The global energy management systems (EMS) market size was USD 23.05 billion in 2015. In the current scenario, industries account for major use of electrical energy. In order to remain viable in today’s market, companies are in need of high requirement for power which can be saved through adopting of energy management systems.
U.S. energy management systems (EMS) market revenue by product, 2014 - 2024 (USD Million)
Growing requirement for efficient and reliable information technology (IT) platforms for monitoring, controlling and optimization of available sources is expected to be a key factor contributing to market growth. It also provides department and section wise electrical energy and data consumption for taking corrective actions.
These systems are anticipated to gain significance in next few years on account of growing requirement in industrial sectors, especially, in power and manufacturing enterprises for real-time monitoring and assessment of consumption pattern. Growing commercialization of innovative products coupled with technological advancements such as integration of SCADA is expected to steer future investments in this sector.
The development of advanced technologies such as the growth of small signal analysis and CRAS in EMS has the potential to increase energy-efficiency, decrease carbon foot print and cost which is anticipated to provide immense potential in the near future.
Integration of big data and data analytics to the existing EMS modules has become a major achievement in the industry. The companies, such as Honeywell, and IBM, have developed sector specific EMS software platforms that help organizations to analytically determine and suggest optimized efficient solutions, which are anticipated to increase the innovative products in the global energy management systems market.
IEMS dominated the global demand accounting for over 59% of the total revenue in 2015. The product segment is expected to grow at a CAGR 12.6% over the next eight years. The high market penetration may be attributed to increasing requirement of EMS, in industrial sector mainly in manufacturing and power verticals for assessing and real-time monitoring of consumption pattern to attain cost reduction.
BEMS is expected to grow at a CAGR of over 14.7% from 2016 to 2024. It 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. 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.
Sensors accounted for over 35% of the global revenue in 2015 were the largest component segment. It is expected to witness a CAGR of over 13.2% from 2016 to 2024. Commonly used sensors include optical cameras, 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.
Software is anticipated to witness the fastest growth over the next eight years. Integration of big data and data analytics in existing modules has been one of the major achievements in the industry over past few years. Companies such as Ecova and Building IQ have developed sector-specific software platforms that help organizations to conduct analytics and determine optimized solutions.
Power & energy was the largest application vertical and accounted for over 41% of the global revenue share in 2015. 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.
Retail & offices are estimated to witness the fastest growth over the forecast period, growing at a CAGR of over 15% from 2016 to 2024.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 eight years. Healthcare is also anticipated to witness significant growth in their deployment. This segment is anticipated to account for over 7% of the total revenue share by 2024.
EMS are predominantly deployed in the commercial sector and accounted for over 95% of the total revenue in 2015. 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 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.
North America dominated the global demand and accounted for over 42% of the total revenue in 2015. Extensive adoption of EMS in various verticals including retail, power, and manufacturing sectors may be attributed to high penetration in the region.
Europe EMS market generated revenue worth of USD 6.87 billion in 2015. 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 2016 to 2024. Increasing energy prices coupled with 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.
Global energy management systems industry is majorly consolidated with top three companies including Honeywell, Siemens, and Schneider Electrical accounting for majority of the total revenue in 2015. 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 industry including GE, C3 Energy, GridPoint, Inc., and Johnson Controls, Inc., 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 integrated systems, components, software, and services.
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