Global Iot In Energy Market Overview
As per MRFR analysis, the Iot In Energy Market Size was estimated at 44.84 (USD Billion) in 2022.The Iot In Energy Market Industry is expected to grow from 55.46 (USD Billion) in 2023 to 375.5 (USD Billion) by 2032. The Iot In Energy Market CAGR (growth rate) is expected to be around 23.68% during the forecast period (2024 - 2032).
Key Iot In Energy Market Trends Highlighted
The IoT in the Energy market holds a promise of rapid growth within the next few years, mainly due to the newer technologies coming up with solutions to the energy market as well as the wider use of IoT solutions within the energy market. Development of smart energy management systems, improved energy efficiency and better renewable energy resources implementation are some of the factors which drive the market. Some of the opportunities include the ability to develop new energy services that are IoT-based, the possibility of IoT incorporation in other technology systems like AI and blockchain, as well as the growth of the market in the rental of IoT technology in all new ventures. Other recent developments in the market shall include remote management and control of energy resources using IoT sensors and devices, development of energy IoT systems for analytics and optimization as well as widespread adoption of IoT solutions by electricity services and distribution companies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Iot In Energy Market Drivers
Rising Demand for Energy Efficiency
The increase in the energy management market is a result of awareness of the need for energy efficiency. Governments and companies around the world are deploying strategies and activities in an effort to decrease energy usage and carbon output. Therefore, the demand for smart energy solutions is growing. The constantly connected nature of networks, computing and mobile devices enables IoT systems to monitor the usage of electrical power, manage its distribution, and avoid wastage. They help machines monitor energy consumption trends in real-time, making it easier to streamline energy-saving efforts. Looking at these benefits means the amount of energy used in industries will be drastically reduced, costs will be kept low and efficiency in operations enhanced while also enhancing efforts towards sustainability.
Advancements in IoT Technologies
Rapid advancements in IoT technologies are fueling the growth of the Iot In the Energy Market Industry. The development of low-power wide-area networks (LPWANs), such as LoRaWAN and NB-IoT, has enabled the deployment of IoT devices in remote areas with limited connectivity. These technologies offer long-range communication and low power consumption, making them ideal for energy monitoring and control applications. Additionally, the proliferation of edge computing and artificial intelligence (AI) is enhancing the capabilities of IoT devices, allowing for real-time data processing and analytics.These advancements drive innovation and create new opportunities for the growth of the Iot In the Energy Market Industry.
Government Initiatives and Regulations
Government initiatives and regulations are playing a significant role in driving the growth of the Iot In the Energy Market Industry. Many countries have implemented policies and incentives to promote the adoption of energy-efficient technologies and smart energy management systems. These initiatives create a favorable environment for the development and deployment of IoT solutions in the energy sector. Moreover, stringent environmental regulations and carbon emission reduction targets are pushing businesses to adopt sustainable practices, further boosting the demand for IoT-based energy management solutions.
Iot In Energy Market Segment Insights
Iot In Energy Market Technology Insights
The Iot In Energy Market is segmented by Technology into IoT in Smart Grid, IoT in Renewable Energy, and IoT in Energy Efficiency. IoT in Smart Grid The IoT in Smart Grid segment is expected to grow from USD 19.3 billion in 2023 to USD 120.5 billion by 2032, at a CAGR of 23.2%. The growth of this segment is attributed to the increasing adoption of smart grids by utilities and governments to improve the efficiency and reliability of the electricity grid. The market growth is also driven by the rising demand for smart meters, sensors, and other IoT devices to monitor and control energy consumption.IoT in Renewable Energy The IoT in Renewable Energy segment is expected to grow from USD 12.7 billion in 2023 to USD 78.3 billion by 2032, at a CAGR of 21.9%. The growth of this segment is attributed to the increasing adoption of renewable energy sources, such as solar and wind power, by governments and businesses to reduce their carbon footprint and meet their sustainability goals. The market growth is also driven by the rising demand for IoT devices to monitor and control the performance of renewable energy systems. IoT in Energy Efficiency The IoT in Energy Efficiency segment is expected to grow from USD 23.5 billion in 2023 to USD 177 billion by 2032, at a CAGR of 25.1%.The growth of this segment is attributed to the increasing demand for energy efficiency solutions by businesses and consumers to reduce their energy consumption and costs. The market growth is also driven by the rising adoption of IoT devices to monitor and control energy consumption in buildings, industrial facilities, and commercial properties.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Iot In Energy Market Application Insights
Application Segment Insight and Overview The Iot In Energy Market is segmented into three major applications: Asset Management, Grid Optimization, and Energy Monitoring. Among them, the Asset Management application is expected to dominate the market during the analysis period and earn significant revenue shares. The significant surge in the adoption of IoT solutions for real-time monitoring, tracking, and prognostic of energy assets is the major driving factor for the growth of the Asset Management market. In 2024, the Iot In Energy Market revenue for Asset Management is expected to reach up to $12.5 billion.The second considerable segment is Grid Optimization, which continues to hold noteworthy shares of the Iot In Energy Market. The expansion of the segment is fueled by the tremendous demand for integrating renewable sources of energy and is attributed to an increase in the efficiency of energy distribution. On the other hand, Energy Monitoring is the third accounted major segment that is gaining meaningful traction. The rise in the necessity of real-time monitoring of energy consumption, along with the surge to optimize energy consumption, are the primary reasons fueling the growth of the Energy Monitoring market.In the upcoming years, the expansion of the Energy Monitoring segment is attributed to fuel substantially as a result of the rise in the adoption of the smart grid and smart buildings. In 2024, the Iot In Energy Market is expected to reach up to $8.3 billion.
