Internet of Energy (IoE) market

Market Perspective

The global Internet of Energy (IoE) Market was valued at USD 104.64 billion in 2022 and is projected to reach USD 407.43 billion by 2030, growing at a CAGR of 18.71% from 2023 to 2030.

The internet of energy (IoE) market is currently experiencing a paradigm shift driven by a confluence of factors that are reshaping the global energy landscape. As traditional energy infrastructures grapple with increasing demands and environmental concerns, the IoE emerges as a catalyst for transformative change. Notably, the internet of energy (IoE) market is witnessing substantial growth, propelled by an increasing emphasis on renewable energy sources and the imperative to reduce carbon footprints. Governments worldwide are adopting ambitious sustainability targets, driving investments in smart grids, IoT-enabled devices, and advanced analytics to optimize energy utilization and mitigate environmental impact.

Moreover, smart grids are emerging as a cornerstone technology, facilitating efficient energy distribution and enabling seamless integration of renewable and conventional energy resources. The deployment of IoT devices and sensors across energy infrastructure enhances real-time monitoring and data-driven decision-making, resulting in improved operational efficiency. Companies such as Siemens and Schneider Electric are developing smart grid solutions that enable efficient integration of renewable energy sources and dynamic grid management. These intelligent systems optimize energy flow, reduce transmission losses, and enhance overall grid reliability. The internet of energy (IoE) market is further fueled by the rising adoption of electric vehicles, which necessitates intelligent energy management systems to meet the demands of an evolving transportation sector.

Market players are capitalizing on this momentum by innovating in areas such as edge computing, blockchain, and artificial intelligence, aiming to create robust and secure IoE ecosystems. The demand for energy storage solutions, coupled with grid modernization efforts, is fostering a competitive landscape characterized by collaborations and strategic partnerships.

Analyst’s Review on Internet of Energy (IoE) Market

The internet of energy (IoE) market is currently undergoing a phase of dynamic evolution, marked by technological advancements and a growing emphasis on sustainability. As nations globally shift toward renewable energy sources, the IoE emerges as a linchpin, integrating smart grids, IoT devices, and cutting-edge analytics. This shift is not only reshaping energy production and distribution but also fostering collaborations and innovations across diverse sectors. The market's growth trajectory reflects a strategic response to the pressing need for efficient energy utilization, heralding a future in which interconnected digital technologies play a pivotal role in redefining the global energy landscape.

Market Definition

The internet of energy (IoE) market is an emerging sector that combines the power of the Internet with energy systems to create a more efficient, reliable, and sustainable energy infrastructure. It encompasses a wide range of technologies, devices, and systems that enable the seamless integration of energy generation, distribution, and consumption through interconnected networks.

At its core, the IoE market aims to transform the traditional energy landscape by leveraging digital technologies and connectivity to optimize energy usage, improve grid management, and facilitate the transition toward renewable energy sources. It facilitates the real-time monitoring, control, and management of energy assets, thereby enabling more informed decision-making and enhancing overall energy efficiency.

The IoE market consists of two main components: solutions and services. Solutions include technologies such as smart meters, sensors, data analytics platforms, and energy management systems. These solutions enable the collection, analysis, and management of energy-related data. Services, on the other hand, encompass the implementation, maintenance, and support of IoE solutions.

The IoE market utilizes different network technologies to enable seamless communication and data exchange. These include radio networks, satellite networks, and cellular networks. Each network technology has its own advantages and is used based on factors such as coverage, bandwidth, and reliability.

Market Dynamics

The rapid pace of technological advancements is a primary factor driving the growth of the internet of energy (IoE) market. Innovations in smart grid technologies, IoT devices, and data analytics are propelling growth, enabling more efficient energy management, real-time monitoring, and enhanced decision-making capabilities. As the industry continues to embrace cutting-edge solutions, the landscape is characterized by a constant influx of novel technologies, which creates opportunities for market players to differentiate themselves and gain a competitive edge. For instance, Enel, an Italian utility, has deployed over 40 million smart meters, enabling real-time data collection and analysis. This has resulted in improved load balancing, reduced energy waste, and enhanced customer engagement.

Moreover, global sustainability imperatives, along with the push toward a low-carbon future, constitute another significant growth driver for the internet of energy (IoE) market. Governments and organizations worldwide are increasingly focused on reducing carbon footprints, which necessitates the integration of IoE solutions to optimize energy consumption, promote renewable sources, and enhance overall energy efficiency. This heightened environmental consciousness acts as a catalyst, driving investments and initiatives that fuel the expansion of the IoE market.

However, the market faces challenges revolving around interoperability and standardization. The diverse array of technologies and solutions entering the market often lacks standardized protocols, leading to compatibility issues. The absence of universal standards hampers seamless integration and communication between different IoE components, posing a significant hurdle for industry development. Addressing this challenge requires concerted efforts from stakeholders to establish common standards that facilitate interoperability, thereby ensuring the smooth functioning of IoE ecosystems and preventing fragmentation in the market.

