PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1993819
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1993819
Internet Of Things (IoT) In Energy Market size was valued at US$34,353.65 Million in 2025, expanding at a CAGR of 14.02% from 2026 to 2033.
Internet of Things (IoT) in Energy involves the use of connected devices, sensors, and software to monitor, control, and optimize energy generation, distribution, and usage. These solutions allow real-time data collection, predictive maintenance, and intelligent management of energy systems, improving efficiency and reliability. Verticals include smart grids, renewable energy, industrial energy management, and building automation. By enabling advanced analytics and automated decision-making, IoT supports sustainable and resilient energy infrastructures while fostering innovation in energy management technologies.
Internet Of Things (IoT) In Energy Market- Market Dynamics
Increasing Adoption of Smart Grids
The increasing adoption of smart grids drives IoT in energy by integrating advanced sensors, devices, and communication systems to modernize energy networks. This enables real-time monitoring, predictive maintenance, and automated energy management, optimizing efficiency and reliability. It also supports seamless integration with renewable sources, distributed energy, and storage systems, enhancing grid stability. It ensures seamless energy flow and grid stability while improving the efficiency, resilience, and scalability of IoT-enabled energy infrastructure. For instance, in December 2024, according to the U.S. Department of Energy's data on electricity demand growth, in 2023, data centers consumed around 4.4% of total U.S. electricity, a share projected to rise to 12% by 2028 due to expanding AI applications and increased electrification, reflecting growing national energy demands. By 2025, DOE warns that without grid modernization and added capacity, electricity demand may exceed supply reliability, emphasizing the need for smart grid technologies and strategic federal policies.
The Global Internet Of Things (IoT) In Energy Market is segmented on the basis of Connectivity, Vertical, Technology, Deployment Model, Application, and Region.
The IoT in Energy market is categorized by three primary connectivity types: cellular (LTE-M, NB-IoT), Wi-Fi, and Ethernet. The cellular segment is particularly vital, offering extensive coverage and reliable communication that enables remote monitoring and real-time data transmission from smart meters and grid equipment. Meanwhile, Wi-Fi and Ethernet deliver fast, secure connections essential for local energy management and industrial IoT systems. These connectivity solutions enable real-time monitoring, efficient decision-making, and cost-effective management of energy networks across the sector. For example, in February 2026, according to the Centre for the Promotion, Government of the Netherlands, IoT spending in Europe was projected to reach €184 billion, and the market is predicted to grow by double digits through 2025 due to the growing use of digital platforms, data analytics, and connected devices across industries. Over 10 billion IoT devices are currently in use globally, and by 2030, this number is expected to rise to over 25.4 billion, demonstrating the growing uptake of IoT technologies in business and industrial settings.
The IoT in the energy sector is segmented into three key verticals: utilities, industrial, and commercial. The utilities vertical holds a notable share due to the increasing use of smart grids, smart meters, and connected infrastructure for efficient energy distribution and monitoring. These IoT solutions support real-time data collection and remote control of power networks, helping identify faults, reduce energy losses, and enhance grid reliability. Their ability to improve energy management, operational efficiency, and predictive maintenance makes them vital for modern energy systems across different end-use sectors. For instance, in June 2025, according to the European Investment Bank, buildings account for around 40% of energy consumption and about 35% of greenhouse-gas emissions in Europe, highlighting the urgent need for greater energy-efficiency improvements. The bank also noted that about 75% of buildings need energy-efficiency upgrades, yet less than 1% are renovated annually, highlighting stronger investment and digital adoption for energy efficiency and climate goals.
Internet Of Things (IoT) In Energy Market- Geographical Insights
Regional trends highlight how infrastructure, technology adoption, and supportive policies drive the growth of connected energy solutions. North America remains prominent with advanced digital infrastructure, early smart grid deployment, and strong IoT investments, backed by widespread connectivity and utility modernization. At the same time, Asia-Pacific is rapidly advancing as industrial growth, rising energy demand, and government investments in smart grids and renewable integration accelerate IoT adoption in the energy sector.
Japan Internet Of Things (IoT) In Energy Market - Country Insights
The IoT in Energy market in Japan is growing steadily, supported by robust digital infrastructure and wider adoption of connected energy solutions. Key companies provide advanced sensors, connectivity platforms, and software services across utilities, industrial, and commercial sectors, while rising demand for smart grids, real-time monitoring, and predictive maintenance drives further technology integration and efficiency improvements. For instance, in 2021, according to the review on predictive maintenance and intelligent sensors in smart factories, the number of global research studies in Japan on smart factories and predictive maintenance has been rising, with publications in Web of Science and Scopus increasing through 2020. This highlights the growing focus on data-driven maintenance and the role of intelligent systems in optimising industrial operations.
The IoT in Energy Market is highly competitive, driven by utility providers, industrial technology firms, and specialized IoT solution companies. Key players like Siemens, GE, ABB, Schneider Electric, and Honeywell deliver smart energy management, remote monitoring, and system optimisation across utilities and industrial sectors. Technology leaders such as Cisco, IBM, Oracle, Microsoft, and Google provide cloud platforms, data analytics, and cyber security solutions to enhance connectivity and operational insights. Market growth is further supported by investments in 5G, LPWAN, edge computing, and AI-driven analytics, along with strategic partnerships to deliver scalable and secure IoT solutions for energy networks globally.
In April 2025, Siemens AG unveiled the IBM z17 mainframe, a next-generation enterprise system engineered with integrated AI capabilities across hardware, software, and systems operations, designed to support hybrid cloud, AI workloads, and real-time data processing with significantly enhanced inference performance - marking a significant advancement in enterprise computing and AI infrastructure.
In December 2025, IBM agreed to acquire Confluent, a leading real-time data streaming platform, in a definitive $11 billion deal, aimed at expanding its hybrid cloud and AI data infrastructure offerings and creating a unified smart data platform that accelerates real-time analytics and enterprise AI deployments across industries.