The Global IT Spending in Energy market is experiencing significant transformation driven by digitization, smart grid initiatives, and increasing investments in renewable energy. The market size was valued at USD 28,500 Million in 2025 and is expected to reach USD 73,800 Million by 2035, witnessing a CAGR of 8.9% from 2024 to 2035.
The economic impact of tariffs on "Global IT Spending in Energy".
Global IT Spending in Energy Market Growth Drivers
Accelerated Adoption of Digital Solutions: The energy sector is increasingly deploying digital solutions to optimize performance, predictive maintenance, and real-time decision making. For instance, Schneider Electric has implemented AI-driven platforms to enhance energy distribution efficiency globally. Companies are leveraging advanced data analytics, IoT, and automation tools to improve grid reliability while reducing operational costs.
Integration of Renewable Energy Sources: As companies invest in wind, solar, and other renewable sources, IT spending has accelerated to bolster grid management and integration capacities. Siemens Energy, for example, invests substantially in IT platforms enabling seamless integration of renewables into traditional grids, enhancing flexibility and supporting sustainability mandates around the world.
Latest Trends in Global IT Spending in Energy
Cloud Adoption and Edge Computing: Energy companies are rapidly migrating critical systems to the cloud, enabling more efficient data management and collaboration. Shell has partnered with Microsoft Azure to deploy edge and cloud computing for better management of remote oilfields, illustrating the growing importance of cloud solutions in the sector.
Cybersecurity Investments: As digitization rises, so does the threat landscape. To combat cyber risks, companies like ABB Group are increasing investments in cybersecurity measures, specifically SCADA security, threat monitoring, and incident response, thereby ensuring the resilience of energy infrastructure against sophisticated cyberattacks.
Market Opportunities for Global IT Spending in Energy
Expanding Smart Grid Projects: With global demand for efficient power delivery, opportunities abound for IT vendors supporting smart grid expansion. Companies like General Electric are capitalizing by offering integrated grid software and analytics for next-gen power management.
Emergence of Decentralized Energy Systems: The rise of microgrids and distributed energy resources presents lucrative prospects for IT integration. Firms such as IBM are developing blockchain and AI-powered solutions to manage and monetize decentralized energy transactions.
Global IT Spending in Energy Market Revenue (USD Million), 2020-2035
The market revenue for IT spending in the energy sector demonstrates steady and robust growth from 2020 through 2035. In 2020, the market was valued at USD 15,200 Million, steadily climbing to USD 28,500 Million in 2025. Fuelling this growth are major investments in digital infrastructure, cloud adoption, and renewable integration. By 2030, revenue is projected to surge to USD 48,800 Million as utilities modernize operations and cybersecurity spending intensifies. Ultimately, the market is forecast to reach USD 73,800 Million in 2035, propelled by smart grid proliferation, IoT, and AI deployment across the energy value chain.
Global IT Spending in Energy Market by Regions Share (%), 2025
In 2025, North America is projected to maintain the largest market share in global IT spending in energy, accounting for 33%, driven by robust digitization and renewable initiatives. Europe follows with 27%, due to strong policy support for smart grids and decarbonization. The Asia-Pacific region, rapidly expanding in renewable adoption and urbanization, stands at 24%. Middle East & Africa, investing in smart infrastructure, makes up 9%, while Latin America, undergoing modernization of grids and energy efficiency projects, represents 7% of the total share.
Recent Developments in Global IT Spending in Energy Market (Last 6 Months)
In April 2024, Schneider Electric launched its EcoStruxure Automation Expert 2024, specifically targeting increased digital integration and flexibility for power utilities. The new platform leverages open automation standards to simplify operations, accelerate deployment of smart grids, and support greater integration of renewable resources. This launch represents Schneider’s focus on digital transformation within the energy industry.
In May 2024, Siemens Energy announced a strategic partnership with SAP to deliver next-generation IT solutions for energy asset management. This collaboration aims to combine Siemens’ extensive energy infrastructure expertise with SAP’s advanced analytics, cloud, and AI technologies, providing holistic digital services to enhance operational efficiency and asset reliability for global energy clients.
In March 2024, ABB Group introduced a new suite of cybersecurity solutions designed for power grids and energy assets. With increasing threats to critical infrastructure, ABB is focusing on resilient SCADA systems, 24/7 monitoring, and AI-driven incident response tools, supporting secure grid modernization for utilities worldwide.
North America, Europe, APAC, South America, Middle East, Africa
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