Internet of Things in Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The Internet of Things in Energy Market is segmented by Solution (Hardware, Software, Service), Connectivity and Integrated Solutions (Security, Monitoring and Controlling, Product Optimization), and Geography.
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
2018 - 2026
Fastest Growing Market:
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The Internet of Things in the energy market was valued at USD 168.57 billion in 2020 and expected to reach USD 298.26 billion by 2026 and grow at a CAGR of 10% over the forecast period (2021-2026). The Internet of Things (IoT) is expected to make a significant impact on the energy sector. From monitoring the temperature of a room using sensors to complex applications that are used to control the energy use of an entire building, IoT helps in cost-cutting.
The decreasing natural resources that produce energy and the increasing wastage of energy have drawn the attention of various nations across the world, to innovate in solutions that reduce energy wastage and adopt solutions that offer high efficiency.
A predictive analytics network monitors the data collected from sensors and embedded in power grids. Thus, machinery can reduce energy transmission and distribution losses to make energy consumption highly efficient and cost-effective across the world.
Companies, such as Nixus Solutions, offer connected solutions to monitor and reduce energy consumption in buildings. Aquicore is also developing an analytics platform that connects to energy meters that have already been installed. This is enabling organizations to make decisions that improve staff productivity and reduce energy wastage.
However, integrating new sustainable distributed energy resources (DER) into the existing grid is designed to distribute centrally generated energy, which is quite challenging.
Scope of the Report
IoT technology in the energy sector is cutting costs and creating more productive connected buildings. The Internet of Things in the energy market provides different solutions in terms of hardware, software, services, and connectivity and integrated solutions.
EV Charging Stations
Other Types of Hardware
Other Types of Software
Connectivity and Integrated Solutions
Monitoring and Controlling
Other Types of Connectivity and Integrated Solutions
Middle East & Africa
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Key Market Trends
Connectivity and Integrated Solutions Expected to Hold Significant Share
The Internet of Things has provided the integrated solution by creating an interactive ecosystem that helps in streamlining the flow of information, monitoring the data, leveraging predictive asset management, reducing manual processes, reducing cost overheads, and adding more reliability to the existing systems.
The Internet of Things is also making great strides with technological advances, like the evolution of nanotechnology and intelligent server management. This is diluting the obstacles. By these integrated solutions, industries, like solar, oil, gas, hydro, wind, and thermal, are effectively getting benefited.
The connectivity solution of IoT in the energy sector has provided a solution for energy inefficiencies and spiraling costs of equipment maintenance. For instance, oil fields at remote locations have isolated data centers, which are important to get offloaded into a centralized repository as a cloud, for better management and processing of information across supply chains. IoT provides this uniform distribution of data in real-time for incremental improvements in energy utilization and efficiency, eliminating any possibility of wastage.
According to Energy.gov. in the United States, 30% of the energy used in an average commercial building is being wasted. Hence, environmental impact assessment (EIA) stated that the industries in the United States have cut down coal energy consumption for electricity by 14-22% as a result of their effective usage of the existing IoT technologies.
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Asia-Pacific Region to Witness the Highest Growth
The Asia-Pacific region is expected to register the highest growth rate during the forecast period. This is driven by the rising adoption of cloud platforms across the sector, coupled with government initiative for smart grid modernization across China and India.
Asia-Pacific generates the highest amount of energy in the world. The region has 48 countries and most of the countries have a strong focus on energy generation. Moreover, with the highest number of plants, the significant requirement for solutions ensuring safety and security is expected to drive the growth of the market studied in the region.
Many countries in this region, especially the Southeast Asian countries, are testing and implementing smart grids through their smart grid projects. The countries are installing smart meters, demand response, and battery storage.
In China, the Energy Technology Revolution Action Plan (2016–2030) concentrates on battery storage and set targets to demonstrate and extend the 100 MW level each for redox battery, sodium-sulfur cell, and lithium-ion battery storage systems by 2020.
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The internet of things in the energy market is fragmented. The increasing awareness of energy waste control and cost-effectiveness provides lucrative opportunities in the industrial robot market. Overall, the competitive rivalry among existing competitors is high. Moving forward, acquisitions and collaboration of large companies with startups are expected, which are focused on innovation. Some of the key developments in the area are:
August 2018 - SAP with Kaiserwetter’s co-innovation partnership launched a cloud-based IoT platform called ARISTOTELES. This platform, by using real-time and IoT-based data, helped maximize profits and minimize risk, it also achieved the objectives of the Paris Climate Agreement.