Energy management system market is expected to reach $113,476.9 million by 2023, according to P&S Intelligence.
Stringent government policies and regulations, favorable government support in the form of incentives, volatility of electricity prices, and rising adoption of EMS in building automation are the major factors driving market growth.
Insights on market segments
Based on offering, the service category is expected to continue holding the larger share in the energy management system market in the coming years, owing to the growing need for the proper implementation and integration of the equipment associated with EMS in commercial and residential buildings, globally. Increasing demand of building owners to exercise total control over the EMS and monitor the energy demand of their premises and rising awareness regarding energy management are the key factors driving the growth of the service category in the market.
Based on component, software contributed the largest revenue, of around 24%, to the energy management system market in 2017. End users are increasingly purchasing software to reduce energy costs. Besides, market players are offering various kinds of software to track and reduce energy use in an efficient manner. Companies such as IBM Corporation and Siemens AG offer software tools for utility, industrial, and carbon energy management; this helps the system to provide real-time information and control to the user.
North America is expected to contribute the largest revenue to the market
Globally, North America is expected to hold the largest share in the energy management system market during the forecast period. Rising energy costs and increasing initiatives by the government and various industrialists to reduce carbon footprint are expected to surge the demand for EMS solutions in the North American region. According to a study by Parks Associates, in 2017, about 35% of the U.S. home owners were willing to bundle HVAC maintenance services with their electricity services and approximately 25% were willing to bundle internet services with their electricity services, which, if implemented, would further support the adoption of the EMS in the region.
Browse report overview with 132 tables and 85 figures spread through 208 pages and detailed TOC on "Energy Management System (EMS) Market by Offering (System, Service), by Component (Control Systems, Communication Systems, Software, Other Hardware, Field Equipment, Sensors), by Device (In-House Display, Smart Thermostats, Smart Plugs, Load Control Switches), by Solution (Carbon Energy Management, Demand Response Management, Utility Billing & Customer Information System), by Vertical (Power & Energy, Telecom & IT, Manufacturing, Office & Commercial Buildings, Education, Retail, Healthcare, Residential), by Application (Industrial Energy Management, Building Energy Management, Home Energy Management), by Geography (U.S., Canada, U.K., Germany, France, Spain, Italy, China, India, Japan, South Korea, Australia, Brazil, Argentina, Mexico, U.A.E., South Africa, Saudi Arabia) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023" at:https://www.psmarketresearch.com/market-analysis/energy-management-systems-market
Volatility of electricity prices is a key growth driver for the market
Fluctuations in electricity prices due to demand and supply dynamics are driving the energy management system market. Factors such as extreme weather conditions, economic development, and lack of energy supply are contributing to the rise in energy prices. Energy consumption is anticipated to increase by almost 55% in the next 25 years, with developing countries, such as India and China, to be the key markets.
Fossil fuels, such as coal and natural gas which are the most cost-effective form of non-renewable energy, contribute maximum to energy generation. However, increasing energy consumption and decline in resource reserves would support the use of expensive forms of energy generation, resulting in higher energy prices. Hence, volatility in electricity prices, coupled with constrained energy supply and rising energy cost, is expected to drive the growth of the energy management system market during the forecast period.
Energy Management System market competitiveness
Schneider Electric SE, Siemens AG, Honeywell International Inc., and Johnson Controls International PLC led the energy management system market in 2017. Among these players, Schneider Electric SE held the largest market share. With the acquisition of Areva T&D (Areva’s medium voltage distribution division) in June 2010, Schneider Electric SE became the global leader in medium-voltage and grid automation, which, in turn, consolidated its position in the energy management system market.
Companies in the energy management system market are adopting various growth strategies, including product launches, acquisitions, and collaborations, to expand their market share and consumer base. Some of the other key players operating in the global energy management system market are Emerson Electric Co., IBM Corporation, Eaton Corporation PLC, Cisco Systems Inc., ABB Ltd., and General Electric Company.
Global Energy Management System Market Segmentation
Market Segmentation by Offering
Market Segmentation by Component
Market Segmentation by Device
Market Segmentation by Solution
Market Segmentation by Vertical
Market Segmentation by Application
Market Segmentation by Geography