August 2024
27 Sep 2024
The global AI in energy market size reached USD 13.18 billion in 2023 and is predicted to surpass around USD 75.53 billion by 2034, rising at a 17.20% CAGR from 2024 to 2034. The rise in the advancements of the AI-powered solutions for the sustainable and renewable energy sources and the implementation of AI smart grid to enhance the efficiency and sustainability distribution of electricity contribute for the growth of the AI in energy market.
The use of artificial intelligence is becoming more prominent as many companies shifting towards the digital transformation to carry out their operations with the new advanced IT technologies and many businesses rely on the renewable energy sources that drive for the adoption of the Artificial Intelligence. As the demand for the renewable energy generations is raising AI helps with planning of the increasing demands, optimize the operations, lower the risk and save fuel and energy.
Moreover, many companies are adopting for the use of AI and ML tools that studies the data and can help with better decisions and predict forecast challenges that could affect the energy sources. Vast amount of data is generated by the energy industry and extracting those data manually by humans is difficult and driving the predictions can be difficult where Artificial Intelligence plays an important role.
As per the National Infrastructure pipeline 2019-25, energy sector projects accounted for the highest share 24% out of the total expected capital expenditure of Rs.111 lakh crore. Total FDI inflow in the power sector reached US $ 18.28 billion between April 2000- March 2024. India’s power sector is expected to attract investments worth Rs. 17 lakh crore in next 5-7 years.
Furthermore, people prefer the use of renewable energy sources where in AI makes economies more flexible and efficient and help in the management of the transmission and distribution using the smart advanced tools. This technology helps the investors to improve the system performance and also optimizing the grid operations, meet the energy demand, predict renewable energy output and develop new tools.
Advanced AI techniques help to improve the efficiency and accuracy of the energy consumption and also helps to trade several energy sources such as electricity, hydrogen, natural gas and renewable. As the energy demand grows, AI helps with the prediction of the real-time electricity demand which ensures that the energy grid stays sufficient by storing the energy and distributing whenever needed.
AI-powered technologies helps the companies with better maintenance plans, analyze the data which helps the companies to identify the problems before leading to some more cause. The emerging new advanced technologies help the businesses with improved reliability for the energy generation.
For instance, ABB launched ABB Ability OPTIMAX 6.4 which is the latest version of its flagship digital energy management and optimization system that includes AI modules for improved forecasting of and demand, energy generation and energy pricing without manual interactions and reduce day0ahead and intra-day errors which helps avoid rising penalty payments for operators.
Schneider Electric in partnership with Microsoft’s Azure machine learning and Azure IoT Edge focused on digital transformation of energy management and automation and also aims to solve the challenges faced by companies in oil and gas sectors and has developed tools for the monitoring and managing resources production and consumption.
Increasing concerns for the cyber-attacks hinders the market growth.
The rising infrastructure and risk for the cyber-attacks can slow down the AI in energy market’s growth during the forecast period. Also many smaller companies find it difficult to use the necessary resources and integrating these AI systems could be complex and time-consuming. Moreover, the high cost for installations and implementing these tools pose a major challenge for the market growth.
Recent Developments in AI in Energy Market by Schlumberger Ltd
| Company Name | Schlumberger Ltd |
| Headquarter | United States |
| Recent Development | SLB has announced it collaboration with NVIDIA to develop generative AI solutions for the energy industry that will accelerate the development and deployment of industry specific generative AI models that includes Delfi digital platforms, Lumi Data and AI platforms. |
Recent Developments in AI in Energy Market by IBM
| Company Name | IBM |
| Headquarter | United States |
| Recent Development | IBM and the United Nations Development Program has launched its two new AI interactive models to forecast the energy access that uses Ai to provide future forecast of electricity access. |
Asia-Pacific led the AI in energy market and the region is seen to sustain the position during the forecast period due to the rapid advancements in the AI tools and increasing rapid industrialization, urbanization and the rising needs for the sustainable energy sources. Countries like India, Japan and China are focusing on implementing the AI tools, smart grids and renewable energy techniques. Government initiatives in energy infrastructure, presence of large consumer, increasing energy demand play an important role for the implementation of the advanced AI tools to enhance the efficiency.
North America is observed to hold a considerable share in the global AI in energy market as the region’s growth is mainly due to the advanced technologies, increased digitalization in energy sector, and development in the AI tools that contribute for the growth in the region. The overall adoption of technologies and consumer preferences are seen to act as major growth factors for the market to expand while the United States and Canada will remain the largest contributors to the market.
Europe is expected to grow at the notable rate in the coming years in the AI in energy market due to rise in sustainability use, regulatory laws. These countries are at forefront for implementing the advanced AI tools that could enhance the efficiency of the renewable energy sources. The European Union Policies aims in promoting clean energy sources by investing in smart-grid technologies, storage solutions, maintenance systems that drives the market in this region.
AI in Energy Market Highlights
| Report Attribute | Key Statistics |
| Market Revenue in 2024 | USD 15.45 Billion |
| Market Revenue by 2034 | USD 75.53 illion |
| CAGR | 17.20% |
| Quantitative Units | Revenue in USD million/billion, Volume in units |
| Largest Market | Asia Pacific |
| Base Year | 2023 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Another major emerging application of AI in energy is the development of the autonomous robots that are designed to solve the hazardous tasks like sending them into deep waters; monitor high-voltage power cables, search for seafloor for valuable materials that makes the work safer.
Also in the coming years, AI plays an important role in the global energy industry as it helps to tackle environmental issues and is expected to grow the market. The increasing rise in the micro grids in the developing cities is boosting the market to expand and the government investments ensure the proper power supply and distribute the energy to all systems effectively.
Market Segmnetation
By Type
By Deployment
By Application
By End-Use
By Region
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