The global Internet of Things IoT in energy market is poised for remarkable growth, with projections indicating a staggering valuation of US$114 billion by the end of 2030. This promising outlook comes as the market is set to witness a robust Compound Annual Growth Rate (CAGR) of 19.4% during the period from 2023 to 2030, according to a recent report titled Global IoT in Energy Market, 2019-2030.
IoT Revolutionizes the Energy Sector
The IoT industry has seen exponential growth worldwide, surpassing US$0.7 trillion in revenue in 2020 and projected to reach beyond US$4 trillion by 2030. One of the key driving factors behind these astounding projections is the substantial shift in industry requirements before and after the pandemic. The post-Q3 2021 surge in investments has played a pivotal role in building the IoT in energy market, with investments expected to push the market to nearly US$35 billion in the coming years.
Regional Dynamics and Market Dominance
In 2022, North America accounted for 43.3% of the global IoT in energy market valuation, while Asia Pacific is anticipated to register a robust CAGR of 19.5% from 2023 to 2030. The market is dominated by the asset monitoring segment, constituting 23.7% of the market in 2022, with the oil & gas industry comprising over 43.5% of the market share the same year. In terms of components, the services segment led the market with a 39.2% revenue share in 2022.
Key Growth Drivers
The strategic reforms in the energy market, including decarbonization and enhanced productivity, have led to the adoption of IoT technology to transfer, store, and distribute energy efficiently. IoT technology is pivotal in achieving energy efficiency goals, reducing electricity production costs, and enhancing reliability.
The rising adoption of IoT and AI technologies in the energy industry, coupled with smart grid deployments for energy optimization, is expected to create lucrative growth opportunities. However, challenges such as a shortage of skilled workforce and concerns over data privacy remain.
Overcoming Challenges for a Sustainable Future
IoT solutions are crucial for meeting carbon emission regulations, optimizing energy usage, and balancing energy loads. Integrating IoT devices into the energy grid can be complex, requiring the right expertise. Electric companies are encouraged to invest in IoT-based systems and assemble specialized teams to ensure successful implementation.
Major Growth Barriers
The unique architectural demands of IoT in the energy sector pose challenges, along with the seamless integration of IoT with existing subsystems and the need for standardization. Concerns about user privacy and IoT security also hinder market expansion.
Market Segmentation and Industry Leaders
The oil & gas industry dominated the IoT in energy market in 2022, constituting more than 45% of the market share. Leading companies like BP, Equinor, ExxonMobil, Shell, and TotalEnergies are among the prominent IoT adopters in the sector. Asset monitoring is the dominant application, comprising 24% of the market in 2022.
Regional Growth Prospects
North America, especially the United States, plays a pivotal role in the global IoT in energy market, with a share of more than 40% in 2022. Europe has a strong focus on renewable energy, and IoT is expected to play a crucial role in the regions renewable power sector by 2030.
The global IoT in energy market is consolidated, with a few major players expanding their global presence through the introduction of new products and distribution channel enhancements. Further consolidation is expected in the coming years.
Global IoT in Energy Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 (By Application Coverage, By End-user Industry Coverage, By Component Coverage, By Geographic Coverage and Leading Companies) https://www.fairfieldmarketresearch.com/report/iot-in-energy-market
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