Artificial Intelligence (AI) in Energy and Power Global Market Opportunities and Strategies to 2035

This report describes and explains the AI in energy and power market and covers 2020-2025, termed the historic period, and 2025-2030, 2035F 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 and power market reached a value of nearly $5.61 billion in 2025, having grown at a compound annual growth rate (CAGR) of 26.6% since 2020. The market is expected to grow from $5.61 billion in 2025 to $16.53 billion in 2030 at a rate of 24.1%. The market is then expected to grow at a CAGR of 22% from 2030 and reach $44.75 billion in 2035.

Growth in the historic period resulted from rising integration of renewable energy sources, growing investments in grid modernization, expansion of virtual power plants (VPPs) and growth of smart cities and digital infrastructure. factors that negatively affected growth in the historic period were high capital investment requirements and lack of skilled workforce.

Going forward, increasing deployment of advanced metering infrastructure (Ami), increasing need for cybersecurity in energy and power infrastructure, government funding and incentives for digital energy transformation and regulatory push for decarbonization and net-zero targets will drive the growth. Factors that could hinder the growth of the AI in energy and power market in the future include cybersecurity and data privacy concerns, lack of interoperability and standardization and impact of trade war and tariff.

Market trends for the AI in energy and power market include AI-enabled smart grid optimization for sustainable energy systems, autonomous ai-driven optimization of energy operations, advancing intelligent energy optimization through predictive analytics and real-time grid management and accelerating industry-wide AI standardization and deployment in power systems.

The 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 AI in energy and power market segmented by technology, accounting for 38.7% or $2.17 billion of the total in 2025. Going forward, the machine learning segment is expected to be the fastest-growing segment in the AI in energy and power market segmented by technology, at a CAGR of 25% during 2025-2030.

The 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 was the largest segment of the AI in energy and power market segmented by application, accounting for 26.5% or $1.48 billion of the total in 2025. Going forward, the smart grids segment is expected to be the fastest-growing segment in the AI in energy and power market segmented by application, at a CAGR of 25.3% during 2025-2030.

The 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 AI in energy and power market segmented by end-user, accounting for 78.8% or $4.42 billion of the total in 2025. Going forward, the commercial and industrial segment is expected to be the fastest-growing segment in the AI in energy and power market segmented by end-user, at a CAGR of 24.2% during 2025-2030.

North America was the largest region in the AI in energy and power market, accounting for 38.4% or $2.15 billion of the total in 2025. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the AI in energy and power market will be Asia Pacific and Middle East where growth will be at CAGRs of 38.5% and 26.1% respectively. These will be followed by South America and North America where the markets are expected to grow at CAGRs of 23.9% and 22.8% respectively.

The global 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 17.09% of the total market in 2024. NVIDIA Corporation was the largest competitor with a 2.26% share of the market, followed by Siemens Energy with 2.06%, Schneider Electric SE with 1.61%, C3.ai Inc. with 1.86%, Microsoft Corporation with 1.65%, Alphabet Inc. (Google LLC) with 1.63%, GE Vernova. with 1.57%, International Business Machines Corporation with 1.50%, ABB Ltd. with 1.49% and Shell plc with 1.26%.

The top opportunities in the AI in energy and power market segmented by technology will arise in the machine learning segment, which will gain $4.46 billion of global annual sales by 2030. The top opportunities in the AI in energy and power market segmented by application will arise in the demand forecasting segment, which will gain $3.04 billion of global annual sales by 2030. The top opportunities in the AI in energy and power market segmented by application will arise in the commercial and industrial segment, which will gain $8.68 billion of global annual sales by 2030. The AI in energy and power market size will gain the most in the USA at $3.42 billion.

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

Market-trend-based strategies for the AI in energy and power market include focus on developing intelligent renewable energy management systems to enhance grid stability, enable real-time demand-supply balancing, agentic AI platforms to autonomously optimize grid operations, enhance predictive maintenance, and enable real-time decision-making across energy systems, developing AI-driven predictive energy optimization platforms to enhance grid efficiency, enable real-time demand forecasting and developing a domain-specific energy AI consortium to accelerate collaborative innovation, standardize data frameworks.

To take advantage of the opportunities, the analyst recommends the artificial intelligence (AI) in energy and power companies to focus on intelligent renewable energy management systems for grid efficiency, focus on agentic AI platforms for autonomous grid optimization, focus on AI driven predictive energy optimization platforms for cost and efficiency gains, focus on domain specific energy AI consortiums for scalable innovation, focus on machine learning for core operational advantage, expand in emerging markets, continue to focus on developed markets, focus on expanding multi-channel distribution through strategic partnerships, focus on value-based and tiered pricing models for AI in energy and power, focus on value-based communication and evidence, focus on targeted messaging and strategic partnerships, focus on commercial and industrial segment expansion, focus on smart grid solutions for scalable growth.

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