Artificial intelligence (AI) in energy refers to the application of advanced computational systems and machine learning technologies to optimize, automate and innovate various processes across the energy industry. The purpose of AI in the energy sector is to enhance efficiency, optimize resource utilization, and drive sustainable practices by leveraging advanced algorithms and machine learning, AI enables real-time monitoring, predictive maintenance, and precise demand forecasting for energy systems.
The AI in energy market consists of sales, by entities (organizations, sole traders, or partnerships), of AI in energy that is utilized in the energy market across various use cases, such as optimizing energy generation, predicting energy demand, managing renewable energy sources and monitoring the health and performance of energy assets. It also supports infrastructure management and ensures better resource allocation and utilization.
The global AI in energy market was valued at $9,029.65 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 16.00%.
Increasing Electricity Generation
Increasing electricity generation fueled the growth of the AI in energy market during the historic period. Increasing electricity generation provides more opportunities for leveraging AI technologies to optimize energy systems, improve reliability and enhance grid resilience; by combining electricity generation infrastructure with AI-driven intelligence, energy stakeholders can unlock new possibilities for innovation, efficiency and sustainability in the energy sector. For instance, in December 2023, according to a report published by the Energy Information Administration, a US-based governmental organization, US electricity end-use consumption increased by approximately 3.2% in 2022 compared to 2021, with retail sales to the residential sector rising by 2.6% and sales to the commercial sector increasing by 4.7%. Therefore, increasing electricity generation drove AI in energy market.
Optimizing Renewable Energy Use In Residential Applications With Advanced Technologies
Major players in the AI in energy market focus on optimizing renewable energy use in residential applications through advanced technologies. Integrated systems with solar inverters, long-life batteries and intelligent EV chargers enhance energy efficiency. Scalable, modular designs reduce installation costs, while real-time AI-powered monitoring ensures seamless energy flow and storage, enabling homeowners to maximize renewable energy use and reduce dependence on traditional power grids. For instance, in January 2025, Wondrwall Group, a UK-based energy equipment and solutions management company for energy management, launched an AI-powered Home Energy Management System (HEMS) that maximizes solar energy use, reducing energy bills. This scalable, modular system integrates a long-life battery, solar inverter and intelligent EV charger, offering over 25kWh (kilowatt hour) capacity and halving installation times. Combined with Energy Service Contracts (ESC), it can be installed in most UK new builds with in-roof solar photovoltaic (PV) at no upfront cost to housebuilders, enhancing energy efficiency and affordability.
The global AI in energy market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 22.91% of the total market in 2023.
AI In Energy Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global AI in energy market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for AI in energy? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The AI in energy market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider AI in energy market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by offering, by deployment, by application and by end user.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis Framework Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the AI in energy market.
- Regional And Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by offering, by deployment, by application and by end user in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Recent Developments Information on recent developments in the market covered in the report.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for AI in energy providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Offering: Support Services; Hardware; AI-As-A-Service; Software
- 2) By Deployment: On-Premise; Cloud
- 3) By Application: Demand Response Management; Fleet And Asset Management; Renewable Energy Management; Precision Drilling; Demand Forecasting; Infrastructure Management; Other Applications
- 4) By End User: Energy Transmission; Energy Generation; Energy Distribution; Utilities; Other End-Users
- Companies Mentioned: Microsoft Corporation; Amazon.com Inc.; NVIDIA Corporation; Oracle Corporation; Alphabet Inc. (Google LLC)
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; AI in energy indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.