AI-Based Energy Forecasting Services Market Revenue and Forecast by 2035
Published: 22 Jan 2026
Author: Precedence Research
What are the Driving Factors of the AI-based Energy Forecasting Services Market?
The AI-based energy forecasting services market is significantly expanding due to the combination of factors such as the growing shift toward integrating renewable energy sources with AI-based systems, the rise of smart grids and intelligent infrastructure, increasing emphasis on decarbonization, and enhanced forecasting accuracy and speed enabled by advanced AI tools. Rising volatility in energy supply and demand is increasing reliance on AI-driven optimization for grid stability and load balancing. In addition, utilities are deploying AI to improve asset performance, reduce downtime, and extend the lifecycle of energy infrastructure.
Smart grids require AI technology to manage bidirectional energy flow, improve energy efficiency, and minimize operational costs through predictive analytics that outperform traditional statistical models. Government regulations and incentives encouraging AI investment for sustainable energy usage are further fueling market growth globally. AI-based demand response systems are also enabling real-time pricing and consumption optimization for end users. In parallel, increased public and private funding for digital energy transformation is accelerating large-scale deployment of AI-enabled grid solutions.
Segments Insights
- Service Insights, The forecasting-as-a-service segment held the largest market share in 2025 due to the increasing demand for AI expertise and maintaining its solutions for various sectors.
- Modeling Technology Insights, The machine learning/deep learning segment held the largest market share in 2025 owing to its ability to analyze huge datasets with complexity and offer actionable insights through hidden patterns.
- Deployment & Delivery Mode Insights, The cloud/SaaS APIs & portals segment held the largest market share in 2025 due to its simplified maintenance and higher scalability that bypasses need for separate hardware infrastructure.
- Data Inputs Utilized Insights, The smart meter/AMI time series segment held the largest market share in 2025 as it offers massive real-time data with higher precision for efficient AI algorithms.
- End User Insights, The vertically integrated utilities & retail suppliers segment held the largest market share in 2025 as AI forecasting can resolve the challenges faced by grid operators to stabilize grids and their reliability.
Regional Insights
North America held the largest market share in 2025 due to the confluence of well-developed infrastructure, high expenditure by public and private institutions to develop and deploy AI-based solutions in the energy sector, and strong government push toward sustainable energy adoption with strict regulatory compliance. Early implementation of smart grid pilots and AI-driven grid management platforms is strengthening operational efficiency across utilities. In addition, strong collaboration between energy companies, technology providers, and research institutions is accelerating commercialization of advanced AI energy solutions.
Asia Pacific is expected to witness the fastest CAGR during the foreseeable period of 2026-2035 due to increasing demand for uninterrupted energy from emerging industries amid rapid urbanization and supportive government policies promoting sustainable energy practices to achieve carbon neutrality. Large-scale investments in renewable capacity, grid modernization, and digital infrastructure are expanding the addressable market for AI-enabled energy systems. In parallel, national energy transition roadmaps and public-private partnerships are accelerating adoption of AI across power generation, transmission, and distribution networks.
AI-based Energy Forecasting Services Market Coverage
| Report Attribute | Key Statistics |
| Quantitative Units | Revenue in USD million/billion, Volume in units |
| Largest Market | North America |
| Base Year | 2025 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa |
Recent Development
- In January 2026, a leading provider of AI-based energy forecasting and analytics solutions, Amperon, announced an investment from Samsung venture investment corp., a corporate venture branch of Samsung Group, aiming to advance energy forecasting technology collaboratively.(Source: https://www.prnewswire.com)
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