Market Scenario

Global IoT in energy market was valued at US$ 38.1 billion in 2023 and is projected to grow at a CAGR of 25.1% during the forecast period to reach valuation of US$ 285.9 billion by 2032. 

The global IoT in energy market has experienced significant growth due to technological advancements and the increasing demand for efficient energy management. Integrating IoT with energy systems allows real-time monitoring, analysis, and control of energy consumption, resulting in improved efficiency and cost savings. The rising focus on energy efficiency across various sectors, including residential, commercial, and industrial, drives the adoption of IoT in energy solutions. IoT-enabled devices enable real-time data collection, analysis, and control, leading to enhanced energy efficiency and reduced wastage.

The integration of IoT technologies with renewable energy sources, such as solar and wind power, is driving the adoption of IoT in energy solutions. This integration enables remote monitoring, predictive maintenance, and intelligent grid management, optimizing the utilization of renewable energy resources. Advancements in connectivity technologies, including 5G networks and LPWAN, play a crucial role in the growth of the IoT in the energy market. These technologies offer improved bandwidth, low latency, and reliable connectivity, facilitating seamless communication between IoT devices and energy management systems.

However, the market also faces challenges, particularly in terms of security and privacy. The interconnected nature of IoT devices raises concerns regarding data security and privacy, with increased vulnerability to cyber threats. Implementing robust security measures is essential to maintain trust in IoT-enabled energy solutions.

In regional analysis, North America dominates the global IoT in energy market due to advanced infrastructure, substantial investments in smart grid technologies, and a focus on energy conservation. The deployment of IoT solutions for monitoring and optimizing energy consumption in residential and commercial buildings is a key driver in this region.

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Market Dynamics 

Driver: Rising Demand for Energy Efficiency

The increasing demand for energy efficiency is a key driver in the global IoT in energy market. There is a growing focus on sustainable energy management and the need to optimize energy consumption across various sectors, including residential, commercial, and industrial. With the rising costs of energy and the environmental impact of excessive energy consumption, organizations and individuals are actively seeking ways to improve efficiency and reduce wastage.

IoT-enabled devices and systems play a crucial role in achieving energy efficiency goals. These devices allow for real-time data collection, analysis, and control, enabling users to monitor and optimize energy consumption. For example, smart meters can provide detailed insights into energy usage patterns, allowing users to make informed decisions about energy conservation measures. Similarly, connected thermostats and lighting systems can automatically adjust settings based on occupancy and environmental conditions, reducing energy waste.

The drive for energy efficiency is further reinforced by regulatory frameworks and government initiatives aimed at promoting sustainable practices. Organizations are increasingly adopting IoT in energy solutions to comply with regulations, lower operational costs, and enhance their environmental footprint. The growing awareness and emphasis on energy efficiency create a favorable market landscape for IoT in energy solutions.

Trend: Integration of Artificial Intelligence (AI) in IoT Energy Solutions

An emerging trend in the global IoT in energy market is the integration of artificial intelligence (AI) technologies. AI brings advanced data analytics and predictive capabilities to IoT-enabled energy systems, enabling more sophisticated energy management and optimization.

AI algorithms can analyze vast amounts of real-time data collected from IoT devices, identify patterns, and generate actionable insights. This allows energy management systems to make intelligent decisions and automate processes for optimal energy utilization. For example, AI-powered algorithms can predict energy demand patterns and automatically adjust energy generation and distribution accordingly, optimizing efficiency and reducing costs.

Furthermore, AI-driven anomaly detection and predictive maintenance techniques can identify potential equipment failures or energy wastage in real-time, enabling proactive maintenance and preventing costly downtime. AI-based energy optimization algorithms can also consider factors such as weather conditions, energy pricing, and user preferences to dynamically adjust energy consumption and reduce peak demand.

The integration of AI with IoT in energy solutions unlocks significant potential for improved energy management, operational efficiency, and cost savings. As AI technologies continue to evolve, the trend of incorporating AI capabilities into IoT energy systems is expected to accelerate, further enhancing the value proposition of IoT in energy market offerings.

Opportunity: Grid Modernization and Smart Cities

With the increasing urbanization and the need for sustainable energy management, there is a growing focus on upgrading traditional energy infrastructure to intelligent and interconnected systems.

IoT plays a vital role in grid modernization efforts by enabling real-time monitoring, control, and optimization of energy distribution. Through IoT-enabled sensors, meters, and automation systems, utilities can gain deep insights into grid performance, identify areas of inefficiency, and improve overall reliability and resilience. Smart grid solutions can also facilitate the integration of renewable energy sources, demand response programs, and electric vehicle charging infrastructure.

Moreover, the concept of smart cities revolves around the integration of various IoT technologies, including energy management systems. Smart cities leverage IoT capabilities to monitor and optimize energy consumption in public buildings, street lighting, transportation, and residential areas. This holistic approach to energy management promotes sustainability, improves quality of life, and enhances overall resource efficiency.

The global push for smart city initiatives and the need for modernized energy grids present a significant opportunity for IoT in energy market participants. Companies that offer comprehensive IoT solutions tailored to grid modernization and smart city development can capitalize on this growing market segment and drive innovation in the IoT in energy industry.

Segmental Analysis 

By Service Type

Among the various service types in the global IoT in energy market, the Deployment and Integration segment emerges as the largest revenue-generating segment. In 2023, this segment attained a highest market valuation, reflecting its significant contribution to the overall market. Furthermore, it is projected to continue its growth trajectory at a CAGR of 28% in the coming years.

The Deployment and Integration segment plays a crucial role in implementing IoT solutions within the energy sector. It encompasses services such as system installation, configuration, connectivity setup, and integration of IoT devices and platforms into existing energy infrastructure. This segment of the global IoT in energy market ensures the seamless integration of IoT technologies, enabling real-time data collection, analysis, and control for efficient energy management.

The growing adoption of IoT in energy solutions across various sectors, including residential, commercial, and industrial, drives the demand for deployment and integration services. Organizations seek expert assistance to deploy and integrate IoT systems into their energy infrastructure effectively. This ensures the smooth transition from traditional energy management practices to IoT-enabled solutions, leading to enhanced energy efficiency, cost savings, and improved operational performance.

By Application 

The energy management segment is the largest revenue-generating application in the global IoT in the energy market. In 2023, it reached a valuation of $15.5 billion and is projected to grow at a CAGR of 26.7% in the coming years. This segment plays a vital role in leveraging IoT technologies for efficient energy consumption and optimization. It encompasses applications like smart grid management, demand response systems, energy analytics, and monitoring and control. These applications enable real-time data collection, analysis, and decision-making, leading to enhanced energy efficiency, cost savings, and sustainability. 

The growing focus on energy efficiency, regulatory mandates, and resource optimization drives the demand for IoT-powered energy management solutions. Industries, commercial buildings, and residential users seek to monitor and manage energy consumption, identify inefficiencies, and implement energy-saving measures. Companies offering comprehensive IoT-enabled energy management solutions will have opportunities to capitalize on the market demand and contribute to the continuous drive for energy efficiency and sustainable practices.

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Regional Analysis 

North America is projected to maintain its dominant position in the global IoT in energy market. In 2023, the region contributed more than US$ 12.5 million to the global market, accounting for a significant share. According to the Department of Energy, North America has been at the forefront of technological advancements and investments in smart grid infrastructure, which has driven the adoption of IoT in energy solutions.

The United States, in particular, has been a major driver of IoT in energy market growth in North America. The country has witnessed substantial investments in smart grid technologies, with initiatives such as the Smart Grid Investment Grant Program and the Grid Modernization Initiative. These initiatives have supported the integration of IoT technologies into energy infrastructure, enabling real-time monitoring, analytics, and control of energy consumption. Furthermore, according to the Department of Energy, the deployment of smart meters in the United States has shown significant progress. As of 2021, around 71% of electricity customers in the country had smart meters installed, providing a solid foundation for IoT-enabled energy management.

Canada is also actively embracing IoT in energy solutions. The country has been focusing on smart grid modernization and has implemented initiatives like the Green Infrastructure Fund and the Smart Grid Fund. These initiatives aim to enhance the efficiency and reliability of energy systems through the integration of IoT technologies.

The growth prospects for IoT in energy market in North America remain promising. The Department of Energy projects that the region will continue to grow at a CAGR of 22.8% during the forecast period. This growth is driven by factors such as the increasing demand for energy efficiency, government support for clean energy initiatives, and the need to modernize aging energy infrastructure. Moreover, the ongoing transition towards renewable energy sources, such as wind and solar power, presents significant opportunities for IoT in energy solutions in North America. The integration of IoT technologies with these decentralized energy systems enables efficient management and optimization of renewable energy resources.

Recent Developments:

• July 2017: SAP disclosed its plan to collaborate with Centrica, an energy and services company. The collaboration aims to provide solutions for business customers to manage their assets and energy consumption more effectively, leveraging the insights and connectivity available through IoT.
• November 2019: Siemens showcased its IoT-based Grid Diagnostic Suite, designed to create smart electric grids. These systems allow for faults to be detected and rectified at early stages, through the timely transmission of accurate information.
• December 2021: Oracle introduced smart thermostats to aid in real-time IoT monitoring, predictive analysis, and remote diagnostics for IoT-connected HVAC systems. These connected monitoring systems are predominantly utilized in laboratories, hospitals, and other various industries.
• August 2022: Energybox entered into a strategic partnership with Cisco IoT to offer IoT solutions to globally-renowned enterprises, including Wendy's, among others.
• April 2023: Qualcomm announced the launch of new, upcoming IoT solutions to facilitate the development of next-generation IoT devices. These include the Qualcomm® QCS8550, Qualcomm® QCM8550, Qualcomm® QCS4490, and Qualcomm® QCM4490 Processors.

Prominent Players in the Global IoT in Energy Market 

• Accenture
• Actility
• Altair
• Cisco Systems Inc.
• Flutura
• IBM Corporation
• Intel Corporation
• MEAZON
• Northwest Analytics Inc.
• PingThings
• SAP SE
• Schneider Electric SE
• Siemens
• Symboticware
• Telit
• ABB
• C3.AI
• Honeywell
• Hitachi Vantara
• Rockwell Automation
• Other Prominent Players

Market Segmentation Overview:

By Component

• Hardware
• Software/Platform
• Services

By Type

• Consulting Service
• Support And Maintenance
• Deployment And Integration
• Managed Service
• Professional Service

By Network Technology

• Cellular Network
• Satellite Network
• Radio Network

By Application

• Energy Management
• Power Distribution
• Mobile Workforce Management
• Asset and Equipment Monitoring
• Field Surveillance
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America