The global energy management systems market size was worth USD 39.89 billion in 2018 and projected to grow with a CAGR of 17.1% over the forecast period, from 2019 to 2025. Growing awareness about adopting energy management system solutions among residential, commercial and industrial sectors is expected to drive market growth over the forecast period. Industrial and commercial sectors are expected to adopt EMS due to high power consumption.
In commercial and residential sectors, growing usage of renewable sources like solar energy is expected to drive the market growth over the forecast period. Optimizing resources by using new technology in order to provide relevant and customized data for better monitoring of energy efficient solutions is expected to drive the market growth during the forecast period.
The rapid growth of healthcare and retail sectors has increased demand for EMS solution. In these sectors, investment is expected to increase due to the commercialization of innovative products like SCADA and others. The adoption of EMS is expected to increase across several industries, as it helps industries to collect department wise power consumption insights.
Technological advancement such as small-signal analysis in EMS is expected to increase the adoption of this system and will help to reduce carbon emission. Further, companies such as Schneider Electric, IBM Corporation, and Honeywell International Inc. integrated data analytics software in their existing energy management modules for monitoring data efficiently. Additionally, these companies have developed sector-specific EMS software to provide better solutions, which is expected to develop new products in this market.
By product, the EMS market is classified into Industrial Energy Management Systems (IEMS), Building Energy Management Systems (BEMS) and Home Energy Management Systems (HEMS). In 2018, the IEMS segment held the largest market share in terms of revenue. EMS is widely used in the power & manufacturing sectors to access real-time power consumption for reducing operational costs. BEMS segment is projected to witness considerable growth over the forecast period due to growing installation in business parks, hospitals, shopping malls and other places.
Moreover, the HEMS segment is projected to grow with the highest CAGR during the forecast period. Growing awareness regarding power conservation and energy management among house owners is expected to propel the demand for EMS in this segment. For example, Huawei introduced Fusion Home Smart Energy Services Solution to enhance residential solar panel systems. This solution helps residents to manage, store, and generate power efficiently.
On the basis of components, the market is fragmented into software, sensors, display devices, controllers, batteries and others. In 2018, the sensor segment held the largest market share in terms of revenue. Technological advancement in sensors to collect real-time data is a major factor in driving the segment growth.
The software segment is projected to grow with the highest CAGR over the forecast period. Integration of data analytics software in EMS is expected to boost the segment growth. Market players such as Ecova and Building IQ have developed sector-specific software platforms in order to execute algorithms to optimize the solution.
By solution, the energy management system market is segmented into carbon energy management, demand response management, and utility billing and customer information system. In 2018, the carbon energy management segment led the market. Owing to the growing scarcity offossil fuels as well as climate changes due to carbon emissions, manufacturing firms are forcing on energy efficient solution, thereby driving the market growth.
Carbon energy management solutions help manufacturing firms to manage robust data, establish energy consumption baselines, automate energy data recording, and monitor key sustainability metrics. This factor is expected to increase the demand for carbon energy management solutions across manufacturing firms. While demand response management is expected to grow with the fastest CAGR over the forecast period.
On the basis of vertical, the market is segmented into telecom & IT, power & energy, manufacturing, healthcare, retail & offices, and others. Power and energy segment is projected to lead the market and continue its dominance with a significant growth rate during the forecast period. Growing need to manage and monitor energy consumption in several sub-sectors such as oil & gas, chemical, petrochemical complexes, and power generation is expected to increase deployment of EMS across the sectors.
The retail and offices segment is projected to grow with the highest CAGR from 2019 to 2025 due to several initiatives adopted for energy efficiency across enterprises. This segment comprises of business parks, offices, and shopping malls. Rising awareness related to energy efficiency among enterprises is expected to drive segment growth in the next few years.Energy efficient solutions help these enterprises to enhance efficiency and reduce operational cost.
On the basis of end-use, the energy management systems market is segmented into commercial and residential sectors. Energy management system is widely installed in the commercial sector compared to the residential sector. Growing awareness about reduction of operational cost and power optimization among small-scale industries is expected to drive the demand for EMS in the commercial segment.
