Global Internet of Things (IoT) in Energy Market Insights Forecasts to 2033

• The Global Internet of Things (IoT) in Energy Market Size was Valued at USD 28.9 Billion in 2023
• The Market Size is Growing at a CAGR of 11.68% from 2023 to 2033
• The Worldwide Internet of Things (IoT) in Energy Market Size is Expected to Reach USD 87.2 Billion by 2033
• North America is Expected to Grow the fastest during the forecast period.

The Global Internet of Things (IoT) in Energy Market Size is Anticipated to Exceed USD 87.2 Billion by 2033, Growing at a CAGR of 11.68% from 2023 to 2033.

Market Overview

A network of physical objects, including cars, appliances, and other items, that have sensors, software, and network connectivity incorporated in them is called the Internet of Things (IoT). Data is gathered and shared by these networked devices, forming a huge ecosystem in which data moves easily between the digital and physical domains. The integration of renewable energy sources into the grid, workplace safety, supply and demand balance, and fluctuating energy prices are just a few of the issues facing the energy sector that the Internet of Things (IoT) can help solve. For example, the energy sector can be dramatically transformed by IoT's predictive maintenance capabilities, which can manage asset performance, optimize operations, and involve customers in reducing energy costs.

There are countless applications for the Internet of Things in both commercial and home settings. Modern appliances, ranging from refrigerators to sensor networks, may now be controlled more easily from a computer or smartphone due to models that communicate with a wireless network. According to estimates from IHS Markit, there will be over 75 billion IoT devices in operation by 2025. However, there are a number of security issues that have surfaced as a result of the widespread use of IoT and demand attention and action. The goal of the National Cybersecurity Center of Excellence (NCCoE) at the National Institute of Standards and Technology (NIST) is to increase the security of the Internet of Things.

According to the United States Department of Energy, the Internet of Things (IoT) presents novel prospects for consumer interaction with the power industry, in addition to providing enhanced opportunities for improved efficiency and performance throughout the power grid. For example, sophisticated sensors can collect novel data from grid assets, providing grid operators with a better understanding of infrastructure performance; controls can function throughout the transmission and distribution systems, adapting to changing grid conditions due to shifting generation mixes, environmental factors, or security threats; and consumers can interact and make more informed decisions regarding their specific energy needs.

Report Coverage

This research report categorizes the market for the Internet of Things (IoT) in energy based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Internet of Things (IoT) in energy market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Internet of Things (IoT) in energy market.

Driving Factors

The energy industry is witnessing a surge in the Internet of Things (IoT) due to its capabilities in real-time monitoring, data analysis, and remote control of energy systems. These advancements in IoT technologies have resulted in increased efficiency, decreased waste, and better resource optimization. By offering sophisticated analytics and control systems to maximize energy generation, storage, and distribution, IoT aids in the integration and management of renewable energy sources, such as wind and solar power. Two-way communication between energy providers and consumers is made possible by IoT-based smart grid technologies, which improve load management, defect detection, and system resilience. Energy management systems with Internet of Things capabilities can lower operating costs by automating procedures, optimizing energy use, and requiring less maintenance. By increasing energy efficiency, lowering emissions, and improving resource management, the energy industry may use IoT to increase sustainability and lessen its influence on the environment.

Restraining Factors

The incorporation of IoT devices into energy systems gives rise to apprehensions over cybersecurity vulnerabilities, given that these devices may serve as possible ports of entry for cyberattacks that have the ability to compromise vital energy infrastructure. Integration issues might arise from a lack of standardization and interoperability between diverse IoT systems and devices, making it challenging to connect and manage multiple elements of the energy ecosystem with ease. Some energy providers, especially smaller ones, may find it difficult to adopt IoT solutions since they frequently involve large upfront expenditures in hardware, software, and infrastructure. Changing legal frameworks and rules concerning data security, privacy, and energy market dynamics may cause ambiguity and hinder the broad use of IoT in the energy industry.

Market Segmentation

The Internet of Things (IoT) in energy market share is classified into component, network technology, and applications.

• The solutions segment is estimated to hold the highest market revenue share through the projected period.

Based on the components, the Internet of Things (IoT) in energy market is classified into platforms, solutions, and services. Among these, the solutions segment is estimated to hold the highest market revenue share through the projected period. Hardware, software, and integrated platforms are all part of IoT solutions, which are essential for the efficient implementation and administration of IoT technologies in the energy industry. Optimizing energy generation, distribution, and consumption requires a whole range of capabilities, which these systems offer. These include real-time monitoring, data analytics, remote control, and automated decision-making. The demand for integrated IoT solutions that can seamlessly connect and control diverse components of the energy ecosystem is predicted to expand dramatically as energy providers look to update their infrastructure, increase efficiency, and integrate renewable energy sources. Furthermore, the adoption of these solutions is being fueled by continuous advancements in IoT technologies, such as enhanced sensor capabilities, edge computing, and cloud-based platforms. These solutions can provide energy companies with real cost and operational benefits, thereby consolidating the solutions segment's dominant position in the IoT in the energy market.

