3.00%, Oracle Corporation with 2.81%, Alphabet Inc. (Google LLC) with 2.09%, Schneider Electric SE with 1.94%, Siemens AG with 1.47%, ABB Ltd. with 0.92%, Atos SE with 0.74% and Alpiq Holding Ltd. with 0.63%.
North America was the largest region in the AI in energy market, accounting for 40.99% or $7.8 billion of the total in 2024. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the AI in energy market will be Asia Pacific and South America where growth will be at CAGRs of 24.06% and 23.31% respectively. These will be followed by Eastern Europe and Western Europe where the markets are expected to grow at CAGRs of 21.85% and 20.89% respectively.
The AI in energy market is segmented by offering into support services, hardware, AI-as-a-service and software. The software market was the largest segment of the AI in energy market segmented by offering, accounting for 38.44% or $7.31 billion of the total in 2024. Going forward, the AI-as-a-service segment is expected to be the fastest growing segment in the AI in energy market segmented by offering, at a CAGR of 25.97% during 2024-2029.
The AI in energy market is segmented by deployment into on-premise and cloud. The cloud market was the largest segment of the AI in energy market segmented by deployment, accounting for 60.01% or $11.42 billion of the total in 2024. Going forward, the cloud segment is expected to be the fastest growing segment in the AI in energy market segmented by deployment, at a CAGR of 22.91% during 2024-2029.
The AI in energy market is segmented by application into demand response management, fleet and asset management, renewable energy management, precision drilling, demand forecasting, infrastructure management and other applications. The demand response management market was the largest segment of the AI in energy market segmented by application, accounting for 28.57% or $ 5.43 billion of the total in 2024. Going forward, the renewable energy management segment is expected to be the fastest growing segment in the AI in energy market segmented by application, at a CAGR of 26.21% during 2024-2029.
The AI in energy market is segmented by end user into energy transmission, energy generation, energy distribution, utilities and other end-users. The utilities market was the largest segment of the AI in energy market segmented by end user, accounting for 37.24% or $7.08 billion of the total in 2024. Going forward, the energy transmission segment is expected to be the fastest growing segment in the AI in energy market segmented by end user, at a CAGR of 26.33% during 2024-2029.
The top opportunities in the AI in energy market segmented by offering will arise in the AI-as-a service segment, which will gain $10.86 billion of global annual sales by 2029. The top opportunities in the AI in energy market segmented by deployment will arise in the cloud segment, which will gain $20.61 billion of global annual sales by 2029. The top opportunities in the AI in energy market segmented by application will arise in the demand response management segment, which will gain $9.49 billion of global annual sales by 2029. The top opportunities in the AI in energy market segmented by end user will arise in the utilities segment, which will gain $10.83 billion of global annual sales by 2029. The AI in energy market size will gain the most in the USA at $10.28 billion.
Market-trend-based strategies for the AI in energy market include optimizing renewable energy use in residential applications, focus on enhancing energy management systems for residential solar solutions, developing new AI-based software solutions, strategic partnerships, enhancing residential energy ecosystems with advanced connectivity solutions, leveraging AI-driven solutions to optimize energy efficiency and reduce emissions in data centers, innovative AI-powered energy management systems, innovating generative AI assistants and developing AI-powered home assessment tools.
Player-adopted strategies in the AI in energy market include focus on strategic partnerships to develop its business expertise and focus on enhancing its business operations through new product developments.
To take advantage of the opportunities, the analyst recommends the AI in energy companies to focus on enhancing residential energy efficiency with AI-driven solutions, focus on enhancing residential solar energy management with AI, focus on developing AI-based software solutions for energy efficiency, focus on enhancing residential energy ecosystems with advanced AI connectivity, focus on optimizing energy efficiency in data centers with AI solutions, focus on AI-powered energy management systems for market competitiveness, focus on innovating with generative AI assistants to support energy transition, focus on developing AI-powered home assessment tools, focus on AI-as-a-service to drive growth, focus on cloud solutions for AI in energy, expand in emerging markets, focus on strategic partnerships to accelerate ai innovation in energy, focus on competitive and value-based pricing strategies, focus on targeted digital marketing and thought leadership, focus on strategic partnerships for expanded reach, focus on renewable energy management for growth and focus on energy transmission for maximum growth.
