Artificial Intelligence in Energy Market: Global Opportunity and Trend Analysis, 2020-2030

Our estimates suggest that the global AI in energy market is likely to be worth USD 2.1 billion in 2020, and this value is projected to reach USD 30.8 billion by 2030, growing at a CAGR of 30.6%. AI is the ability of a system to think like humans, discover the meaning, and execute the tasks. The term was coined in 1955 by John McCarthy and has gained wide popularity till date. Over the years, AI-driven technologies have continued to evolve rapidly, with several industries increasingly deploying such solutions across key aspects of value chain. The growing demand for energy, coupled to the need to identify sustainable solutions, is presently encouraging the adoption of AI based products in the energy sector. At present, AI is used in the energy industry for electricity trading, smart grids, or sector coupling of electricity, heat and transport. In addition, this technology is assisting the energy sector to become more efficient and secure, by analyzing and evaluating huge volumes of data. Specifically, in residential and commercial sectors, AI is being used in energy management systems, thus, helping in enabling reduction of electricity bills. Therefore, growing demand for energy efficient solutions that enable reduction in operational costs, along with the need to reduce global carbon footprint are some of the factors presently driving the growth within this market. However, lack of awareness and outdated IT infrastructure, coupled to cybersecurity concerns are believed to acts as hindrances.

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