The Global Energy Management Systems Market size is expected to reach $107.1 billion by 2028, rising at a market growth of 15.6% CAGR during the forecast period.
An energy management system, or EMS, is a set of computer-assisted tools used by electric utility grid managers to track, control, and improve the performance of their generating and transmission systems. It can be utilized in microgrids as well as other small-scale systems. It is an emerging technology that allows an organization to acquire real-time data on energy use by monitoring, analyzing, and displaying energy consumption. This approach not only helps make data-driven judgments and improve enterprise-level operations and financial decisions, but it also analyses the consumption of energy.
A computer system specifically developed for the monitoring and automated control of those electromechanical systems in a building that consumes significant amounts of energy, such as heating, ventilation, and lighting installations is referred as an Energy Management System. The scope can range from a single structure to a collection of structures, like office buildings, university campuses, retail store networks, or industries. The majority of these energy management systems also allow users to read electricity, gas, and water meters.
The information received from these meters can subsequently be utilized to perform frequent self-diagnostic and optimization algorithms, as well as annual consumption and trend analysis estimates. Individual commercial entities frequently employ energy management systems to measure, monitor, and control the electrical loads of their building. Energy management systems can also be used to operate devices such as HVAC units and lighting systems from a central place, such as a retail store, a grocery store, or a restaurant. Metering, monitoring, and submetering, capabilities in energy management systems enable facilities and building managers to collect data and information that allows them to make better-informed decisions about energy operations throughout their facilities.
The COVID-19 outbreak caused a significant downfall to various economies all over the world. The outbreak of the novel coronavirus slowed down numerous businesses globally. In addition, due to the rapid spread of the infection, governments were forced to impose countrywide lockdowns. Due to the travel restrictions under the lockdown, the supply chain of various goods, as well as intermediate goods, was significantly disrupted. Moreover, the lockdown also caused a considerable hindrance to various manufacturing facilities worldwide. In addition, the energy management system market was also disrupted by the pandemic, due to the closure of manufacturing utilities all over the world, the production of components that are used in the composition of energy management systems, such as smart meters and smart grids, was hindered.
Home area networks have experienced a revolutionary change in numerous areas of power consumption domains, such as energy conservation at electricity usage patterns and consumption premises, due to rapid improvements in technologies such as network communication, bidirectional communication mediums, smart grid, energy conservation methodologies, information infrastructures, and various techniques. Because of the growing concern about energy efficiency, there is an increasing focus on implementing energy-saving equipment in homes all over the world. Irrespective of national energy pricing, usage, or climatic considerations, energy management systems are considerably cost-effective in almost all residential structures.
Variations in demand and supply cause fluctuations in energy prices. Extreme weather, supply availability, and economic conditions are only a few of the elements that influence energy prices. In addition, according to the World Energy Outlook, energy consumption is estimated to rise by 60% over the next 25 years with developing countries contributing to the majority of this surge. In rising countries, fossil fuels like thermal power plants and coal currently offer a significant amount of energy. This is the most cost-effective non-renewable energy source. Increased energy demand and natural resource depletion are anticipated to further drive alternative and more costly types of energy generation forward, leading to rising energy prices.
With the increasing industrialization across the world, the level of pollution is also rising due to the increasing carbon waste by manufacturing companies. Small businesses, particularly in growing economies have a key role in increasing the amount of pollution in the environment. This is owing to the apathetic attitude of businesses toward pollution avoidance, as well as their lack of environmental understanding. Unlike small businesses, large businesses typically invest heavily in energy management and pollution control. Additionally, enforcement of pollution rules is unequal, with only government-owned companies being targeted for pollution penalties, environmental monitoring, and fines.
Based on Component, the market is segmented into Solution and Services. In 2021, the solution segment acquired the largest revenue share of the energy management systems market. The rising growth of the segment is owing to the fact that these technologies offer a real-time gathering of crucial data and energy readings, allowing more effective energy resource management. Additionally, the increasing trend of EMS across several industrial verticals, technical developments, the availability of low-cost labor, and low production costs are some of the primary drivers that are increasing the demand for energy management systems. Moreover, the demand for energy solutions is primarily being driven by factory automation and the industry 4.0 revolution. The modern energy-as-a-service approach, which is easily scalable, is aiding in their implementation and allowing organizations to emphasize on crucial business activities. Such developments in energy management services would propel the growth of this segment throughout the forecast period.
