IoT in Energy Sector Market to Reach USD 67.98 Billion by 2031, Driven by Smart Grid Expansion and Edge Analytics Adoption

Mordor Intelligence has published a new report on the IoT in energy market, offering a comprehensive analysis of trends, growth drivers, and future projections

IoT in Energy Market Overview

According to Mordor Intelligence, the IoT in energy market size is estimated at USD 34.26 billion in 2026, rising from USD 29.87 billion in 2025, and is projected to reach USD 67.98 billion by 2031, growing at a CAGR of 14.69% during the forecast period. The market growth reflects how utilities and energy providers are shifting toward more connected and data-driven operations.

At the same time, falling connectivity costs and improved semiconductor availability are supporting wider deployment of IoT devices. This is expanding the IoT in energy market share across rural and urban networks, enabling better coverage for renewable assets, distributed grids, and behind-the-meter systems.

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/industry-reports/internet-of-things-in-energy-sector-industry?utm_source=openpr

Key Growth Drivers in the IoT in Energy Market

Shift Toward Distributed Intelligence

The market trends show a clear move toward decentralized decision-making. Utilities are adopting distributed intelligence models where data is processed closer to the source. This approach improves response times and supports better grid stability. The IoT in energy industry benefits from faster fault detection and localized energy balancing, which reduces downtime and operational inefficiencies.

Rising Investment in Smart Infrastructure

Investment in smart meters, automated substations, and connected grid devices is increasing across the market. These technologies help utilities track consumption patterns, detect outages quickly, and improve billing accuracy. The IoT in energy market growth is closely tied to these upgrades, as they form the backbone of modern energy systems.

Expansion of Predictive Maintenance Use Cases

Predictive maintenance is becoming a key focus in the industry. By using connected sensors and analytics platforms, energy companies can monitor equipment health in real time. This reduces maintenance costs and avoids unexpected failures. The IoT in energy market trends indicate that such use cases are expanding across both traditional and renewable energy assets.

Hybrid Connectivity Models Gaining Adoption

The IoT in energy market forecast shows increased adoption of hybrid connectivity solutions combining cellular, satellite, and private networks. These solutions ensure reliable communication for critical operations while managing bandwidth costs. This trend supports the expansion of IoT deployments in remote and hard-to-reach locations.

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/internet-of-things-in-energy-sector-industry?utm_source=openpr

IoT in Energy Market Segmentation

By Component

Hardware

Software and Analytics

IoT Platforms

IoT Security

IoT Services

By Application

Smart Grid Monitoring

Energy Management Systems

Predictive Maintenance

Connected EV Infrastructure

Distributed Renewable Integration

Demand Response and Flexibility

By Connectivity Technology

Cellular

LPWAN

Satellite IoT

Wi-Fi and BLE

PLC and Others

By Deployment Model

Cloud

Edge

On-premise

By End-user

Electric and Gas Utilities

Oil and Gas

Commercial and Industrial Facilities

Residential and Prosumer

Renewable Power Plants

By Geography

North America

South America

Europe

Asia Pacific

Middle East and Africa

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Key Players in the IoT in Energy Market

AGT International

Cisco Systems Inc.

IBM Corporation

Intel Corporation

SAP SE

Explore more insights on IoT in energy sector competitive landscape https://www.mordorintelligence.com/industry-reports/internet-of-things-in-energy-sector-industry/companies?utm_source=openpr

Conclusion

The IoT in energy market growth is closely linked to the increasing demand for efficient, reliable, and data-driven energy systems. As utilities modernize their infrastructure, IoT technologies are becoming essential for managing complex energy networks. The market trends highlight the importance of real-time insights, predictive capabilities, and flexible energy management solutions.

The IoT in energy market forecast indicates continued expansion as adoption spreads across traditional utilities, renewable energy providers, and industrial users. Improved connectivity options and integrated analytics platforms support broader implementation of IoT solutions. Overall, the industry is moving toward a more connected ecosystem where devices, platforms, and analytics work together to optimize performance. This shift is expected to strengthen the market size and expand its role in shaping the future of global energy systems. Explore more insights on IoT in energy sector competitive landscape https://www.mordorintelligence.com/industry-reports/internet-of-things-in-energy-sector-industry?utm_source=openpr

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This release was published on openPR.