The global AI in energy market reached a value of nearly $19.03 billion in 2024, having grown at a compound annual growth rate (CAGR) of 16.08% since 2019. The market is expected to grow from $19.03 billion in 2024 to $50.9 billion in 2029 at a rate of 21.75%. The market is then expected to grow at a CAGR of 20.56% from 2029 and reach $129.63 billion in 2034.
Growth in the historic period resulted from the strong economic growth, rising electricity generation, increased demand for solar energy systems, rise in deployment of solar energy systems and increase in energy asset management. Factors that negatively affected growth in the historic period were rising security concerns in the energy sector.
Going forward, rising residential building construction, increasing urban populations, increasing investments in the energy sector and increasing cloud-based services will drive the growth. Factor that could hinder the growth of the AI in energy market in the future include loss of jobs due to automation.
The global AI in energy market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 22.91% of the total market in 2023. Microsoft Corporation was the largest competitor with a 5.00% share of the market, followed by Amazon.com Inc. with 4.31%, NVIDIA Corporation with 3.00%, Oracle Corporation with 2.81%, Alphabet Inc. (Google LLC) with 2.09%, Schneider Electric SE with 1.94%, Siemens AG with 1.47%, ABB Ltd. with 0.92%, Atos SE with 0.74% and Alpiq Holding Ltd. with 0.63%.
North America was the largest region in the AI in energy market, accounting for 40.99% or $7.8 billion of the total in 2024. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the AI in energy market will be Asia Pacific and South America where growth will be at CAGRs of 24.06% and 23.31% respectively. These will be followed by Eastern Europe and Western Europe where the markets are expected to grow at CAGRs of 21.85% and 20.89% respectively.
The AI in energy market is segmented by offering into support services, hardware, AI-as-a-service and software. The software market was the largest segment of the AI in energy market segmented by offering, accounting for 38.44% or $7.31 billion of the total in 2024. Going forward, the AI-as-a-service segment is expected to be the fastest growing segment in the AI in energy market segmented by offering, at a CAGR of 25.97% during 2024-2029.
The AI in energy market is segmented by deployment into on-premise and cloud. The cloud market was the largest segment of the AI in energy market segmented by deployment, accounting for 60.01% or $11.42 billion of the total in 2024. Going forward, the cloud segment is expected to be the fastest growing segment in the AI in energy market segmented by deployment, at a CAGR of 22.91% during 2024-2029.
The AI in energy market is segmented by application into demand response management, fleet and asset management, renewable energy management, precision drilling, demand forecasting, infrastructure management and other applications. The demand response management market was the largest segment of the AI in energy market segmented by application, accounting for 28.57% or $ 5.43 billion of the total in 2024. Going forward, the renewable energy management segment is expected to be the fastest growing segment in the AI in energy market segmented by application, at a CAGR of 26.21% during 2024-2029.
The AI in energy market is segmented by end user into energy transmission, energy generation, energy distribution, utilities and other end-users. The utilities market was the largest segment of the AI in energy market segmented by end user, accounting for 37.24% or $7.08 billion of the total in 2024. Going forward, the energy transmission segment is expected to be the fastest growing segment in the AI in energy market segmented by end user, at a CAGR of 26.33% during 2024-2029.
The top opportunities in the AI in energy market segmented by offering will arise in the AI-as-a service segment, which will gain $10.86 billion of global annual sales by 2029. The top opportunities in the AI in energy market segmented by deployment will arise in the cloud segment, which will gain $20.61 billion of global annual sales by 2029. The top opportunities in the AI in energy market segmented by application will arise in the demand response management segment, which will gain $9.49 billion of global annual sales by 2029. The top opportunities in the AI in energy market segmented by end user will arise in the utilities segment, which will gain $10.83 billion of global annual sales by 2029. The AI in energy market size will gain the most in the USA at $10.28 billion.
