- AI in energy will grow from $8.91 billion in 2024 to $58.66 billion by 2030, driven by smarter grid management and demand forecasting.
- Asia-Pacific leads global adoption, with China, South Korea, and Australia deploying AI in renewables and efficiency tools.
- AI improves grid reliability and lowers costs, automating maintenance, predicting faults, and managing renewable fluctuations.
The energy sector’s global artificial intelligence (AI) market will grow from $8.91 billion in 2024 to $58.66 billion by 2030. MarketsandMarkets™ released this forecast in a report on April 22.
Rising adoption of AI in energy management, grid distribution, and demand forecasting drives this growth. Utilities use AI to improve efficiency, reduce costs, and prevent outages.
The grid optimisation segment leads the market. AI tools analyse large datasets in real time. These tools detect inefficiencies, predict demand, and balance loads across power grids. They also cut transmission losses and strengthen grid resilience.
AI supports the integration of renewable energy. With accurate forecasting, energy operators manage solar and wind variability more effectively. They also respond quickly to disruptions and shifts in supply.
The distribution segment records the fastest growth through 2030. AI improves electricity delivery, cuts technical losses, and boosts network reliability. Innovative systems monitor power lines, detect faults, and predict equipment failures. These systems also adjust voltage levels automatically.
Utilities use AI to automate maintenance operations, which lowers labour costs and shortens downtime. Algorithms also help stabilise the power supply during peak demand by managing renewable fluctuations.
Asia-Pacific leads the regional growth. Countries across the region invest heavily in AI-powered energy technologies.
State Power Rixin Technology, Huawei, and China Huadian Corporation developed an AI-based weather forecasting solution in China. This tool improves forecast accuracy and reduces operating costs.
The Suola wind farm in Hebei province uses AI to control solar and wind plants, but has a limited staff. In South Korea, the Korea Institute of Energy Research (KIER) completed a study on urban electrification using AI.
Australia’s national science agency, CSIRO, introduced a machine learning tool named RapidRate. The tool helps households assess energy usage and improve efficiency.
The report highlights AI’s role in transforming power infrastructure. Utilities use AI to balance supply and demand, especially as they expand renewable energy adoption.
Energy systems are becoming increasingly complex. AI helps operators make faster, data-driven decisions about load balancing, asset health, and system performance.
MarketsandMarkets™ emphasises AI’s ability to reshape global energy systems. Energy firms now use AI to streamline operations, reduce downtime, and build more resilient grids.
As global demand for clean and reliable energy rises, AI will continue to shape the future. Utilities, governments, and private firms plan to increase investments in AI solutions over the next five years.
This report shows how AI enables smarter energy delivery and supports the shift to low-carbon systems.