The Artificial Intelligence in Energy and Utilities Market is to Touch $196.6 Billion by 2030; advanced data analytics and predictive maintenance capabilities propel market growth.

The Artificial Intelligence in Energy and Utilities Market size is estimated to reach $196.63 billion by 2030, growing at a CAGR of 37.3% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Artificial Intelligence in Energy and Utilities Market – By Type (Solutions, Services), By Application (Robotics, Renewables Management, Demand Forecasting, Safety & Security and Infrastructure and Others), By End Use (Energy Generation, Energy Transmission, Energy Distribution, Utilities and Others) By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

Grid optimization and demand forecasting solutions are fueling the growth of the Artificial Intelligence in Energy and Utilities industry during the forecast period.

North America leads the Artificial Intelligence in Energy and Utilities Market, driven by early adoption of advanced AI technologies and robust investments in grid modernization. The region’s utilities sector is increasingly integrating AI for predictive maintenance, which minimizes downtime and optimizes operational efficiency. Key players in the U.S. and Canada, including major utility companies and technology providers, are also advancing AI-driven applications such as demand response and energy efficiency programs to meet stringent sustainability targets. Furthermore, regulatory support for clean energy initiatives and infrastructure improvements significantly fuels AI adoption in the region. The presence of technology hubs like Silicon Valley enables continuous innovation and partnerships, creating a supportive ecosystem for rapid AI advancements. This established infrastructure and high technology adoption rate position North America as a dominant force in shaping the future of AI in the energy sector. 

The energy and utilities sectors are harnessing AI to innovate and enhance operational efficiency. In the U.S., NextEra Energy has pioneered machine learning-based wind projects to stabilize power and prevent fluctuations in surrounding areas, showcasing AI’s potential to boost grid reliability. Similarly, Duke Energy has converged Industrial IoT with AI in select U.S. power plants to improve predictions and analyses of power failures, supporting more resilient infrastructure. Other notable players like Southern Company and Dominion Resources are advancing these innovations; Southern Company is using AI to forecast energy requirements, optimizing consumption and reducing waste, while Dominion Resources focuses on grid analytics and control through machine learning. Collectively, these advancements are opening up new AI-driven applications within the energy sector, reinforcing the role of technology in market growth and sustainability efforts.

The accelerating adoption of microgrids, particularly within smart cities, is propelling the AI in Energy and Utilities Market. Microgrids offer resilience by enabling continued service during emergencies or power outages, a priority for many governmental organizations exploring this technology. AI enhances microgrid functionality by enabling distributed energy resource management and blockchain-based applications, allowing for active grid management that is essential for the future. Advanced AI systems can balance energy loads, perform self-healing actions, and facilitate a range of new products and services. In Finland, Siemens is designing a self-sufficient, autonomous microgrid system, with investments supported by the Ministry of Economic Affairs and Employment. This trend toward smart microgrid solutions and integrated AI technologies underscores the transformative potential of AI in the energy sector, driving robust growth and innovation.