AI in Utilities Operations Market Report 2026

The artificial intelligence (AI) in utilities operations market size has grown exponentially in recent years. It will grow from $6.22 billion in 2025 to $7.6 billion in 2026 at a compound annual growth rate (CAGR) of 22.2%. The growth in the historic period can be attributed to expansion of utility digitization initiatives, rising deployment of smart meters, increasing need for outage reduction, early adoption of predictive analytics in utilities, growth of distributed energy resources.

The artificial intelligence (AI) in utilities operations market size is expected to see exponential growth in the next few years. It will grow to $17.05 billion in 2030 at a compound annual growth rate (CAGR) of 22.4%. The growth in the forecast period can be attributed to increasing investments in smart grid modernization, rising demand for AI-driven energy efficiency, expansion of renewable energy integration, growing focus on utility resilience and reliability, increasing adoption of edge analytics in utility operations. Major trends in the forecast period include increasing adoption of AI-based grid management systems, rising deployment of predictive maintenance analytics, growing use of smart meter data intelligence, expansion of AI-enabled renewable integration forecasting, enhanced focus on utility network resilience.

The expanding integration of renewable energy sources is expected to fuel the growth of the artificial intelligence in utilities operations market going forward. Renewable energy sources are natural resources such as sunlight, wind, water, and biomass that are continuously replenished and harnessed for energy generation. The use of renewable energy sources is rising to reduce greenhouse gas emissions, as they generate electricity without burning fossil fuels, aiding in combating climate change and air pollution. AI in utilities operations facilitates renewable energy integration by optimizing generation, forecasting demand, and managing grid connectivity, enabling efficient use of variable energy sources such as solar and wind while reducing curtailment and operational expenses. For example, in January 2024, according to the International Energy Agency, in 2023, global renewable energy capacity additions surged by 50%, reaching nearly 510 gigawatts (GW), with solar PV contributing about three-quarters of the total new installations worldwide. Therefore, the expanding integration of renewable energy sources is driving the growth of the artificial intelligence in utilities operations market.

Companies operating in the artificial intelligence in utilities operations market are focusing on developing innovative solutions, such as AI-based network model tuning, to synchronize digital grid models with real-world conditions, enhance performance, lower operational costs, and boost reliability across power networks. AI-based network model tuning involves using artificial intelligence to automatically update and align a utility’s digital grid model with actual conditions, increasing accuracy, improving reliability, optimizing grid performance, and minimizing operational costs and outages. For example, in November 2025, Schneider Electric SE, a France-based multinational technology company, launched the one digital grid platform to assist utilities in modernizing and reinforcing their grids through AI. The platform enhances reliability, forecasts and manages outages, and aligns digital models with real-world conditions. It also streamlines operations and allows seamless integration of renewables and distributed energy resources without requiring replacement of existing infrastructure. This launch is designed to make grids smarter, more resilient, and ready for the future.

In July 2025, GE Vernova Inc., a US-based global energy technology company, acquired Alteia SAS for an undisclosed amount. With this acquisition, GE Vernova seeks to expand its GridOS portfolio by integrating AI-powered visual intelligence, enabling utilities to monitor, assess, and manage the grid more efficiently, enhance situational awareness, and reinforce operational resilience. Alteia SAS is a France-based software company specializing in AI solutions for utility operations.

Major companies operating in the artificial intelligence (AI) in utilities operations market are Itron Inc., Open Systems International, C3 AI Inc., SparkCognition Inc., Uplight Inc., AiDASH Inc., Uptake Technologies Inc., Anodot Inc., Mosaic Data Science, Sharper Shape Inc., Amperon Inc., Kinetica Inc., eSmart Systems, Bidgely Inc., Utilidata Inc., WeaveGrid Inc., UrbanChain Inc., One Concern Inc., Flexitricity Ltd., Buzz Solutions, and Opus One Solutions Inc.

Tariffs are impacting the artificial intelligence in utilities operations market by increasing costs of imported smart meters, sensors, edge computing devices, servers, and communication gateways used across power, water, and gas networks. Utilities in North America and Europe are most affected due to reliance on imported grid hardware, while Asia-Pacific faces cost pressures on exporting intelligent utility equipment. These tariffs are increasing capital expenditure and slowing modernization projects. However, they are also encouraging domestic manufacturing of utility hardware, regional system integration, and greater adoption of cloud-based analytics platforms that reduce dependence on imported infrastructure.

The artificial intelligence (AI) in utilities operations market research report is one of a series of new reports that provides artificial intelligence (AI) in utilities operations market statistics, including artificial intelligence (AI) in utilities operations industry global market size, regional shares, competitors with a artificial intelligence (AI) in utilities operations market share, detailed artificial intelligence (AI) in utilities operations market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in utilities operations industry. This artificial intelligence (AI) in utilities operations 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 utilities operations describes the use of AI tools including machine learning, predictive analytics, and intelligent automation to improve the operation of electricity, water, and gas utility networks. It enhances efficiency, reliability, and system resilience while lowering operational costs, energy losses, and unexpected service disruptions.

The core components of artificial intelligence (AI) in utility operations consist of software, hardware, and services. Software refers to AI-driven solutions that analyze utility data, optimize operations, and support decision-making across the utility value chain. These solutions are deployed on-premises or in the cloud and are tailored for various utility types, including electricity, water, gas, and renewable energy. They are applied across multiple functions, such as energy management, grid management, asset management, customer service, predictive maintenance, and more, serving diverse end-users across residential, commercial, and industrial sectors.

The artificial intelligence (AI) in utilities operations market consists of revenues earned by entities by providing services such as customer support automation, outage detection and management, anomaly and fraud detection, resource allocation optimization, renewable integration forecasting, smart field operations planning, and workforce analytics. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) in utilities operations market also includes sales of smart meters, artificial intelligence-enabled sensors, internet of things field devices, artificial intelligence servers or edge compute units, grid edge hardware modules, and distribution automation controllers. 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.

This product will be delivered within 1-3 business days.