IoT in energy market to top $100bn by 2027
March 20, 2019
The IoT market in the energy segment is expected to grow at a CAGR of 17.3% from 2019 to 2027 due to the rising demand for smart grids, according to a report from Absolute Markets Insights.
The global IoT in the energy market stood at US$25.7bn in 2018 and is expected to surpass $108.3bn by 2027, growing at a CAGR of 17.3%. The notion of Energy 4.0 has gained momentum across all aspects of the industry.
The involvement of fourth industrialisation primarily focuses on data and automation, used for production optimisation and efficiency in a smart factory environment. The digital evolution revolves around the advancement of smart grids, distributed power generation and efficient use of renewable resources.
Smart grids are a part of an IoT framework that is used primarily among remote places to detect equipment failure, energy spikes, route power and prevent outages. As per a recent study, installation of smart grids across various applications has improved the productivity rate by 99.8% and thereby helped in energy savings.
Hence, owing to improved energy efficiency rates, the integration of smart grid projects is growing at a fast pace and is thereby influencing the growth of the IoT in the energy market.
"Rapid industrialisation in the energy sector embraces the sustainability of energy consumption and energy management concepts,” says the report. “As a result, enterprises, municipalities and government are increasing their efforts towards adoption of IoT for optimising energy consumption, thus contributing to the growth of IoT in energy market."
The research study provides qualitative and quantitative analysis of the IoT in the energy market. The market has been analysed from demand as well as the supply side. The geographical analysis emphasises on each of the major countries across North America, Europe, Asia Pacific, Middle East, Africa and Latin America.
A key findings of the report shows that the cellular networks offer the most lucrative network segment due to their high bandwidth to transmit huge amounts of data within the coverage area.
The Asia Pacific is anticipated to grow at a CAGR of 17.9% from 2019 to 2027 owing to the increasing investment for the development of smart buildings, smart city, smart grids, smart meters and smart thermostats.
Some of the major players operating in the IoT in energy market are Accenture, Cisco, IBM and Intel.
Organisations in the IoT in energy market are pacing their development to offer reliable, efficient, secured and interoperable products and services for sustainable energy management, says the report.