Key Market Insights
“Rising energy production and consumption worldwide will boost market growth”
The global AI in energy management market is growing tremendously, projected to expand at a CAGR of 21.2% throughout the projected period from 2023 to 2030, starting from US$ 24.4 Bn in 2021.
The global AI in energy management market is majorly driven by the growing energy production & consumption worldwide along with leveraging artificial intelligence (AI) to improve grid stability and the growing need for smart energy management solutions. In 2018, the global primary energy consumption was 1, 57,063.77 TWh raised 2.4% from 1, 53,347.15 TWh in 2017. Moreover, India, China, and the U.S. together accounted for over 2/3rd of the worldwide increase in energy demand. The surge in the use of renewable energy sources is another factor driving the growth of the market. The introduction of cloud-based software to improve service operations, to deliver real-time insights and easy product development are some other major factors expected to enhance the market demand over the forecast period.
The integration of IoT (internet of things) to monitor utility & energy data in the energy management systems is another major factor expected to drive the market growth over the forecast period. The global energy management systems market was valued at around US$ 39.0 Bn in 2018 and anticipated to expand with a CAGR of nearly 19% over the forecast period. Market players are focusing on strategic collaborations for launching advanced AI-based energy management systems. For instance, in November 2019, ABB Ltd. partners with Verdigris Technologies for revolutionizing energy management through artificial intelligence (AI) solutions. They launched two AI-powered applications in the ABB Ability EDCS (Electrical Distribution Control System), Energy Forecasting, and Intelligent Alerts. Intelligent Alerts app will help consumers to identify underlying issues, better manage their assets and Energy Forecasting app will help in reducing electricity bills through tumbling peak demand charges.
Application Analysis
“Growing need for effective energy management services to spur the segment growth”
The energy output forecasting segment dominated the global market in 2021. The segment had the highest share due to a surge in the need for effective energy management services coupled with growing energy consumption worldwide. Artificial intelligence (AI) solutions help in utilizing data through machine learning techniques and statistical algorithms which help in providing better services to consumers.
“Surge in demand to manage energy output globally to spur the segment growth”
The energy generation segment is anticipated to expand with the highest CAGR over the forecast period owing to the growing demand to manage the total energy output from different sources such as wind power stations, solar power plants, thermal plants, and others. The need to match temporal and spatial variations in real-time is another factor for segment growth.
Regional Analysis
“The rise in the integration of AI in the energy industry to enhance North America growth”
In 2021, North America was dominant in the global AI in the energy management market. The region accounted for around 33% of the world market share in the same year. North America was dominant in 2018 due to the rise in the integration of artificial intelligence in the energy industry along with early technological adoption and presence of major market players in the region such as IBM Corporation, Honeywell International, Inc., General Electric Company, and others. The U.S. had the highest share in the North America AI in energy management market in 2018, contributed to more than 82% market share in the same year. The U.S. had a major share due to a surge in government investment coupled with the growing demand for energy. According to a report, the U.S. consumption is expanding at its fastest rate for the last 30 years.
Key Industry Developments:
List of Companies Covered:
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of AI in Energy Management market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Billion |
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Region Segment (2022-2032; US$ Billion)
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Key questions answered in this report
