The global market for AI in energy and power will expand from $5.2bn in 2024 to $14.9bn in 2029, a growth rate of 23.3%, and continue to $40.7bn by 2034 at a CAGR of 22.2%, according to Research & Markets.

This follows a CAGR of 24.1% since 2019.

This progression is primarily driven by increased investments in digital transformation and a growing focus on energy efficiency and optimisation. Moreover, the proliferation of smart grids and smart meters, along with a shift towards renewable energy sources, is expected to fuel market growth. However, problems such as high implementation costs and interoperability issues may pose obstacles, alongside the impacts of global trade tensions.

Regionally, Asia Pacific dominated the market in 2024, contributing 35.9% of the total, equating to $1.9bn. The region is predicted to remain a growth leader, with anticipated CAGRs of 26.2%, followed by robust growth prospects in the Middle East. These dynamic regional markets surpass Africa and South America, which are expected to grow at CAGRs of 23.4% and 22.8%, respectively.

The market’s competitive landscape is fragmented, with Nvidia leading the ten key players, holding just 1.9% of the market share in 2024. Siemens Energy and Schneider Electric, among others, contribute to this diverse competitive array.

Technology-wise, machine learning represents the largest segment, accounting for 44.9% or $2.3bn of the market in 2024. Observations suggest a robust increase in the other technologies segment. Application-wise, demand forecasting stands out at 25.3% of the total market, as it is anticipated to progress with the highest CAGR of 25.8% through 2029.

Within end-user segmentation, the commercial and industrial market dominates at 73.7% or $3.8bn in 2024, showcasing the fastest growth trajectory at 24% CAGR. Notably, significant opportunities lie in machine learning and demand forecasting segments, poised to elevate annual sales significantly by 2029.

Market strategies highlight the integration of AI into smart grid systems for enhanced operations, optimising renewable energy management, and deploying AI-powered predictive maintenance for asset longevity. Companies are advised to focus on expanding real-time AI applications, advancing predictive maintenance, enhancing customer engagement through AI and exploring the dynamic growth of other technologies.

Overall, enhancing operational capabilities through partnerships and expanding presence in emerging markets remain key strategies for players in the AI in energy and power market.

For more on the report, see www.researchandmarkets.com/reports/6215008/artificial-intelligence-ai-in-energy-power.