Segmentation Analysis

The global Internet of Energy (IoE) market is segmented based on component, network technology, application, and geography.

Based on component, the internet of energy (IoE) market is bifurcated into solutions and services. Solutions accounted for the largest market share of 68.17% in 2022 due to the escalating demand for robust energy management platforms and grid optimization technologies, which have fueled the adoption of comprehensive solutions. Additionally, advancements in smart metering, data analytics, and connectivity solutions have further bolstered the appeal of integrated IoE solutions. Furthermore, regulatory initiatives emphasizing sustainable energy practices and the need for efficient resource utilization propelled the deployment of sophisticated solutions. Companies that offer end-to-end IoE solutions have gained prominence for effectively addressing the complex challenges of energy infrastructure. However, IoE services are estimated to experience the fastest growth over 2023-2030.

Based on network technology, the internet of energy (IoE) market is categorized into radio network, satellite network, and cellular network. The radio network segment accounted for a significant share with a revenue of USD 48.43 billion in 2022 and is anticipated to grow at a robust CAGR of 17.93% over the forecast period. The widespread availability and cost-effectiveness of radio network technology are contributing significantly to its extensive adoption in IoE applications, ensuring broader market penetration. Additionally, the robustness of radio networks in providing reliable and low-latency communication aligns with the real-time data requirements crucial for efficient energy management. Furthermore, the flexibility of radio networks in accommodating diverse devices within the IoE ecosystem, coupled with their scalability, positions them as a preferred choice, fostering sustained growth in the coming years.

Based on application, the market is further divided into oil & gas, smart grid, coal mining, and others. The oil & gas segment generated the highest market share of 30.73% in 2022 and is estimated to experience a strong CAGR of 17.81% through the projected period. The complexity of operations in the oil & gas industry necessitates advanced technologies such as IoE for efficient asset management, predictive maintenance, and real-time monitoring, thereby driving substantial adoption. Additionally, stringent regulations and sustainability initiatives within the sector propel the integration of IoE solutions for enhanced environmental compliance and resource optimization. Furthermore, the rising focus on energy security and the growing need for operational efficiency fuel the ongoing and anticipated growth of IoE applications within the oil & gas domain, consolidating its leading market position.

Geographical Analysis

Based on region, the global internet of energy (IoE) market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America dominated the internet of energy (IoE) market in 2022 with a valuation of USD 35.71 billion and is anticipated to grow at a staggering CAGR of 17.68% over the forecast period. This growth is mainly driven by several factors such as the region's advanced technological infrastructure, coupled with a strong focus on renewable energy integration, positions it at the forefront of IoE adoption. Robust government support and initiatives promoting smart grid development, along with a high level of awareness and investment in energy management solutions, contribute to North America's market leadership. Additionally, a rising emphasis on sustainability and environmental concerns accelerates the deployment of IoE technologies, fostering energy efficiency and grid optimization. Key driving factors include the region's commitment to modernizing energy infrastructure, the integration of renewable resources, and a proactive approach to addressing climate change. As a result, North America stands as a major region in the internet of energy market.

Europe is anticipated to play a pivotal role in fueling the growth of the internet of energy (IoE) market. The region is estimated to grow at a significant CAGR of 17.72% from 2023 to 2030. The continent exhibits a strong commitment to renewable energy and sustainability, fostering a conducive environment for IoE advancements. Robust regulatory frameworks, such as the European Union's Clean Energy for All Europeans package, promote smart grid development and the integration of clean energy sources. European nations prioritize energy efficiency, grid modernization, and reduction of carbon emissions, propelling the adoption of IoE technologies. Moreover, the region's growing emphasis on energy security and transition towards a low-carbon economy further accelerates the implementation of IoE solutions. The presence of established players, ongoing research and development activities, and cross-border collaboration are contributing to Europe's significance in shaping the IoE landscape, making it a key region in the global market.

Competitive Landscape

The global internet of energy (IoE) market study will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. The major players in the market are:

• General Electric (GE)
• Schneider Electric
• Siemens Energy
• Enphase Energy
• Enel X North America, Inc.
• Landis+Gyr
• Itron Inc.
• Cisco Systems
• ABB
• IBM Corporation

Key Developments

• August 2023 (Acquisition): Chevron Corporation officially completed its acquisition of PDC Energy, Inc. As part of this acquisition, Chevron Corporation gained ownership of various assets. These assets consist of 275,000 net acres situated in the Denver-Julesburg (DJ) Basin, conveniently adjacent to Chevron's current operations. These newly acquired assets contribute approximately 1 billion oil-equivalent barrels of proved reserves. Additionally, the acquisition includes 25,000 net acres located in the Permian Basin, which are currently held by production.

The global Internet of Energy (IoE) Market is segmented as:

By Component

• Solution
• Services

By Network Technology

• Radio Network
• Satellite Network
• Cellular Network

By Application

• Oil & Gas
• Smart Grid
• Coal Mining
• Others

By Region

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