Energy Management System Market Forecasts to 2028 – Global Analysis By Deployment (On-Premises, Cloud Based), Component (Hardware, Software, Services), Application (Energy Monitoring, Energy Generation) and By Geography

Energy Management System Market Forecasts to 2028 – Global Analysis By Deployment (On-Premises, Cloud Based), Component (Hardware, Software, Services), Application (Energy Monitoring, Energy Generation) and By Geography

According to Stratistics MRC, the Global Energy Management System Market is accounted for $92.71 billion in 2022 and is expected to reach $288.10 billion by 2028 growing at a CAGR of 20.8% during the forecast period. Energy management systems (EMS) are one of the emerging technologies that enable an organization to collect real-time information on the energy use through monitoring, assessing, and visualizing energy consumption. It is gaining popularity since they help gain competitive advantage, increase productivity, and reduce energy cost. In addition, the government policies toward energy conservation and the limited availability of fossils is drawing attention of the market players.

The industrial sector is the most valuable within the global energy management systems market. In 2020, this sector had a market value of an estimated 4.43 billion U.S. dollars. It is estimated that home energy management IoT will have an economic value of between 80 and 150 billion U.S. dollars by 2025, and is expected to grow to between 130 and 230 billion U.S. dollars by 2030.

Market Dynamics:

Driver:

Existence of various industry guidelines

All the resource-intensive industries utilize significant amount of raw materials, water and energy resources, thus leading to a large amount of solid waste, effluents, and emissions. These industries are often subject to numerous global and local regulations, along with several plant level geography compliance. In order to comply with these stringent regulations, enterprises are adopting energy management solutions and are employing various methodologies, such as product lifecycle assessments, carbon & energy footprint analysis, and devising processes to ensure a sustainable and eco-friendly supply chain, to cater to these requirements. With environmental and energy sustainability becoming a global concern, there is an upsurge in the number of investors, customers, and suppliers who consider energy management system as a key factor in taking decisions about their relationship with manufacturers.

Restraint:

Large initial investments

Energy management systems have a high initial cost of deployment. There is the lack of financial resources as well. These may have a negative impact on the energy management system market during the forecast period.

Opportunity:

Ongoing technological advancements

Continuing technological advancements and favorable incentive programs aimed at driving energy efficiency is set to complement the market outlook. Moreover, growing adoption of smart energy units impelled by availability of economic system pricing will strengthen the product deployment.

Threat:

Structuring of initial data gathered

The initial step towards energy management is the data gathering. This gathered data needs to be structured so as to obtain useful conclusion from it. But the structuring of large amount of data is a great challenge to professionals and hence it is a major threat for the growth of the market.

Covid-19 Impact

COVID-19 has negatively impacted the market growth in the year 2020. Industrial and commercial building energy demand has declined significantly in many countries, accompanied by an increase in residential energy demand. Restricting social distancing has resulted in a sharp drop in the utilization of commercial buildings. However, in 2021, the stabilization of the global economy and the clearance of the roadblocks in industrial manufacturing has resulted in tremendous growth in the EMS market.

The building energy management system (BMS) segment is expected to be the largest during the forecast period

Rising preference toward implementation of energy efficient systems primarily across commercial establishments is forecast to augment the segment growth. Furthermore, increasing focus pertaining to monitoring & analyzing real time energy consumption, load fluctuations and equipment performance is enhancing the system deployment. Ability of these units to significantly reduce the operating costs and ongoing refurbishment activities for building smart establishments is estimated to enhance the market statistics.

The services segment is expected to have the highest CAGR during the forecast period

The increasing adoption of energy management solutions across different market verticals has also fueled the market penetration in the recent years. Rising consciousness towards energy efficiency among residential users is expected to witness attractive growth rate and subsequently provide profitable expansion opportunities for the market players in EMS based services. In addition, the increasing demand of energy efficient solutions in end-user such as enterprise, office spaces, and commercial sites to minimize their daily operational costs through effective energy consumption is also projected to propel the market growth of the building EMS services in the forecast period.

Region with largest share:

North America is projected to hold the largest market share owing to the introduction of energy codes, Minimum Energy Performance Standards (MEPS) and execution of government’s aim to achieve energy intensity targets. In the coming years, the office and commercial buildings segment is expected to witness huge growth in the Energy Management System market due to increasing worldwide demand for energy optimization and carbon management. The customer value proposition includes energy cost savings, wide range of products and services, superior customer service, and global deployment.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR due to the government’s initiative towards improving the manufacturing capabilities through application of smart solutions, rapid urbanization and fast growing industrial segment.

Key players in the market

Some of the key players profiled in the Energy Management System Market include ABB Group, Schneider Electric SE, Siemens AG, Honeywell International Inc., Toshiba Corp., General Electric, Daikin Industries Ltd, Johnson Controls, Inc, International Business Machines Corporation, Emerson Process Management, Elster Group GmbH, Jones Lang LaSalle, GridPoint, Inc, C3 Energy, and Daintree Networks.

Key developments:

In August 2021: Daikin has partnered with Japanese utility company Kansai Electric Power Co to test an energy management system utilising an air conditioning control system and solar power generation.

In June 2021: Honeywell announced its Battery Energy Storage System (BESS) Platform, which integrates Honeywell asset monitoring, distributed energy resource management, supervisory control and analytics functionality to enable organizations to accurately forecast and optimize their overall energy use.

Devices Covered:
• Load Control (LC) Switches
• In-House Display (IHD)
• Smart Thermostats
• Smart Plugs

Types Covered:
• Factory Energy Manament System
• AC Control Energy Management System (EMS)
• Power Control Energy Management System
• Cluster Energy Management System
• Retail Energy Management System
• Building Energy Management System (BMS)
• Ventilation Control Energy Management System
• Heat Control Energy Management System

Solutions Covered:
• Demand Response (DR) Management
• Carbon Energy Management
• Utility Billing and Customer Information System (CIS)

Deployments Covered:
• On-Premises
• Cloud Based

Components Covered:
• Hardware
• Software
• Services

Applications Covered:
• Energy Monitoring
• Energy Generation
• Energy Transmission

End Users Covered
• Residential
• Healthcare & Pharmaceutical
• Building Automation
• Energy, Power & Utilities
• Automotive
• Manufacturing
• Telecom & Information Technology (IT)
• Oil & Gas
• Office and Commercial Buildings
• Municipal, University, Schools and Hospital (MUSH)
• Enterprise
• Public Places
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements