How Has the Generative AI In Energy Market Evolved Historically and What is its Current Size?
The generative ai in energy market has seen considerable growth due to a variety of factors.
• The energy market size for generative AI has seen tremendous growth in the past few years. It is projected to escalate from $0.95 billion in 2024 to $1.21 billion in 2025, with a compound annual growth rate (CAGR) of 26.7%.
Factors contributing to the growth during the historical period include the emergence of renewable energy sources, advancement in demand forecasting, the surge in energy storage systems, optimization of demand response, and enhanced risk management and resilience.
What Is The Projected Growth Of The Generative AI In Energy Template Market?
The generative ai in energy market is expected to maintain its strong growth trajectory in upcoming years.
• The energy market for generative AI is forecasted to undergo a significant surge in the coming years. The projection is that it will expand to $3.07 billion by 2029, with a compound annual growth rate (CAGR) of 26.3%.
The predicted growth within this period is due to factors such as improved accuracy, increased interest in better electricity distribution, heightened commitment to customer engagement, soaring adaptability of wind and solar energy, and boosting asset management. Real-time forecasting, responsive adaptation and optimization, enhanced predictive analytics, the incorporation of cutting-edge data sources, predictive upkeep and asset management, and intelligent grid administration are the major anticipated trends for this period.
What Are The Key Drivers Fueling Growth In The Generative AI In Energy Market?
The anticipated escalation in solar electricity production is predicted to fuel the growth of generative AI in the energy sector. The augmentation of solar electricity comes from converting sunlight into power through photovoltaic (PV) panels or concentrated solar power (CSP) systems. The wider acceptance of solar electric use stems from decreasing costs of solar tech along with a heightened awareness surrounding its environmental advantages, such as lowered carbon emissions when contrasted with fossil fuels. Combining solar electricity production with generative AI tech presents considerable prospects to improve the efficiency, dependability, and sustainability of energy systems, promoting a shift towards a greener and resilient energy future. As an example, the U.S. Energy Information Administration (EIA), U.S. Federal Statistical System, projected in March 2023, that solar energy will comprise more than half of the new power capacity additions for that year in the U.S. Worldwide, renewable energy is predicted to elevate its quota in the power generation blend from 29% in 2022 to 35% by 2025. Even though global power sector's CO2 emissions peaked around 13.2 gigatons (Gt) in 2022, they are expected to stabilize by 2025. As for the U.S., utility-scale solar power accounted for 73.5 gigawatts (GW), constituting around 6% of total power capacity, as of January 2023, whereas wind power was recorded at 141.3 GW, making up approximately 12% of the total. Furthermore, U.S. developers have plans to increase wind capacity by 7.1 GW and add 8.6 GW of battery storage within this year, effectively doubling the country’s battery storage capacity. As a result, generative AI in the energy market is fueled by the growth in solar electricity production.
What Are The Principal Market Segments In The Global Generative AI In Energy Industry?
The generative AI in energy market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Application: Demand Forecasting, Renewable Energy Output Forecasting, Grid Management And Optimization, Energy Trading And Pricing, Customer Offerings, Energy Storage Optimization, Other Applications
3) By End User: Energy Transmission, Energy Generation, Energy Distribution, Utilities, Other End Users
Subsegments:
1) By Solutions: Energy Demand Forecasting, Predictive Maintenance Solutions, AI-Driven Energy Optimization Tools, Renewable Energy Management Solutions
2) By Services: Consulting Services, Implementation And Integration Services, Support And Maintenance Services, Training Services
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What Emerging Trends Are Influencing The Growth Of The Generative AI In Energy Market?
Leading enterprises within the energy market's generative AI segment are striving to create ground-breaking products such as real-time asset performance management systems to enhance the efficiency of energy generation, supply, and utilization processes. Real-time asset performance management encapsulates the processes of tracking, scrutinizing, and augmenting the efficiency of assets including machinery, infrastructure, and equipment, either in real-time or close to real-time. For instance, Databricks Inc., a renowned US-based firm dealing in data, analytics, and artificial intelligence, unveiled its data intelligence platform for the energy sector in April 2024. The unified platform injects the influence of AI into data and personnel in the energy industry. The platform offers solutions to pressing industry problems through real-time asset performance management, renewable energy prediction, and grid enhancement, thus enabling organizations to maximize energy infrastructure and alleviate market instability. Constructed on lakehouse architecture, the Databricks data intelligence platform offers an open, incorporated base for holistic data and governance. Its uniqueness stems from its data intelligence engine, designed to comprehend the distinct nature of data.
Who Are the Key Players In The Generative AI In Energy Market?
Major companies operating in the generative AI in energy market report are:
• Google LLC
• Microsoft Corporation
• Engie SA
• Enel Green Power S.p.A.
• Huawei Technologies Co. Ltd
• Amazon Web Services Inc
• Siemens AG
• General Electric Company
• Intel Corporation
• International Business Machines Corporation
• Deloitte Touche Tohmatsu Limited
• Cisco Systems Inc
• Schneider Electric SE
• Honeywell International Inc.
• Flex Ltd
• ABB Ltd
• Duke Energy Corporation
• Nvidia Corporation
• Atos SE
• Zen Robotics Ltd
• Freshworks Inc.
• C3 AI Inc
• Databricks Inc
• AppOrchid Inc
• Verdigris Technologies
• Ecube Labs Co. Ltd
• Bidgely Inc
What Are The Regional Insights Into The Generative AI In Energy Market?
North America was the largest region in the generative AI in energy market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI in energy market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
