Internet of Things (IoT) in Energy Market Size, Share, Analysis, Trends, Growth Report, 2030

Internet of Things (IoT) in Energy Industry Prospective:

The global Internet of Things (IoT) in energy market size was worth around USD 22.02 billion in 2022 and is predicted to grow to around USD 52.17 billion by 2030 with a compound annual growth rate (CAGR) of roughly 11.39% between 2023 and 2030.

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Internet of Things (IoT) in Energy Market: Overview

Internet of Things (IoT) is described as a network of physical objects, referred to as ‘things’, equipped with software, sensors, and other technologies that enable the connected systems to create a connection and exchange information with each other with the help of the internet. IoT is modern technology and has found applications in several industries including one of the fastest-growing sectors that is the energy industry. Internet of Things in energy refers to the application of IoT technology in industries that deal with power generation and subsequent distribution.

Energy creation and consumption methods have changed over the years influenced by several environmental and commercial factors creating a better scope for integration with modern tools, software, and other technologies. IoT in energy industry has allowed energy producers to meet the changing demands of the end-consumers including residential, commercial, and industrial applications. In addition to this, the ongoing research and development of affordable IOT systems has helped the market flourish further. During the forecast period, companies operating in the IoT in energy industry can expect excellent growth opportunities but may have to deal with certain growth restraints.

Key Insights:

• As per the analysis shared by our research analyst, the global Internet of Things (IoT) in energy market is estimated to grow annually at a CAGR of around 11.39% over the forecast period (2023-2030)
• In terms of revenue, the global Internet of Things (IoT) in energy market size was valued at around USD 22.02 billion in 2022 and is projected to reach USD 52.17 billion, by 2030.
• The Internet of Things in energy market is projected to grow at a significant rate due to the rising investments in smart grid
• Based on applications segmentation, oil & gas was predicted to show maximum market share in the year 2022
• Based on component segmentation, services was the leading segment in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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Internet of Things (IoT) in Energy Market: Growth Drivers

Rising investments in smart grid to drive market growth

The global Internet of Things (IoT) in energy market is projected to grow owing to the increasing investments in the development of smart grid infrastructure to meet the rising demands of end-consumers. Most of the countries currently run on age-old power generation and distribution infrastructure. However, these aging systems are unable to meet the dynamic power requirements of the modern world. Surging industrialization and increasing demand for power from the residential sector have played a crucial role in diverting attention to the need for effective solutions that ensure the power needs of all consumers are met. For instance, in September 2023, Europe announced that the region needs to ramp up its investment in maturing grid infrastructure by 84% annually until 2050. The main reason for the ambitious vision is the failure of existing power grids to keep up Europe’s interest in using renewable energy in the coming years and achieving net carbon zero.

Increasing focus on achieving energy efficiency to create higher demand in the industrial sector

The world is currently witnessing the impact of irresponsible business operations on the global environment. Depleting non-renewable energy resources, rising earth’s temperature, global warming, poor air quality, environmental pollution, and damage to marine life are some of the major concerns that are in some ways connected to the ways in which energy is consumed. Several governments and environmental agencies have highlighted the importance of improving energy efficiency to ensure that energy is not wasted but optimally used. Integrating IoT in energy has proven as an efficient solution to achieve higher smart energy consumption and conservation, especially in the industrial sectors where the sensors can automatically detect energy requirements and manage supply accordingly.

Rising penetration of IoT in the property sector to push the consumption rate further

As of September 2022, Kiona and Ericsson were working toward developing technologies to achieve building management digitization in a bid to reduce carbon dioxide emissions and energy usage in the property industry. Several other companies are investing in IoT to make buildings more energy efficient which is, in turn, expected to improve property value. As per projections, property owners can reduce energy costs by as much as 10% with smart application of the global market offerings.