• The cellular network segment is anticipated to hold the largest market share through the forecast period.

Based on network technology, the Internet of Things (IoT) in energy market is divided into cellular networks, satellite networks, radio networks, and others. Among these, the cellular network segment is anticipated to hold the largest market share through the forecast period. Firstly, cellular networks like 4G and 5G are desirable options for Internet of Things applications in the energy industry because of their extensive availability and dependable connectivity. For real-time monitoring, control, and data sharing across geographically scattered energy infrastructure, cellular networks offer ubiquitous coverage, frictionless roaming, and high-bandwidth data transmission. By utilizing the current cellular network infrastructure, energy suppliers can lower the cost and increase the scalability of their IoT solutions by avoiding the need to invest in specialized communication networks. This is especially true for cellular-based systems. Furthermore, the energy industry is adopting cellular-based IoT solutions at a faster rate due to the ongoing rollout of 5G technology, which offers improved features like low latency, high bandwidth, and improved device connectivity. This is because 5G enables more sophisticated applications like autonomous grid management, predictive maintenance, and remote diagnostics.

• The oil and gas segment dominates the market with the largest market share through the forecast period.

Based on the Application, the Internet of Things (IoT) in energy market is divided into oil and gas, coal mining, and smart grid. Among these, the oil and gas segment dominates the market with the largest market share through the forecast period. The particular operating needs and ongoing efforts in the oil and gas sector to undergo digital transformation. The oil and gas industry, comprising exploration, production, refining, and distribution, necessitates predictive maintenance, real-time monitoring, and process optimization of vital infrastructure. IoT-based solutions are an essential investment priority for the oil and gas sector because they allow organizations to increase asset utilization, decrease maintenance costs and downtime, and improve operational efficiency. Additionally, by fusing IoT with cutting-edge technologies like data analytics and artificial intelligence, the oil and gas industry has been able to embrace these solutions more widely and maintain its leadership in the IoT market as a whole.

Regional Segment Analysis of the Internet of Things (IoT) in Energy Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia-Pacific is anticipated to hold the largest share of the Internet of Things (IoT) in energy market over the predicted timeframe.

Asia-Pacific is anticipated to hold the largest share of the Internet of Things (IoT) in energy market over the predicted timeframe. The development of IoT technologies in the regional energy sector is being driven by countries like China, India, Japan, and South Korea's rapid economic expansion, rising energy demand, and continuous investments in grid modernization and renewable energy deployment. In order to increase energy efficiency, streamline grid operations, and make it easier to integrate renewable energy sources, governments in the Asia-Pacific area are aggressively pushing the integration of smart grid systems and IoT-enabled technologies. Furthermore, energy providers in the Asia-Pacific area are finding it easier to adopt and scale up IoT-based systems due to the region's substantial manufacturing base and the availability of cost-competitive IoT hardware and software solutions. Additionally, the rollout of 5G networks along with the region's increasing internet and smartphone penetration are fostering an environment that is conducive to the implementation of IoT-enabled energy management solutions, securing the Asia-Pacific region's leading position in the global IoT in the energy market over the course of the forecast period.

North America is expected to grow the fastest during the forecast period. This is supported by the quick development of smart grid infrastructure, the broad use of renewable energy sources, and the existence of a strong IT community in the area. The growth of the region is being propelled by energy providers in the US and Canada who are aggressively investing in IoT-based solutions to integrate distributed energy resources, increase grid efficiency, and boost customer involvement. The adoption of IoT technologies in the North American energy sector is also being accelerated by encouraging government measures including financing for smart city projects and the creation of strict energy efficiency standards.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Internet of Things (IoT) in energy market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Cisco Systems
• AGT International
• Altair Engineering
• HCL Technologies
• Rockwell Automation
• Infosys
• Davra Networks
• Wind River
• IBM Corporation
• Siemens
• Accenture PLC
• Intel Corporation
• Bosch
• Hewlett-Packard
• Schneider Electric
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In January 2024, a sustainable power source for the Internet of Things was made available to two Indian researchers at the Massachusetts Institute by researchers from Osaka University who have made advancements in thermoelectric conversion.

• In January 2024, The French company Dracula Technologies, which creates energy-harvesting technology for low-power Internet of Things solutions, unveiled LAYERVault, a new electrical energy storage system that stores photovoltaic power that is obtained from light sources on a single flexible film even in dimly lit areas.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the Internet of Things (IoT) in energy market based on the below-mentioned segments: 

Global Internet of Things (IoT) in Energy Market, By Component

• Platform
• Solutions
• Services

Global Internet of Things (IoT) in Energy Market, By Network Technology

• Cellular Network
• Satellite Network
• Radio Network
• Others

Global Internet of Things (IoT) in Energy Market, By Application

• Oil and Gas
• Coal Mining
• Smart Grid

Global Internet of Things (IoT) in Energy Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa