Wait for the AI Boom in Renewable Energy
As renewable energy sources are becoming increasingly popular, the demand for artificial intelligence (AI) technology in the renewable energy sector is also increasing.
Valued at USD8.24 billion in 2021, the global AI in the renewable energy market is expected to grow at a CAGR of 27.9% from 2021 to 2030, according to a report by Precedence Research.
The Asia-Pacific region is expected to be the fastest-growing market for AI in renewable energy during the forecast period, owing to the increasing investments in the renewable energy sector and the presence of major players in the region.
Growing demand for electricity in countries such as China, India, Japan, and the ASEAN region is expected to drive the need for efficient and cleaner power generation, which in turn is expected to increase the adoption of AI-based technologies in the renewable energy sector.
With the help of AI technology, the renewable energy sector can automate various processes to reduce the overall cost of production. Moreover, AI technology can also help optimize the performance of renewable energy systems and reduce their maintenance requirements.
In particular, AI use cases in demand forecasting and energy generation have been fast gaining traction.
Demand forecasting, in particular, is one of the most important applications of AI in renewable energy. The report reveals that it holds the largest market share, helping utilities effectively manage their resources and predict consumer behavior.
The energy generation segment holds the largest market share in terms of end-use. This is due to the growing government funding for infrastructure projects, which is boosting the adoption of AI in renewable energy. Governments in Asia-Pacific have been investing in renewable energy infrastructure to reduce their dependency on fossil fuels.
There is also growing adoption of cloud-based solutions in the renewable energy sector, which is providing a fillip to the growth of AI in the renewable energy market. The digitization of the energy sector has provided a means for companies to identify bottlenecks and inefficiencies in their operations, making AI an even more attractive proposition.
Analysts at Precedence Research also highlight microgrids as one of the major trends in AI in the renewable energy market. As smart cities and smart homes become more prevalent, the need for microgrids is also increasing. Microgrids are highly advantageous for the expansion of AI, as they allow for the integration of various renewable energy sources, such as solar and wind.
Companies that intend to capitalize on this trend's opportunities should also consider the growing concern for data privacy. The safety of data and information is a big concern in the global market, as data with artificial intelligence algorithms can be hacked and used for malicious purposes. Hence, companies must have robust data security measures in place to gain the trust of consumers and other stakeholders.
