Internet of Things in Energy Grid Management Market Size 2024-2028

The IoT in energy grid management market size is forecast to increase by USD 50.01 billion, at a CAGR of 19.27% between 2023 and 2028. Several key factors are driving this growth. First, governments' efforts to decrease carbon emissions are pushing the market forward. Second, individualized customer preferences are becoming increasingly important. Lastly, the widespread adoption of smart technologies such as IoT is contributing significantly to the market's expansion. This growth is noteworthy and indicates a significant shift towards more efficient and sustainable energy management solutions. In the energy management market, several significant factors are fueling its expansion. Governments' initiatives to reduce carbon emissions are one of the primary drivers. Another key factor is the growing importance of individualized customer preferences. Lastly, the widespread adoption of smart technologies is significantly contributing to the market's growth. This trend signifies a significant shift towards more efficient and sustainable energy management solutions. The energy management market's growth is a testament to the increasing demand for advanced and customized energy management systems that cater to unique customer needs. Additionally, the integration of smart technologies is enabling more efficient energy usage and management, making it an essential aspect of modern business operations

What will be the Size of the Internet of Things in Energy Grid Management Market During the Forecast Period?

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The global IoT market in energy grid management is experiencing rapid growth, driven by factors such as increasing energy value and the need for efficient integration and deployment solutions. With a focus on the oil and gas segment, including exploration and refining, energy organizations are leveraging IoT technologies to enhance operational efficiency and business agility. These technologies enable advanced managed IT infrastructure services and system integration services, allowing for improved end-to-end processes and pipeline integrity. By optimizing energy services and reducing operational costs, IoT solutions are facilitating significant process improvements across the energy sector.

Internet of Things in Energy Grid Management Market Segmentation

The IoT in energy grid management market forecasting report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in USD Billion for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments. 

• Solution Outlook
  • Hardware
  • Software
  • Services
• Application Outlook
  • Generation
  • Transmission
  • Substation automation
  • Distribution
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

In the solutions segment of the market, IoT technology plays a pivotal role in optimizing energy value and ensuring efficient operations across various sectors. For the integration and deployment segment, IoT-enabled sensors are extensively used to monitor energy production, transmission, and distribution in the oil and gas segment. These sensors provide real-time data on energy consumption, grid performance, and equipment health, enabling proactive maintenance and minimizing downtime. In the oil and gas sector, IoT technology is employed in both exploration and refining processes. IoT-enabled sensors deployed in oil rigs and refineries monitor critical parameters such as temperature, pressure, and flow rates to enhance operational efficiency and ensure safety.

One of the key challenges faced by the energy industry is the increasing threat of cyberattacks. IoT solutions offer advanced security measures to safeguard energy organization's IT infrastructure from potential cyber threats, ensuring the integrity and reliability of energy systems. IoT technology also enhances business agility and process efficiency by providing valuable insights into end-to-end processes, enabling energy companies to optimize operations and respond quickly to market changes. Moreover, IoT solutions enable remote monitoring of energy assets, such as pipelines and infrastructure, ensuring their integrity and minimizing the risk of potential accidents. In the oil and gas sector, IoT solutions play a crucial role in workforce management, allowing energy companies to monitor and optimize labor resources, thereby reducing operational costs. Overall, IoT technology brings significant benefits to the energy industry by improving operational efficiency, ensuring safety, and enhancing the consumer experience in a capital-intensive industry.

By Solution

The hardware segment is estimated to witness significant growth during the forecast period. The hardware products in the energy grid management comprise Industrial personal computers (PCs), control panels, smart sensors, switches and push buttons, human-machine interfaces, the signaling devices. In addition, these devices, along with the software products, guide the human workforce while they carry out different processes and applications in an energy grid.

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The hardware segment was the largest segment and was valued at USD 10.28 billion in 2018. Moreover, these devices are designed to withstand extreme temperatures and high pressure in a working environment. In addition, the high percentage share of this segment is attributed to the high cost of these devices; making these devices sturdier than the ordinary versions adds to the cost. Therefore, the increasing growth of IoT in the power industry is expected to drive the demand for the hardware required in the global market, which in turn will drive the growth of the global market during the forecast period.

