Increasing need to obtain operational efficiency to meet energy requirements are key factors driving global Artificial Intelligence in energy market growth.
Every industrial environment needs artificial intelligence. The adoption of AI offers particularly good potential for growth in the energy sector. In essence, artificial intelligence gives a machine the capability to learn and make choices in order to solve issues or improve outcomes in order to achieve a goal. In the energy business, there are several decisions that must be made quickly and with a large amount of data. Artificial intelligence is capable of carrying out these crucial judgments in the most effective way possible, which calls for the immediate collection and analysis of these massive volumes of data.
In addition to electricity, smart grids also transmit data. Effectively balancing consumption and generation is crucial when dealing with intermittent and unstable sources like solar and wind. One of the goals for artificial intelligence used in the energy sector is that it would aid us in combating issues like climate change, the consequences of technical advancements in industry on emissions reduction, energy balances, and environmental impact, among other things. One of the most fundamental uses is that machine learning (or automatic learning, a crucial component of artificial intelligence) aids in improving the efficiency of generation systems, design technologies, and the production of energy-efficient goods.
According to the most recent report by Emergen Research, the worldwide artificial intelligence in energy market is anticipated to reach a market value of USD 20.83 billion at a consistent CAGR of 23.6 percent in 2028. The consistent increase in income can be ascribed to the growing need for operational efficiency to meet energy demands. The demand for artificial intelligence in energy systems is rising as a result of the digitalization of the energy industry. Artificial intelligence technologies are being deployed in the oil and gas industries as a result of an increase in the adoption of these solutions by oilfield service providers and operators.
The relevance of artificial intelligence (AI) has increased across many different industries. However, it can be challenging to define the phrase. Artificial intelligence’s ability to independently create and carry out judgments based on facts (knowledge) with reference to predetermined goals is at its core. Artificial intelligence (AI) is set apart from the “natural intelligence” ascribed to people and other animals. According to more specific definitions, AI is a field of computer science that focuses on automating intelligent behaviour and machine learning.
Key Highlights of Report
- In 2020, the Artificial Intelligence in Energy market’s revenue share was much higher in the renewable energy management category. During the projection period, there will likely be an increase in the use of AI for managing renewable energy due to the growing requirement for low carbon emissions.
- In 2020, North America contributed the greatest revenue share to the global market for artificial intelligence in energy. Growing demand for AI in the energy sector in the region is being fueled by the rising uptake of artificial intelligence-based smart metres and smart home solutions.
- Key players in the market include Accenture PLC, Amazon Web Services, Inc., AutoGrid Systems, Inc, Cisco Systems Inc., C3 IoT, Inc., General Electric, HCL Technologies Ltd., Huawei Technologies Co., Ltd., IBM Corporation, and Intel Corporation.
- The hardware segment is projected to grow at highest CAGR during the forecast period owing to the growing demand for efficient and powerful hardware devices that can be used for training and deploying AI models.
- The services segment is expected to grow at a significant CAGR during the forecast period as service providers offer a wide range of services such as consulting, deployment, and maintenance to help organizations implement AI solutions.
- The data segment is expected to grow at a significant CAGR during the forecast period owing to the increasing need for high-quality data sets that can be used to train AI models.
- The application segment is expected to grow at a significant CAGR during the forecast period owing to the increasing adoption of AI across a wide range of applications such as image processing, predictive maintenance, and demand forecasting.
Emergen Research has segmented the global Artificial Intelligence in energy market on the basis of product offering, industry stream, application, and region:
Product offering Outlook (Revenue, USD Billion; 2021–2028)
- Support Services
- Hardware
- AI-as-a-Service
- Software
Industry stream Outlook (Revenue, USD Billion; 2021–2028)
- Power Industry (Generation, Transmission, Distribution)
- Oil & Gas Industry (Upstream, Midstream, Downstream)
Application Outlook (Revenue, USD Billion; 2021–2028)
- Demand Response Management
- Fleet & asset Management
- Renewable Energy Management
- Precision Drilling
- Demand forecasting
- Infrastructure Management
- Others