Internet of Energy Market

Market Definition

The market encompasses digital platforms, communication networks, and connected energy infrastructure that enable real-time monitoring, automation, and optimization of energy generation, distribution, and consumption.

It includes technologies and services supporting smart grids, demand response systems, distributed energy resources, and energy cloud platforms, spanning residential, commercial, and industrial applications across power utilities and energy service providers. The report provides insights into the core drivers of market growth, supported by an in-depth evaluation of industry trends and regulatory frameworks.

Internet of Energy Market Overview

The global internet of energy market size was valued at USD 160.53 billion in 2024 and is projected to grow from USD 191.16 billion in 2025 to USD 669.13 billion by 2032, exhibiting a CAGR of 19.45% during the forecast period.

This expansion is fuelled by the global shift toward intelligent and sustainable energy systems. Furthermore, the widespread integration of renewable energy sources, the rising deployment of smart grids, and increasing investments in digital infrastructure across the energy sector are contributing significantly to this growth.  

Major companies operating in the internet of energy industry are Schneider Electric, ABB, IBM, Siemens AG, Enphase Energy, Enel Spa, Cisco Systems, Inc., SAP SE, Advanced Green Technologies, Accenture, Telit Cinterion, Verdigris Technologies, Inc., Tesla, PYLON CITY, and Leapfrog Power, Inc.

The growing demand for real-time energy monitoring, predictive maintenance and grid automation is fueling the adoption of IoE solutions. Additionally, the need to tackle global energy challenges and enhance system efficiency is fostering new opportunities for energy management technologies.

• In March 2025, GE Vernova Inc. and Amazon Web Services, Inc. (AWS) signed a strategic framework agreement to support AWS’s data center scaling and jointly address global energy demand. This initiative aims to enhance grid security and reliability, and advance the decarbonization of electric power systems.

Key Highlights

1. The internet of energy industry size was valued at USD 160.53 billion in 2024.
2. The market is projected to grow at a CAGR of 19.45% from 2025 to 2032.
3. North America held a market share of 34.07% in 2024, with a valuation of USD 54.69 billion.
4. The solution segment garnered USD 91.52 billion in revenue in 2024.
5. The energy automation segment is expected to reach USD 200.34 billion by 2032.
6. Europe is anticipated to grow at a CAGR of 20.12% over the forecast period.

Market Driver

"Growing Demand for Real-Time Energy Optimization and Proactive Maintenance"

The internet of energy market is experiencing rapid growth due to the increasing need for real-time energy optimization to manage rising electricity demand. Utilities and businesses are increasingly adopting IoE solutions to monitor and optimize energy usage in real-time, enhancing system efficiency and resilience.

Furthermore, the shift toward proactive maintenance is crucial to avoid costly downtimes and inefficiencies. By leveraging IoE technologies, companies can implement predictive maintenance strategies that address potential system failures before they occur, thereby improving the reliability and longevity of critical infrastructure.

• In September 2024, MachineQ, a Comcast Company, unveiled an IoT-based power monitoring solution. This enables enterprises to optimize energy consumption, enhance operational efficiency, enable proactive maintenance, control costs, and support sustainability initiatives.

Market Challenge

"Lack of Standardization and Interoperability"

A major challenge hampering the expansion of the internet of energy market is the lack of standardization and interoperability among diverse IoT devices and platforms. With various manufacturers and technology providers offering distinct systems, seamless data exchange and system integration remain challenging.

As energy grids become increasingly complex with the integration of renewable sources and smart technologies, the absence of standard protocols limits the potential of IoT in optimizing energy consumption and improving grid efficiency.

Developing universal standards and open-source platforms is essential to ensure compatibility between devices. Industry collaboration and standardized frameworks can enhance integration, enable smoother data exchange, and enhance the scalability of IoT solutions within the energy sector.

• In February 2024, Huawei launched its Intelligent Distribution Solution (IDS) to enhance power grid performance by integrating cloud-pipe-edge-device architectures and high-speed power line carrier communication technology. The initiative aims to address system integration and reliability issues in the electric power industry.

Market Trend

"Increasing Integration of Blockchain Technology"

The internet of energy market is witnessing a significant trend toward the increasing integration of blockchain technology, enhancing transparency, security, and efficiency in transactions. Blockchain’s decentralized nature allows for secure peer-to-peer energy exchanges, enabling users to buy and sell energy directly without intermediaries.

Moreover, blockchain facilitates accurate tracking and verification of renewable energy usage. As the IoE market evolves, blockchain is being leveraged to optimize grid management, improve energy trading processes, and enable automated smart contracts, which enhance the overall functionality of connected energy systems.

• In October 2024, Exceed Geo Energy and B4ECarbon collaborated to incorporate blockchain technology into carbon-negative geothermal power generation. The partnership aims to track and monetize carbon credits through Hedera Hashgraph’s distributed ledger, ensuring transparency and security in environmental claims and energy transactions.

