Energy and Power

Internet of Energy (IoE) Market is Expected to Reach USD 407.43 Billion by 2030

Feb 2024

Energy and Power

As per the report published by Kings Research, 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.

On the global scale, the IoE market is undergoing rapid expansion, driven by the rising need for energy optimization, reliability, and flexibility. Developed economies are at the forefront of the industry, leveraging IoE technologies to modernize aging infrastructure and meet stringent energy efficiency standards. Furthermore, emerging economies are adopting IoE solutions to bypass traditional energy models, thereby addressing energy access challenges and promoting sustainable development.

Major regions, such as Europe, are leading in the integration of renewable energy sources, bolstered by supportive regulatory frameworks and robust investments. The European IoE market is characterized by a growing focus on grid resilience, decentralized energy production, and cross-border collaboration. Meanwhile, in Asia-Pacific, a surge in urbanization and industrialization is driving the adoption of smart grids and intelligent energy management systems to meet escalating energy demands.

In North America, the IoE market is influenced by a mix of regulatory incentives and market-driven innovations. The rising focus on enhancing grid reliability and incorporating distributed energy resources seamlessly is supporting market growth in the region. Market players are engaging in strategic partnerships to develop comprehensive IoE solutions, aiming to tackle the intricate interplay between energy infrastructure and digital technologies.

Key Insights

  • Based on component, the solution segment held the largest market share of 68.17% in 2022
  • Based on network technology, the radio network segment generated the highest revenue of USD 48.43 billion in 2022
  • Based on application, the smart grid segment is estimated to experience the highest CAGR of 20.57% over 2023-2030.
  • On the basis of region, North America accounted for the largest market share of 34.13% in 2022

Hitachi’s Strategic Acquisition to Strengthen Energy Management Services

October 2023: Hitachi Energy, successfully obtained a controlling stake in eks Energy, a prominent Seville-based supplier specializing in power electronics and energy management solutions for storage and renewables integration. This acquisition was completed by Powin LLC (Powin), a leading global provider of energy storage systems.

Energy Transition Policies to Augment Market Growth

The global shift toward cleaner and more sustainable energy sources, as underscored by comprehensive energy transition policies, is a major driver for the IoE market growth. Governments are increasingly implementing stringent regulations and incentives to accelerate the adoption of renewable energy and smart technologies. This regulatory push fosters a conducive environment for IoE solutions, promoting grid modernization, decentralized energy production, and the seamless integration of diverse energy resources. The alignment of market dynamics with energy transition goals positions the IoE market as a critical enabler of a resilient and eco-friendly energy ecosystem.

Cross-Industry Collaborations to Offer Lucrative Opportunities for Industry Expansion

Collaborations between the IoE sector and other industries, such as telecommunications, software development, and manufacturing, present lucrative growth opportunities. The convergence of technologies from different domains can lead to innovative solutions and the development of comprehensive IoE ecosystems. Cross-industry collaborations enable the leveraging of diverse expertise, fostering synergies that contribute to the creation of more robust and adaptable IoE solutions.

Integration of Artificial Intelligence (AI) To Propel Market Development

The integration of artificial intelligence (AI) within IoE systems represents a transformative opportunity. AI algorithms enhance predictive analytics, optimize energy consumption patterns, and enable autonomous decision-making. By leveraging the power of AI, IoE solutions can become more intelligent, adaptive, and capable of proactively responding to dynamic energy demands, further increasing efficiency and sustainability.

Rapid Developments in Middle East & Africa to Augment Industry Growth at a Substantial CAGR of 22.51% over 2023-2030

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

The Middle East and Africa (MEA) region is poised to observe rapid growth in the Internet of Energy (IoE) market, driven by several factors. MEA accounted for a valuation of USD 5.19 billion in 2022 and is anticipated to experience a significant upward trajectory through 2030. The increasing demand for energy, coupled with a rising focus on diversifying energy sources and promoting sustainability, positions the MEA region as a leading region in IoE adoption. Governments in the region are investing significantly in smart grid infrastructure, renewable energy projects, and digital technologies to modernize the energy sector. With a wealth of natural resources, including abundant sunlight for solar power, the MEA region is adopting IoT technologies to optimize energy production, distribution, and consumption. Additionally, favorable initiatives such as Saudi Arabia's Vision 2030 and the United Arab Emirates' commitment to clean energy underscore the region's commitment to technological advancements, making it a thriving hub for IoE innovation, which is foreseen to bolster regional industry growth over the forecast period.

Major Companies Forge Agreements to Strengthen Industry Foothold

The internet of energy (IoE) market is fragmented with key players such as General Electric (GE), Schneider Electric, ABB, IBM Corporation, Siemens Energy, Enphase Energy, Enel X North America, Inc., Landis+Gyr, and Itron Inc., among others. Companies aim to expand their business globally through acquisitions, partnerships, product introductions, collaborations, and mergers.

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