FREMONT, California, Jan. 9, 2020 /PRNewswire/ -- According to a new market intelligence report by BIS Research titled 'Global Artificial Intelligence (AI) in Energy Market – Analysis and Forecast, 2019-2024', the artificial intelligence in energy market is expected to reach $7.78 billion by 2024. The market is projected to witness a CAGR of 22.49% from 2019 to 2024. This growth is anticipated to be driven by the demand for increasing operational efficiency, rising concern for energy efficiency, growing market penetration of decentralized power generation, and rising concern for battery storage systems.
Artificial intelligence utilizes advanced algorithms and stacks of data accumulated from the source to provide systems and machines with the ability to perceive, think, calculate, and analyze information like a human brain. Moreover, implementing application-specific AI platforms provides real-time insights of industrial applications, thereby increasing the efficiency of the system to meet the energy demand.
Furthermore, the cost efficiency induced by AI in operations is gradually driving the degree of acceptance of AI amongst energy companies. Access to real-time information along with predictive analytics has gained demand, especially to prevent equipment failure, across the supply chain. The technology is enabling decentralized communication and coordination through a connected infrastructure, which allows peers to safely, cheaply, and quickly connect with machines embedded with cognitive algorithms to act efficiently without human intelligence.
The global application of the AI in energy market witnessed a tremendous increase in developments such as investment and funding along with number of players in the market for innovation of related technology during the past three years. Most of the investments and funding by companies in the AI in energy market have been recorded for AI-as-a-Service platforms for the period November 2016-October 2019. The segment recorded for $499.5 million during the same time period.
According to Rakhi Tanwar, Principal Analyst at BIS Research, "Software, hardware, AI-as-a-service, and support services are the types of solutions offered by players operating in the global AI in energy market. In 2018, the software solution accounted for more than 60% of the total artificial intelligence in energy market. During the forecast period, the AI-as-a-service segment is expected to display the highest growth, owing to technological innovations on delivering customized application-specific cloud platform and enhancing the operating systems, which is expected to further help in strengthening the data warehouse architecture of the end users."
Regionally, North America is expected to remain the dominant market for artificial intelligence in energy during the forecast period, with the U.S. being an innovation hub for artificial intelligence technologies. However, Asia-Pacific is expected to witness a robust growth in the next five years, owing to the increasing dependence on decentralized power generation to meet the electricity demand in the region.
The competitive landscape for the AI in energy market demonstrates an inclination toward companies adopting strategies such as partnerships, collaborations, and joint ventures as well as product launches and developments. With the increasing growth in the global market, companies operating in this industry are compelled to come up with collaborative strategies in order to sustain in the intensely competitive market. For instance, in August 2019, AutoGrid Systems Inc. entered into a collaboration with Amazon Web Services for the digitalization of power grid using AutoGrid Flex AI platform to meet the electricity demand.
The major established players in the market are also focusing on product launches and developments to introduce new technologies or developing further on the existing product portfolio. Key players operating in this market have ramped up their product launch activities over the recent years, in order to generate public awareness about their existing and new products and technologies and compete with the competitors' product portfolio. For instance, in January 2019, Kellton Tech Solutions Ltd. launched a cloud-based AI platform with real-time analytics for oil & gas industrial applications.
This report is a meticulous compilation of research on more than 70 players in the AI in energy ecosystem and draws upon insights from in-depth interviews with the key opinion leaders of more than 40 leading companies, market participants, and vendors. The report also profiles 26 leading companies across the AI in energy supply chain. Key profiles include IBM Corporation, Amazon Web Services, SAP SE, Oracle Corporation, Microsoft Corporation, Accenture Plc, Cisco Systems, Intel Corporation, Huawei Technologies, HCL Technologies, Kellton Tech Solutions, C3.ai, General Electric Company, Siemens AG, Schneider Electric, ABB Ltd, Honeywell International, Rockwell Automation, Ingersoll Rand Plc, Royal Dutch Shell PLC, Schlumberger Limited, Equinor ASA, Actlility S.A, Enel X North America, Inc., and Tokyo Electric Power Company.
Key Questions Answered in the Report:
What is the estimated global AI in energy market size in terms of revenue for the forecast period 2019-2024, and what is the expected compound annual growth rate (CAGR) during the forecast period 2019-2024?
What are the key trends, market drivers, and opportunities in the market pertaining to AI in energy?
What are the major restraints inhibiting the growth of the global AI in energy market?
What kind of new strategies are being adopted by the existing market players to expand their market position in the industry?
What is the competitive strength of the key players in the AI energy market on the basis of analysis of their recent developments, product offerings, and regional presence?
How is the competitive benchmarking of the key AI-focused IT companies in the energy market on the basis of analysis of their market coverage and market potential?
What is the funding and investment landscape in the global artificial intelligence in energy market?
How much revenue are each of the segments expected to record during the forecast period along with the growth percentage, on the basis of:
Industry Stream, including oil & gas (upstream, midstream, and downstream) and power industry (generation, transmission, and distribution)
Product offering, including software, hardware, ai-as-a-service, support services
Application, including oil & gas, such as fleet and asset management, precision drilling, demand forecasting, and others and power applications, such as renewable energy management, infrastructure management, demand response management, and others
Region, including North America, Europe, Asia-Pacific, and Rest-of-the-World
Which type of players and stakeholders operate in the market ecosystem of AI in energy, and what are their significance in the global market?
Which are the leading consortiums and associations in the global AI in energy market, and what is their role in the market?
How does the regulatory landscape differ in different regions for AI in energy?
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