Digital Transformation in Energy

Global Digital Transformation in Energy Market to Reach US$252.1 Billion by 2030

The global market for Digital Transformation in Energy estimated at US$61.7 Billion in the year 2024, is expected to reach US$252.1 Billion by 2030, growing at a CAGR of 26.5% over the analysis period 2024-2030. Big Data Analytics, one of the segments analyzed in the report, is expected to record a 23.2% CAGR and reach US$52.7 Billion by the end of the analysis period. Growth in the Artificial intelligence segment is estimated at 28.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$16.8 Billion While China is Forecast to Grow at 34.3% CAGR

The Digital Transformation in Energy market in the U.S. is estimated at US$16.8 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$60.6 Billion by the year 2030 trailing a CAGR of 34.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 21.7% and 23.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 22.2% CAGR.

Global Digital Transformation in Energy Market - Key Trends & Drivers Summarized

How Is Digital Transformation Reshaping the Global Energy Sector?

Digital transformation in energy involves the integration of data analytics, automation, and digital tools into energy production, distribution, and consumption systems. Energy companies are adopting digital technologies to increase efficiency, improve asset management, and meet sustainability goals. Utilities use real-time monitoring and predictive analytics to optimize grid operations and reduce energy loss. In the oil and gas sector, digital systems enhance drilling accuracy, monitor equipment health, and manage field data more effectively.

The shift to decentralized energy systems and renewable integration is accelerating digital adoption. Distributed energy resources such as rooftop solar and energy storage require dynamic coordination through smart grids and digital control platforms. Real-time load balancing, demand forecasting, and grid stability management are supported by digital sensors, edge computing, and artificial intelligence. These changes support the transition from centralized models to more flexible and resilient energy systems.

What Technologies Are Driving Operational and Strategic Advancements?

Advanced metering infrastructure enables two-way communication between consumers and utilities, allowing for time-of-use pricing, remote disconnections, and real-time consumption feedback. Supervisory control and data acquisition (SCADA) systems, combined with IoT-enabled sensors, provide operators with detailed insights into grid status, equipment performance, and outage management.

Artificial intelligence and machine learning algorithms are used for demand forecasting, fault detection, and equipment lifecycle management. Digital twins of energy assets—such as turbines, substations, or pipelines—allow operators to simulate scenarios and optimize performance remotely. Cloud-based platforms host energy management systems that integrate data across the value chain, from production to consumption. Blockchain is being tested for transaction verification in peer-to-peer energy trading and carbon credit management.

Where Are Regional and Sectoral Shifts Creating Demand for Digital Integration?

Electric utilities are investing in digital grid modernization projects across North America, Europe, and Asia Pacific. Smart city programs are creating demand for integrated energy management systems that monitor lighting, mobility, and building consumption. Oil and gas companies in the Middle East, North America, and Russia are expanding digital upstream capabilities to manage exploration risks and increase operational efficiency.

Renewable energy developers use digital tools for solar and wind forecasting, asset tracking, and hybrid system optimization. Industrial energy users are adopting digital energy platforms to reduce peak loads, manage tariffs, and track sustainability targets. In emerging economies, electrification efforts and mini-grid development are supported by digital platforms that allow for remote monitoring, fault detection, and mobile payment systems.

What Is Driving Growth in Digital Transformation Within the Energy Sector?

Growth in digital transformation in the energy sector is driven by several factors related to grid modernization, renewable integration, and operational optimization. Rising adoption of renewable energy requires flexible grid management and demand-side control, prompting digital investments by utilities and grid operators. Expansion of distributed energy systems and smart metering has increased the need for real-time data and predictive analytics.

Efforts to reduce operational costs and extend asset lifespan are encouraging oil, gas, and power companies to invest in remote diagnostics and automated maintenance. Regulatory pressure to improve energy efficiency and reporting accuracy is also driving digital platform deployment. Growth in electrification of transport and heating requires integrated energy planning tools and decentralized control systems. Increasing use of AI and cloud infrastructure across energy supply chains supports strategic decision-making, risk management, and customer engagement initiatives across the global energy ecosystem.

SCOPE OF STUDY:

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

Segments:
Technology (Big Data Analytics, Artificial intelligence, Industrial Control Systems, Field Devices, IoT, Other Technologies); Application (Oil & Gas Application, Power Generation Application, Utilities Application, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 42 Featured) -

• ABB Ltd.
• Accenture Plc
• AVEVA Group plc
• Baker Hughes Company
• Capgemini SE
• Cognite AS
• Emerson Electric Co.
• Enel Group
• General Electric (GE Vernova)
• Hitachi Energy Ltd.
• Honeywell International Inc.
• IBM Corporation
• Infosys Ltd.
• Microsoft Corporation
• Oracle Corporation
• SAP SE
• Schneider Electric SE
• Siemens AG
• Tata Consultancy Services
• Wipro Ltd.

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