Iot In Energy Market Connectivity Insights
The Connectivity segment is a crucial aspect of the Iot In Energy Market, enabling seamless data transmission between IoT devices and the central network. Among the various connectivity technologies, Cellular (LTE-M, NB-IoT), Wi-Fi, and Ethernet hold significant market share. Cellular (LTE-M, NB-IoT) is widely adopted due to its extensive coverage and reliability, making it suitable for remote and hard-to-reach areas. Wi-Fi offers high-speed connectivity within a limited range, making it ideal for energy-efficient devices in close proximity to access points.Ethernet provides a stable and secure wired connection for critical infrastructure and data centers. By 2024, the Connectivity segment is projected to reach a valuation of USD 12.5 billion, exhibiting a robust growth rate driven by the increasing adoption of IoT solutions in the energy sector.
Iot In Energy Market Vertical Insights
The Iot In Energy Market is segmented by Vertical into Utilities, Industrial, and Commercial. The Utilities segment is expected to account for the largest share of the market in 2023, with a valuation of USD 18.46 billion. This is due to the increasing adoption of IoT solutions by utility companies to improve grid efficiency, reduce operating costs, and enhance customer service. The Industrial segment is expected to grow at a CAGR of 25.1% from 2023 to 2032, reaching a valuation of USD 124.3 billion by 2032. This growth is driven by the increasing demand for IoT solutions to improve operational efficiency, reduce downtime, and enhance safety in industrial settings.The Commercial segment is expected to grow at a CAGR of 22.8% from 2023 to 2032, reaching a valuation of USD 105.4 billion by 2032. This growth is driven by the increasing adoption of IoT solutions to improve energy efficiency, reduce operating costs, and enhance occupant comfort in commercial buildings.
Iot In Energy Market Deployment Model Insights
The Iot In Energy Market is segmented based on Deployment Model into On-Premise, Cloud, and Hybrid. Among these segments, the Cloud segment is expected to hold the largest market share in 2023, and it is expected to continue to dominate the market during the forecast period. The growth of the Cloud segment can be attributed to the increasing adoption of cloud-based solutions by energy companies. Cloud-based solutions offer several benefits, such as scalability, flexibility, and cost-effectiveness, which are driving their adoption in the energy sector.The On-Premise segment is expected to hold a significant market share during the forecast period, owing to the preference for on-premise solutions by some energy companies due to security and control concerns. The Hybrid segment is expected to grow at a steady pace during the forecast period, as it offers a combination of the benefits of both on-premise and cloud-based solutions.
Iot In Energy Market Regional Insights
The regional segmentation of the Iot In Energy Market offers valuable insights into the market's geographic distribution and growth potential. North America, Europe, Asia-Pacific (APAC), South America, and the Middle East and Africa (MEA) are the key regions analyzed in this market research. Among these regions, APAC is expected to dominate the market in the coming years, driven by increasing urbanization, rising energy consumption, and government initiatives to promote smart energy solutions. The Iot In Energy Market in APAC is projected to reach a valuation of USD 155.4 billion by 2032, exhibiting a remarkable growth rate.Europe is another significant region, with a well-established energy sector and a strong focus on sustainability. The region is expected to witness significant growth in the adoption of IoT solutions for energy management and optimization. North America is also a mature market for IoT in energy, with a high concentration of technology providers and early adopters. The region is expected to maintain a steady growth rate, driven by ongoing investments in smart grid infrastructure and energy efficiency measures. South America and MEA represent emerging markets with immense growth potential.These regions are experiencing rapid urbanization and industrialization, leading to increased energy demand and a growing need for efficient energy management solutions. The Iot In Energy Market in South America and MEA is anticipated to expand at a considerable pace, offering lucrative opportunities for market players.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Iot In Energy Market Key Players And Competitive Insights:
Iot In Energy industry includes major players who are focusing on developing innovative products and solutions with the growing demand for energy efficiency and sustainability. Leading Iot In Energy Market players are also investing in research and development for competitive advantage and to develop Iot In Energy Market. The Iot In Energy Market Competitive Landscape is also attractive; Siemens, Schneider Electric, GE, Honeywell, and Cisco are key players in the Iot In Energy Market, and the Iot In Energy products and solutions include smart meters, energy management systems and distributed energy resources. Siemens is one of the leading Iot In Energy solution providers whose Iot In Energy products and services allow customers to enhance their energy efficiency, lower expenses and achieve sustainability goals. Siemens provides a broad product portfolio and some of them include smart meters, energy management systems, and distributed energy solutions. Siemens is also a company and has a large customer base in manufacturing, healthcare and transportation. In conclusion, Schneider Electric is another player in the Iot In the Energy Market whose manner and equipment allow the customers to control and optimize their energy intake. Schneider Electric is also focused on smart meters, energy management systems and distributed energy resources. Schneider Electric is also dominant in Europe and is expanding its operations in North America.
