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  • Artificial Intelligence in Energy Market Analysis | 2023-2029

    Artificial Intelligence in Energy Market Analysis | 2023-2029

    Artificial Intelligence in Energy Market Analysis | 2023-2029
    Report code - SR2465 Delivery - 2 Weeks
    Artificial Intelligence in Energy Market Size, Share, Trend, Forecast, Competitive Analysi See more...

    Market Insights

    The artificial intelligence in energy market is expected to grow from USD 4.23 billion in 2022 to USD 11.05 billion by 2029 at a CAGR of 14.7% during the forecast period.

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    What is Artificial Intelligence in Energy?

    Artificial Intelligence (AI) is playing an increasingly important role in the energy sector by improving efficiency, reducing costs, and supporting the transition to renewable energy sources. AI algorithms can optimize energy production and consumption by analyzing data on weather patterns, energy demand, and grid performance. AI can also improve asset management by predicting equipment failures and optimizing maintenance schedules.

    In addition, AI can support the integration of renewable energy sources into the grid by predicting energy output from sources such as solar and wind, and optimizing their integration into the grid. Overall, AI in energy is transforming the industry by making it more efficient, sustainable, and reliable. As the technology continues to advance, even more innovative applications of AI in energy are expected in the future.

    Artificial Intelligence in Energy Market Report Overview

    Market Size in 2029

    USD 11.05 billion

    Market Size in 2022

    USD 4.23 billion

    CAGR (2023-2029)

    14.7%

    Base Year of Study

    2022

    Trend Period

    2017-2021

    Forecast Period

    2023-2029

    Key Players

    The major players operating in the global artificial intelligence in energy market are:

    Market Dynamics

    Market Drivers

    Smart grids not only transport power but also data. Achieving an effective balance between consumption and generation is essential when dealing with unpredictable and fluctuating sources like wind and solar. The use of artificial intelligence in the energy sector is expected to contribute significantly to addressing climate change, reducing emissions resulting from technological advancements in industry, optimizing energy balances, and minimizing environmental impact. Machine learning, a crucial component of artificial intelligence, has many practical applications, including enhancing the efficiency of generation systems, improving technology design, and producing energy-efficient products.

    The forecast period is expected to see a rise in the use of AI solutions in energy systems due to the fast-paced modernization of energy in developing nations. However, the high cost associated with deploying AI solutions in the energy sector is anticipated to have an impact on the growth of the AI in energy market during this period.

    Market Restraints

    Some of the restraints in the Artificial Intelligence in Energy Market include high cost of deployment, lack of technological expertise, data quality and availability, regulatory hurdles, and ethical concerns. The deployment of AI solutions in the energy sector requires significant investments, which can be a deterrent to market growth. The energy industry employees in developing nations may lack technological expertise, which can limit the adoption and deployment of AI solutions in the industry. The quality and availability of data can impact the accuracy and effectiveness of AI systems.

    This can pose a challenge to the adoption of AI solutions in the energy sector. Regulatory barriers and compliance requirements can hinder the deployment of AI solutions in the energy sector, particularly in countries with strict regulations. There are ethical concerns surrounding the use of AI in the energy sector, particularly in areas such as data privacy, transparency, and bias. These concerns can limit the adoption of AI solutions in the industry.

    Segment Analysis

    Deployment Trends

    The cloud segment was the leading revenue contributor to the market, classified by deployment type. The energy industry is gradually adopting cloud-based AI technologies to enhance the capabilities of current systems. The cloud segment is witnessing several trends, including Adoption of Cloud-based AI Technologies, AI-as-a-Service (AIaaS), Edge Computing, Hybrid Cloud, and Multi-Cloud. The energy industry is increasingly adopting cloud-based AI technologies to improve the capabilities of current systems.

    Cloud-based AI technologies offer scalability, flexibility, and cost-effectiveness, enabling energy companies to optimize their operations and reduce costs. AI-as-a-Service is trending among numerous industries, including the energy sector. AIaaS allows individuals and businesses to access AI for various applications without large initial investment and with a lesser risk of failure.

    This trend is expected to accelerate the adoption of AI in the energy sector. Edge computing is emerging as a trend in the cloud segment of the AI in Energy market. Edge computing involves processing data near the source, reducing latency and improving data security. Energy companies are increasingly adopting edge computing to improve the efficiency of their operations and reduce costs.

