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Smart Energy Market is Poised for Rapid Growth

Climate change has already driven many CFOs and other senior executives to explore the most effective ways to ensure access to electricity that meets demand in the Global Networked Economy.

Escalating energy prices pose a formidable obstacle to business leaders worldwide. During 2023, those prices will surge to a global $1.73 trillion enterprise spend on electricity consumption -- which considers the electrification acceleration of vehicle fleets and robots.

As a result, the C-suite is now compelled to reassess their energy purchase agreements with utilities, contemplate installing renewable micro-grid systems, and prioritize energy efficiency. To do so, enterprises will invest $70 billion on smart energy solutions by 2030.

Smart Energy Market Development

In response, ABI Research has launched its Smart Energy for Enterprises and Industries research service to guide leaders on navigating the globally disrupted energy markets, achieving energy independence, and transitioning to renewable energy via a range of cost-saving technologies and services.

These advancements include on-site micro-grids, battery storage, efficiency management platforms, and optimized purchase agreements. In this context, the role of the wider Smart Energy ecosystem will also be covered in greater detail by the ABI analysts.

"Smart energy is no longer just the prerogative of centralized energy utilities. Enterprises and industries are assuming an increasingly important role in renewable energy generation," said Dominique Bonte, vice president at ABI Research.

They are essentially becoming agents in the building and managing of collectively owned smart energy networks, assets, and solutions. Additionally, businesses will actively participate in new renewable energy markets, including trading on spot markets.

ABI Research analysts are looking at smart energy through the lens of both enterprises and industries such as manufacturing, supply chain, oil and gas, and data centers.

Aspects covered by the ABI assessment range from on-site solar and wind farms to energy efficiency management, battery energy storage systems, and advanced power purchase agreements.

This approach enables organizations to lower the cost of their energy consumption, transition from fossil fuel energy sources, improve energy reliability, and achieve energy resilience.

From a technology coverage perspective, ABI Research analysts will highlight how enterprises and industries can leverage on-site digital energy monitoring, management, and simulation platforms and AI-based software.

Plus, they'll explore granular energy metering, electric vehicle charging infrastructure, energy sharing vehicle-to-grid and building-to-grid, energy-efficient equipment, and automated energy marketplaces.

Outlook for Smart Energy Applications Growth

"As the global demand for smart energy intensifies, enterprises and industries are embracing the imperative of sustainability and cost efficiency. With an urgency to navigate disrupted energy markets, attain energy independence, and transition to renewable sources becomes paramount," Bonte concludes.

The ABI Research Smart Energy research service will serve as a trend compass, offering strategic guidance on leveraging cost-saving technologies and services to achieve these transformative goals.

That said, I anticipate more technology industry analysts will cover this emerging market. In particular, I see several areas where IT vendors can play an essential role in developing the applications for artificial intelligence. Smart Energy monitoring is a compelling use case.

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