Energy Management Systems (EMS) Market Analysis By Product (IEMS, BEMS, HEMS), By Component (Sensors, Controllers, Software), By Vertical (Power & Energy, Telecom & IT, Manufacturing, Retail & Offices, Healthcare), By End-Use (Residential, Commercial) And Segment Forecasts To 2022

Published: July 2016 | Report Code: 978-1-68038-666-0 | Report Format: Electronic (PDF)

Industry Insights

The global energy management systems (EMS) market size was estimated at USD 20.49 billion in 2014. Growing requirement of efficient and reliable information technology (IT) platforms for monitoring, controlling and optimization of available energy sources is expected to be a key factor contributing to market growth. Growing commercialization of innovative products coupled with technological advancements is expected to steer future investments in this sector.

EMS is an IT-aided analytical tool used in various integrated platforms to achieve energy efficiency through process optimization of individual system components. These systems are anticipated to gain significance in next few years on account of growing requirement in industrial sectors, especially, in power & energy and manufacturing enterprises for real-time monitoring and assessment of energy consumption pattern.

Rising conventional energy costs have urged several enterprises to incorporate SCADA and energy management systems to enhance profitability over the long term. High level of automation coupled with integration with cloud-based systems has allowed real-time monitoring of energy consuming equipment such as heating, ventilating and air conditioning (HVAC).

Rising environment concerns and attempt to reduce the overall carbon emissions in industries such as manufacturing, telecom, oil & gas, and power have also led to energy management system market expansion over the past decade.

The presence of fragmented stakeholders, inadequate industry-specific expertise, and economic barriers are expected to hinder industry expansion in emerging economies. High capital along with long payback time is expected to remain major hurdles for the industry growth over the forecast period.

Increasing R&D investments coupled with technological advancements to commercialize highly efficient products are anticipated to offer lucrative opportunities for industry participants.

North America energy management system revenue, by product, 2012 - 2022 (USD Million)

North America energy management system

Product Insights

Industrial energy management systems (IEMS) dominated the global market and accounted for over 60% of total revenue in 2014 and are expected to grow at an estimated CAGR of over 13% from 2015 to 2022. High power & electricity requirement along with growing concern to optimize fuel consumption and reduce operating costs dramatically in various industrial sectors may be attributed to high market penetration in the segment.

BEMS accounted for over 30% of the industry in 2014 and is expected to grow at a CAGR of over 15% from 2015 to 2022. BEMS is anticipated to witness a considerable growth over the forecast period owing to increasing installation of these systems in shopping complexes, telecom, business parks, hospitals, and IT establishments,

Home energy management system (HEMS) is expected to witness the fastest growth over the forecast period. Favorable government reforms to curtail carbon emissions are expected to encourage installation of the systems in mature economies of the U.S., UK, Germany, and France.

Component Insights

Sensors accounted for over 35% of the global revenue in 2014 were the largest EMS component segment. It is expected to witness a CAGR of over 12.5% from 2015 to 2022. Commonly used sensors in EMS include optical cameras, heat- sensing, thermal cameras, motion-detecting, and optical trip wires. Surging demand in this sector can be attributed to technological advancements and real-time data tracking with improved efficiency of sensors.

Energy management software are anticipated to witness the fastest growth over the next seven years. This segment is expected to grow at an estimated CAGR of 15.6% from 2015 to 2022 and account for 27.1% of the total revenue share by 2022. Integration of big data and data analytics in existing EMS modules has been one of the major achievements in the industry over past few years.

Companies such as Ecova, Building IQ, and C3 Energy have developed sector-specific EMS software platforms that help organizations to conduct analytics and determine optimized solutions.

Vertical Insights

Power & energy were the largest application vertical and accounted for over 40% of the global revenue share in 2014. This segment is expected to lose share to high growth verticals including healthcare and retail & offices. Increasing requirement for optimization and monitoring of energy consumption in various sub-sectors including power generation, transmission, & distribution; chemical, oil & gas, and petrochemical complexes has led to commercialization of EMS modules across various industries.

The segment is expected to remain the largest consumer over the next seven years and is anticipated to generate revenue exceeding USD 22.50 million by 2022. Retail & offices are estimated to witness the fastest growth over the forecast period, growing at a CAGR of over 15% from 2015 to 2022.

The segment comprises various commercial establishments including offices, business parks, and shopping malls. An increasing number of enterprises along with growing awareness about energy management may be attributed to high growth in over the next seven years. Healthcare is also anticipated to witness significant growth in EMS deployment. This segment is anticipated to account for over 8.5% of the total revenue share by 2022.

End-Use Insights

Energy management systems are predominantly deployed in the commercial sector and accounted for over 95% of the total revenue in 2014. This segment is expected to remain the largest end-use over the forecast period. The commercial segment comprises industries and commercial buildings including shopping malls, office spaces, and business/IT parks that have high power and electricity requirements.

Growing concern towards power optimization and reducing operating costs in large as well as small-scale enterprises is anticipated to drive demand over the next seven years. Residential complexes are anticipated to witness the fastest growth over the forecast period. Currently, EMS industry has very low market penetration and is expected to witness high growth owing to increasing energy optimization requirement in a residential building, smart homes, & societies. Growing concern to reduce reliance on conventional resources and increasing power generation costs is expected to offer immense potential for industry participants for future developments.

Regional Insights

North America dominated the global demand and accounted for over 40% of the total revenue in 2014. The regional market is anticipated to lose share to high growth economies of Asia Pacific. Extensive adoption of energy management systems in various verticals including retail, power & energy, and manufacturing sectors may be attributed to high penetration in the region.

Europe EMS market generated revenue worth of USD 6.09 billion in 2014. Favorable government initiatives coupled with high requirement to curtail power losses in various economies including Germany, UK, and France is expected to drive growth in this region over next few years.

Asia Pacific is anticipated to grow at a CAGR of over 16% from 2015 to 2022. Increasing energy prices coupled with favorable government initiatives may be attributed to high growth in the region. Favorable government initiatives in terms of rebates and tax incentives coupled with rapid industrialization, particularly in India and China is anticipated to drive growth in the regional market over the next seven years.

Competitive Insights

Global energy management system industry is moderately consolidated with top four companies including Siemens, Honeywell, Schneider Electric, and Elster Energy accounted for just below 70% of the total revenue in 2014. Schneider Electric dominated the global EMS industry and accounted for 28% of the total revenue in 2014.

Siemens AG and Honeywell, Inc. were other prominent players in the market and accounted for over 12% industry shares respectively in 2014. Key strategic initiatives undertaken by major companies include new product launch, acquisitions, and partnerships. Apart from the top players, the global market is fragmented into numerous local small and mid-sized enterprises, which contribute to about 20% of global market.

Other significant players in the market including GE, C3 Energy, GridPoint, Inc., Johnson Controls, Inc., and Elster Energy are adopting various strategies to cater to a wider customer base and enhance their market presence. A large number of local players are also present in the global market offering energy management systems, components, software, and services.

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