Market-trend-based strategies for the AI in energy market include optimizing renewable energy use in residential applications, focus on enhancing energy management systems for residential solar solutions, developing new AI-based software solutions, strategic partnerships, enhancing residential energy ecosystems with advanced connectivity solutions, leveraging AI-driven solutions to optimize energy efficiency and reduce emissions in data centers, innovative AI-powered energy management systems, innovating generative AI assistants and developing AI-powered home assessment tools.
Player-adopted strategies in the AI in energy market include focus on strategic partnerships to develop its business expertise and focus on enhancing its business operations through new product developments.
To take advantage of the opportunities, the analyst recommends the AI in energy companies to focus on enhancing residential energy efficiency with AI-driven solutions, focus on enhancing residential solar energy management with AI, focus on developing AI-based software solutions for energy efficiency, focus on enhancing residential energy ecosystems with advanced AI connectivity, focus on optimizing energy efficiency in data centers with AI solutions, focus on AI-powered energy management systems for market competitiveness, focus on innovating with generative AI assistants to support energy transition, focus on developing AI-powered home assessment tools, focus on AI-as-a-service to drive growth, focus on cloud solutions for AI in energy, expand in emerging markets, focus on strategic partnerships to accelerate ai innovation in energy, focus on competitive and value-based pricing strategies, focus on targeted digital marketing and thought leadership, focus on strategic partnerships for expanded reach, focus on renewable energy management for growth and focus on energy transmission for maximum growth.
Major Market Trends
- Optimizing Renewable Energy Use in Residential Applications With Advanced Technologies
- Expanding Capabilities in Energy Management Systems to Optimize Residential Solar Solutions
- Innovative AI-Based Software Solutions to Monitor and Optimize Energy
- Strategic Partnerships Approaches to Bolster Energy Solutions
- Enhancing Energy Ecosystems With Advanced Connectivity Solutions for Residential Applications
- Focus on AI-Driven Approaches to Enhance Energy Efficiency and Lower Emissions in Data Centers
- Focus on Innovation in AI Energy Management Systems to Address Specific Market Needs
- Introduction of Generative AI Assistants Using GPT-3.5 Technology
- Development of AI-Powered Home Assessment Tools
Table of Contents
1 Executive Summary
6 Market Characteristics
7 Major Market Trends
8 AI in Energy Market - Macro Economic Scenario
9 Global AI in Energy Growth Analysis and Strategic Analysis Framework
10 Global AI in Energy Market Segmentation
11 AI in Energy Market, Regional and Country Analysis
12 Asia-Pacific Market
13 Western Europe Market
14 Eastern Europe Market
15 North America Market
16 South America Market
17 Middle East Market
18 Africa Market
19 Competitive Landscape and Company Profiles
20 Other Major and Innovative Companies
23 Key Mergers and Acquisitions
24 Recent Development in AI in Energy Market
25 Opportunities and Strategies
26 AI in Energy Market, Conclusions and Recommendations
27 Appendix
Executive Summary
AI in Energy Global Market Opportunities and Strategies to 2034 provides the strategists; marketers and senior management with the critical information they need to assess the global AI in energy market as it emerges from the COVID-19 shut down.Reasons to Purchase:
- Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
- Understand how the market is being affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus abates.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market research findings.
- Benchmark performance against key competitors.
- Utilize the relationships between key data sets for superior strategizing.
- Suitable for supporting your internal and external presentations with reliable high-quality data and analysis.
Description
Where is the largest and fastest-growing market for AI in energy? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The AI in energy market global report answers all these questions and many more.The 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 history and forecasts market growth by geography. It places the market within the context of the wider AI in energy market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by offering, by deployment, by application and by end user.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis and Strategic Analysis Framework Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Macro-Economic Scenario- the report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the AI in energy market.
