Europe Energy Management System Market Analysis by Offering, Component, Device, Solution, Vertical, Application, Deployment - Demand Forecast Report, 2023-2030

Market Overview

The European energy management system market size stood at USD 11,222 million in 2022, and it is expected to grow at a CAGR of 13.20% during 2022–2030, to reach USD 30,257 million by 2030. Electricity price volatility, stringent government policies and regulations, and the rising adoption of EMS in building automation are the key factors driving the industry. Moreover, the surging economic growth, rapid industrialization, and increasing government initiatives toward electricity consumption are some other factors driving the growth of the market.

Service Category Holds Largest Share

Based on offering, the service category accounts for the largest revenue share in the EMS market. This is attributed to an escalating requirement of end users to reduce their operational costs by using several services, including maintenance, consulting & training, monitoring & control, and others. In addition, the inclination of building owners toward total control of an EMS, with rising literacy and awareness, and the ability to monitor the increasing demand for energy in given premises, are some of the other factors resulting in the industry growth in this category.

In the service category, monitoring & control service holds the largest share. This is because an EMS requires constant monitoring and control during its working, and operations of its different components. Certain supervisory systems in smart grids like SCADA are being used to operate the EMS, which can monitor and control the energy consumption of the attached equipment in the grid. Moreover, the rising awareness regarding adopting such types of technologies to minimize energy consumption has been observed in Europe.

Germany Is the Market Leader

In Europe, the German market held the largest revenue share, of 27%, in 2022, and it is further expected to grow significantly during the forecast period. This is due to the government measures that encourage energy conservation, along with the rising awareness of climatic changes.

According to the government website, by 2035, the country is projected to use 100% renewable energy. In addition, due to the Russia–Ukraine war, the country’s commitment to achieving climate neutrality is reformed. The country has set a goal for the coal phase-out by 2038. The parliament has also removed a previous target for 100% renewable electricity by 2035 because of this war and has announced that by 2035 about 80% of electricity should be supplied from renewable resources.

Software Component Shows Highest Growth Rate

The software category is expected to show the highest CAGR, of around 14%, in the coming years. This can be because companies are increasingly buying software for management to reduce power costs, as software for EMS automatically assists in reducing energy consumption, improving the utilization and operation of the system, along with predicting and analyzing system performance. Further, in Europe, the residential sector has the highest growth opportunity for opting for smart energy devices, primarily in-house display devices.

Moreover, energy and network service providers are making aware pertaining to the adoption of monitoring solutions in households.

In this category, utility software holds the largest share, due to its benefits such as it helps users allocate energy costs to entities or departments within an organization, and further helping to benchmark the efficiency of buildings.

Demand for Load Control Switches To Show Fastest Growth

The load control switches category is expected to show the highest CAGR, of 14.5%, during the forecast period. This can be attributed to the surging demand for convenient management of energy use, with the application of these devices. Moreover, the demand for load control switches for commercial and residential end-use is rising, owing to their messaging capabilities and the ability to protect equipment against brownout damage. In addition, these switches are a part of fully-integrated demand management solutions for service providers and utilities who need a two-way, secure, interactive, private communication network, with ubiquitous coverage.

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Carbon and Energy Management Solution Is Largest Revenue Contributor

Based on solution, the carbon and energy management category held the largest share of the European market in 2022. This is attributed to government initiatives and policies across the region, to monitor power consumption, improve power efficiency, reduce carbon emissions, and save energy costs.

Power and Energy Vertical Holds Significant Share

The power and energy vertical held significant revenue share, of 18%, in 2022, in the European market. This is ascribed to its abundant generation and sale of electricity for several applications, such as manufacturing and mining. Thus, the requirement for power optimization and monitoring of electricity consumption, and the increase in popularity of smart grids and smart meters drive the demand for EMSs in this vertical.

Moreover, the rising need of companies to tackle electricity wastage, as well as the surging need for efficient generation and storage of power, would propel the growth of the market in this category. The ‘PowerOn Reliance EMS’ offered by General Electric and Spectrum Power by Siemens is one of the key examples used in the vertical.

Industrial Energy Management Is the Largest Application Area

Based on application, EMSs are widely used for industrial energy management, and this category is expected to continue holding the dominant position in the European market during the forecast period. Industries such as steel, refinery, cement, chemical, and petrochemical are some of the key end users of EMSs, as the amount of power consumed by these industries is significant. The use of such systems helps these industries to reduce their carbon footprint and production cost, which ultimately results in increased profits.

Rising Adoption of EMS in Building Automation Drives the Market

Nowadays, the majority of commercial consumers are aware of their soaring energy costs and are increasingly adopting EMS solutions. These help organizations in optimizing building performance by gaining full control over the building energy consumption and costs involved. In more advanced markets such as Germany, governments are running certain energy-related programs, which are making end users realize the benefits of EMSs.

Moreover, governments in many other countries, such as France and Spain, are trying to showcase the benefits of this system via social media and are even considering passing laws and regulations on the same. The growing building automation market is also a key driving factor that has been witnessed over the last few years. Over the past couple of years, there has been a noticeable increase in demand for certification of buildings according to “green” standards.

In recent years, the market has recorded a rise in the number of system integrators, and this has helped in shaping the overall industry. These are the backbone of system integration for building automation, who also take part and acquire tenders, and carry out not only large but also technically complex projects. Thus, this factor drives the demand for EMSs in the region.

Key Players in the European Energy Management System Market Are:

• Schneider Electric SE
• Eaton Corporation plc
• Siemens AG
• Johnson Controls International Plc
• ELIQ AB
• Encoord GmbH
• RiDERgy GmbH
• Mitsubishi Electric Corporation
• General Electric Company