Key Companies in the Iot In Energy Market Include:
- Intel Corporation
- Honeywell International Inc.
- Toshiba Corporation
- Yokogawa Electric Corporation
- General Electric Company
- Oracle Corporation
- Siemens AG
- Rockwell Automation Inc.
- Texas Instruments Incorporated
- Cisco Systems Inc.
- ABB AG
- Dell Technologies Inc.
- Microsoft Corporation
- Schneider Electric SE
- IBM Corporation
Iot In Energy Market Industry Developments
The IoT in energy market is projected to witness substantial growth in the coming years, driven by increasing adoption of smart grid technologies and rising demand for energy efficiency. The market is expected to reach a valuation of USD 375.5 billion by 2032, expanding at a CAGR of 23.68% from 2024 to 2032.Recent advancements in IoT technology, such as the development of low-power wide-area networks (LPWANs) and the proliferation of smart devices, have made it more feasible to connect and monitor energy assets. This has led to increased adoption of IoT solutions in energy applications, such as smart metering, grid automation, and predictive maintenance.Key industry participants are actively involved in developing and deploying innovative IoT solutions for the energy sector. For instance, in 2023, Siemens announced the launch of its EnergyIP platform, which provides a comprehensive suite of IoT-enabled solutions for energy management and optimization. Similarly, GE Renewable Energy recently unveiled its Digital Wind Farm solution, which leverages IoT sensors and data analytics to enhance the efficiency and reliability of wind turbines.The growing emphasis on sustainability and the need to reduce carbon emissions are also driving the adoption of IoT in the energy sector. IoT solutions can help energy providers optimize energy consumption, reduce waste, and improve the integration of renewable energy sources.
Iot In Energy Market Segmentation Insights
Iot In Energy Market Technology Outlook
- IoT in Smart Grid
- IoT in Renewable Energy
- IoT in Energy Efficiency
Iot In Energy Market Application Outlook
- Asset Management
- Grid Optimization
- Energy Monitoring
Iot In Energy Market Connectivity Outlook
- Cellular (LTE-M, NB-IoT)
- Wi-Fi
- Ethernet
Iot In Energy Market Vertical Outlook
- Utilities
- Industrial
- Commercial
Iot In Energy Market Deployment Model Outlook
Iot In Energy Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
Iot In Energy Market Report Scope
| Report Attribute/Metric |
Details |
| Market Size 2022 |
44.84 (USD Billion) |
| Market Size 2023 |
55.46 (USD Billion) |
| Market Size 2032 |
375.5 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
23.68% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Intel Corporation, Honeywell International Inc., Toshiba Corporation, Yokogawa Electric Corporation, General Electric Company, Oracle Corporation, Siemens AG, Rockwell Automation Inc., Texas Instruments Incorporated, Cisco Systems Inc., ABB AG, Dell Technologies Inc., Microsoft Corporation, Schneider Electric SE, IBM Corporation |
| Segments Covered |
Technology, Application, Connectivity, Vertical, Deployment Model, Regional |
| Key Market Opportunities |
Smart grid management predictive maintenance energy efficiency remote monitoring and asset tracking |
| Key Market Dynamics |
Rising energy demand advancements in IoT technologies, government initiatives growing adoption of smart grids increased focus on energy efficiency |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
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Frequently Asked Questions (FAQ) :
The IoT in Energy Market size was valued at USD 20.36 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 23.68% from 2024 to 2032, reaching a total market size of USD 375.5 billion by 2032.
The key regions in the IoT Energy Market are North America, Europe, Asia Pacific, Middle East and Africa, and South America. North America is expected to hold the largest market share in 2023, followed by Europe and Asia Pacific.
The major applications of IoT in the Energy sector include smart grid management, energy efficiency, renewable energy integration, and asset management.
The key competitors in the IoT in Energy Market include Cisco Systems, Inc., General Electric Company, Schneider Electric SE, Siemens AG, and Honeywell International Inc.
The key trends in the IoT in Energy Market include the increasing adoption of smart grids, the growing need for energy efficiency, and the rising demand for renewable energy.
The key challenges facing the IoT in Energy Market include security concerns, lack of standardization, and high implementation costs.
The key opportunities for growth in the IoT in Energy Market include the increasing demand for energy efficiency, the growing adoption of smart grids, and the rising demand for renewable energy.
The COVID-19 pandemic had a negative impact on the IoT in Energy Market in the short term due to the slowdown in economic activity. However, the long-term impact is expected to be positive, as the pandemic has accelerated the adoption of digital technologies in the Energy sector.
The key drivers of growth in the IoT in Energy Market include the increasing demand for energy efficiency, the growing adoption of smart grids, and the rising demand for renewable energy.
The key restraints in the IoT in Energy Market include security concerns, lack of standardization, and high implementation costs.