Based on Type, the market is segmented into Industrial, Building, and Home. In 2021, the home segment acquired a significant revenue share of the energy management systems market. The growth of this segment is being fueled by a growing awareness of power conservation and efficient energy management among homeowners. Fusion Home intends to make it easier for residents to create, store, and manage power. It also helps with power consumption monitoring and provides an easy-to-adapt experience of utilizing renewable energy at home. This device allows homeowners to effectively monitor their energy needs as well as obtain information on the electricity consumption patterns and data of individual appliances. A hub that can be installed on an electrical board is part of the system's hardware.
Based on Application, the market is segmented into Commercial and Residential. In 2021, the commercial segment registered the highest revenue share of the energy management systems market. Due to increased energy costs and government initiatives incentivizing firms to reduce their carbon impact, the commercial segment is observing increased growth. This industry encompasses a wide range of office spaces, enterprises, and shopping malls, all of which use a lot of electricity. The rising awareness of power optimization and lower operating costs in large and small-scale companies is likely to increase demand.
Based on End User, the market is segmented into Energy & Utilities, IT & Telecom, Manufacturing, Retail, Healthcare & Life Sciences, and Others. In 2021, the healthcare and life sciences segment recorded a substantial revenue share of the energy management systems market. The surging growth of this segment is due to the fact that healthcare organizations are expected to put a major emphasis on energy in their overall environmental management processes and systems, including defining goals for enhancing energy efficiency and choosing the most cost-effective energy procurement choice. Healthcare operations personnel can use energy management to not only develop more efficient methods to work, but also to conserve money and crucial resources. When it comes to energy management, hospitals can be more attentive and robust when disaster strikes. Operations data changes from being stored on paper and in binders to being live data that can be used to make split-second decisions with the help of a system.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 3107.1 Billion |
| Market size forecast in 2028 | USD 107.1 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 15.6% from 2022 to 2028 |
| Number of Pages | 262 |
| Number of Tables | 453 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Type, Application, End User, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2021, North America acquired the highest revenue share of the energy management systems market. The growth of the regional market is increasing as a result of increased digitization and data generated by IoT devices Moreover, with the region's expanding high carbon footprint and energy needs many enterprises are turning to energy management systems to optimize their operations' energy resources.
Free Valuable Insights: Global Energy Management Systems Market size to reach USD 107.1 Billion by 2028
The major strategy followed by the market participants is Acquisitions and Mergers. Based on the Analysis presented in the Cardinal matrix; Honeywell International, Inc. and Siemens AG are the forerunners in the Energy Management Systems Market. Companies such as Johnson controls international Plc, Schneider Electric SE are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include General Electric (GE) Co., Siemens AG, Yokogawa Electric Corporation, Honeywell International, Inc., Schneider Electric SE, DEXMA Sensors, SL, Delta Electronics, Inc., Johnson Controls International PLC, C3.ai, Inc., and GridPoint, Inc.
By Component
By Type
By Application
By End User
By Geography
The energy management systems market size is projected to reach USD 107.1 billion by 2028.
Rising demand for home energy management systems are increasing are driving the market in coming years, however, lack of awareness growth of the market.
General Electric (GE) Co., Siemens AG, Yokogawa Electric Corporation, Honeywell International, Inc., Schneider Electric SE, DEXMA Sensors, SL, Delta Electronics, Inc., Johnson Controls International PLC, C3.ai, Inc., and GridPoint, Inc.
The expected CAGR of the energy management systems market is 15.6% from 2022 to 2028.
The Industrial segment is leading the Global Energy Management Systems Market by Type in 2021; thereby, achieving a market value of $58.1 billion by 2028.
The North America is the fastest growing region in the Global Energy Management Systems Market by Region in 2021.
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