Internet of Energy Market: Current Analysis and Forecast (2023-2030)

The Internet of Energy is the implementation of Internet of things innovation into circulated energy systems to upgrade the productivity of the energy infrastructure. It intends to gather and sort out data from singular grid-edge gadgets across the system to make it accessible to other participants of grid management. It helps energy organizations manage their energy demand, enabling utilities to produce more electricity at peak times, and less when consumption requirements are low. Widespread adoption of this technology could prevent countries from experiencing power blackouts in the future. The Internet of Energy is not just limited to large organizations, Solar companies, utilities, and even EV drivers can benefit from the technology. The Internet of Energy collects data all the way to the edge of the grid, this data can then be used to aid in utilities' decision-making regarding load balancing, forecasting, and other related decisions.

The Internet of Energy Market is expected to grow at a strong CAGR of 11.2% during the forecast period. It is mainly owing to the government programs and incentives to promote cleaner renewable and increasing consumption of electricity globally. Utilities can realize most of this potential by three means: smart meters & the smart grid, digital productivity tools for employees, and automation of back-office processes. IoT simplifies the process of energy monitoring and management while maintaining a low cost and high level of precision. It addresses all points of an organization's consumption across devices. Its depth of analysis and control provides organizations with a strong means of managing their consumption for cost-shaving and output optimization. IoT systems discover energy issues in the same way as functional issues in a complex business network and provide solutions.

The analytics and action delivered by IoT also help to ensure system reliability. Beyond consumption, IoT prevents system overloads or throttling. It also detects threats to system performance and stability, which protects against losses such as downtime, damaged equipment, and injuries. For instance, General Electric Company utilized the IoE technology, the company launched its own startup, pairing LEDs and solar panels with software. GE announced Current, a first-of-its kind energy company that integrates General Electric's LED, Solar, Energy Storage and Electric Vehicle businesses with its industrial strength Predix platform to identify and deliver the most cost-effective, efficient energy solutions required by customers. This allows the system to gather data to apply insights to corporate operations that aim to increase savings related to lighting and productivity.

Based on Component, The Internet of Energy market is divided into Platform, Solutions, and Services segments. The solutions segment acquired a majority share in the Internet of Energy market and is expected to showcase a substantial growth rate during the forecast period. The Internet of Things is highly implemented in the power and energy generation sector. The solutions segment helps the energy sector helps in energy generation, efficiency, and effectiveness.

Based on Service, the Internet of Energy market is segmented into Consulting, Integration & Deployment, and Support & Maintenance segments. The integration and deployment segment captured the biggest market share in the Internet of Energy market during the forecast period as most countries are developing, modifying, and upgrading their power grids to cope with future demand. Countries such as China and India are contributing heavily to the growth of the Internet of Energy market during the forecast period due to massive investments by them to develop their electricity grid during the projected period. China is one of the biggest markets for the Internet of Energy globally during the forecast period due to its cost-effective smart meters manufacturing capability and plans to develop a high number of smart grid clusters.

Based on Application, the Internet of Energy market is segmented into Oil & Gas, Coal Mining, and Smart Grid segments. The Oil & Gas segment captured the biggest market share in the Internet of Energy market during the forecast period. Oil & Gas is the most capital-intensive segment in the Internet Of Energy market, these energy companies are continuously updating their software technology and improving their process to sustain in the market. The implementation of the Internet of Energy has helped these companies sustain their profit and drop their oil prices. These IoT solutions can be deployed for remote monitoring on oil rigs and maintain pipeline integrity. IoT helps in the remote monitoring of operations and end-to-end process in oil & gas facilities, this detects potential accidents and leads to higher efficiency.

Based on Solutions, the Internet of Energy market is segmented into Asset Management, Data Management & Analytics, SCADA and Energy Management segments. The Energy Management segment would grow at a significant rate in the Internet of Energy market during the forecast period. Rapid industrialization and urbanization are driving the Internet of Energy market, and growing energy consumption from countries like India and China is acting as a catalyst in the growth of the aforementioned market. Whereas concerns regarding data privacy and security are hindering the growth of the market in the region.

For a better understanding of the market adoption of Internet of Energy, the market is analyzed based on its worldwide presence in the countries such as North America (U.S.A, Canada, and the Rest of North America), Europe (Germany, Italy, United Kingdom, Netherlands, France, and Rest of Europe), Asia-Pacific (China, Japan, Australia, South Korea, and Rest of Asia-Pacific) and Rest of World. APAC registered the highest market share in the Internet of Energy market and is expected to witness an influential CAGR in the forecasted period. It is mainly owing to expansion and upgradation of energy (renewable energy included) projects taking place in China, India, Australia, South Korea, and Japan. Moreover, favorable government policies, regulations, and investments in achieving renewable energy targets set by various countries are driving the market. China has become the largest player in the Internet of Energy market due to massive investments from the State Grid in the North and China Southern Power Grid in the South. The Chinese government has set targets for the share of non-hydro renewables of up to 25.9% in 2030 and 36.0% in 2035, expanding its total installed capacity of wind and solar power to over 1 200 GW by 2030. Massive investments with high targets of power generation will act as a catalyst in the growth of the APAC Internet of Energy Market during the forecast period.

Some of the major players operating in the market are Cisco Systems, AGT International, Altair Engineering, Intel Corporation, IBM Corporation, Davra Networks, Wind River, Schneider Electric SE, SAP SE, and ABB Ltd.