Energy Management System Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Energy Management System Market Size

Energy Management System Market Analysis

Service Category Contributes Significant Revenue

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.

Manufacturing Sector Generates Majority of Revenue

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.

Stringent Government Policy, Regulations, and Incentives Drive Growth

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.

Cloud-Based Category To Hold Majority of Share

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.

Rising Adoption of EMS in Building Automation Boost Demand

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.

Industrial Energy Management System (IEMS) Dominates Market

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.

Electrical Energy Price Volatility Drives Growth

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.

Geographical Analysis

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.

Report Breakdown

Based on Offering

• System
• Service
  • Monitoring & Control     
  • Implementation & Integration   
  • Maintenance
  • Consulting & Training
  • Installation 

Based on Component

• Control Systems
• Communication Systems
• Software
  • Utility EMS
  • Industrial EMS  
  • Residential EMS
  • Enterprise Carbon and Energy Management
• Field Equipment
• Sensors

Based on Device

• In-House Displays           
• Thermostats
• Smart Plugs
• Load Control Switches  

Based on Solution

• Carbon Energy Management
• Demand Response Management
• Utility Billing and Customer Information System

Based on Vertical

• Power and Energy
• Telecom & IT 
• Manufacturing 
• Office and Commercial Buildings
• Education 
• Retail
• Healthcare
• Residential

Based on Application

• IEM
• BEM
• HEM

Based on Deployment

• Cloud
• On-Premises

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa

Top Energy Management System Companies