- The asset management segment will account for the largest market size during the forecast period
- The APAC region will take the highest market share during the forecast period
The global Internet of Things (IoT) in energy market size is expected to grow to $35.2 billion by 2025 from $20.2 billion in 2020 as per a market research report by MarketsandMarkets. The report titled, “Internet of Things (IoT) in Energy Market by Solution, Service, Platform, Application, and Region – Global Forecast to 2025” also said that this market will grow at a Compound Annual Growth Rate (CAGR) of 11.8 per cent during the forecast period
The report added the major factors to help in this growth include IoT in energy boost business productivity, advantage of IoT-based agile systems. Other factors for this boost will be rising cases of cyberattacks, and enhancing the health and safety of employees
Tracking, monitoring, and analytics system
As per the report, based on solution, the asset management segment will account for the largest market size during the forecast period. It said that IoT-enabled asset management solutions are a combination of all processes, assets, workflows, and analytics into a single solution. It offers 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 the asset. The report said that asset management solution offers advantages like improved capacity and utilization, operational visibility and analysis, proactive solutions for asset failure situations, safety assurance. Other advantages include the management of all assets from a single platform, the extension of asset’s life, and improved return on assets.
The report also said that based on application, the oil and gas segment will take the largest share of the market size in 2020. 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 carrying out technological developments and process improvements to sustain in the market.
APAC to lead
The research added, “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.”
The APAC region will account for the highest market share during the forecast period as per the report. It said that the increasing adoption of smart grid architecture, technology upgrades, energy management, and regulatory mandates are the major factors for the growth of the IoT in energy market in this region. APAC consumes 36 per cent of the world’s oil, a total of 36 million barrels per day. As per the report, increasing adoption of smart metre in countries like China, Japan, Australia, and South Korea have led to the growth of the IoT in energy market in the APAC region.