The demand for increased operational efficiency is expected to drive a rise in spending on artificial intelligence technologies by energy industry players between 2019 and 2024, according to BIS Research.
Other factors expected to contribute to the 22.49% market increase include rising concern for energy efficiency, the growing market penetration of decentralised energy generation and rising concern for battery storage systems.
AI in the energy market is expected to reach $7.78 billion by 2024 as AI platforms will be leveraged to access real-time insights of industrial applications to increase the efficiency of systems to meet energy demand.
Furthermore, the cost-efficiency induced by AI in operations is gradually driving the degree of acceptance of AI amongst energy companies.
The global application of AI in energy markets has seen a tremendous increase over the past three years. Most of the investments and funding by companies in the market have been recorded for AI-as-a-Service platforms which saw $499.5 million invested for the period November 2016-October 2019.
Rakhi Tanwar, a principal analyst at BIS Research, said: “Software, hardware, AI-as-a-service, and support services are the types of solutions offered by players operating in the global AI in the energy market. In 2018, the software solution accounted for more than 60% of the total artificial intelligence in the 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 customised application-specific cloud platforms and enhancing the operating systems, which is expected to further help in strengthening the data warehouse architecture of the end-users.”
North America is expected to remain the dominant market for AI in energy owing to the US being an innovation hub for these technologies. Asia-Pacific is expected to witness robust growth in the next five years, due to the increasing dependence on decentralised power generation to meet the electricity demand in the region.