- Regional and Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by offering, by deployment, by application and by end user in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major and Innovative Companies Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Recent Developments Information on recent developments in the market covered in the report.
- Market Opportunities and Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions and Recommendations- This section includes recommendations for AI in energy providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
1) by Offering: Support Services; Hardware; AI-As-A-Service; Software2) by Deployment: on-Premise; Cloud
3) by Application: Demand Response Management; Fleet and Asset Management; Renewable Energy Management; Precision Drilling; Demand Forecasting; Infrastructure Management; Other Applications
4) by End User: Energy Transmission; Energy Generation; Energy Distribution; Utilities; Other End-Users
Key Companies Profiled: Microsoft Corporation; Amazon.com Inc.; NVIDIA Corporation; Oracle Corporation; Alphabet Inc. (Google LLC)
Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa.
Time Series: Five years historic and ten years forecast..
Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; AI in energy indicators comparison..
Data Segmentation: Country and regional historic and forecast data; market share of competitors; market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Companies Mentioned
The companies featured in this AI in Energy market report include:- Microsoft Corporation
- Amazon.com Inc.
- NVIDIA Corporation
- Oracle Corporation
- Alphabet Inc. (Google LLC)
- Schneider Electric SE
- Siemens AG
- ABB Ltd.
- Atos SE
- Alpiq Holding Ltd.
- China Mobile
- ZTE
- YunDing Tech Co. Ltd.
- Shandong Energy Group Co. Ltd.
- GCL Energy Technology
- EdgeCortix Inc.
- BluWave-ai
- Tokyo Electric Power Company (TEPCO)
- Kansai Electric Power
- Kyushu Electric Power
- SK Group
- POSCO International
- GS E&R
- LG Electronics
- Huawei Technologies Co Ltd.
- R&B Technology Co., Ltd.
- Infosys Limited
- Tata Power Company Limited
- Solar Analytics
- AutoGrid India Pvt Ltd
- SparkCognition India Pvt Ltd.
- Bidgely
- BP
- Engie SA
- Iberdrola
- GreenPowerMonitor
- AutoGrid Systems Inc.
- Danfoss A/S
- EVBox B.V.
- LM Ericsson
- Energi
- E.ON
- Powerverse
- Enel Green Power S.p.A.
- Electrica Furnizare S.A.
- Affexy Sp. z o.o.
- ON Semiconductor Corporation
- Ogre AI
- Enea Operator Sp.z.o.o.
- Electrica Group
- Ensemble Energy
- Spark Cognition
- Snowflake Inc.
- Sustainable Energy for All
- Databricks, Inc.
- Honeywell International, Inc.
- BidOut, Inc.
- Enverus, Inc.
- AES Corporation
- Fluence
- General Electric Company
- International Business Machines Corporation
- ExxonMobil
- Baker Hughes Company
- Suncor Energy
- Ontario Power Generation Inc.
- Enbridge Inc.
- Xcel Energy
- BrainBox AI
- Kontrol Technologies
- Ecopetrol SA
- Abastible S.A.
- Origem Energia
- Petróleo Brasileiro S.A.
- CPFL Energia
- Shell Brasil
- Hub71
- ThirdAI
- Watad Energy & Communications
- Abu Dhabi National Oil Company
- Group 42 Holding Ltd.
- Digital Energy Technologies Ltd.
- Saudi Aramco
- AIQ
- Inq. Group
- M-KOPA
- Omdena
- Oya Energy
- Sustainable Metal Cloud (SMC)
- Sasol Limited
- DataProphet
- Eskom Hld SOC Ltd.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 390 |
| Published | May 2025 |
| Forecast Period | 2024 - 2034 |
| Estimated Market Value ( USD | $ 19.03 Billion |
| Forecasted Market Value ( USD | $ 129.63 Billion |
| Compound Annual Growth Rate | 21.2% |
| Regions Covered | Global |
| No. of Companies Mentioned | 93 |
