Artificial Intelligence (AI) In Utilities Operations Market Report 2026

Artificial Intelligence (AI) In Utilities Operations Market Overview

• Artificial Intelligence (AI) In Utilities Operations market size has reached to $6.22 billion in 2025 • Expected to grow to $17.05 billion in 2030 at a compound annual growth rate (CAGR) of 22.4% • Growth Driver: Renewable Energy Integration Driving The Market Due To Optimized Grid Management And Enhanced Renewable Utilization • Market Trend: AI Innovations Are Transforming Utility Operations And Grid Management • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Artificial Intelligence (AI) In Utilities Operations Market?

Artificial intelligence (AI) in utilities operations refers to the use of AI technologies such as machine learning, predictive analytics, and intelligent automation to optimize the management of power, water, and gas utility systems. It helps to improve operational efficiency, reliability, and resilience of utility networks while reducing costs, energy losses, and unplanned outages. The main components of artificial intelligence (AI) in utilities operations are software, hardware, and services. Software refers to AI-enabled solutions that analyze utility data, optimize operations, and support decision-making across the utility value chain. These solutions are deployed through on-premises and cloud deployment modes. They are designed for different utility types, including electricity, water, gas, and renewable energy, and are used across multiple applications, such as energy management, grid management, asset management, customer service, predictive maintenance, and other applications. The solutions cater to various end-users, including residential, commercial, and industrial sectors.

What Is The Artificial Intelligence (AI) In Utilities Operations Market Growth Forecast?

The artificial intelligence (AI) in utilities operations market size is expected to see exponential growth in the next few years. It will grow to $17.05 billion in 2030 at a compound annual growth rate (CAGR) of 22.4%. The growth in the forecast period can be attributed to increasing investments in smart grid modernization, rising demand for AI-driven energy efficiency, expansion of renewable energy integration, growing focus on utility resilience and reliability, increasing adoption of edge analytics in utility operations. Major trends in the forecast period include increasing adoption of AI-based grid management systems, rising deployment of predictive maintenance analytics, growing use of smart meter data intelligence, expansion of AI-enabled renewable integration forecasting, enhanced focus on utility network resilience.

Global Artificial Intelligence (AI) In Utilities Operations Market Segmentation

1) By Component: Software; Hardware; Services 2) By Deployment Mode: On-Premises; Cloud 3) By Utility Type: Electricity; Water; Gas; Renewable Energy 4) By Application: Energy Management; Grid Management; Asset Management; Customer Service; Predictive Maintenance; Other Applications 5) By End User: Residential; Commercial; Industrial Subsegments: 1) By Software: Predictive Analytics; Machine Learning Platforms; Decision Support Systems; Data Visualization Tools; Energy Management Applications 2) By Hardware: Smart Meters; Sensors; Servers; Edge Computing Devices; Communication Gateways 3) By Services: Consulting Services; System Integration Services; Maintenance Services; Training Services; Cloud Support Services

What Is The Driver Of The Artificial Intelligence (AI) In Utilities Operations Market?

The expanding integration of renewable energy sources is expected to propel the growth of the artificial intelligence in utilities operations market going forward. Renewable energy sources are natural resources like sunlight, wind, water, and biomass that are continuously replenished and used to generate energy. The use of renewable energy sources is increasing to reduce greenhouse gas emissions, as they generate electricity without burning fossil fuels, helping combat climate change and air pollution. AI in utilities operations helps renewable energy sources by optimizing generation, predicting demand, and managing grid integration, enabling efficient use of variable energy such as solar and wind while reducing curtailment and operational costs. For instance, in January 2024, according to the International Energy Agency, a France-based intergovernmental organization, in 2023, global renewable energy capacity additions surged by 50%, reaching nearly 510 gigawatts (GW), with solar PV contributing about three-quarters of the total new installations worldwide. Therefore, the expanding integration of renewable energy sources is driving the growth of the artificial intelligence in utilities operations market.

Key Players In The Global Artificial Intelligence (AI) In Utilities Operations Market

Major companies operating in the artificial intelligence (AI) in utilities operations market are Itron Inc., Open Systems International, C3 AI Inc., SparkCognition Inc., Uplight Inc., AiDASH Inc., Uptake Technologies Inc., Anodot Inc., Mosaic Data Science, Sharper Shape Inc., Amperon Inc., Kinetica Inc., eSmart Systems, Bidgely Inc., Utilidata Inc., WeaveGrid Inc., UrbanChain Inc., One Concern Inc., Flexitricity Ltd., Buzz Solutions, and Opus One Solutions Inc.

Global Artificial Intelligence (AI) In Utilities Operations Market Trends and Insights

Major companies operating in the artificial intelligence in utilities operations market are focusing on developing innovative solutions, such as AI-based network model tuning, to synchronize digital grid models with real-world conditions, enhance performance, lower operational costs, and boost reliability across power networks. AI-based network model tuning involves using artificial intelligence to automatically update and align a utility’s digital grid model with actual conditions, increasing accuracy, improving reliability, optimizing grid performance, and minimizing operational costs and outages. For instance, in November 2025, Schneider Electric SE, a France-based multinational technology company, launched the one digital grid platform to assist utilities in modernizing and reinforcing their grids through AI. The platform enhances reliability, forecasts and manages outages, and aligns digital models with real-world conditions. It also streamlines operations and allows seamless integration of renewables and distributed energy resources without requiring replacement of existing infrastructure. This launch is designed to make grids smarter, more resilient, and ready for the future.

What Are Latest Mergers And Acquisitions In The Artificial Intelligence (AI) In Utilities Operations Market?

In July 2025, GE Vernova Inc., a US-based global energy technology company, acquired Alteia SAS for an undisclosed amount. Through this acquisition, GE Vernova aims to enhance its GridOS portfolio by integrating AI-driven visual intelligence to help utilities monitor, assess, and manage the grid more effectively, improve situational awareness, and strengthen operational resilience. Alteia SAS is a France-based software company specializing in AI in utility operations.

Regional Insights

North America was the largest region in the artificial intelligence in utilities operations market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Artificial Intelligence (AI) In Utilities Operations Market?

The artificial intelligence (AI) in utilities operations market consists of revenues earned by entities by providing services such as customer support automation, outage detection and management, anomaly and fraud detection, resource allocation optimization, renewable integration forecasting, smart field operations planning, and workforce analytics. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) in utilities operations market also includes sales of smart meters, artificial intelligence-enabled sensors, internet of things field devices, artificial intelligence servers or edge compute units, grid edge hardware modules, and distribution automation controllers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Artificial Intelligence (AI) In Utilities Operations Market Report 2026?

The artificial intelligence (ai) in utilities operations market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (ai) in utilities operations industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.