By Application

The various applications of IoT solutions in the generation segment will fuel Internet of Things in energy grid management market growth. IoT solutions for power generation facilitate the monitoring of dams, solar panels, generation sets, and wind power systems. In addition, these systems work via wireless sensor networks. Moreover, the data received from these systems can be collected and processed in real-time through the deployment of IoT. Therefore, real-time data analysis helps power generation systems to change electricity production according to the demand from consumers as the consumer IoT segment also sees growth. In addition, the data is transferred from the equipment to the monitoring center and then to the prediction server. Furthermore, real-time analytics help in clubbing historical and real-time data to predict the production speed and need of the electricity generation systems. IoT helps in optimizing the production process and streamlining the workflow. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.

Regional Analysis

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North America is estimated to contribute 33% to the growth of the global Internet of Things in energy grid management market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Factors such as the increasing use of renewable sources, the existing IoT use in the energy sector, and the increasing demand for electricity. In addition, the percentage share of renewable sources of energy for power generation in North America has increased constantly over the last two decades. Moreover, hydroelectric sources in the US are the second-largest supplier of power in the region. Furthermore, the need for renewable energy sources for power generation is expected to drive the growth of the power industry in North America. Smart grids, which were introduced initially in North America, are now being adopted by all power companies across the region. Hence, such factors are driving IoT in energy grid management market growth in North America during the forecast period.

Internet of Things in Energy Grid Management Market Dynamics

The IoT in energy grid management market is witnessing significant growth, driven by the integration of IoT technology across the energy sector. With IoT-enabled sensors and remote monitoring, energy organizations can enhance operational efficiency and ensure the integrity of pipelines and oil rigs. This integration enables real-time monitoring, reducing potential accidents and enhancing overall safety. By leveraging IoT solutions, energy companies can improve process efficiency, optimize workforce management, and enhance the consumer experience. Despite concerns about cyberattacks, the energy sector continues to invest in technological developments to mitigate risks and capitalize on the benefits of IoT in this capital-intensive industry.

Key Market Driver

One of the key factors driving Internet of Things in energy grid management market growth is the growing individualized customer preferences. Several large commercial customers prefer renewable energy to achieve their corporate sustainability goals. In addition, a few residential customers prefer solar energy to power their houses. Furthermore, cities and towns demand customized services in the form of microgrids, renewable energy services, and smart city services.

Moreover, the growing use of smart devices in offices and houses has increased the demand for electricity across all countries. In addition, the power consumption per house is increasing year-over-year, and this has led to increasing individualized customer preferences. Hence, such factors are positively impacting the IoT in energy grid management market. Therefore, it is expected to drive the market growth during the forecast period.

Significant Market Trends

A key factor shaping IoT in energy grid management market growth is the increasing installation of smart energy meters. Power utilities across the globe have been investing in innovation to change the way data is transmitted and collected from consumers via different communication networks. In addition, advanced metering infrastructure (AMI)-enabled meters are being deployed to facilitate two-way communication between utilities and consumers. Therefore, with the increase in the deployment of smart energy meters, significant progress has been made in maintaining data at the grid level.

Moreover, a smart meter is a vital component of smart grids. In addition, the installation of smart meters is the primary step toward the full-scale deployment of smart grids. Furthermore, smart meters are capable of recording and reporting usage data. In addition, when equipped with proper user interfaces, they allow customers to make informed decisions based on real-time power consumption data. Therefore, it is positively impacting the Internet of Things in energy grid management market. Hence, such factors are driving the market growth during the forecast period.

Major Market Challenge

The rise in concerns about cybersecurity is one of the key challenges hindering Internet of Things in energy grid management market growth. Power industries generally leverage outdated software and hardware, which makes the grid infrastructure prone to sophisticated hackers with knowledge of infiltrating old security protocols. In addition, 5G IoT devices are available with inbuilt login credentials, which are rarely changed by the owners or operators. Furthermore, this compromises the security of the entire system.

Moreover, a huge amount of investment is made on the part of the power companies in enhancing the security of the energy grids to combat hackers. In addition, these security enhancements also include tamper-proofing, enhanced data management, and peer-to-peer communications. Furthermore, these enhancements not only improve the security features of the grid but also add to the investment of the power companies and the IoT technology players. Hence, such factors are hindering the market growth during the forecast period.

