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Edge Artificial Intelligence (AI) In Smart Grids Market Growth Analysis: How Will Revenue Trend Over The Forecast Period?
The edge artificial intelligence (AI) in smart grids market has shown substantial growth in recent years. It is anticipated to expand from $15.49 billion in 2025 to $19.46 billion in 2026, achieving a compound annual growth rate (CAGR) of 25.7%. The market’s past growth was primarily influenced by an increase in grid failures and outages, a heightened demand for energy efficiency, greater integration of renewable energy, the widespread deployment of smart meters, and the adoption of industrial IoT within utility sectors.
The edge artificial intelligence (AI) in smart grids market size is projected to undergo significant expansion in the upcoming years. It is anticipated to achieve a value of $48.91 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 25.9%. This projected growth can be ascribed to several factors, including the implementation of edge AI for predictive analytics, the deployment of intelligent relays and processing units, the adoption of AI-driven grid management solutions, escalating investment in cybersecurity for smart grids, and the expansion of distributed energy resource management. Furthermore, major trends anticipated during this forecast period involve edge AI-driven grid optimization, real-time energy load forecasting, predictive maintenance and asset monitoring, the integration of smart sensors and edge devices, and improvements in energy management and operational efficiency.
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Edge Artificial Intelligence (AI) In Smart Grids Market Demand Drivers Opening New Revenue Streams
The anticipated increase in energy demand is projected to drive the expansion of edge artificial intelligence (AI) within the smart grids market in the future. Energy demand refers to the overall quantity of energy needed by consumers, various industries, and services to carry out tasks, power equipment, and fulfill daily requirements within a defined timeframe. This growth in energy demand stems from population expansion, given that a larger populace necessitates more electricity, transport, heating, and similar energy-intensive provisions. Edge artificial intelligence within smart grids improves energy management through real-time local data processing, which facilitates quicker decision-making, minimizes energy wastage, and optimizes the incorporation of renewable energy sources for enhanced efficiency and reliability in power supply. As an illustration, in September 2025, data from the International Energy Agency, a US-based intergovernmental organization, indicated that total net electricity generation in the OECD hit 922.6 TWh in June, representing a 1.4% rise from June 2024. Consequently, the escalating energy demand is fostering the development of edge artificial intelligence (AI) within the smart grids market.
Edge Artificial Intelligence (AI) In Smart Grids Market Segment Analysis: What Are The Core Market Categories?
The edge artificial intelligence (AI) in smart grids market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Deployment Model: On-Premises, Cloud-Based
3) By Solution Type: Edge Intelligence Platforms, Real-Time Grid Analytics Solutions, Predictive Maintenance Solutions, Artificial Intelligence-Driven Control And Automation Services, Cybersecurity And Risk Management Services
4) By Application: Grid Management, Asset Management, Advanced Metering Infrastructure (AMI), Distributed Energy Resource Management, Other Applications
5) By End-User Industry: Electric Utilities, Industrial Facilities, Commercial Energy Operators, Smart City And Infrastructure Projects
Subsegments:
1) By Hardware: Edge Computing Devices, Sensors And Actuators, Networking Equipment, Processing Units, Control Modules
2) By Software: Edge Analytics Platforms, Machine Learning Software, Predictive Maintenance Software, Grid Optimization Software, Cybersecurity Software
3) By Services: Integration And Consulting Services, Managed Services, Training And Support Services, Maintenance Services, Cloud And Edge Computing Services
Edge Artificial Intelligence (AI) In Smart Grids Market Trends Powering Strategic Industry Growth
Companies active in the edge artificial intelligence (AI) in smart grids market are concentrating on creating advanced solutions, such as AI-powered IoT edge compute cellular gateways, to facilitate immediate grid surveillance, automated operational choices, and efficient energy distribution. Such a gateway is a device that utilizes AI to process data directly at the network’s periphery, links various IoT devices, and relays critical information via cellular networks for continuous oversight and management. As an illustration, in October 2024, Lantronix Inc., a technology firm based in the US, introduced its SmartLV Gateway. This particular AI-enabled IoT Edge Compute Cellular Gateway is engineered specifically for use in low-voltage substations within smart grid and industrial settings. The SmartLV Gateway offers immediate control, automation capabilities, and effective energy management. Key features include edge AI functionalities, support for multiple protocols, and robust cybersecurity protocols. Furnished with LTE and 5G connectivity, the SmartLV Gateway facilitates dependable remote operations and lessens reliance on centralized cloud infrastructures by performing local data processing at the edge. Its seamless integration with current infrastructure empowers utilities and industrial entities to optimize energy distribution, improve operational effectiveness, and bolster grid resilience.
Edge Artificial Intelligence (AI) In Smart Grids Market Top Companies Driving Competitive Growth
Major companies operating in the edge artificial intelligence (AI) in smart grids market are Siemens AG, Hitachi Energy Ltd., NVIDIA Corporation, Intel Corporation, Schneider Electric SE, Qualcomm Technologies Inc., GE Vernova, ABB Ltd., Hewlett Packard Enterprise Company, Beckwith Electric Co Inc., Itron Inc., Advantech Co. Ltd., Schweitzer Engineering Laboratories Inc., C3.ai Inc., SparkCognition Inc., Lantronix Inc., Uplight Inc., Utilidata Inc, Smarter Grid Solutions Ltd., ClearBlade Inc.
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Edge Artificial Intelligence (AI) In Smart Grids Market Global Footprint: Which Region Leads The Industry?
North America was the largest region in the edge artificial intelligence (AI) in smart grids market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the edge artificial intelligence (AI) in smart grids market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
