PUBLISHER: Orion Market Research | PRODUCT CODE: 1363996
PUBLISHER: Orion Market Research | PRODUCT CODE: 1363996
Title: Global Artificial Intelligence in Energy Market Size, Share & Trends Analysis Report by Component Type (Solutions and Services), by Deployment Type (On-premise and Cloud), by Application (Energy Transmission, Energy Generation, Energy Distribution and Others), and by End Users (Robotics, Renewables Management, Demand Forecasting, Safety and Security and Others),Forecast Period (2023-2030).
Global artificial intelligence in energy market is anticipated to grow at a CAGR of 14.5% during the forecast period (2023-2030). Artificial intelligence holds considerable potential to improve power generation, transmission, distribution, and consumption. The energy sector in both emerging markets and advanced economies continues to increase efficiency, transparency, affordability, and the integration of renewable energy sources in power systems. Various company has launched innovating products by leveraging AI to autonomously analyze and predict network traffic patterns enabling operators to adjust resources to required capacity and performance, resulting in considerable power usage reductions. For instance, in June 2023, NEC Corp. launched a new windowAspire NetZero is an AI-enabled SaaS-based intelligent standalone energy reduction solution, designed to support mobile network operators in reducing unnecessary energy consumption in the Radio Access Network (RAN).
The global artificial intelligence in energy market is segmented on the component type, deployment type, application, and end-users. Based on the component type, the market is sub-segmented into solutions and services. Based on the deployment type, the market is sub-segmented into on-premise and cloud. Based on the application, the market is sub-segmented into energy transmission, energy generation, energy distribution, and others (utilities). Further, based on end users, the market is sub-segmented into robotics, renewables management, demand forecasting, safety and security, and others (infrastructure). Among the applications, the energy generation sub-segment is anticipated to hold a considerable share of the market owing to the rise in the development of AI for the real-time monitoring of power grids, more accurate predictions of power fluctuations, and the development of new strategies to generate geothermal energy sources.
Among the end-users, the renewables management sub-segment is growing at a considerable CAGR attributed to the growing adoption of AI algorithms that improving efficiency of renewable energy systems. By analyzing vast amounts of data from renewable energy sources, weather patterns, and historical performance, AI can optimize power generation, storage, and distribution. The complexity of the short-term power markets and the unpredictable nature of wind production. To tackle this problem, vast amounts of data from various sources need to be collected, stored, and analyzed. The AI solution leverages a performant and scalable data system and advanced machine learning algorithms to extract value from the data that supports subsequent decisions. Companies recognize patterns about the potential impact of renewable energy sitting on the landscape over time rather than as a moment in time and hence introducing solutions for sustainable energy. For instance, in September 2022, Microsoft Corp., Planet Labs PBC and The Nature Conservancy launched the Global Renewables Watch (GRW), a first-of-its-kind living atlas intended to map and measure all utility-scale solar and wind installations on Earth using AI and satellite imagery, allowing users to evaluate clean energy transition progress and track trends over time.
The global artificial intelligence in energy market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, North America is anticipated to hold a prominent share of the market across the globe, owing to increased applications of artificial intelligence in the energy sector, along with real-time maintenance and identification of ideal maintenance schedules.
Among all regions, the Asia-Pacific region is anticipated to grow at a considerable CAGR over the forecast period. Regional growth is attributed to the increase in the use of artificial intelligence and related to technologies that allow for communication between smart grids, smart meters, and Internet of Things (IoT) devices. AI technologies improve power management, efficiency, and transparency, and increase the use of renewable energy sources. Using AI in power sector addresses challenges such as governance, transparency, security, safety, privacy, employment, and economic impacts. AI is certain to play an important role in reducing distribution losses in emerging markets and in helping with maintenance and reliability issues. The transformation or digitalization of the energy sector is promoting the growth of AI in the renewable energy market in the region. Artificial intelligence is also being used to build smart home solutions. This factor is supporting the growth of AI in the Asia-Pacific renewable energy market.
The major companies serving artificial intelligence in energy market include Microsoft Corp., Google, LLC, Amazon Web Services, Inc., Duke Energy Corp., General Electric, NextEra Energy, Inc, Nvidia Corp., and Schneider Electric SE, among other. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in October 2021, Tata Power, India's integrated power utility, announced that it had signed a three-year commercial agreement with BluWave-ai, the renewable energy AI company. This agreement comes after a successful trial project during which Tata Power evaluated the performance of the BluWave-ai cloud platform to generate intra-day and day-ahead dispatches for use in its power scheduling operations.