Artificial Intelligence in energy and power refers to the use of AI-driven technologies and analytics tools to enhance and optimize various operations in the energy and power sector. These operations include electricity generation, transmission, distribution and consumption. It is used to manage power grid operations, forecast energy demand, optimize the output from renewable sources, manage distributed energy resources and improve customer energy usage insights.
The global artificial intelligence (AI) in energy and power market reached a value of nearly $5,237.70 million in 2024, having grown at a compound annual growth rate (CAGR) of 24.11% since 2019. The market is expected to grow from $5,237.70 million in 2024 to $14,904.80 million in 2029 at a rate of 23.26%. The market is then expected to grow at a CAGR of 22.24% from 2029 and reach $40,689.30 million in 2034.
Rising Electricity Demand
The rising electricity demand contributed to the growth of artificial intelligence (AI) in energy and power market in the historic period. Growing electricity consumption due to industrial growth, urbanization and increased adoption of electric appliances created pressure on utilities to optimize supply, reduce losses and manage peak loads. AI solutions were adopted to forecast demand, balance loads and integrate distributed energy resources efficiently. For example, in March 2025, according to the Federal Energy Regulatory Commission (FERC), a US-based independent agency, electricity consumption in the United States is projected to increase by about 2.5% over 2023, rising from approximately 4,000 terawatt-hours (TWh) in 2023 to around 4,099 TWh in 2024. This growth, representing an increase of roughly 99 TWh, reflects record-high power demand driven by increased usage in residential, commercial and industrial sectors, including rising electricity needs from data centers and electrification of heating and transportation.
Therefore, the rising electricity demand drove the growth of the artificial intelligence (AI) in energy and power market.
The artificial intelligence (AI) in energy and power market is segmented by application into demand forecasting, energy production and distribution optimization, energy management, smart grids, smart meter and other applications. The demand forecasting market was the largest segment of the artificial intelligence (AI) in energy and power market segmented by application, accounting for 25.29% or $1,324.84 million of the total in 2024. Going forward, the demand forecasting segment is expected to be the fastest growing segment in the artificial intelligence (AI) in energy and power market segmented by application, at a CAGR of 25.79% during 2024-2029.
The global artificial intelligence (AI) in energy and power 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 14.75% of the total market in 2024.
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Where is the largest and fastest-growing market for artificial intelligence (AI) in energy and power? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The artificial intelligence (AI) in energy and power 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 artificial intelligence (AI) in energy and power 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 technology, 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)
- Global Market Size And Growth - 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.
- 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 technology, 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 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 artificial intelligence (AI) in energy and power 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 Technology: Machine Learning; Natural Language Processing; Computer Vision; Other Technologies
- 2) By Application: Demand Forecasting; Energy Production And Distribution Optimization; Energy Management; Smart Grids; Smart Meter; Other Applications
- 3) By End User: Commercial And Industrial; Residential
- Companies Mentioned: NVIDIA Corporation; Siemens Energy; Schneider Electric SE; C3.ai Inc; Microsoft Corporation
- 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; artificial intelligence (AI) in energy and power 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.