Published: January 2023 | Report Code: 10238 | Available Format: PDF | Pages: 290
The global energy management system market size stood at USD 39,685 million in 2022, and it is expected to reach USD 111,234 million by 2030, advancing at a compound annual growth rate of 13.8% during the forecast period. This can be attributed to the rising adoption of EMS in building automation, electricity price volatility, and stringent government policies, regulations, and several incentives. Moreover, the rise in the management of electricity uses across commercial, industrial, and public sector enterprises; implementation of cutting-edge energy-efficient technology, and digitization in the electric utility landscape are contributing to the market growth.
The service category accounted for the significant revenue share in 2022, and it is expected to maintain its dominance during the forecast period. This can be attributed to the mounting demand for the appropriate integration and deployment of EMS equipment in corporate or residential buildings across the globe. Some of the major factors driving the expansion of this category are building owners’ propensity for complete control over an EMS, growing awareness and literacy levels, and their ability to track escalating energy demand for a specific location.
Moreover, such services are further bifurcated into monitoring & control, maintenance, implementation & integration, installation, and consulting & training. Of these, the monitoring & control category contributes significant revenue to the market, and it is expected to maintain the trend in the coming years.
With the goal of replacing existing infrastructure and managing natural resources with modern information and communication technologies, the electric power system is currently undergoing a profound transition on a global scale. Moreover, smart grid systems are giving consumers a better utility for saving energy with simple integration and dependable service. Furthermore, consumers are able to automate billing data collections and identify equipment problems owing to the information provided by smart power meters.
In addition, the smart grid technology allows the equipment to make energy consumption decisions based on client preferences. This may result in a move toward minimizing peak loads, which affects the cost of electricity generation. Moreover, companies such as Siemens AG provides energy automation and smart grid solutions for the increasingly distributed energy system to integrate renewable sources and aging grid infrastructures.
The manufacturing category accounted for the largest share, of 22%, in 2022, and it will maintain its dominance during the forecast period. This can be attributed to the rising need for EMS solutions used to manage multiple energy sources as the industry is one of the largest consumers of electricity and the surging requirement for uninterrupted power supply (UPS) along with effective power distribution and management.
Moreover, the adoption rate is high of these systems due to several benefits, such as economic savings, emission reductions, and increasing demand to maximize utilities while limiting electricity use is responsible for the category expansion.
Additionally, the telecom & IT category will register significant growth during the projection period. The industry is rapidly adopting EMS as a form power of backup, to ensure network availability, on account of the surging price of electricity because of the escalating diesel prices and surging concerns over the carbon emissions from diesel gensets. Furthermore, the demand for energy in the industry is rapidly growing after the launch of 4G and 5G technologies, owing to their network coverage in rural areas.
To fulfil the Kyoto Protocol and other similar targets set by government bodies and international standards, energy efficiency measures have been comprised in the building codes and standards of advanced and emerging economies. Moreover, ISO 50001 standard has to be followed by every organization to conserve resources and tackle climate change using power efficiently through the development of EMS. Over the past decade, various government regulations are implemented to adopt low-cost and safe energy sources as an alternative to traditional sources.
In addition, various financial incentives, such as tax reductions and grants, exist for building electricity consumption and CO2 emissions have been implemented to popularize cheap energy sources. Many companies, operating in the market, have started producing a carbon disclosure report and get benefits from federal/state tax incentives. These positive government incentives are expected to drive the global EMSs market during the forecast.
The cloud-based category will witness the faster growth, at a CAGR of 14.6%, during the coming years. This is due to the need to decrease carbon emissions, lower costs, and growing innovative technologies that is playing a crucial role in the reduction of energy consumption. Moreover, organizations can now increase flexibility and utilize cloud computing platforms to visualize, monitor, and evaluate data from remote locations; the growing interest of end-users for real-time energy visibility; and such systems benefits customers to manage and monitor power usage via IoT devices are the factors responsible for the high growth in the category.
Nowadays, majority of the commercial consumers are aware of their soaring energy costs and increasingly adopting EMS solutions. Moreover, EMS helps organizations in optimizing building performance by gaining full control over the building energy consumption and costs involved.
In advanced markets such as North America, the government is running certain awareness programs that are making end users realize the benefits of EMS.
Moreover, the government in APAC and MEA are trying to showcase the benefits of EMS via social media, and are considering passing laws and regulations on the same. Over the past couple of years, there has been a noticeable increase in demand for certification of buildings according to “green” standards. Apart from office buildings, class-A warehouses or industrial facilities were also exhibited.
The IEMS category accounted for the largest share, of 68%, in 2022, and it is expected to maintain its position during the predicted period. This is due to the rapid industrialization and surging need to reduce carbon footprint and production cost. Furthermore, industries, such as steel plants, refineries, cement plants, and chemical and petrochemical plants, are some of the end users that utilize such solutions as the amount of electricity consumed by these industries is significant, which drives the market demand.
As a result of the demand and supply dynamics, the electrical energy price experience fluctuations quite often. Moreover, factors such as extreme weather conditions, economic development, and lack of energy supply trigger the rise in energy prices. For instance, in the next 25 years, electricity consumption is predicted to increase by over 50%, and developing countries, such as India and China, would be key markets. Furthermore, fossil fuels, such as coal and natural gas, contribute maximum to the electricity generation. This is generally the cost-effective non-renewable form of power generation.
The increasing energy consumption and decline in resource reserve would foster other expensive forms of energy generation, resulting in higher energy prices. If consumption is reduced significantly across the sectors and geographies, then its prices can be reduced, relative to the impact of the increasing demand. Hence, factors such as constrained energy supply coupled with rising costs owing to the volatility in electrical energy prices are expected to drive market growth during the forecast period.
Market Size in 2022
USD 39,685 Million
Revenue Forecast in 2030
USD 111,234 Million
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
By Offering; By Component; By Device; By Solution; By Vertical; By Application; By Deployment
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The North American market accounted for the largest share, of 36%, of revenue, in 2022, and it is predicted to maintain its dominance during the forecast period. This can be ascribed to the high utilization rate of these solutions for a wide range of industrial, residential, and commercial applications; growing demand for reduced energy consumption as well as power bills, and surging preference for residential EMS due to increasing awareness among the target population, coupled with the capability to afford them. In addition, the U.S. contributes the majority of revenue to the region owing to the presence of a large number of industry giants and growing power & energy industry.
Furthermore, APAC will witness the fastest growth during the coming years. This is owing to the rising adoption rate of such energy management solutions in emerging economies including China, India, and South Korea; growing economy coupled with per capita income, escalating number of industries, and mounting trend of digitization. Moreover, the booming manufacturing sector, increasing electricity need to be associated with the rising population, and surging number of power projects will boost the regional market demand.
This fully customizable report gives a detailed analysis of the energy management system market from 2017 to 2030, based on all the relevant segments and geographies.
Based on Offering
Based on Component
Based on Device
Based on Solution
Based on Vertical
Based on Application
Based on Deployment
The global energy management system market size stood at USD 39,685 million in 2022.
The global energy management system market is expected to advance at a CAGR of 13.8% during the forecast period.
The North American region accounted for the largest share, of 36%, of revenue, in the market for energy management systems.
The surge in upgradation of power grids into smart grids is a key trend in the energy management system market.
The global energy management system market will generate USD 111,234 million revenue by 2030.
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