Energy Management System Market To Generate Revenue Worth $111,234 Million by 2030

The global energy management system market is projected to generate USD 111,234 million revenue by 2030, advancing at a CAGR of 13.8% during 2022–2030. This can be ascribed to the growing industrialization, mounting urban population, surging need to monitor and minimize the wastage of energy, increasing government support, and rising need for power generation boost the market growth.

Manufacturing Industry Is Prime Revenue Contributor

Manufacturing category accounted for the largest revenue share, of 22%, in 2022, and it is further expected to maintain its dominance during the forecast period. This can be ascribed to the growing manufacturing industry, growing trend of digitization and smart factories, and rising need to reduce carbon emission. Additionally, the emerging economies, such as China, India, and South Korea, contributes significantly to the category growth owing to their mounting manufacturing capabilities and rising number of physical facilities.

The power and energy category will register significant growth during the forecast period. This is due to its abundant generation and sale of electricity and energy for several applications, such as manufacturing and mining. The requirement of EMS for power optimization and monitoring of energy consumption drives the market demand. Moreover, the growing popularity of smart grid and smart meters further provide growth opportunity for EMS solutions in this industry.

Based on offering, the market is segmented into system and service. Of them, the service category will witness the faster growth during the coming years. This is due to the increasing demand for consulting, implementation and integration, and monitoring of equipment associated with EMS in commercial and residential buildings.

Based on application, the market is bifurcated into industrial energy management system (IEMS), building energy management system (BEMS), and home energy management system (HEMS). Among these, IEMS held the highest revenue share in 2022, and it is expected to maintain its position in the coming years. This is owing to the growing number of industries, rising need for reducing carbon emission, high adoption of advanced technology and surging demand to lower the production cost.

In addition, the HEMS category contributes the significant revenue to the market in 2022. This is credited to the surging domestic energy consumption, rising electricity billing costs in residential areas, growing trend for smart homes, and increasing consumer concern about the efficient use of energy.

Geographically, APAC will register the fastest growth during the coming years. This is due to the surging economic growth, rising urbanization coupled with industrialization, and mounting government initiatives toward energy consumption. Furthermore, the emerging nations, such as China, India, and South Korea contributes the majority of revenue to the regional market, owing to the rising urbanization, mushrooming demand for power generation associated with the increase in population, and escalating number of local manufacturers.

On the other hand, the North America held the largest revenue share in 2022, and it is expected to maintain its dominance during the forecast period. This can be ascribed to the high technological advancements, well-established infrastructure network, and widespread adoption of EMS across different verticals, such as manufacturing, retail, and power.

Furthermore, the Europe contributes significant revenue to the market due to the favorable energy policies and regulations, rising preference for energy-efficient buildings, and systems; and high adoption of smart technologies.

Some of the major companies in the market are Honeywell International Inc., Schneider Electric SE, Siemens AG, Johnson Controls International plc, ABB Ltd., General Electric Company, Cisco Systems Inc., International Business Machines Corporation, Emerson Electric Co., GridPoint Inc., and Yokogawa Electric Corporation.