The residential segment is anticipated to witness the fastest growth during the forecast period. Lack of awareness about the benefits of EMS is decreasing its adoption in the residential sector. However, growing need to manage and conserve energy efficiently coupled with growing power generation costs is expected to boost the demand in the residential sector.
North America is projected to dominate the global market due to increasing adoption of EMS across several industries such as retail, power, manufacturing, and other industries. Moreover, European market is expected to witness significant growth over the forecast period owing to favorable government projects such as Electricity and monitoring systems and Neighborhood Oriented Brokerage. In addition, increasing demand to reduce power losses in U.K., Germany, and France is expected to drive the regional market growth in the next few years.
Asia Pacific market is expected to register fastest growthin the upcoming years. This can be attributed to favorable government strategies, initiatives and support from countries such as Chain and India including tax incentives as well as rapid industrialization. Moreover, Middle East & Africa is expected to witness considerable growth during the forecast period due to rapid industrialization in this region. Additionally, growing environmental concern has enforced Middle Eastern to focus on energy consumption. For instance, Dubai introduced the Energy Strategy 203 in order to efficient energy consumption and reduces carbon emissions by the end of 2030. Similar projects are being introduced in Jordan and Saudi Arabia to drive energy-efficient projects in this region. Further, South Africa is also focusing on implementing energy-efficient system across several industries to drive clean and feasible energy-efficient projects, which is expected to drive the regional market growth.
The outbreak of the COVID-19 virus has positively impacted the market. The need to maintain clear air is increased to reduce infection spreading. Therefore, industries and companies are utilizing more power in terms of cooling devices or heaters. In order to reduce operational costs, the demand for EMS system is expected to increase across the commercial sector such as retail, hospitals, shopping malls and offices.
COVID-19 has increased awareness to monitor power consumption insights across several industries to reduce operational costs during this finically critical situation, as most of the industries have stopped their operations during lockdowns. These factors are expected to drive the demand for EMS solutions.
Key players such as Honeywell Inc., Schneider Electric, and Siemens AG.is expected to lead the market. Several small and mid-sized market players are also focusing on offering advanced and high quality integrated systems, software, services and components to strengthen their footprints in the competitive market.
Other prominent companies operating in the market are Emerson Process Management, Daikin Industries, Schneider Electric, C3 Energy, General Electric Company, Siemens AG, Daintree Networks, Jones Sang LaSalle, Gridpoint Inc., IBM, Toshiba Corporation, Honeywell International Inc., Elster Group GmbH, Johnson’s Control International., and ABB, Ltd. Product innovation along with easy features is a major way to expand the business and strengthen market position. Most of the companies are investing in R&D activities, partnerships, mergers, and acquisitions to enter in emerging economies. For example, Schneider Electric introduces IoT enabled interoperable architecture and platform, namely EcoStruxure in order to manage energy-efficient manufacturing industries, data centers, IT and power infrastructure, in buildings and plant & grid.
Base year for estimation
Actual estimates/Historical data
2014 - 2018
2019 - 2025
Revenue in USD Billion & CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, U.K., Germany, India, Japan, China, Singapore, South Korea, Indonesia, Malaysia, Thailand, Mexico, and Brazil
Revenue forecast, company ranking, competitive landscape, growth factors, and trends.
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global energy management systems market report based on product, component, solution, vertical, end use and region:
• Product Outlook (Revenue, USD Billion, 2014 - 2025)
• Industrial Energy Management Systems (IEMS)
• Building Energy Management Systems (BEMS)
• Home Energy Management Systems (HEMS)
• Component Outlook (Revenue, USD Billion, 2014 - 2025)
• Display Devices
• Solution Outlook (Revenue, USD Billion, 2014 - 2025)
• Carbon Energy Management
• Demand Response Management
• Utility Billing and Customer Information System
• Vertical Outlook (Revenue, USD Billion, 2014 - 2025)
• Power & Energy
• Telecom & IT
• Retail & Offices
• End-use Outlook (Revenue, USD Billion, 2014 - 2025)
• Regional Outlook (Revenue, USD Billion, 2014 - 2025)
• North America
• The U.S.
• The U.K.
• Asia Pacific
• South Korea
• Latin America
• Middle East & Africa
Research Support Specialist, USA