Europe Energy Management System Market To Generate $30,257 Million Revenue by 2030

The European energy management system market size is expected to advance at a CAGR of 13.20% during 2022–2030, to reach USD 30,257 million by 2030. This can be because the industry is witnessing a consistent rise in R&D efforts from participants and high adoption of EMSs among end users due to the surging demand for efficient energy sources as a replacement for traditional energy sources.

Companies operating in the technology industry are trying to offer a better solution to help their consumers to monitor and optimize energy utilization in a course of time. Countries like Germany and the Netherlands are experiencing an increase in urban population, due to growing industrialization, resulting in the rising demand for power in recent years. Therefore, the rising power consumption increases the need for electricity, which has created a high demand for EMSs that can monitor and minimize the wastage of energy.

Stringent Government Policies, Regulations, and Incentives Drives the Industry

To fulfil the Kyoto Protocol and other similar targets set by international standards and government bodies, energy efficiency measures have been included in the building codes and standards of most developed and developing economies. ISO 50001 standard has to be followed by every organization to conserve resources and tackle climate change using energy efficiently through the development of EMSs. Over the past decade, various government regulations were implemented to adopt low-cost and safe energy sources as an alternative to traditional energy sources.

In addition, various financial incentives, such as grants and tax reduction, exist to encourage investments that reduce building energy consumption and CO2 emissions and have been implemented to popularize cheap energy sources. Also, various companies operating in the market have started producing carbon disclosure reports and benefit from federal/state tax incentives. These positive government incentives are expected to drive the European market during the forecast period.

Market in Italy To Show Significant Growth

The Italian market is expected to show significant growth, advancing at a CAGR of 13.8%, in the coming years. This can be due to the rising dependency and focus on the usage of renewable sources for energy generation, the increased funding for the development of commercial spaces, and the surging electricity consumption, which are expected to support the requirement for improved and better energy-efficient solutions.

In Italy, the total power generated from renewable sources is 58 GW. In 2021, renewable sources generated 36% power of the total electricity demand; the production of electricity from solar power increased by 2.1%, and solar power represents 21.7% of annual electricity demand from renewables.

Software Holds Highest Revenue

Based on component, the software category accounts for the largest revenue share in the industry. This is primarily because it provides various tools or options for reducing energy costs and consumption for buildings or communities. Moreover, the software gives real-time data of minute-by-minute, of the equipment connected with EMSs.

Conversely, the demand for hardware, such as meters, submeters, relays, and lighting systems, is expected to grow significantly during the forecast period. This can be mainly on account of the surging use of smart energy meters in the residential sector.

The most-significant European energy management system market players are Schneider Electric SE, Eaton Corporation plc, Siemens AG, Johnson Controls International Plc, ELIQ AB, Encoord GmbH, RiDERgy GmbH, Mitsubishi Electric Corporation, and General Electric Company.