Customer Landscape

The Internet of Things in energy grid management market growth and forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the IoT in energy grid management market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

 Market Customer Landscape

Key Internet of Things in Energy Grid Management Market Players

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Cisco Systems Inc: The company offers IoT in energy grid management solutions that monitor and control the energy grid in real time to improve reliability and utilization, reduce blackouts, and postpone costly new upgrades to enable security, resilience, and operational efficiency.

The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 15 market companies, including Eaton Corp. Plc, Fujitsu Ltd., General Electric Co., Hitachi Ltd., Honeywell International Inc., Huawei Technologies Co. Ltd., Intel Corp., International Business Machines Corp., Itron Inc., Landis Gyr AG, Microsoft Corp., Mitsubishi Electric Corp., Oracle Corp., SAP SE, Schneider Electric SE, Siemens AG, Toshiba Corp., and Trilliant Holdings Inc.

The Internet of Things in energy grid management market trends and growth report includes key player's detailed analyses of the competitive landscape of the market and information about 15 market companies, including Eaton Corp. Plc, Fujitsu Ltd., General Electric Co., Hitachi Ltd., Honeywell International Inc., Huawei Technologies Co. Ltd., Intel Corp., International Business Machines Corp., Itron Inc., Landis Gyr AG, Microsoft Corp., Mitsubishi Electric Corp., Oracle Corp., SAP SE, Schneider Electric SE, Siemens AG, Toshiba Corp., and Trilliant Holdings Inc. Additionally, ABB Ltd. provides an IoT solution for energy grid management systems, known as OKTO GRID. This system digitalizes electric infrastructure, offering real-time monitoring and optimization capabilities. It enhances the safety and efficiency of older equipment, leading to more reliable and stable power supplies. Additionally, it contributes to reducing the total carbon emissions associated with the equipment.

Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The Internet of Things in energy grid management market is witnessing significant growth, driven by advancements in technology and the need for process efficiency in the capital-intensive oil and gas segment. IoT-enabled sensors facilitate remote monitoring of oil and gas exploration, refining, and pipeline integrity, reducing potential accidents and operational costs. The integration and deployment segment offers end-to-end processes, enhancing business agility and consumer experience. However, the energy organization faces challenges such as cyberattacks and fluctuating oil prices. With system integration services and technological developments, energy companies are improving their IT infrastructure to ensure cybersecurity and optimize workforce management. As the industry embraces IoT, it is poised to achieve greater process improvements and ensure the reliability and safety of energy grids worldwide.

The market is rapidly expanding, driven by the increasing importance of energy management in the capital-intensive industry. Integration and deployment segments play a crucial role in optimizing infrastructure management and enterprise resources, minimizing downtime, and enhancing overall productivity. IoT solutions enable real-time energy value monitoring, allowing for consumer side analysis and agile systems that drive business productivity. With IoT energy management systems like RTEM and HVAC systems, commercial and industrial sectors, as well as smart cities and utilities, are revolutionizing their operations. Industrial IoT, combined with Artificial Intelligence (AI), is transforming retail stores, shopping malls, and hotels, ensuring efficient energy usage and revenue generation while meeting business imperatives for quality of operations in the modern energy landscape.

The energy sector is experiencing substantial expansion, notably in the oil and gas refining industry and oil rigs. IoT (Internet of Things) solutions are transforming service delivery in these areas through enterprise IT solutions and IoT energy management systems, such as RTEM. These technologies optimize operations, boost efficiency, and decrease expenses. In the realm of utilities, big data analytics is being employed to fuel digital transformation and enhance energy efficiency throughout the grid. Real-time monitoring of energy consumption made possible by IoT technologies empowers more effective resource allocation and informed decision-making, ultimately leading to a more sustainable energy future. The energy grid management market in the US is poised for continued expansion and innovation as a result of this digital transformation and IoT solution adoption trend.

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What are the Key Data Covered in this Internet of Things in Energy Grid Management Market Research Report?

• CAGR of the IoT in energy grid management market worth report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028
• Precise estimation of the IoT in energy grid management market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• IoT in energy grid management market growth analysis across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough market analysis and report of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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