A report “Internet of Things (IoT) in Energy Market published by MarketsandMarkets, shows the market size is expected to grow from USD 20.2 billion in 2020 to USD 35.2 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 11.8% during the forecast period.
Major factors expected to drive the growth of the IoT in energy market include IoT in energy boost business productivity, advantage of IoT-based agile systems, rising instances of cyberattacks, and enhancing the health and safety of employees.
Some of the prominent key players are:
- AGT International (Switzerland)
- Actility (France)
- ABB (Switzerland)
- Cisco Systems (US)
- IBM (US)
- Siemens (Germany)
- com (US)
- Altair Engineering (US)
- Flutura (US)
- Davra Networks (US)
- Wind River (US)
- Schneider Electric (France)
- Aclara (US)
Based on solution, the asset management segment to account for the largest market size during the forecast period
IoT-enabled asset management solutions are a combination of all processes, assets, workflows, and analytics into a single solution, which offer centrally consolidated tracking, monitoring, and analytics system for asset-intensive energy sector.
Asset management solutions include the management of energy meters, predictive asset maintenance, and control operations of assets. In order to achieve the organizational strategic plan, the associated performance, risks, and expenditures over the lifecycle of assets are taken care of by asset management solutions.
Asset management solution offers many advantages such as improved capacity and utilization, operational visibility and analysis, proactive solutions for asset failure situations, safety assurance, and management of all assets from a single platform, extension of asset’s life, and improved return on assets.
Based on application, the oil and gas segment to account for the largest market size in 2020
The oil and gas application segment is leading the IoT in energy market in 2020; the segment is the most capital-intensive industry.
Companies operating in the areas of oil and gas exploration and refining require large capital to meet their day-to-day operational costs. Energy companies are continuously carrying out technological developments and process improvements to sustain in the market.
The adoption of IoT solutions is expected to improve the operational efficiency of the oil and gas segment, thus helping companies operating in this industry to sustain the drop in oil prices. IoT solutions can be deployed for remote monitoring of oil rigs and maintaining pipeline integrity.
Thus, the IoT solutions help detect potential accidents, thus averting them. IoT-enabled sensors and devices allow remote monitoring of operations and improved end-to-end processes in oil and gas facilities.
Among regions, APAC to account for the highest market share during the forecast period
The increasing adoption of smart grid architecture, technology upgrades, energy management, and regulatory mandates are major contributing factors for the growth of the IoT in energy market in this region.
China, the region’s largest economy is also its biggest importer. China is the region’s largest producer, accounting for half of its oil. Its output of 3.8 million barrels per day was 6% lower than average for nearly a decade.
APAC consumes 36% of the world’s oil, a total of 36 million barrels per day. Increasing adoption of smart meter in countries, such as China, Japan, Australia, and South Korea has bolstered the growth of the IoT in energy market in the APAC region.