Artificial Intelligence (AI) in Energy and Power Global Market Opportunities and Strategies to 2034

This report describes and explains the artificial intelligence (AI) in energy and power 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 artificial intelligence (AI) in energy and power market reached a value of nearly $5.23 billion in 2024, having grown at a compound annual growth rate (CAGR) of 24.11% since 2019. The market is expected to grow from $5.23 billion in 2024 to $14.9 billion in 2029 at a rate of 23.26%. The market is then expected to grow at a CAGR of 22.24% from 2029 and reach $40.68 billion in 2034.

Growth in the historic period resulted from the rising investment in digital transformation, rising electricity demand, government incentives and subsidies and smart grid modernization initiatives. Factors that negatively affected growth in the historic period were data privacy and security concerns and lack of skilled workforce and technical expertise.

Going forward, the increasing need for energy efficiency and optimization, deployment of smart grids and smart meters, escalating carbon emission reduction efforts and shift to renewable energy sources will drive the growth. Factors that could hinder the growth of the artificial intelligence (AI) in energy and power market in the future include high implementation and integration costs, interoperability and standardization challenges and impact of trade war and tariff.

Asia Pacific was the largest region in the artificial intelligence (AI) in energy and power market, accounting for 35.94% or $1.88 billion of the total in 2024. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the artificial intelligence (AI) in energy and power market will be Asia Pacific and Middle East where growth will be at CAGRs of 26.20% and 24.40% respectively. These will be followed by Africa and South America where the markets are expected to grow at CAGRs of 23.45% and 22.85% respectively.

The global artificial intelligence (AI) in energy and power 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 14.75% of the total market in 2024. NVIDIA Corporation was the largest competitor with a 1.95% share of the market, followed by Siemens Energy with 1.78%, Schneider Electric SE with 1.61%, C3.ai Inc. with 1.56%, Microsoft Corporation with 1.42%, Alphabet Inc. (Google LLC) with 1.40%, GE Vernova. with 1.35%, International Business Machines Corporation with 1.29%, ABB Ltd. with 1.29% and Shell plc with 1.09%.

The artificial intelligence (AI) in energy and power market is segmented by technology into machine learning, natural language processing, computer vision and other technologies. The machine learning market was the largest segment of the artificial intelligence (AI) in energy and power market segmented by technology, accounting for 44.89% or $2.35 billion of the total in 2024. Going forward, the other technologies segment is expected to be the fastest growing segment in the artificial intelligence (AI) in energy and power market segmented by technology, at a CAGR of 26.49% during 2024-2029.

The artificial intelligence (AI) in energy and power market is segmented by application into demand forecasting, energy production and distribution optimization, energy management, smart grids, smart meter and other applications. The demand forecasting market was the largest segment of the artificial intelligence (AI) in energy and power market segmented by application, accounting for 25.29% or $1.32 billion of the total in 2024. Going forward, the demand forecasting segment is expected to be the fastest growing segment in the artificial intelligence (AI) in energy and power market segmented by application, at a CAGR of 25.79% during 2024-2029.

The artificial intelligence (AI) in energy and power market is segmented by end-user into commercial and industrial and residential. The commercial and industrial market was the largest segment of the artificial intelligence (AI) in energy and power market segmented by end-user, accounting for 73.67% or $3.85 billion of the total in 2024. Going forward, the commercial and industrial segment is expected to be the fastest growing segment in the artificial intelligence (AI) in energy and power market segmented by end-user, at a CAGR of 24.01% during 2024-2029.

The top opportunities in the artificial intelligence (AI) in energy and power markets segmented by technology will arise in the machine learning segment, which will gain $4.82 billion of global annual sales by 2029. The top opportunities in the artificial intelligence (AI) in energy and power markets segmented by application will arise in the demand forecasting segment, which will gain $2.84 billion of global annual sales by 2029. The top opportunities in the artificial intelligence (AI) in energy and power markets segmented by end-user will arise in the commercial and industrial segment, which will gain $7.45 billion of global annual sales by 2029. The artificial intelligence (AI) in energy and power market size will gain the most in the USA at $2.28 billion.

Market-trend-based strategies for the artificial intelligence (AI) in energy and power market include integrating AI into smart grid systems to enable real-time monitoring, control and optimization of energy flows, AI-based platforms and tools to optimize how renewable energy is traded, dispatched and managed across grids, AI-powered predictive maintenance solutions to move from reactive or scheduled upkeep to data-driven, adopting advanced predictive analytics tools that leverage AI and ML (machine learning) to forecast energy demand more accurately over short, medium and long-term horizons, deploying chatbots, voice assistants and AI‐powered customer agents and energy companies to automate inspection of physical assets, transmission lines, transformers, poles, insulators and to detect faults, damage, corrosion, leaks, or other defects.

Player-adopted strategies in the artificial intelligence (AI) in energy and power market include focus on enhancing its operational and business capabilities through partnership expansions.

To take advantage of the opportunities, the analyst recommends the artificial intelligence (AI) in energy and power market companies to focus on expanding real-time AI integration across smart grid operations, focus on strengthening AI-driven optimization of renewable energy trading and dispatch, focus on advancing AI-enabled predictive maintenance to cut downtime and extend asset life, focus on scaling AI-driven predictive analytics to improve demand forecasting and grid planning, focus on expanding AI-driven customer engagement to improve service efficiency and satisfaction, focus on accelerating AI-enabled automation of asset inspection to enhance reliability and safety, focus on accelerating growth in other technologies, expand in emerging markets, focus on strengthening distribution reach across priority energy segments, focus on building flexible pricing structures that align with energy sector needs, focus on strengthening targeted promotion to increase adoption across priority energy segments, focus on building relationship-driven promotion that accelerates market penetration, focus on capturing growth in smart grids and focus on expanding presence in commercial and industrial customers.