Internet of Things in Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

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). According to the International Energy Agency, as a critical enabler of modern life, the energy sector despite being significantly affected by the COVID-19 pandemic, is also essential for global and national response and recovery efforts.

• 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.

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Key Market Trends

Smart Meters Expected to Hold Significant Share

• Smart meters are among the most adopted IoT devices by utility companies in the last few years. These devices interconnect buildings with the smart energy grid, which allows these companies to manage energy flow more effectively. Smart cities are also leveraging smart meters.​
• With IoT-ready smart meters, companies can access rich, real-time data to provide better service while reducing costs and boosting profits. Moreover, these help in effective balancing of electric loads and reducing power outages, streamlining energy distribution through more accurate forecasting, and enabling dynamic pricing by raising or lowering costs based on real-time demand.
• By upgrading to smart meters and grids, many governments are also trying to utilize IoT to facilitate localized green energy production growth. For instance, the US Department of Energy is presently pursuing a smart grid that can help boost the use of green energy while driving down costs in mass. ​These factors are also forcing energy companies to invest in IoT technology to keep up with everyone around them.
• With smart meter technology, utilities can also empower their customers to make smarter decisions about their energy usage by providing helpful and detailed feedback on energy consumption using precise, real-time data from their smart meter, improving transparency on monthly energy bills, accurate pricing based on usage, etc. These advantages are boosting the market growth.

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