Global Energy Software Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Energy Software Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Energy software is software for tracking energy management that provides organizations with an easy way to track and collect vital metrics related to energy usage. Energy software features include real-time energy usage monitoring, utility bill tracking, energy data analysis, HVAC system control, and carbon and sustainability reporting. Energy software designed to increase efficiency, ensure compliance and reduce operating costs.

Market Overview:

The latest research study on the global Energy Software market finds that the global Energy Software market reached a value of USD 11543.0 million in 2022. It’s expected that the market will achieve USD 19310.0 million by 2028, exhibiting a CAGR of 8.95% during the forecast period.

The COVID-19 pandemic has seriously hindered industrial activities and social livelihood, and industrial energy demand has dropped significantly. Due to the pandemic, the closure of major industrial and production plants has led to a significant drop in energy usage and electricity demand in heavy industries such as oil, coal, and natural gas around the world, resulting in a corresponding decrease in revenue for energy software service providers. The outbreak has led to lockdown restrictions and travel restrictions in many countries around the world, disrupting supply chains and market demand for commodities and materials. Trade restrictions, production site closures, declining productivity, cash flow constraints, and labor shortages have contributed to lower profit margins in most manufacturing industries around the world. Many governments have extended grace periods for businesses to pay rent and utility bills to ease the pressure on businesses. With shrinking revenues and ongoing fixed costs, many businesses and the government itself are asking for a temporary reduction in payments. This has a relatively large negative impact on the cash flow of energy software service providers. The remote working trend reduces the need for commuting, which lowers carbon emissions. Reduced environmental impact on the community slows down the need to adopt energy software. Overall, COVID-19 has presented several major challenges to the utility energy sector. These include a sharp drop in commercial energy demand, margin calls, delayed payments from customers, and a liquidity squeeze due to customer bankruptcies.

However, the imposition of the lockdown has increased household activities such as online shopping, remote working, powering appliances to cool or heat homes, and streaming entertainment services. These factors have led to soaring energy bills in the residential sector, spurring the need for energy management. As the epidemic gradually came under control, some factories began to resume work. However, enterprises need to protect the life and health of employees during the production process, such as purchasing masks, disinfectants, and other anti-epidemic materials, disinfecting the working environment before and after production, and measuring the temperature of employees every day to ensure production safety. employee health. These measures will increase production costs and affect the development of enterprises.

Benefits of energy software

With the continuous expansion and development of the energy industry and manufacturing industries, the sharp rise in energy prices in recent years, and the construction of an environmentally friendly society, the importance of energy management has become increasingly prominent. More and more businesses are investing in energy software to help them be as efficient as possible. Energy software is designed to monitor and analyze a business's energy consumption, using machine learning techniques to highlight areas for improvement to reduce energy consumption and costs. Examples include adjusting thermostat settings, optimizing lighting schedules, and reducing unnecessary use during off-peak hours. Businesses that leverage energy software and invest in green practices can attract investors and employees who value sustainability. Energy software provides a comprehensive view of enterprise energy consumption, enabling managers to understand how energy is being used across the organization and make more informed decisions about resource allocation and improvement prioritization. Whether you are a business using traditional energy (oil, gas, coal) or renewable energy (solar, wind), or planning to implement micro grids and asset automation, energy software can integrate with these systems. Energy software can also integrate with accounting and billing systems to ensure energy costs are accurately reflected in financial records and planning. Energy software enables facility managers and other team members to make more comprehensive and informed decisions by bringing together data scattered across a range of systems. Additionally, in the constant pursuit of the best energy deal, it has become standard for businesses to switch energy suppliers regularly. But when switching energy suppliers, access to historical energy data is often lost. With anytime, anywhere access to cloud-based energy software, users can access real-time data on energy consumption, production, and other key metrics. They can also view historical data, set alerts and notifications, and run energy analyses and reports. This provides users with the flexibility to manage energy usage and costs anytime, anywhere. As regulators become more stringent on energy consumption and efficiency, energy software helps businesses comply with such regulations by providing accurate and up-to-date information on energy usage and efficiency, enabling businesses to avoid costly fines and penalties, and also improving their reputation. As a result, energy software can help companies improve energy and operational efficiency, reduce costs, enhance sustainability and corporate social responsibility, and comply with regulations. Access to energy software is critical for businesses looking to remain competitive in today's market.

Favorable government policies for sustainable energy

Governments around the world are seeking to reduce the use of traditional energy sources and increase investment in rational, safe, and sustainable energy systems. Growing energy demand resulting from rapid industrialization has encouraged governments to adopt efficient environmental management systems. Increasing competition among energy suppliers and rising energy prices are forcing governments to increase investments in sustainable energy. Growing environmental concerns such as climate change, global warming and increasing frequency of natural disasters are forcing global and local energy associations to enforce strict regulations on the efficient use of energy. For example, most states in the United States have developed Renewable Portfolio Standards (RPS), which require a certain percentage of energy to come from renewable sources within a specific time frame. Federal, state, and local governments also provide financial incentives to encourage investment in renewable energy. These include residential energy efficiency subsidies, electric vehicle tax credits, renewable electricity production tax credits, solar renewable energy credits, and more.

Energy-efficient homes and buildings use less energy to heat, cool, and run appliances and electronics, and energy-efficient manufacturing facilities use less energy to produce products. Green initiatives are booming, and businesses realize the importance of promoting their energy-saving initiatives. They gain a competitive advantage by positioning themselves as an eco-friendly company, as this helps them gain consumer confidence and community acceptance. Many top global companies are now focused on being green and have made a strong commitment to sustainable energy. Encouraged by policies and downstream customers, the renewable energy investment platform accelerates the deployment of renewable energy projects, uses energy software to make the financing and management process of renewable energy projects more efficient and transparent, and provides investors seeking portfolio diversification brought new opportunities. Therefore, with the government's favorable policies for sustainable energy utilization and the increasing pursuit of renewable energy by enterprises, the energy software industry has developed rapidly.

Region Overview:

In 2022, the share of the Energy Software market in United States stood at 35.30%.

Company Overview:

The major players operating in the Energy Software market include Broadcom, Schneider Electric, IBM, SAP SE, ENGIE, etc. Among which, Broadcom ranked top in terms of sales and revenue in 2023.

Segmentation Overview:

By type, Cloud segment accounted for the largest share of market in 2022.

Application Overview:

By application, the Manufacturing segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Energy Software market covered in Chapter 3:

SAP SE
ABB
Johnson Controls
Accruent
Eaton Corp
Broadcom
IBM
Schneider Electric
ENGIE
Spacewell Energy

In Chapter 4 and Chapter 14.2, on the basis of types, the Energy Software market from 2018 to 2029 is primarily split into:

On-Premise
Cloud

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Energy Software market from 2018 to 2029 covers:

Oil and Gas
IT and Telecommunication
Manufacturing
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)