AI in Energy and Utilities Market Forecast Highlights Demand for Fraud Detection and Energy Trading Applications

InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global AI in Energy and Utilities Market - (By Type (Machine Learning, Natural Language Processing, Computer Vision, Predictive Analytics, Deep Learning, Others), By Application (Energy Management and Optimization, Grid Management, Demand Forecasting, Equipment Maintenance and Monitoring, Smart Metering, Renewable Energy Integration, Customer Service and Engagement, Fraud Detection, Energy Trading and Pricing, Others), By End-User (Power Generation Companies, Utility Companies, Oil and Gas Companies, Renewable Energy Providers, Energy Service Providers, Government and Regulatory Bodies, Others)), Trends, Industry Competition Analysis, Revenue and Forecast To 2031."

According to the latest research by InsightAce Analytic, the Global AI in Energy and Utilities Market is valued at US$ 10.9 Bn in 2023, and it is expected to reach US$ 45.0 Bn by 2031, with a CAGR of 19.8% during the forecast period of 2024-2031.

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The integration of Artificial Intelligence (AI) within the energy and utilities sector involves the deployment of advanced technologies to optimize and streamline key operational processes. A primary factor driving market growth is the increasing demand for enhanced operational efficiency. By incorporating AI into energy management systems, organizations can achieve accurate demand forecasting, predictive maintenance, and real-time data analytics, collectively improving operational performance. These capabilities contribute to cost savings, optimized resource utilization, and reduced system downtime.

AI adoption is particularly prominent in the industrial segment, fueled by a growing emphasis on reducing greenhouse gas emissions and improving energy efficiency. The need to comply with stringent environmental and carbon emission regulations further accelerates the adoption of AI-based solutions. AI is also instrumental in the development and management of smart grids, enabling advanced data analytics and real-time monitoring to enhance grid reliability and operational efficiency.

Additionally, AI facilitates effective load balancing and supports the integration of renewable energy sources through automated demand response, optimized distribution networks, and precise outage prediction. Collectively, these technological advancements are anticipated to drive significant growth in the energy and utilities sector in the coming years.

List of Major Players in the AI in Energy and Utilities Market:
• Siemens AG
• General Electric Company
• International Business Machines Corporation (IBM)
• Schneider Electric SE
• ABB Ltd
• Microsoft Corporation
• Oracle Corporation
• Honeywell International Inc.
• Cisco Systems, Inc.
• SAS Institute Inc.
• Intel Corporation
• Siemens Energy AG
• Enel X S.r.l.
• C3.ai, Inc.
• Tesla, Inc.
• Google LLC (subsidiary of Alphabet Inc.)
• Engie SA
• Hitachi, Ltd.
• Vestas Wind Systems A/S
• Wärtsilä Oyj Abp
• Électricité de France (EDF)
• Shell plc
• Nvidia Corporation
• Eaton Corporation plc
• Other Market Players

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Market Dynamics
Drivers:
The expansion of Artificial Intelligence (AI) in the energy and utilities sector is primarily driven by the need to enhance operational efficiency, reduce costs, and improve service reliability. AI enables the optimization of energy distribution and consumption, facilitating the effective integration and management of diverse energy sources, including renewable energy. Predictive maintenance supported by AI allows for the early detection of equipment faults, minimizing unplanned outages and maintenance expenses.

Additionally, AI-powered analytics enhance demand forecasting, enabling more precise energy production and distribution planning. The increasing deployment of smart grids and advanced energy management systems is accelerating AI adoption within the sector. Regulatory initiatives aimed at reducing carbon emissions and promoting sustainability further encourage utilities to implement AI-driven solutions. Supported by favorable government policies and ongoing technological advancements that improve efficiency and cost-effectiveness, the sector is poised for sustained growth.

Challenges:
Despite its potential, AI integration in the energy and utilities sector faces several challenges. High upfront deployment costs and the complexity of integrating AI with legacy systems pose significant barriers, particularly for small and medium-sized enterprises with limited resources. The sector also experiences a shortage of skilled professionals with expertise in AI technologies.

Given the critical and sensitive nature of energy data, cybersecurity risks remain a major concern, as the industry is a high-value target for cyberattacks. Regulatory complexities and stringent compliance requirements further hinder rapid adoption. Additionally, uncertainties in evolving regulatory frameworks, combined with substantial capital investment requirements for infrastructure modernization, continue to constrain large-scale implementation.

Regional Trends:
North America is expected to maintain a leading position in the AI market for energy and utilities, supported by advanced technological infrastructure, significant investments in smart grid initiatives, and strong government programs promoting clean energy adoption. Europe also represents a significant share of the market, driven by rising energy demand, urbanization, and government-backed smart grid and sustainability initiatives. The region's focus on renewable energy integration, supportive regulatory frameworks, and ongoing industrial expansion continue to drive AI adoption across the energy and utilities sector.

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Recent Developments:
• In July 2024, Cisco and Morgan Solar, a Toronto-based firm that focuses on solar energy integration into urban environments, unveiled a pilot project to use solar energy to power collaboration and meeting spaces.
• In Feb 2024, Signing a cooperation agreement in 2023, ABB and Microsoft will be extending their long-standing alliance for the advancement of generative artificial intelligence (AI) technologies for industry. This year, they hope to introduce new solutions integrating Microsoft's OpenAI with ABB's Ability Genix's capabilities. Leveraging Microsoft's Azure OpenAI Service, the two are combining generative AI capabilities for a more intuitive user interface with ABB Ability Genix Industrial Analytics and AI Suite and apps. Real-time production information from the new application Genix Copilot will be available to shop floor engineers, functional experts, and industry leaders.

Segmentation of AI in Energy and Utilities Market-
By Type-
• Machine Learning
• Natural Language Processing
• Computer Vision
• Predictive Analytics
• Deep Learning
• Others
By Application-
• Energy Management and Optimization
• Grid Management
• Demand Forecasting
• Equipment Maintenance and Monitoring
• Smart Metering
• Renewable Energy Integration
• Customer Service and Engagement
• Fraud Detection
• Energy Trading and Pricing
• Others
By End-User-
• Power Generation Companies
• Utility Companies
• Oil and Gas Companies
• Renewable Energy Providers
• Energy Service Providers
• Government and Regulatory Bodies
• Others
By Region-
North America-
• The US
• Canada
• Mexico
Europe-
• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe
Asia-Pacific-
• China
• Japan
• India
• South Korea
• South East Asia
• Rest of Asia Pacific
Latin America-
• Brazil
• Argentina
• Rest of Latin America
Middle East & Africa-
• GCC Countries
• South Africa
• Rest of the Middle East and Africa

Read Overview Report- https://www.insightaceanalytic.com/report/ai-in-energy-and-utilities-market/2747

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InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.

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This release was published on openPR.