According to a new report published by Facts and Factors Market Research, the global internet of things (IoT) in energy market will record a 25% increase between 2020 and 2026.
The market was worth $15 billion in 2019 and is predicted to reach nearly $85 billion by 2026.
Key study findings include:
- North America held a major share in the global IoT in energy market in 2019, accounting for a market share of approximately 35% in 2019.
North America is expected to record a CAGR of nearly 20% over the projected period. The Middle East and Africa region is expected to record the fastest growth over the forecasted period owing to rising oil and gas exploration activities and soaring energy and utility sectors in the region.
- On the basis of application, the energy management segment is set to hold a dominating share in the global IoT in energy market due to the rising adoption of IoT-based technologies for smart grid applications.
In recent years, the number of smart girds across the world has increased significantly. Governments and federal authorities are increasingly spending on developing their smart city infrastructure.
Moreover, energy and utility companies are inclined towards opting for smart grids and smart meters to increase operational efficiency. IoT-based systems can combine smart meters with sensors to improve the efficiency of energy management.
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- The rising awareness regarding carbon footprint and modernisation of outdated smart grid infrastructure has fueled the global smart grid market, which in turn has been a key factor in driving the global IoT in energy market.
Growing spending on expansion and modernisation of electricity transmission and distribution infrastructure has augmented the adoption of IoT-based technologies for smart grid applications, which has driven the global IoT in energy market.
- Moreover, the emergence of cognitive computing and big data analytics can help to predict failures rather than predictive maintenance. Cognitive computing also helps in risk assessment and insights generation, which is anticipated to crease new revenue generating opportunities for the global market.
The rise of cognitive computing, AI, and data analytics in IoT technology is anticipated to create new opportunities for the global IoT in energy market.
Internet of things comprises of various mechanical devices, sensors, which are connected to each other through a gateway. The convergence of technologies such as embedded systems, machine learning, real-time monitoring, etc. has expanded the applicability of the IoT across various verticals.
In recent years, a large number of electronic devices have the ability to be integrated with internet connectivity, which can be used to balance energy demand and consumption and optimising power consumption.
Moreover, the internet of things can help the user to control smart devices over cloud-based software and allows the user to control HVAC systems, changing lighting conditions, etc. Internet of things can be used in smart grid applications for gathering information and act according to insights gathered to improve the operational efficiency and efficient distribution of energy. In years to come, the rising use of automated systems for controlling electricity distribution is expected to expand the applicability of the internet of things in energy-related applications.
By offerings, the hardware segment held the largest share in the global IoT in energy market in 2019, accounting for a share of approximately 40% and the hardware segment is estimated to grow at a CAGR of nearly 22%.
On the basis of network technology, the radio network dominated the global IoT in energy market in 2019 and held a share of approximately 70%.
On the basis of network technology, the cellular network segment is anticipated to record the highest CAGR of nearly 23% over the forecasted period, owing to technological advancements in 5G IoT technology.
Learn more about the study.