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Applied Artificial Intelligence (AI) in Energy and Utilities Research Report 2025: $7.7 Bn Market Opportunities, Trends, Competitive Analysis, Strategies, and Forecasts, 2019-2024, 2024-2029F, 2034F

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MSFT Mentioned as a prominent entity in the applied AI in energy and utilities sector, indicating its involvement in a growing market. IBM Listed as a prominent entity in the applied AI in energy and utilities sector, indicating its presence in a growing market. HON Mentioned as a leading company in the applied AI in energy and utilities market, indicating its participation in this expanding sector. ACN Listed as a leading company in the applied AI in energy and utilities market, indicating its involvement in a growing sector.

Dublin, Jan. 29, 2026 (GLOBE NEWSWIRE) -- The "Applied Artificial Intelligence (AI) in Energy and Utilities Global Market Report 2025" has been added to ResearchAndMarkets.com's offering.

The applied artificial intelligence (AI) in the energy and utilities market is undergoing rapid growth, with its market size projected to rise from $3.17 billion in 2024 to $3.8 billion in 2025, reflecting a compound annual growth rate (CAGR) of 19.7%. This expansion is fueled by smart grid technology adoption, demand for energy efficiency, and the integration of renewable energy sources.

Looking ahead, the sector is poised to reach $7.7 billion by 2029, supported by growing investments in AI analytics, operational efficiency enhancements, and grid modernization. Noteworthy trends include advancements in autonomous grid management, AI-powered energy forecasting tools, and edge AI applications for real-time optimization.

The heightened electricity demand due to industrialization, urbanization, and sector electrification is anticipated to propel AI application growth. The U.S. Energy Information Administration forecasts a 1.7% annual increase in electricity consumption, with significant rises in the commercial and industrial sectors expected in 2026. AI technologies are pivotal in optimizing electricity demand management through consumption trend forecasting and grid efficiency improvement.

Key industry players, such as Siemens AG, are spearheading innovations like the Gridscale X grid management suite. February 2024 saw Siemens launch this AI-driven platform featuring real-time analytics, predictive maintenance, and digital twin integration to enhance grid resilience. The strategic acquisition of Altair Engineering Inc. in March 2025 further underscores Siemens' commitment to leading AI-driven solutions for energy, enriching its digital platform with advanced simulation and data science capabilities.

Prominent entities in this sector include Microsoft Corporation, E.ON SE, Enel S.p.A., Hitachi Ltd., and IBM Corporation, among others. North America leads the current market, while the Asia-Pacific region is anticipated to be the fastest-growing area during the forecast period. The impact of global trade dynamics, particularly U.S. tariffs and trade tensions, presents challenges for utility providers, affecting equipment costs and supply chains.

To manage these challenges, the sector is leaning toward domestic sourcing and digitalization, ensuring energy security and regulatory compliance. The applied AI in energy and utilities market comprises services like predictive maintenance, smart grid optimization, and AI-powered energy management systems. These innovations are vital for building resilient and efficient energy networks amid evolving market conditions.

A comprehensive report has been released, offering detailed market insights, trends, segmentation, and strategic recommendations to navigate the dynamic global environment effectively.

Market Scope:

Subsegments:

Leading Companies: Microsoft Corporation, E.ON SE, Enel S.p.A., Siemens AG, Hitachi Ltd., Accenture plc, IBM Corporation, Iberdrola S.A., Oracle Corporation, Schneider Electric SE, Honeywell International Inc., among others.

Key Attributes:

Companies Featured

For more information about this report visit https://www.researchandmarkets.com/r/pwwtz

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