Growth of AI in the Energy Sector: Towards More Efficient and Sustainable Management | Generative ai benefits for business examples | Free generative ai text to image | Generative ai use cases in manufacturing | Turtles AI

The global energy AI market is expected to grow from USD 8.91 billion in 2024 to USD 58.66 billion by 2030, with a CAGR of 36.9%. AI adoption is driven by power grid optimization, predictive management and renewable energy integration, with Asia-Pacific leading the growth.

Key Points:

• The energy AI market will reach USD 58.66 billion by 2030, with a CAGR of 36.9%.
• Power grid optimization and management is the largest application segment.
• Asia-Pacific is the fastest-growing region, driven by investments in digital technologies.
• AI improves efficiency in power distribution, reducing losses and optimizing renewable energy integration.

According to a report by MarketsandMarkets™, the global AI market in the energy sector is expected to grow significantly from $8.91 billion in 2024 to $58.66 billion by 2030, with a CAGR of 36.9%. This expansion is fueled by the increasing adoption of AI to optimize power grid management, forecast energy demand, and integrate renewables.

Power grid optimization and management is the primary application of AI in the energy sector. By analyzing large amounts of data in real time, AI can detect inefficiencies, predict demand patterns, and balance load, preventing overloads and outages. Additionally, AI-driven automation enables faster responses to outages, ensuring continuous energy supply and maintaining the efficiency of the grid infrastructure.

Power distribution also benefits from AI, which improves efficiency and reliability by optimizing grid management and reducing losses. Real-time monitoring and predictive analytics help detect faults, anticipate equipment malfunctions and smooth the flow of electricity. AI algorithms also optimize voltage regulation, ensuring efficient power distribution within safe limits.

Asia-Pacific emerges as the fastest-growing region in the AI ​​energy market. Countries such as China, South Korea and Australia are implementing AI solutions to optimize renewable energy generation and distribution. In particular, India is expected to register the highest growth rate in the region from 2025 to 2030.

Key companies driving innovation in AI for energy include Schneider Electric SE (France), GE Vernova (US), ABB Ltd (Switzerland), Honeywell International (US), Siemens AG (Germany), AWS (US), IBM (US), Microsoft (US), Bidgely (US), and Oracle (US).

Integrating AI in the energy sector not only improves operational efficiency but also contributes to decarbonization and environmental sustainability. For example, AI can be used to design low-carbon cements and optimize building construction processes, reducing energy demand and global carbon emissions.

The adoption of AI in the energy sector represents a significant step towards a more efficient and sustainable future, with benefits that extend from managing electricity grids to building low-carbon buildings.