According to the report published by Virtue Market Research in Global Edge Computing in Power Sector Market was valued at USD 1.89 Billion in 2024 and is projected to reach a market size of USD 2.56 Billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 7%.
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Edge computing is changing the way the power sector handles data, making operations faster and smarter. One of the most important long-term drivers of this change is the need for real-time monitoring and control of power grids. Traditional systems often struggle with delays, which can affect energy efficiency and reliability. Edge computing allows data to be processed close to where it is generated, which reduces delays and improves decision-making. During the COVID-19 pandemic, this need became even clearer.
Lockdowns and workforce limitations made remote monitoring essential. Many utilities faced challenges in maintaining smooth operations, and edge computing helped them continue to manage energy distribution and prevent outages without relying heavily on on-site staff.
In the short term, a key driver for adopting edge computing in the power sector is the growing demand for renewable energy integration. Solar and wind power sources generate variable amounts of electricity, and edge devices help manage these fluctuations efficiently. By processing data locally, these systems can balance supply and demand in real time, preventing wastage and improving grid stability.
Alongside this driver, there is a significant opportunity in predictive maintenance. Edge computing can analyze equipment performance continuously and identify potential failures before they happen. This reduces downtime, lowers maintenance costs, and extends the lifespan of crucial equipment like transformers and turbines.
A notable trend observed in the industry is the increasing use of AI and machine learning at the edge. Power companies are using AI algorithms to detect anomalies, forecast energy demand, and optimize energy distribution without sending massive amounts of data to central servers. This trend not only improves efficiency but also enhances cybersecurity by limiting the data exposure to external threats. Companies are also experimenting with hybrid models that combine edge computing with cloud platforms to ensure flexibility and scalability. The trend reflects a growing understanding that decentralized data processing can be a game-changer in managing complex power networks.
The combination of these drivers, opportunities, and trends is reshaping the power sector. Long-term needs for real-time monitoring, short-term pressures to integrate renewables, and technological trends like AI at the edge are creating a landscape where traditional systems alone cannot keep up. Edge computing allows utilities to respond quickly to changes, optimize operations, and reduce costs, which is increasingly critical as energy demand grows worldwide. The pandemic highlighted the importance of having resilient systems, and companies are now investing more in technologies that ensure uninterrupted service even during unforeseen disruptions.
As the sector moves forward, collaboration between equipment manufacturers, software developers, and utility operators will become crucial. The development of standardized protocols and interoperable devices is expected to accelerate edge computing adoption. This collaboration can also open doors for new business models, such as energy-as-a-service, where real-time data processing enables more flexible and customer-focused energy solutions. These changes are not just technological but strategic, giving companies a competitive advantage in efficiency, reliability, and innovation.
Segmentation Analysis:
By Application: IIoT, Remote Monitoring, Content Delivery, Video Analytics, AR/VR, Others
Largest in this segment is Remote Monitoring and Fastest Growing During The forecast period is IIoT. Edge computing in the power sector is widely used for Remote Monitoring because it helps utilities track equipment conditions and energy flow instantly without sending all data to a central server. This makes the grid more reliable and prevents sudden issues. IIoT is growing fastest because many new devices, sensors, and smart meters are being installed to collect data near the source. These devices can report machine performance, detect problems early, and adjust energy distribution in real time.
Content Delivery and Video Analytics are also being used but mainly for specific applications like training staff or security purposes. AR/VR is slowly entering the sector, helping technicians understand complex equipment through interactive simulations. Other applications include specialized software tools that help plan maintenance or forecast energy needs. During the forecast period, utilities are expected to invest more in IIoT because it allows them to combine multiple sensors and devices for smarter energy management. This combination of Remote Monitoring as the largest and IIoT as the fastest-growing segment shows how the sector balances existing infrastructure with new technological adoption.
By Deployment: Cloud and On-Premise
Largest in this segment is Cloud and Fastest Growing During The forecast period is On-Premise. Cloud deployment is widely preferred because it allows power companies to store massive amounts of data, access it from anywhere, and manage multiple locations efficiently. Many utilities rely on cloud platforms to analyze trends, predict energy demand, and coordinate resources across regions without heavy investment in local servers. On-Premise deployment, however, is growing faster because some utilities want more control over their sensitive data and need immediate processing capabilities for critical operations.
On-Premise setups reduce reliance on internet connectivity and provide faster response times for high-priority systems. The power sector is seeing a mix of hybrid approaches, where cloud handles large-scale data storage and long-term analysis, while On-Premise systems focus on local decision-making. Companies are also exploring secure networks and private cloud setups to meet regulatory and safety standards. During the forecast period, growth in On-Premise deployment is expected as more utilities adopt edge devices near substations and renewable energy plants to manage data locally. This creates a balance where Cloud remains dominant but On-Premise adoption accelerates rapidly.
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Regional Analysis:
Largest in this segment is North America and Fastest Growing During The forecast period is Asia-Pacific. North America leads the edge computing market in the power sector due to advanced infrastructure, high adoption of smart grid technology, and strong government support for digital energy solutions. Utilities in this region use edge computing for monitoring grid performance, managing renewable integration, and improving reliability.
Asia-Pacific, however, is growing fastest because countries are rapidly expanding their energy infrastructure and adopting modern technologies for smart energy management. Industrial growth, rising electricity demand, and government initiatives for renewable energy are driving faster edge computing adoption in India, China, and Southeast Asia. Europe shows steady growth with moderate investments in cloud-based energy management, while South America and the Middle East & Africa are slowly developing edge computing solutions, mainly in urban or industrial hubs. During the forecast period, Asia-Pacific’s adoption of edge devices and IIoT sensors near power plants and substations is expected to rise sharply. This results in North America maintaining the largest market share while Asia-Pacific accelerates as the fastest-growing region.
Latest Industry Developments:
• Strategic Expansion into Edge Data Centers: Companies in the power sector are increasingly investing in edge data centers to enhance their market presence. These decentralized facilities enable localized data processing, reducing latency and improving real-time decision-making. The growing demand for AI-driven applications and the proliferation of IoT devices necessitate such infrastructure. By establishing edge data centers, companies can offer more efficient and responsive services, catering to the needs of modern energy systems and smart grids.
• Partnerships with Technology Providers: Collaborations between power sector companies and technology providers are becoming more prevalent. These partnerships focus on integrating advanced technologies like AI, machine learning, and 5G into energy management systems. By leveraging the expertise of tech firms, power companies can enhance their service offerings, improve operational efficiency, and stay competitive in a rapidly evolving market. Such alliances also facilitate the development of innovative solutions tailored to the unique challenges of the energy sector.
• Investment in Renewable Energy Projects: To meet the increasing energy demands of data centers and edge computing infrastructure, companies are investing in renewable energy projects. These initiatives aim to provide sustainable power sources, aligning with global efforts to reduce carbon emissions. By integrating renewable energy into their operations, companies can ensure a reliable power supply for their edge computing facilities while contributing to environmental conservation. This approach not only supports green energy goals but also enhances the company’s reputation as a responsible energy provider.
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This release was published on openPR.