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Surge In Microgrid Adoption Drives Growth Of AI in The Energy Market Driving Market Acceleration in the AI in Energy Industry, 2025

07-09-2025 09:03 AM CET | IT, New Media & Software

Press release from: The Business Research Company

AI in Energy Market

AI in Energy Market

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How Large Will the AI in Energy Market Size By 2025?
The market size of AI in the energy sector has seen significant growth in the past few years. It is predicted to rise from $19.03 billion in 2024 to $22.94 billion in 2025, with a compound annual growth rate (CAGR) of 20.6%. The historic growth can be linked to the application of data analytics for increased efficiency, demand response management, foresight maintenance, optimization of grids, along with the integration of renewable energy.

How Big Is the AI in Energy Market Size Expected to Grow by 2029?
The AI energy market is projected to experience substantial expansion in the coming years, reaching a size of $50.91 billion by 2029 with a compound annual growth rate (CAGR) of 22.0%. Factors contributing to this predicted growth during the forecast period include the advent of decentralized energy systems, energy storage management, the development of smart cities and infrastructure, the electrification of transportation, and the incorporation of edge computing. Key trends that are expected to emerge during the forecast period are analytics for energy efficiency, autonomous energy infrastructure, cybersecurity solutions, virtual power plants, and edge AI for managing energy.

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https://www.thebusinessresearchcompany.com/report/ai-in-energy-global-market-report

Which Key Market Drivers Powering AI in Energy Market Expansion and Growth?
The surge in the implementation of microgrids is projected to fuel the expansion of AI in the energy sector. Essentially, a microgrid is a localized energy framework that functions autonomously or collaboratively alongside the main power grid. Microgrids are crucial in incorporating and enhancing AI technology within the energy industry, facilitating intelligent energy administration, grid improvement, and assimilation of renewable energy resources. These bolster AI energy applications such as demand response, load equilibrium, and renewable energy integration. An upward trend in the use of microgrids is being noticed in the AI energy market. For instance, the UK's Department for Energy Security and Net Zero suggested in Energy Trends in September 2024, that the installed capacity increased by 3.9 percent (2.1 GW) in the second quarter of 2024 compared to the same quarter in 2023, achieving a total of 57.5 GW. Thus, the escalating usage of microgrids is anticipated to stimulate the growth of AI in the energy sector.

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Which Fast-Growing Trends Are Poised to Disrupt the AI in Energy Market?
The growth of technological innovation is a prominent trend emerging in the AI in the energy market. Dominant firms in the AI energy sector are turning to novel technologies to maintain their market standing. For instance, in February 2022, Telefonaktiebolaget LM Ericsson, an IT services and consulting organization based in Sweden, debuted its AI-powered Energy Infrastructure Operations, an energy manageament system. This system aids service providers in optimizing energy utilization across their network infrastructure using AI and advanced data analysis. Thanks to AI, energy infrastructure operations can lower energy-related OPEX by 15%, on-site visits associated with passive infrastructure by 15%, and energy-linked outages by 30%. It also enables a decrease in OPEX and CO2 emissions for service providers by leveraging AI and data analytics to enhance energy efficiency and site availability.

What Are the Emerging Segments in the AI in Energy Market?
The AI in energy market covered in this report is segmented -

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

Subsegments:
1) By Support Services: Consulting Services, Implementation Services, Maintenance And Support Services
2) By Hardware: AI-Powered Sensors, Smart Meters, Edge Computing Devices
3) By AI-As-A-Service: Machine Learning Platforms, Data Analytics Services, Model Training And Development Services
4) By Software: Energy Management Software, Predictive Maintenance Software, Demand Response Software, Grid Management Software

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https://www.thebusinessresearchcompany.com/customise?id=11920&type=smp

Who Are the Global Leaders in the AI in Energy Market?
Major companies operating in the AI in energy market include Google, Microsoft Corporation, Engie SA, Huawei Technologies Co Ltd., Siemens AG, General Electric Company, Intel Corporation, International Business Machines Corporation, Iberdrola, Cisco Systems Inc., Schneider Electric SE, Honeywell International Inc., Flex Ltd., ABB Ltd, Duke Energy Corporation, Nvidia Corporation, Alpiq Holding AG, ATOS SE, Enel Green Power S.p.A., Databricks Inc., C3 AI, Uptake Technologies, Sentient Energy Inc., AutoGrid Systems Inc., Arundo Analytics Inc., Bidgely Inc., Verdigris Technologies, Greenbird Integration Technology AS, AppOrchid Inc., Ecube Labs Co. Ltd

Which are the Top Profitable Regional Markets for the AI in Energy Industry?
North America was the largest region in AI in the energy market in 2024. Asia-pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the AI in energy market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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3. Policy Makers & Regulators - To track industry developments and align regulatory frameworks.
4. Consultants & Analysts - To support market entry, expansion strategies, and client advisory work.

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Learn More About The Business Research Company
With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

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