Internet of Things in Power (2021) – Thematic Research

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

The global IoT revenue in the energy sector was valued at $34.0 billion in 2019 and is projected to grow at a CAGR of more than 9% during the forecast period 2020-2025. The growth of the IoT market in the energy sector is steady. However, as the sector recovers from pandemic hardships and losses, CAPEX and OPEX will remain focused on core business, and investment in innovative IoT technologies will remain minimal. The cost of sensor technology, which is embedded in connected devices, will continue to decline, prompting an uptake in IoT technologies within the energy sector.

Global IoT in the energy sector overview

Global IoT in the energy sector overview

For more insights on this report, download a free sample


What are the market dynamics in the IoT in the power sector?

In 2021, the power sector has faced significant challenges across the entire value chain. These include spiking energy costs, transitioning to renewables, and safeguarding assets against extreme weather conditions. The Internet of Things (IoT), billed as a key part of the next industrial revolution or Industry 4.0, can significantly transform the power sector by optimizing operations, managing asset performance, and engaging customers to lower energy costs.

The power sector is already reaping benefits from early consumer-oriented IoT applications: smart meters and smart thermostats. Incorporating IoT technology is also made easier by the declining costs of IoT hardware, notably sensors. Electricity trading, smart grids, and asset management represent primary growth areas for IoT in power, with power generation, transmission, and distribution as the key areas of IoT implementation.

What is the value chain framework of IoT?

Device layer: In the device layer, we find the makers of connected things, including sensors, embedded chips, and their components. Connected things can include connected cars, smart thermostats, fitness bands, smart light bulbs, or a parcel in a delivery truck. The essential electronic components include microcontroller chips, AI chips, communications chips, and sensors. The difficulty in picking winners at this stage is that we are in the midst of a battle to determine the winning communications standard for IoT. Qualcomm, Arm, Intel, and Broadcom are some of the contenders.

Connectivity layer: In the connectivity layer, providers of network connections are the key players, including major telecom operators and networking equipment vendors. We also find in this category makers of edge devices (e.g., routers and gateways), which provide entry into the communications network. Cisco, Huawei, and Ericsson are the leaders here. Cloud and edge computing service providers such as Amazon, Microsoft, and Google also play an important role. IoT is likely to change the way they make money: today, most users of connected devices are humans; tomorrow, most users will be machines. So, the future of many operators in an IoT world may well depend on the business model they adopt to monetize M2M traffic.

Data layer: In the data layer, the information collected from connected things is stored, cleansed, integrated with other systems, and analyzed. Much of the analytics, security, and management is provided by companies offering infrastructure as a service (IaaS). Leaders in this space include Amazon, Microsoft, Google, and IBM. Various big data service providers such as SAP, Oracle, and Salesforce are also leaders in this segment.

App layer: In the app layer, we find the smart hubs that control and monitor connected things. This is where the long-term value resides. Apple and Google are leaders in consumer IoT, while GE, Honeywell, PTC, and Bosch are leaders in the Industrial Internet. This layer is also where start-ups are most active.

Services layer: In the services layer, we find the technology service providers who provide system integration, consulting, and other data services related to the development and maintenance of IoT ecosystems. IoT services have become a necessary addition to the IoT value chain over the last decade because many IoT adopters lack the design, technical, integration, or data analysis skills to be able to deliver a successful IoT implementation. Accenture, Deloitte, Cognizant, and IBM are some of the players in the IoT services market.

What are the challenges in the power sector?

The shift to IoT-based business models is inevitable. Smart home devices such as smart thermostats are familiar with IoT technology and are commonplace in the US and numerous European countries. Smart thermostats allow users to control their home’s heating settings from a smart device. This enables them to control when and for how long they have their heating on and at what temperature.

The number of households that have deployed smart thermostats has increased as more homeowners have started benefiting from reduced energy consumption. According to the UK Department for Business, Energy, and Industrial Standards, there were 26.4 million smart and advanced meters in homes and small businesses in the UK as of September 2021. Smart Energy Outlook GB found in their March 2020 annual survey that 69% of people with smart meters were more conscious of their energy use. Utility customers feel more empowered when using these IoT-connected smart meters. Through smart meters, consumers can more effectively mitigate the financial impact of rising energy costs by controlling their energy consumption.

For utility and power companies to effectively incorporate IoT-enabled smart devices into their infrastructure and daily operations, expertise must be on hand. This involves employing more skilled IoT staff, such as drone operators, data analysts, and software engineers. Interestingly, there has been a rise in IoT-related job filings in 2021, as pandemic woes ease and companies look ahead at how to implement digitalization.

Who are the key players operating in IoT in the power sector market?

Brooklyn Microgrid, Duke Energy, E.ON, Electricite de France (EDF), Enel, Engie, Exelon Generation, Fingrid, Iberdrola, Korea Electric Power (KEPCO), National Grid, RWE, Southern, State Grid Corporation of China (SGCC), and Xcel Energy are the companies operating with IoT in the power sector. 

Internet of Things (IoT) in power, by key players

Internet of Things (IoT) in power, by key players

To know more about key players, download a free report sample

Market report scope

Market size (Year – 2019) $34.0 billion
Growth rate (2020 to 2025) CAGR of >9%
Key companies Brooklyn Microgrid, Duke Energy, E.ON, Electricite de France (EDF), Enel, Engie, Exelon Generation, Fingrid, Iberdrola, Korea Electric Power (KEPCO), National Grid, RWE, Southern, State Grid Corporation of China (SGCC), and Xcel Energy.

This report provides a comprehensive analysis of the IoT in the power sector. It provides:

  • The report focuses on understanding the impact of the Internet of Things (IoT) and its potential applications in the power industry.
  • Review of the recent technological advancements in IoT that could set the tone for its adoption across diverse industries.
  • Assessment of the strategies and initiatives adopted by power companies to gain a competitive advantage in this theme.
Duke Energy
Électricité de France (EDF)
National Grid
Southern Company

Table of Contents

| Contents

Executive Summary 3

IoT Value Chain 4

Device layer 7

Connectivity layer 9

Data layer 12

App layer 15

Services layer 17

Power Challenges 20

The Impact of IoT on Power 24

Case Studies 27

Market Size and Growth Forecasts 30

Mergers and Acquisitions 31

IoT Timeline 33

Companies 34

Leading IoT adopters in power 34

Leading IoT vendors 38

Specialist IoT vendors in power 42

Sector Scorecard 44

Power equipment manufacturers sector scorecard 44

Glossary 47

Further Reading 51

| Our Thematic Research Methodology 52

| About GlobalData 54

| Contact Us 55

Frequently asked questions

Internet of Things in Power (2021) – Thematic Research thematic reports
Currency USD

Can be used by individual purchaser only


Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company

Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

Internet of Things in Power (2021) – Thematic Research was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Internet of Things in Power (2021) – Thematic Research in real time.

  • Access a live Internet of Things in Power (2021) – Thematic Research dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.