Internet of Energy Market Report Snapshot

Segmentation	Details
By Component	Solution (Asset Management, Data Management & Analytics, Safety Solution, Compliance & Risk Management, Others), Services (Professional, Managed)
By Application	Energy Automation, Smart Grid, Oil & Gas, Smart Homes, Electric Vehicles, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Component (Solution and Services): The solution segment earned USD 91.52 billion in 2024 due to widespread deployment of integrated energy management platforms and advanced analytics tools that optimize grid operations and asset performance.
• By Application (Energy Automation, Smart Grid, Oil & Gas, Smart Homes, Electric Vehicles, and Others): The energy automation segment held a share of 29.90% in 2024, mainly due to the growing adoption of automated control systems in utilities and industrial operations for enhanced efficiency and reliability.

Internet of Energy Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The North America internet of energy market accounted for a substantial share of 34.07% in 2024, valued at USD 54.69 billion. This dominance is attributed to the rapid digitalization of utility infrastructure, strong penetration of smart grid technologies, and widespread deployment of advanced metering infrastructure across the United States and Canada.

The presence of major cloud service providers and energy-tech firms has driven the early adoption of data-centric energy solutions. Additionally, the regional market benefits from a high concentration of data centers, which has increased the demand for intelligent power monitoring and predictive maintenance systems to ensure uptime and operational efficiency. Industrial electrification initiatives and a mature distributed energy ecosystem have further contributed to regional market expansion.

The Europe internet of energy industry is expected to register the fastest CAGR of 20.12% over the forecast period. This rapid growth is primarily fueled by the rising adoption of electric vehicles and the expansion of decentralized energy infrastructure.

The increasing integration of energy storage systems with IoE platforms is enabling real-time optimization of local grids, particularly in areas transitioning to net-zero energy communities.

Europe's advanced utility-scale renewable energy networks and cross-border energy trading initiatives are further highlighting a need for interoperable, IoE-based digital platforms to manage and analyze energy flow across diverse energy sources. Furthermore, pilot projects in energy digitization and AI-powered grid automation are bolstering regional market expansion.

Regulatory Frameworks

• In the U.S., the Federal Energy Regulatory Commission (FERC) regulates interstate transmission of electricity, natural gas, and oil, as well as hydropower projects and natural gas terminals. Additionally, the U.S. Department of Energy (DOE) supports research, development, and the promotion of energy efficiency and renewable energy technologies.
• In Europe, energy regulation occurs at both the national and EU levels. National Energy Regulatory Authorities (NRAs) oversee domestic energy markets, while the European Union Agency for the Cooperation of Energy Regulators (ACER) and the Council of European Energy Regulators (CEER) coordinate cross-border regulatory efforts.

Competitive Landscape

The internet of energy industry is characterized by several key players focusing on strategic collaborations, mergers, and acquisitions to strengthen their technological capabilities and expand their global footprint.

Companies are heavily investing in the development of integrated platforms that combine energy analytics, cloud computing, and edge technologies to deliver real-time monitoring and control of energy systems. There is a growing focus on leveraging artificial intelligence and advanced analytics to optimize energy usage patterns, forecast demand, and enable automated decision-making across connected energy infrastructure.

Additionally, companies are prioritizing the enhancement of cybersecurity measures to protect data integrity and ensure the resilience of IoE systems against potential cyber threats.

• In November 2024, Hitachi Energy launched Nostradamus AI, an AI-powered energy forecasting solution. Leveraging the company’s expertise in the energy sector, it delivers precise, off-the-shelf forecasts for load, market pricing, and renewable energy generation.

List of Key Companies in Internet of Energy Market:

• Schneider Electric
• ABB
• IBM
• Siemens AG
• Enphase Energy
• Enel Spa
• Cisco Systems, Inc.
• SAP SE
• Advanced Green Technologies
• Accenture
• Telit Cinterion
• Verdigris Technologies, Inc.
• Tesla
• PYLON CITY
• Leapfrog Power, Inc.

Recent Developments (Partnerships/Collaborations)

• In April 2025, ICG’s Asia-Pacific Infrastructure team partnered with Obton A/S to support Obton Japan’s renewable energy business. The collaboration aims to expand Obton Japan’s solar portfolio, targeting over 1,000 MW of installed capacity, and marks ICG’s entry into the Japanese renewables market.
• In March 2025, Siemens Cre8Ventures and Minima collaborated to incorporate decentralized blockchain technology into the Siemens Cre8Ventures Digital Twin Marketplace. The partnership seeks to enhance cybersecurity, data integrity, and trust mechanisms in the robotics, automotive, energy, and healthcare equipment sectors, aligning with the EU Chips Act and supporting next-generation digital ecosystems.
• In May 2024, Capgemini and Schneider Electric jointly launched the Energy Command Center, an energy management platform designed to help organizations optimize energy consumption. The solution combines advanced AI, machine learning, and IoT technologies to measure and predict metrics such as energy intensity, health of critical assets, renewable energy generation, and overall performance.