IoT and AI reshaping energy and utilities, and these ASX players are making their moves

The IoT boom is transforming industries, with Simble, EP&T, and X2M Connect leading the ASX in this space.

Booming IoT sector transforming industries with smart tech. Pic: Getty Images

• Booming Internet of Things sector transforming industries with smart tech

• Simble and EP&T making major moves in energy efficiency

• Stockhead speaks to X2M Connect CEO, Mohan Jesudason

The Internet of Things (IoT) is a booming sector that's reshaping industries worldwide.

Driven by the rise of data revolution, IoT is opening doors to new possibilities across healthcare, automotive and manufacturing.

But one area that's seen tremendous growth is in IoT for utilities.

The push to digitise essential services like water, gas and energy is particularly strong, especially in the Asia Pacific region.

These utility companies are rapidly adopting smart technologies to improve operations and customer satisfaction.

According to research by Grand View, the global IoT market in utilities was valued at US$47.53 billion in 2023, and is set to grow at 10.7% annually from 2024 to 2030.

ASX companies in this space

There is just a handful of companies on the ASX operating in this space, and one of them is Simble Solutions (ASX:SIS).

Simble’s products include CarbonView, which helps companies track and reduce their carbon emissions.

But its flagship is SimbleSense, a key product designed to help businesses optimise their energy use in real time.

The system integrates with various devices and smart meters across a business's energy infrastructure, allowing them to track electricity consumption and identify inefficiencies.

SimbleSense is getting a lot of attention from top energy players, and big Australian and UK energy retailers are using it to boost their customer service game.

For example, the platform is currently being offered by Origin Zero, a business unit of Origin Energy (ASX:ORG) that provides energy solutions to large companies.

Intellihub, a major smart meter company, is also offering SimbleSense on a subscription basis to their customers across Australia and New Zealand, covering everything from commercial to residential markets.

Another related company in this space is EP&T Global (ASX:EPX).

EPX is all about making buildings more energy-efficient and cutting down on CO2 emissions.

It has developed a smart platform called EDGE that helps commercial buildings like shopping centres, offices, and arenas reduce energy use.

On average, EPX's customers save around 21% on energy consumption by using it.

The global impact is pretty huge too. In 2024 alone, EP&T said its platform helped avoid over 44,000 tonnes of CO2 emissions – the equivalent of planting 2 million trees.

The company has a growing customer base across 25 countries and over 8 million square meters of buildings under management.

X2M Connect is potentially one to watch

Another Aussie company operating in this space is X2M Connect (ASX:X2M), which has rapidly evolved from a niche player in the utility sector to a technology company expanding into renewable energy and smart cities.

“We're essentially a technology company," X2M CEO, Mohan Jesudason, told Stockhead.

"Our business is the collection and aggregation of data, and then going back and controlling those machines and devices that we get the data from, and doing that without human intervention.

“We were an early mover in APAC and got a good foothold in countries like South Korea, Japan, and Taiwan.”

In South Korea, where meter readings were once done manually, X2M’s technology has transformed the process.

“The meters there were underground, and the temperature swings from minus 20 to plus 40. Meter readers have to lift lids and manually read meters.

“This led to inaccurate readings, disgruntled customers, and rising labour costs.”

X2M’s solution was simple: a chip installed in the meter that automates readings and helps detect leaks, all without human intervention.

In Japan, X2M has introduced a similar solution for bottled gas distribution. Jesudason pointed out the inefficiencies in the traditional gas delivery model there.

“In Japan, 24 million households are on bottled gas. If you run out, a truck comes the next day.

"But we use our AI to predict when a household will run out of gas, so the delivery happens before the event, not after.”

This has led to a 28% reduction in kilometres traveled, a 10% reduction in fleet size, and a 19% decrease in operational costs for the energy supplier.

X2M’s platform also uses IoT in smart ways to help make things safer and more efficient.

For example, if a smoke alarm detects danger, it can shut off the gas meter to prevent explosions. In case of an earthquake, devices can send a signal to turn off gas meters in buildings.

It can also control energy use in homes, like managing the inverter, battery, and appliances to save costs.

Expanding into renewable energy

X2M’s latest platform, Hive AI, marks a strategic expansion into the renewable energy sector.

Launched in partnership with UAE-based Sirius Digitech, Hive AI is all about introducing AI into the renewable energy sector.

“Our AI engines take data from external sources, like weather forecasts, and predict how much solar production will happen and what the demand will be, with up to 98% accuracy," Jesudason says.

Jesudason sees the renewable energy space exploding, with growing demand for more efficient and intelligent solutions.

“We have AI engines that help solar generators grow their top line or reduce their cost base. We’re positioning ourselves as a significant player in this space,” he said.

When you look at this AI space, Jesudason said that you can basically break it down into three big value pools.

First, there’s the data generation pool, which you can make money from. Then, there’s the value pool in creating AI engines and selling them.

“But sitting in the middle is the most crucial part – the data management pool," Jesudason said.

“AI and machine learning are only as good as how well you capture, manage, and distribute data, quickly, simply, and cheaply.

“There’s going to be some big winners in this data management space, and that’s exactly where we’re positioning ourselves to crush it,” he added.

Looking ahead

Looking to the future, Jesudason outlined the company’s geographical expansion strategy.

India’s ambition to digitise 250 million electricity meters over the next few years, for instance, presents a significant opportunity for X2M.

“We’re waiting for the subsidies to come through, and we’ll be ready to engage in that market,” Jesudason noted.

He also explained that the key to the company's success is not just the technology itself, but the ability to scale it quickly and cheaply.

“We have a business that, since listing, hasn't missed a beat, is growing, and losses are coming down," he said.

“Our recurring revenues are growing strongly, and our focus on AI and data management is really paying off. This is an exciting time for the company.”

The views, information, or opinions expressed in this article are solely those of the interviewee and do not represent the views of Stockhead.

Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.

Originally published as IoT and AI reshaping energy and utilities, and these ASX players are making their moves