Agentic AI in Energy and Utilities Market Size and Share - Growth Analysis Report and Forecast Trends (2026-2035)

The Agentic AI In Energy And Utilities Market attained a value of USD 656.6 Million in 2025 and is projected to expand at a CAGR of around 36.7% through 2035. With the accelerating adoption of autonomous AI agents for grid self-healing automation, rapid integration of distributed energy resources requiring intelligent orchestration, growing demand for predictive maintenance solutions, and expanding deployment of digital twin and simulation platforms, the market is set to achieve USD 9.84 billion by 2035.

Key Market Trends and Insights

• North America dominated the market in 2025 with a share of approximately 35.6% and is projected to maintain leadership over the 2025 to 2035 forecast period, driven by advanced grid digitalisation programmes, substantial utility investment in AI, and regulatory incentives linking rate recovery to digital resilience metrics.
• By Use Case, the Grid Operations and Self-Healing Automation segment held the largest share of 24.6% in 2025 and is projected to witness robust growth over the forecast period, driven by the critical need for autonomous systems to manage increasingly complex electricity networks with rising renewable energy integration.
• By Offering Type, the Edge AI Controllers and Real-Time Control Agents segment is expected to register the fastest CAGR over the 2025 to 2035 forecast period due to growing demand for sub-second response times in grid protection, demand-response dispatch, and distributed energy resource management at the network edge.

Market Size & Forecast

• Market Size in 2025: USD 656.6 Million
• Projected Market Size in 2035: USD 9.84 billion
• CAGR from 2026-2035: 36.7%
• Fastest-Growing Regional Market: Asia Pacific

The global Agentic AI In Energy And Utilities Market, valued at approximately USD 656.6 Million in 2025, represents one of the fastest-growing segments in the intersection of artificial intelligence and critical infrastructure. Agentic AI refers to autonomous software agents capable of planning and executing multi-step actions with limited human supervision, optimising energy operations in real time by ingesting signals from SCADA systems, advanced metering infrastructure, IoT sensors, weather data, energy markets, and asset management systems. These systems coordinate dispatch, switching, maintenance scheduling, energy trading, demand response, and field workflows under safety, reliability, and compliance constraints.

The market's rapid expansion is driven by the fundamental transformation of global energy systems, characterised by the integration of variable renewable energy sources, the proliferation of distributed energy resources, the growing complexity of grid management, and the urgent need for operational efficiency. Data centre electricity consumption, estimated at 415 terawatt hours in 2024 and projected to approach 945 terawatt hours by 2030 largely due to AI workloads, is creating additional grid management challenges that further drive demand for autonomous AI solutions. Industrial automation leaders including Siemens, ABB, and Schneider Electric compete with hyperscale cloud providers such as Google, Microsoft, and AWS, alongside specialised AI companies including Uptake Technologies and numerous emerging startups.

Key Takeaways

Key Takeaway 1: Siemens' acquisition of Altair Engineering for USD 10 billion in March 2025 significantly strengthened its digital twin capabilities, enabling integrated simulation-plus-control offerings for energy utility customers.

Key Takeaway 2: EPRI, NVIDIA, and collaborators launched an open Power AI Consortium in March 2025 to develop AI applications addressing distributed energy resource integration and significant load growth on electric grids.

Key Takeaway 3: Dubai Electricity and Water Authority allocated approximately USD 1.9 billion through 2035 for smart grid infrastructure integrating AI technologies across energy distribution operations.