Global IoT in energy market expected to reach $26.5bn by 2023

The devices are embedded with sensors, chips, and others to enhance the user’s experience and to increase the operational efficiency of the operations in energy sector.

These devices and software are efficient to operate various tasks with less time consuming methods. The growing need of internet enabled devices and rising need of internet connectivity are some of the major factors which are anticipated the positive growth of internet of things in energy sector globally. Technological advancements in semiconductors offer the advantages to develop lightweight and efficient devices which are much smarter than the conventional and heavy devices. Internet of things (IoT) in energy helps the sector to reduce the loss of resources and also help them to optimise the use of available resources through smart grids.

Moreover, rising need of remote monitoring systems and internet enabled devices had supported importance of IoT in energy sector especially in utility and power distribution. These devices and systems enabled to operate efficiently and serve better to consumers. Likewise, the energy management provides ease to various end-use industries such as power, oil and gas and mining industries to minimise the energy losses which further cuts down the operational cost.

Wide-scale availability and diversity in technological devices are providing ease to the energy sector to adopt latest technology. On the other hand, mining and petroleum industries are also looking forwards to real-time monitoring systems to manage the mobile workforce. The growing concern towards energy management is one of the major factors which are fuelling the demand for IoT devices and software.

The connected devices help the users to maintain their lead time and increase their operational efficiency. The demand for power and fuel is growing in developing countries across the globe due to rapid pace infrastructural development. These factors are creating a huge pressure on the energy sector to increase the supply by utilising their resources efficiently.

Further, rapid pace development in energy sector including the power and oil and gas sector is changing the ecosystem of these sectors. Urbanisation across the globe is increasing the demand for resources such as fuel, power and others. In addition to this, the robust pace ion smart cities and smart infrastructure in various developed countries such as US and others are encouraging the energy sector to adopt advanced technology such as IoT. Moreover, the smart power grids are showcasing a tremendous growth on the back of rapid adoption of IoT in energy.

The construction of smart power grids with hundreds of sensors and devices further help the energy sector to increase the response and supply. Privatisation and newer regulations is expected to increase the penetration of internet of things in energy sector. Government authorities are taking initiatives in developing regions such as Asia-Pacific, Europe and others to strengthen the energy sector by adopting IoT in energy sector.

The setting up of smart cities along with growing concern towards optimisation of resources is bolstering the growth of IoT in energy. However, issues related to security and privacy of data and connectivity of devices is the major restraint for the market which is creating cynicism among the end-use sector.

Furthermore, high cost of internet of things devices and software is one of the major reasons which are hampering the growth of IoT in energy sector. The global IoT in energy market reached $6.8bn in 2015 and the market is expected to reach $26.5bn by 2023. Further the market is projected to register a CAGR of 15.5% during the forecast period 2016-2023 globally. The Internet of Things comprises devices and software that enable connectivity and exchange of information.