    The adoption of hybrid cloud is growing in the energy sector. Hybrid cloud combines the benefits of private and public clouds, enabling energy companies to leverage the scalability and cost-effectiveness of public cloud and the security and control of private cloud. Multi-cloud is emerging as a trend in the cloud segment of the AI in Energy market. Multi-cloud involves the use of multiple cloud providers to avoid vendor lock-in, increase redundancy, and improve disaster recovery. Energy companies are increasingly adopting multi-cloud to improve the availability and reliability of their systems.

    Application Trends

    The safety and security segment is the leading revenue contributor to the market, classified by application. AI, coupled with appropriate sensors, can be highly beneficial in monitoring equipment and detecting faults before they occur in an industry where equipment failures are common and can have severe consequences.

    The safety and security segment is witnessing several trends, including predictive maintenance, cybersecurity, surveillance, emergency response. AI is being used for predictive maintenance to detect equipment faults before they occur, reducing the risk of equipment failure and downtime. Predictive maintenance uses machine learning algorithms to analyze equipment data and predict failures.

    Cybersecurity is a critical concern in the energy sector, and AI is being used to detect and prevent cyber-attacks. AI systems can identify unusual network activity and potential threats, enabling quick responses to cyber threats. AI is being used for surveillance in the energy sector to detect and prevent safety and security breaches.

    AI systems can analyze data from surveillance cameras and sensors to detect potential safety and security risks. AI is being used for emergency response in the energy sector. AI systems can analyze data from sensors and cameras to detect and respond to emergencies quickly, reducing the risk of injuries and damages.

    Regional Insights

    During the forecast period, Asia-Pacific is expected to be the fastest-growing segment. This can be attributed to the significant opportunities that China, India, Japan, and South Korea are likely to provide to AI vendors in the Asia-Pacific market, owing to the substantial market potential from various industry verticals, including automotive & transportation, consumer electronics & appliances, and others.

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    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 market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

    What deliverables will you get in this report?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth analysis of the Artificial Intelligence in Energy Market

    How lucrative is the future?

    Market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional and country level historical data and forecasts

    Which are the most attractive market segments?

    Market segment analysis and forecast

    Which are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirement?

    10% free customization

     

    Target Audience

    Here is the list of the group of customers that the market hopes to have the greatest opportunity to convert-

    • Distributors
    • Suppliers
    • Manufacturers
    • Logistics organizations
    • Government bodies

    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.

    Customization Options

    With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

    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

    Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com

    Recent Developments

    • In February 2023, Infosys teamed up with GE digital to jointly bring innovative and scalable solutions to the energy and utilities industry, and accelerate grid transformation for their existing and new clients.
    • In November 2022, Duke Energy teamed up with AWS to develop smart grid solutions to drive its clean energy transition and better serve customers.
    • In June 2022, ABB launched ABB Ability BE Sustainable with Efficiency AI powered by BrainBox AI, a cutting-edge technology and SaaS that improves existing HVAC equipment in commercial buildings into predictive and self-adaptive HVAC systems.
    • In May 2022, Schneider Electric acquired AutoGrid, a technology provider of AI-driven optimization for distributed energy resources (DERs).

    Frequently Asked Questions (FAQs)

    Artificial Intelligence (AI) is playing an increasingly important role in the energy sector by improving efficiency, reducing costs, and supporting the transition to renewable energy sources. AI algorithms can optimize energy production and consumption by analyzing data on weather patterns, energy demand, and grid performance. AI can also improve asset management by predicting equipment failures and optimizing maintenance schedules.

    The artificial intelligence in energy market is expected to grow at a CAGR of 14.7% during 2023-2029.

    The artificial intelligence in energy market size was estimated at USD 4.23 billion in 2022 and is projected to reach USD 11.05 billion by 2029.

    The major players operating in the global artificial intelligence in energy market are ABB, Schneider Electric, Alpiq AG, SmartCloud Inc., General Electric, Siemens AG, Hazama Ando Corporation, ATOS SE, AppOrchid Inc, Zen Robotics Ltd.

    During the forecast period, Asia-Pacific is expected to be the fastest-growing segment. This can be attributed to the significant opportunities that China, India, Japan, and South Korea are likely to provide to AI vendors in the Asia-Pacific market, owing to the substantial market potential from various industry verticals, including automotive & transportation, consumer electronics & appliances, and others.