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AI, Electrification, and Industry Convergence Define the Next Decade of Transformation
As the global energy transition accelerates, the power and energy industry is undergoing a period of rapid reinvention. Frost & Sullivan’s latest analysis, Top 10 Strategic Imperatives in the Global Power and Energy Industry, 2025, highlights the key technological, economic, and structural shifts that will determine competitiveness and resilience over the next 15 years.
From the electrification of transport to the growth in decentralised energy systems and the integration of artificial intelligence (AI) into every aspect of operations, the sector is entering a new era defined by cross-industry collaboration and innovation.
- Automotive-Energy Collaboration
The convergence between the automotive and energy sectors is giving rise to grid-integrated electric vehicle (EV) infrastructure. Automakers, utilities, and governments are coordinating on siting, grid upgrades, and smart-charging standards to optimize renewable energy use and reduce system costs. With vehicle-to-grid (V2G) and bi-directional charging now commercially viable, EVs are emerging as flexible grid assets.
- AI Platforms for Energy Management
AI is transforming the management of distributed energy systems. Platforms enabling predictive demand response, virtual power plants, and carbon tracking are driving new value across utilities and commercial sectors. Companies such as Schneider Electric, AutoGrid, and IBM are leading the shift toward decarbonisation-as-a-service, using AI to manage complex, data-rich energy networks in real time.
- Decentralized Energy Systems
The global shift toward decentralised energy marks a fundamental change in how power is produced and consumed. Microgrids, local storage, and peer-to-peer trading platforms are expanding energy access and resilience. Supported by public–private partnerships, technologies from firms such as Tesla and Siemens are enabling communities to generate and manage their own clean energy with greater autonomy.
- IoT-Enabled Smart Grid Management
The deployment of IoT sensors and edge computing is redefining operational visibility. Utilities are using real-time analytics for predictive maintenance, demand balancing, and asset optimisation - enhancing reliability and reducing downtime. Companies like Honeywell, ABB, and Siemens are pioneering these data-driven grid advancements.
- AI Pricing and Subscription Models
AI is also reshaping the business model of utilities. Dynamic pricing and subscription-based renewable energy services are driving deeper customer engagement and cost efficiency. Utility companies are leveraging AI platforms from companies such as Kraken and Kaluza to enable smart tariffs, flexible consumption, and personalized energy retail offerings.
- to 10. New Frontiers in Energy Transformation
Further imperatives include the rise of low-carbon energy resilience, digital energy through tech-power collaborations, advanced battery commercialisation, and automated AI diagnostics for fault detection. Together, these advances are creating a more intelligent, integrated, and adaptive power ecosystem capable of meeting global decarbonisation goals.
“The coming decade will be defined by convergence,” said Jonathan Robinson, Energy & Buildings Practice Area Leader at Frost & Sullivan. “The intersection of energy, digital technology, and mobility is driving one of the most profound industrial transformations in history. Organisations that harness data, collaboration, and innovation at scale will be best positioned to lead the clean energy future.”
Source: Frost & Sullivan
A Decade of Action Ahead
As Frost & Sullivan’s analysis underscores, tomorrow’s energy leaders will be those that embrace convergence, invest in AI-driven resilience, and align innovation with sustainability targets. With electrification, data intelligence, and digital transformation now shaping the sector’s trajectory, the next decade will define not just who leads - but who lasts.
