Table of Contents
The Global Edge AI for Smart Grid Market is projected to grow from USD 15.2 billion in 2024 to USD 138.2 billion by 2034, reflecting a CAGR of 24.70%. Edge AI for smart grids integrates artificial intelligence with edge computing to optimize grid management, power distribution, and energy consumption, making energy grids more efficient, reliable, and responsive.
In 2024, the hardware segment dominated with 43.7% market share, driven by the adoption of sensors, edge computing devices, and AI-powered processors. The on-premises segment held a 62.6% share, as many utilities prefer on-site data processing for security and latency concerns.
The grid management segment led applications, capturing 34.7% of the share, reflecting its importance in power distribution, fault detection, and energy optimization.
North America is the market leader, holding 33.2% market share, with USD 5.0 billion in revenue. The U.S. market for Edge AI in smart grids was valued at USD 4.04 billion in 2024, with a 21.6% CAGR, driven by smart grid infrastructure investments and government incentives.
Analyst Viewpoint
The Edge AI for Smart Grid market is poised for significant growth, driven by the increasing adoption of smart grid technologies and AI-powered solutions in energy management. The dominance of on-premises solutions and hardware devices indicates a preference for secure and low-latency data processing at the edge.
North America remains the market leader, but growth in Europe and Asia-Pacific is accelerating. The grid management sector will continue to lead due to rising demand for energy optimization and efficiency in power distribution networks.
➤ 𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐄𝐱𝐜𝐥𝐮𝐬𝐢𝐯𝐞 𝐒𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐭𝐡𝐢𝐬 𝐏𝐫𝐞𝐦𝐢𝐮𝐦 𝐑𝐞𝐩𝐨𝐫𝐭 @ https://market.us/report/edge-ai-for-smart-grid-market/free-sample/
Key Takeaways
- The Edge AI for Smart Grid market will grow from USD 15.2 billion in 2024 to USD 138.2 billion by 2034, at a CAGR of 24.70%.
- Hardware dominates with 43.7% market share, driven by sensors and AI-powered devices.
- The on-premises segment leads with 62.6% share, reflecting preference for on-site processing.
- Grid management holds the largest share at 34.7% of the market, critical for energy distribution and optimization.
- North America leads, holding 33.2% market share, with USD 5.0 billion in 2024 revenue.
- The U.S. market for Edge AI in smart grids was valued at USD 4.04 billion in 2024.
Regional Analysis
North America leads the Edge AI for Smart Grid market, capturing 33.2% of the share, with USD 5.0 billion in revenue in 2024. The U.S. is the key player in the region, with the market valued at USD 4.04 billion and growing at a CAGR of 21.6%.
The region benefits from strong government support, smart grid infrastructure investments, and advanced energy management technologies. Europe is seeing increased demand for smart grids in response to renewable energy integration and energy efficiency regulations. Asia-Pacific is growing rapidly due to smart city initiatives and energy modernization projects.
➤ 𝐇𝐮𝐫𝐫𝐲 𝐄𝐱𝐜𝐥𝐮𝐬𝐢𝐯𝐞 𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭 𝐅𝐨𝐫 𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐏𝐞𝐫𝐢𝐨𝐝 𝐎𝐧𝐥𝐲 @ https://market.us/purchase-report/?report_id=139857
Key Segmentation
Component
- Hardware (43.7%) – Includes sensors, edge computing devices, and AI processors for real-time data processing.
- Software – Includes AI algorithms and data analytics tools for grid management.
Deployment
- On-premises (62.6%) – Dominates due to data security, low-latency processing, and edge computing needs.
- Cloud-based – Gaining traction for scalable and cost-effective grid management.
Application
- Grid Management (34.7%) – Includes fault detection, load balancing, and energy optimization.
- Predictive Maintenance – Gaining traction for reducing downtime and ensuring system reliability.
Business Opportunities
The Edge AI for Smart Grid market presents opportunities in smart grid infrastructure, energy management, and predictive maintenance. The increasing adoption of renewable energy and smart cities will drive demand for AI-powered solutions to optimize grid performance and reduce energy waste.
Utility companies and energy providers will need AI-driven predictive analytics for fault detection, system monitoring, and demand-response management. The U.S. and Europe remain key markets, while Asia-Pacific is expected to grow rapidly with smart grid implementation and AI integration in energy systems.
Key Player Analysis
The Edge AI for Smart Grid market is competitive, with players focusing on integrating AI with edge computing to enable real-time decision-making in grid management. Further, companies are investing in advanced hardware solutions, such as edge computing devices and AI-powered processors, to handle high-volume data at the edge.
Moreover, strategic partnerships between technology providers and utilities are driving innovations in grid optimization and renewable energy integration. As the market evolves, companies focusing on energy-efficient solutions, AI algorithms, and data-driven decision-making will lead the growth.
Top Key Players in the Market
- NVIDIA Corporation
- Intel Corporation
- IBM Corporation
- Microsoft Corporation
- Siemens AG
- General Electric (GE Grid Solutions)
- Cisco Systems, Inc.
- Schneider Electric SE
- ABB Ltd.
- Huawei Technologies Co., Ltd.
- Itron, Inc.
- Oracle Corporation
- Others
Recent Developments
- AI integration in edge computing is increasing for real-time grid monitoring and optimization.
- Smart grid adoption is accelerating, driven by renewable energy integration and government regulations.
- On-premises deployment continues to dominate due to security and low-latency needs.
- Asia-Pacific is experiencing rapid growth, with smart city initiatives and AI-driven grid technologies.
- North America remains the leader, driven by strong government support and infrastructure investment.
Conclusion
The Edge AI for Smart Grid market is poised for substantial growth. Driven by the increasing need for energy efficiency, real-time grid management, and AI-powered smart grid solutions. North America remains the market leader, while Asia-Pacific shows significant growth potential.
Further, the hardware segment continues to dominate, with on-premises deployment and grid management applications leading the way.
Companies focusing on energy optimization, AI integration, and predictive maintenance will be well-positioned for success in this rapidly growing market. As AI-driven energy solutions evolve, the market will continue to grow in both developed and emerging regions.
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