Published Date : 01 Feb 2024
The global smart energy market size was exhibited at USD 146.2 billion in 2022 and is anticipated to touch around USD 394.99 billion by 2032, expanding at a CAGR of 10.50% from 2023 to 2032.
In the modern era, energy efficiency is a crucial goal for humans when using electricity. Smart energy is a secure, powerful, sustainable, and cost-effective energy infrastructure that focuses on the advancement of renewable energy sources. Smart energy efficiently uses innovative technology to build and operate a sustainable energy management system, which is accomplished by integrating machine learning (ML), artificial intelligence (AI), and data analytics technologies into processes using Internet of Things (IoT) sensors.
The implementation of smart energy has widely spread and plays an important role in almost every industry. The installation of smart energy requires hardware and software components, including network infrastructure, instrumentation, and network management software. Smart energy systems enable users to monitor the energy and reduce emissions. Smart energy is used for industrial, residential, and commercial applications. Simulation and estimation of sustainable energy performance and management leverages AI-based strategies.
The growth of the global smart energy market is driven by several factors, including increasing investment in renewable sources of energy, favourable government regulations to reduce carbon emissions, wide adoption of innovative technology, rising demand for reliable power solutions, and rising use of IoT in the energy sector.
Moreover, the market is expected to see continued innovation and evolution due to rapid urbanization, rapid progress of industrialization, growing demand for commercial and industrial sectors for advanced power sources, and rising awareness regarding the benefits of AI-integrated solutions, further accelerating the market growth.
North America leads the global smart energy market owing to rapid modernization and policies supporting sustainable development. The region is characterized by the increasing adoption of clean energy technologies, a focus on the advancement of smart grids, and stringent environmental regulations to reduce carbon emissions. Furthermore, increasing investment in infrastructure development and rising R&D activities in renewable energy sources in the region support the demand for AI-integrated smart energy solutions.
Asia Pacific holds the fastest-growing market. The region’s growth is projected to continue its growth during the forecast period owing to the increasing demand for sustainable sources of energy, the presence of key market players, rapid industrialization, rapid urbanization, wide adoption of advanced energy solutions, and increasing investment in generating clean sources of energy. The rising utilization of smart grids, IoT devices, and data analytics in Asia Pacific countries such as India, China, and Japan facilitate efficient management of energy resources.
To meet India’s 500-gigawatt renewable energy target and to address the annual issue of coal demand-supply mismatch, the Indian Ministry of Power has identified 81 thermal units that will replace coal with renewable energy generation by 2026.
Adani Energy Solution announced the strategic partnership for smart metering projects. The Adani Group company will hold a 49% stake in the joint venture, while Esyasoft will own 51%. The collaboration plan is to collectively bid for and implement smart metering projects in both the Indian and global smart energy markets, with a workforce of approximately 100 experts strategically located in India, the UAE, the UK, and KSA.
| Report Coverage | Details |
| Market Revenue in 2023 | USD 160.82 Billion |
| Projected Forecast Revenue by 2032 | USD 394.99 Billion |
| Growth Rate from 2023 to 2032 | CAGR of 10.50% |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Drivers
Increasing popularity of 5G technology
The rising popularity of 5G technology players is anticipated to fuel the market’s expansion in the coming years. The telecommunications sector requires smart energy solutions to operate efficiently. With high speeds and reduced latency, 5G’s connectivity enhances device capacity and provides a sophisticated infrastructure for the development of energy solutions. Therefore, the use of 5G technology in the energy sector accelerates the growth of the smart energy market.
Rising environmental concerns
The growing environmental concerns to reduce carbon footprints are expected to drive an increased demand for clean sources of energy. Environmental issues related to fossil fuels are prompting a rise in sustainable and secure energy sources. Several governments around the world are introducing favorable tax incentive programs to encourage the adoption of smart energy technologies in residential, commercial, and industrial sectors, as well as aggressively investing in installing smart energy technologies to develop sophisticated infrastructure. Thus, boosting the market’s revenue.
Restraint
High initial costs and technological complexities
The high initial cost associated with the deployment of smart energy technology is projected to hamper the growth of the smart energy market. The high installation cost may encourage the residential, commercial, and industrial sectors in middle- and lower-income countries to adopt these latest technologies. In addition, the technological complexities faced by experts may restrain the market growth to a certain extent.
Opportunities
Continuous technologies advancements
The rapid advancements in innovative technologies are likely to boost the expansion of smart energy applications globally during the forecast period. IoT-driven energy management offers an eco-friendly, continuous, reliable, and sustainable supply of electricity to offices, homes, and industrial plants as well as enables easy monitoring of energy usage. Power plants use IoT-integrated systems to enhance energy production and optimize renewable use and energy storage.
Increasing investment in smart grid technologies
The rising investment in smart grid technologies is expected to offer a lucrative opportunity for smart energy market growth during the forecast period. Smart grids are electricity networks that use advanced digital technologies, sensors, and software to align with the supply and demand of electricity in real time while reducing costs and maintaining the stability of the grid.
The rising investment in smart grid technologies is expected to offer a lucrative opportunity for smart energy market growth during the forecast period. Smart grids are electricity networks that use advanced digital technologies, sensors, and software to align with the supply and demand of electricity in real time while reducing costs and maintaining the stability of the grid.
Market Segmentation
By Product
By End-User Industry
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