Artificial Intelligence in Energy

Global Artificial Intelligence in Energy Market to Reach US$40.9 Billion by 2030

The global market for Artificial Intelligence in Energy estimated at US$9.8 Billion in the year 2024, is expected to reach US$40.9 Billion by 2030, growing at a CAGR of 26.8% over the analysis period 2024-2030. Renewables Management Application, one of the segments analyzed in the report, is expected to record a 31.2% CAGR and reach US$15.2 Billion by the end of the analysis period. Growth in the Demand Forecasting Application segment is estimated at 23.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.9 Billion While China is Forecast to Grow at 29.7% CAGR

The Artificial Intelligence in Energy market in the U.S. is estimated at US$2.9 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$6.6 Billion by the year 2030 trailing a CAGR of 29.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 23.0% and 27.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 25.6% CAGR.

Global Artificial Intelligence in Energy Market - Key Trends and Drivers Summarized

How Is AI Transforming Energy Management?

Artificial intelligence (AI) is reshaping the energy sector by introducing unprecedented efficiency, precision, and adaptability to energy management. AI-powered systems enable real-time monitoring and optimization of energy consumption across various sectors, from industrial facilities to residential homes. Predictive analytics, a cornerstone of AI, allows utilities to forecast energy demand with high accuracy, reducing waste and ensuring a reliable supply. For renewable energy, AI plays a critical role in addressing intermittency issues by predicting weather patterns and optimizing the integration of solar and wind energy into the grid. Additionally, AI-driven automation has streamlined energy trading in markets, enabling companies to make data-informed decisions for purchasing and selling energy. As the global energy demand grows and sustainability becomes a priority, AI has become a vital tool for achieving energy efficiency and reducing carbon emissions.

What Role Does AI Play in Renewable Energy Optimization?

The adoption of renewable energy sources like solar and wind has surged, but their variability poses challenges for grid stability. AI is revolutionizing renewable energy optimization by offering advanced solutions to these issues. Machine learning algorithms process vast amounts of data from weather forecasts, energy output, and consumption patterns to predict and balance energy supply and demand. For instance, AI optimizes the placement and operation of wind turbines by analyzing wind speeds and directions. In solar energy, AI enhances the efficiency of photovoltaic systems by identifying performance issues and adjusting parameters to maximize output. Moreover, AI enables virtual power plants (VPPs), which aggregate distributed energy resources and optimize their use to maintain grid stability. By ensuring that renewable energy systems operate at peak efficiency, AI is accelerating the transition toward a sustainable and resilient energy future.

How Are Advanced Applications of AI Redefining the Energy Sector?

AI applications are extending beyond traditional energy management and renewable energy optimization, creating transformative impacts across the sector. Smart grids powered by AI can self-heal, identifying faults and rerouting power automatically to prevent outages. In oil and gas, AI assists in exploration by analyzing geological data to locate resources with higher precision, reducing operational costs and environmental risks. Energy storage systems, critical for managing renewable energy, benefit from AI in predicting battery performance and enhancing energy storage efficiency. Additionally, AI-enabled demand response systems adjust energy usage during peak times, lowering costs for consumers and reducing stress on the grid. As cities embrace smart infrastructure, AI is integral to designing systems that integrate energy generation, distribution, and consumption seamlessly. These applications underscore AI`s ability to tackle complex challenges and drive innovation across the energy ecosystem.

What Drives the Growth in the AI in Energy Market?

The growth in the AI in energy market is driven by several factors, including advancements in AI algorithms, increasing adoption of renewable energy, and the growing need for efficient energy systems. The rising integration of IoT devices in energy infrastructure has provided access to real-time data, which AI systems use to optimize operations. As governments enforce stringent regulations to reduce greenhouse gas emissions, utilities are leveraging AI to meet compliance requirements while maintaining operational efficiency. In renewable energy, the push for grid decarbonization and the proliferation of distributed energy resources have heightened the demand for AI-based optimization solutions. The increasing focus on smart cities and sustainable urban development has also spurred investment in AI-driven energy systems. Furthermore, the decline in the cost of AI technologies and cloud computing has made these solutions more accessible, encouraging widespread adoption across industries. These factors collectively highlight the pivotal role of AI in shaping the future of energy systems worldwide.

SCOPE OF STUDY:

The report analyzes the Artificial Intelligence in Energy market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Solutions Component, Services Component); Application (Renewables Management Application, Demand Forecasting Application, Safety & Security Application, Robotics Application, Other Applications); End-Use (Utilities End-Use, Energy Generation End-Use, Energy Transmission End-Use, Energy Distribution End-Use)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Rest of Europe; Asia-Pacific; Rest of World.

Select Competitors (Total 92 Featured) -

• ABB Ltd.
• Alpiq Holding Ltd.
• AppOrchid Inc.
• C3.ai Inc.
• Datategy
• Enel Spa
• eSmart Systems
• FlexGen Power Systems, Inc.
• Grid4C
• GridBeyond
• Hazama Ando Corporation
• Innowatts, Inc.
• iRasus Technologies Private Limited
• Ndustrial.io, Inc.
• Omdena, Inc.
• Schneider Electric SE
• Uplight, Inc.
• Vestas Wind Systems A/S

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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