Internet of Things (IoT) in Energy Market: Restraints

Associated risk of data breach and cybercrime to restrict the market growth

As the number of connected devices grows, so does the risk of being a cybercrime victim. It is one of the main drawbacks associated with technology integration especially when crucial data and information is exchanged between devices connected through the internet. The IoT in energy industry players must ensure that their systems are not vulnerable to cyber-attacks or data breaches since hackers are evolving rapidly with the changing technological environment. The issue becomes more concerning in situations where nuclear sources are being used to produce energy.

Internet of Things (IoT) in Energy Market: Opportunities

Surging investments in renewable energy to create excellent growth possibilities

The global Internet of Things in energy market players are expected to witness several growth opportunities driven by the increasing investments in renewable energy. As countries work toward reducing dependence on fossil fuels and other non-renewable energy sources with the exponentially rising prices and fuel shortage, interest in renewable energy infrastructure has huge growth potential for IoT technology makers. Power generation tools using sustainable sources need advanced systems to help them function as per expectations. In June 2023, NCL India announced that it will invest INR 24000 crore by 2030 for solar energy production.

Internet of Things (IoT) in Energy Market: Challenges

Lack of supporting infrastructure to challenge market growth

One of the key challenges existing in the Internet of Things (IoT) in energy industry is the lack of infrastructure that can support the seamless integration of both industries. Most of the countries have extremely old energy generation systems and aligning IoT with legacy technologies may be difficult. Additionally, IoT devices also consume energy for functioning and market players must invest in determining ways that using IoT does not translate to more energy consumption than saving.

Internet of Things (IoT) in Energy Market: Segmentation

The global Internet of Things (IoT) in energy market is segmented based on application, technology, component, and region.

Based on application, the global market is divided into coal mining, oil & gas, and smart grid. In 2022, the highest growth was observed in the oil & gas segment owing to the increased application of IoT systems during the oil extraction and refining process. The Russia-Ukraine war compelled countries to make changes in the oil and gas supply international collaborations indirectly impacting oil drilling procedures for maximum output. During the forecast period, the growing emphasis on monitoring and managing the environmental impact of oil production could create a higher demand for IoT integration. The US spent nearly 39% more in the oil sector as compared in 2022 compared to 2021.

Based on technology, the Internet of Things in energy industry divisions are radio network, satellite network, cellular network, and others.

Based on component, the global market is segmented into services, platforms, and solutions. The most dominant segment was services in 2022 propelled by the increased need for excellent services in terms of technology installation, training, and assistance during technical issues. The platforms segment was a significant contributor led by an increase in strategic collaborations between market players. IoT applications with basic features typically cost USD 30000. The prices go higher as performance requirements grow.

Internet of Things (IoT) in Energy Market: Report Scope

Internet of Things (IoT) in Energy Market: Regional Analysis

North America to deliver the highest result during the projected timeline

The global Internet of Things (IoT) in the energy market will be led by North America in the coming years. The major regional growth driver is the ongoing research and innovation in developing affordable IoT solutions that can meet the changing energy demands in North America. The US and Canada have a dominant hold over the regional and global oil & gas industry. These regions have increased spending in the oil sector to meet consumer demands leading to the integration of advanced technologies such as IoT to not only optimize oil drilling, refining, and supply processes but also to track environmental impact and take corrective measures when necessary. Furthermore, the growing investments in 5G technology are projected to create higher demand for IoT in the regional energy sector. 5G-enabled IoT sensors and software solutions are expected to provide more effective results.

Internet of Things (IoT) in Energy Market: Competitive Analysis

The global Internet of Things (IoT) in energy market is led by players like:

• Schneider Electric
• Siemens AG
• IBM
• General Electric (GE)
• Emerson Electric Co.
• Cisco
• Bosch
• Honeywell
• Rockwell Automation
• ABB

The global Internet of Things (IoT) in energy market is segmented as follows:

By Applications

• Coal Mining
• Oil & Gas
• Smart Grid

By Technology

• Radio Network
• Satellite Network
• Cellular Network
• Others

By Component

• Services
• Platforms
• Solution

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa