Internet of Things (IoT) in Energy Market Size, Share and Trends 2025 to 2034

Internet of Things (IoT) in Energy Market Size and Forecast 2025 to 2034

The global internet of things (IoT) in energy market size was accounted for USD 30.21 billion in 2024 and is anticipated to reach around USD 111.41 billion by 2034, growing at a CAGR of 13.94% from 2025 to 2034. The growing market demand for energy efficient solutions, integration of Internet of Things (IoT) in various sectors for optimizing energy consumption, technological advancements, the rising environment concerns and active government support are promoting the growth of Internet of Things (IoT) in energy market.

Internet of Things (IoT) in Energy Market Key Takeaways

• North America dominated the global internet of things (IoT) in energy market with the largest market share of 37% in 2024.
• Asia Pacific is expected to expand at a solid CAGR of 16.03%% during the forecast period. 
• By application, the smart grid segment contributed the highest market share in 2024.
• By application, the coal mine segment is projected to grow at a significant CAGR during the forecast period.

Role of AI in IoT for Energy Sector

The integration artificial intelligence with Internet of Things (IoT) in the energy sector has various applications such as enabling advanced data analysis form connected sensors, for predictive maintenance, in smart grid management, for optimizing energy consumption, for adjusting and transmission of energy output in renewable energy sources, for demand forecasting and data transmission thereby cutting energy costs, improving dependability on grid and enhancing the operational efficiency ultimately promoting sustainability.

U.S. Internet of Things (IoT) in Energy Market Size and Growth 2025 to 2034

The U.S. internet of things (IoT) in energy market size was evaluated at USD 8.38 billion in 2024 and is predicted to be worth around USD 31.54 billion by 2034, rising at a CAGR of 14.17% from 2025 to 2034.

North America dominated the global internet of things (IoT) in energy market with the largest market share of 37% in 2024. The factors such as growing number of energy projects and adoption of innovative technologies such as internet of things (IoT) and big data analytics. The growth of internet of things (IoT) in energy market in North America region is also driven by growing research and development activities.

The U.S. is a mature Internet of Things (IoT) in the Energy Market, and the growth in the country is driven by the government initiatives and investment for smart grids and renewable energy on IoT technologies, and IoT plays a vital role in managing and optimizing the integration of renewable energy sources into the grid. These factors play a major role in the growth and expansion of the market in the country.

Asia-Pacific expected to expand at a solid CAGR of 16.03%% during the forecast period. China dominates the internet of things (IoT) in energy market in Asia-Pacific region. The growth of internet of things (IoT) in energy market in Asia-Pacific region is being driven by technological advancements. In addition, favorable government regulations are also creating opportunities for the growth of internet of things (IoT) in energy market in the region.

India has seen a significant growth in the Internet of Things (IoT) in the Energy Market, the growth is driven by rapid urbanization, industrialization, and government initiatives in renewable energy sources and smart grid helping in energy management and optimization and also manage energy consumption of energy which fuels the growth of the market in the country. The country’s fast-paced development increases the demand for IoT for efficient energy management, driving the growth and expansion of the market in the country.

Key Trends in Internet of Things in the Energy Market

• IoT enables smart meter technologies for energy efficiency, and enhancing the processing of billing is a growing trend that fuels the growth of the market.
• The integration of IoT helps in the advancement of energy management and also helps in making automated decision-making, which helps in the growth of the market.
• Government initiatives and regulations for the adoption of IoT technologies in the energy sector for energy efficiency and sustainability boost the growth of the market.
• The cost-effective and cost-saving trends through energy optimization with the integration of IoT help in the growth of the market.

Internet of Things (IoT) in Energy Market Growth Factors

• Increasing demand for energy efficient solutions due to growing awareness about environmental impacts and climate changes globally 
• Active government support for integrating IoT in energy sector 
• Development of IoT-driven smart grids for optimizing power consumption and demand 
• Implementation of AI and machine learning tools for analysing vast amounts of data generated by IoT for examining energy inefficiencies and optimizing energy usage by predicting demand patterns 
• For remote monitoring and control of energy systems 
• Predictive maintenance and minimized downtime by monitoring the status of energy infrastructure components with IoT 
• Rising investments of industries and governments for adoption of energy sectors with high efficiency 
• Integration of IoT powered smart meters and home energy management systems providing consumers real-time monitoring of energy consumption thereby assisting them in making informed decisions for reducing energy usage

Report Scope of the Internet of Things (IoT) in Energy Market

Component Insights

The solutions segment accounted largest revenue share in 2024. The internet of things (IoT) is used on a large scale in the power and energy generation sector. The solutions in energy sector helps in the energy generation with efficiency and effectiveness. Thus, all these factors are driving the growth of the segment.

The services segment is fastest growing segment of the IoT in energy market in 2020. The internet of things (IoT) in energy sector is providing various types of services. Those services are transmission, energy generation, asset management, distribution, security, and workforce management. These services are increasing operational efficiency in energy sector.

Service Insights

The integration and deployment segment dominated the internet of things (IoT) in energy market in 2024. The integration and deployment help to integrate internet of things (IoT) solutions with favorable information technology infrastructure. This results into more efficient and effective processes in energy generation. Thus, this service is deployed on large scale.

The support and maintenance segment is expected to grow faster from 2025 to 2034. After installation of internet of things (IoT) solutions in energy sector, the main task is to maintain the systems with regular checkups. Thus, the support and maintenance service are deployed in energy sector.

Application Insights

The smart grid segment contributed the highest market share in 2024. The oil and gas deploy internet of things (IoT) technologies on a large scale. This technology helps in day-to-day operations in oil and gas sector. In addition, the adoption of innovative and advance technologies is also driving the growth of the segment.

The coal mine segment is projected to grow at a significant CAGR during the forecast period. The internet of things (IoT) technology has made coal mining easy. With this technology, the position of miners can be tracked easily. The internet of things (IoT) technology also helps to monitor whole process of mining.

Internet of Things (IoT) in Energy Market Companies

• Cisco Systems
• AGT International
• Altair Engineering
• HCL Technologies
• Rockwell Automation
• Infosys
• Davra Networks
• Wind River
• IBM Corporation
• Siemens

Key Developments

• In October 2024, Titan Intech Ltd., a leading software development signed a MoU with Kakatiya Energy Systems Pvt Ltd. For acquiring 26% stake in the company. This collaboration allows Titan Intech for expanding its product offerings including energy storage solutions, IoT applications, solar products and smart city infrastructure.
• In September 2024, Indus Towers, a leader in telecom space announced the adoption initiatives which promote the utilization of AI, IoT and advanced analytics tools for enhancing energy efficiency and safety across different sources in their telecom infrastructure.

Segments Covered in the Report

By Component

• Platform
• Solutions
• Services

By Solution

• Asset Management
• Predictive Maintenance
• Asset Condition Monitoring
• Data Management and Analytics
• SCADA
• Energy Management
• Safety
• Physical Security
• Cybersecurity
• Connected Logistics
• Fleet Management
• Freight Management
• Port Management
• Compliance and Risk Management
• Sustainability Monitoring
• Emission Monitoring and Control
• Mobile Workforce Management
• Network Management

By Service

• Consulting
• Integration and Deployment
• Support and Maintenance

By Network Technology

• Cellular Network
• Satellite Network
• Radio Network
• Others

By Application

• Oil and Gas
• Upstream
• Midstream
• Downstream
• Coal Mining
• Open-pit Mining
• Underground Mining
• Smart Grid
• Generation
• Power Transmission and Distribution
• Substation Automation

By Geography

• North America
• Latin America
• Europe
• Asia-pacific
• Middle and East Africa