IoT in Energy Market Analysis | 2022-2028

Market Insights

The Global IoT in Energy Market is expected to grow from USD 20.57 billion in 2021 to USD 44.79 billion by 2028 at a CAGR of 11.8% during the forecast period.

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What is IoT in energy?

IoT in energy refers to a modern process that includes planning and management of energy consumption patterns in multiple areas. It lets the user take complete control of energy data from scratch and make effective use of the process. IoT in energy also refers to the updating and robotization of electronic instruments used by energy producers and manufacturers. It is used in energy management systems to regulate and monitor energy utilization and generation.

Market Dynamics

The increasing demand for IoT in the energy market is due to the growing interest in energetic security solutions for safeguarding enterprises from online security risks, as well as increased operational capacity. The IoT in the energy sector lowers energy consumption and improves energy services. The IoT in energy market gives various solutions in terms of software, hardware, services, connectivity, and integrated solutions. IoT in the energy sector is reducing costs and creating more productive connected buildings.

The IoT is expected to make a notable impact on the energy sector. From monitoring the room temperature using sensors to sophisticated applications that are used to control the use of energy in a complete building, IoT helps in cutting costs. The reducing natural resources that generate energy and the growing wastage of energy have drawn the attention of different nations worldwide, to innovate solutions that decrease energy wastage and employ solutions that offer high efficiency.

A predictive analytics network analyzes the data collected from sensors embedded in power grids. Therefore, machinery can decrease energy transmission and distribution losses to make the consumption of energy more efficient and cost-effective worldwide. Companies, like Nixus Solutions, offer connected solutions to monitor and decrease energy consumption in buildings. Aquicore also offers an analytics platform that connects to energy meters, which have already been installed. This enables agencies to make decisions that enhance staff productivity and decrease energy wastage.

Segments Analysis

Based on components, the solutions segment holds the largest market size over the forecast period.

The IoT in energy refers to the use of IoT solutions in the power generation industry. These solutions are majorly aimed at the convergence of machines and intelligent data to reach the operational efficiency targets set by energy companies. IoT solutions in energy also improve analytics-based decision-making by lowering the threats and vulnerabilities of the market by using effective tools and techniques. Furthermore, IoT solutions have enabled energy companies to manage assets from anywhere to automatically monitor their asset performance.

The IoT technology is implemented across the complete energy value, such as energy generation, transmission, distribution, workforce management, asset management, security, consumer side analysis, energy management, infrastructure management, and remote monitoring. This helps to decrease the downtime in providing energy services, give consumers a consistent experience, and increase the overall operational efficiency of the energy company.

Based on service, the integration and deployment segment holds the largest market size over the forecast period.

Integration and deployment services allow experts to combine IoT devices with IoT solutions and also deploy them into the desired IT infrastructure. These services improve business agility and process efficiency by aligning enterprise IT solutions with business goals. The primary reason for enterprises to adopt system integration services is their need to enhance overall productivity and the quality of their business operations. The aim of using these services is to make different IT systems of an enterprise communicate with each other to speed up information flow and decrease the operational costs of the company.

Based on application, the oil and gas segment to hold the largest market size in 2020.

Being the most capital-intensive industry, the oil and gas application segment led the IoT in energy market in 2021. Firms operating in the fields of oil and gas exploration and refining consume large capital to fulfill their everyday operational costs. Energy companies are continuously focusing on technological advancements and process enhancements to sustain themselves in the market.

The use of IoT solutions is expected to enhance the operational efficiency of the oil and gas segment, therefore helping businesses operating in this industry to sustain the drop in oil prices. IoT solutions can be used for remote monitoring of oil rigs and ensuring pipeline integrity. Therefore, IoT solutions are used to detect potential accidents and avert them. IoT-enabled sensors and devices enable remote monitoring of operations and enhanced end-to-end processes in oil and gas facilities.

Smart Meters are expected to hold a significant share.

Smart meters are among the most used IoT devices by energy and utility companies in recent years. These devices enable the interconnection of buildings with the smart energy grid, which enable these companies to control energy flow more effectively. Smart cities are also increasingly using smart meters.? With IoT-enabled smart meters, organizations can access rich, real-time data to give better service while decreasing costs and boosting profits.

Furthermore, these help in the proper balancing of electric loads and decreasing power outages, streamlining energy distribution through more precise forecasting, and enabling dynamic pricing by increasing or lowering costs according to real-time demand.

Among regions, Asia Pacific holds the largest market size over the forecast period.

The growing adoption of smart grid framework, technology upgrades, regulatory mandates, and energy management are major driving factors for the growth of the IoT in energy market in this region. China, the largest economy in the region, is also its biggest exporter. Accounting for half of the region’s oil, China is the region’s largest producer. Its output of 3.8 million barrels each day was 6% lower than the average for almost a decade.

Asia Pacific utilizes 36% of the world’s oil, a total of 36 million barrels each day. Growing smart meter adoption in countries, such as China, Japan, South Korea, and Australia has boosted the growth of the IoT in energy market in the Asia Pacific region.

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Key Players

The major players operating in the Global IoT in Energy Market are:

• IBM (US)
• ABB (Switzerland)
• SAP (Germany)
• Actility (France)
• Cisco Systems (US)
• Siemens (Germany)
• Intel (US)
• AGT International (Switzerland)
• Altair Engineering (US)
• Flutura (US)
• Davra Networks (US)
• Wind River (US)
• Schneider Electric (France)
• HCL Technologies (India)
• Aclara (US)
• Bosch (Germany)
• smartGAS (Germany)
• Rockwell Automation (US)
• Trimble (US)
• Infosys (India)

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Customization Options

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Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

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Recent Developments

• In November 2022, ABB launched an energy management system for green hydrogen to help hydrogen production companies reduce production costs by up to 20 percent. The software increases the efficiency of energy-intensive electrolyzers that are used to produce green hydrogen.
• In June 2022, Siemens launched Siemens Xcelerator, an open digital business platform to accelerate digital transformation across the industry, buildings, grids, and mobility. Siemens Xcelerator includes a curated portfolio of IoT-enabled hardware, software, and digital services from Siemens and its certified third-party stakeholders; a growing ecosystem of partners; and a growing marketplace to facilitate interactions among customers, partners, and developers.