Energy Management Systems Market Size, Share & Trends Analysis Report By Product, By Component, By Solution, By Vertical, By End Use, By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global energy management systems market size was valued at USD 39.89 billion in 2018 and is expected to grow at a CAGR 17.1% from 2019 to 2025. The market has witnessed considerable growth over the past few years owing to the rising awareness and benefits of implementing energy management system (EMS) solutions across industries and commercial & residential properties. Numerous companies are in need of high requirements of power, due to which these companies are adopting EMS to save power.

The increasing use of renewable sources of energy, such as using solar panel systems in residential and commercial areas, is further expected to increase the demand for energy management systems solutions. The ever-increasing number of reliable information technology platforms for controlling and optimizing available resources to provide customized and relevant data for corrective actions and better monitoring of energy efficient solutions is the major factor driving the growth of EMS market.

The rapid growth of well-organized retail sector and healthcare sector has also led to the increased demand for EMS solutions. Moreover, investments are expected to increase in these sectors due to the rapid commercialization of innovative products such as the multi-network integration of SCADA and so on. Further, energy management systems are widely adopted in various industries as it provides section and department wise electrical energy usage information.

With advancements in the latest technologies in EMS, such as small signal analysis, there has been an increase in the adoption of energy-efficient systems and decrease in carbon footprint. Moreover, companies such as Honeywell International Inc., IBM Corporation, and Schneider Electric have integrated the data analytics software to their existing EMS modules for the efficient monitoring of data.

These companies have also developed and introduced special sector-oriented EMS software platforms to enable enterprises to control and provide efficient solutions that are expected to increase the scalability of new products in the global EMS market.

Energy Management Systems Market Trends

Energy Management Systems (EMS) is an integrated information technology-aided analytical tool used across various platforms to achieve energy-efficiency through process optimization of individual components in the system. These systems are expected to gain significant prominence in the next few years on account of the growing requirements in industrial sectors, especially, in manufacturing and power & energy enterprises for real-time monitoring and assessment of energy consumption patterns. The rising costs of conventional energy have led several industrial enterprises to install EMS in conjunction with the regular SCADA systems to facilitate long-term profitability. Rising environmental concerns and attempts to reduce the overall carbon emissions from energy-intensive industries including oil & gas, power, telecom, and manufacturing have also contributed to market expansion over the past decade.

The increasing need to ensure energy efficiency and optimization of (operations, processes, available resources) to adhere to stringent emission regulations. International standardization of energy consumption of electronic devices and the rising number of favorable government initiatives aimed at promoting energy management in the industrial and commercial sectors are expected to remain the key factors driving market growth in the near future. For instance, ISO 50001 is a framework that helps companies manage their energy systems and further plan ways of reducing energy consumption and carbon footprint.

Technological advancements, such as the development of user-friendly programming platforms, have enabled hassle-free operation and maintenance of energy management systems. Additionally, the development of innovative technologies to install remote sensors in HVAC systems and lighting applications for real-time monitoring and control is expected to create immense growth potential for EMS market participants.

Ease of component and software procurement has further led to the easy commercialization of EMS modules for various segments. EMS are predominantly implemented in the energy and power sector. Companies such as EMS RefSol are focused on providing energy management solutions for Dow Chemicals, Thermax, and other petrochemical companies.

Product Insights

The Industrial Energy Management Systems (IEMS) segment dominated the product segment, accounting for a major market share in 2018. EMS has witnessed a high market penetration in the industrial sector, especially in power and manufacturing sectors, for assessing in real-time the power consumption pattern for achieving cost reduction.

Due to the increasing installation of these systems in shopping malls, hospitals, business parks, IT establishments, and other commercial places, the Building Energy Management Systems (BEMS) segment is anticipated to grow considerably over the forecast period. The Home Energy Management Systems (HEMS) segment is expected to witness the fastest growth over the forecast period.

Rising awareness of efficient energy management and power conservation among homeowners is driving the growth in this sector. For instance, Huawei released its Fusion Home Smart Energy Services Solution to optimize residential solar panel systems. Fusion Home aims to help residents generate, store, and manage power efficiently. It further assists in monitoring power consumption and offers an easy-to-adapt experience of using renewable energy at home.

Component Insights

Based on components, the market has been classified into sensors, controllers, software, batteries, and display devices, among others. Sensors segment is the largest component segment and accounted for a major market share in 2018. Increasing demand has been observed for sensors owing to technological advancements in sensors, which enables real-time data tracking and also improves efficiency of sensors.

The software segment is anticipated to experience the fastest growth over the forecast period. Through the integration of data analytics software in existing modules has been one of the main achievements of the industry over a period of time. Companies such as Ecova and BuildingIQ have developed sector-specific software platforms that help organizations to run algorithms for optimized solutions.

Solution Insights

Based on the solution, the market has been segmented into carbon energy management, demand response management, and utility billing and customer information system. The carbon energy management segment dominated the solution segment. With the growing scarcity of fossil fuels and climate change caused by carbon emissions, energy efficiency is of increasing importance for various manufacturing firms.

Carbon energy management solutions, help firms with robust data management, monitor key sustainability metrics, establish energy consumption baselines, and automate energy data recording. This, in turn, driving the adoption of carbon energy management solutions in management firms. Demand response management segment is expected to witness the fastest growth over the forecast period.

Vertical Insights

Based on industry vertical, the market has been classified into power & energy, telecom & IT, manufacturing, retail & offices, healthcare, and others. The power & energy vertical holds a major share and is expected to dominate the market with a decent growth over the forecast period. Increasing requirements for the monitoring of energy consumption in various sub sectors, including power generation, chemical, oil & gas, and petrochemical complexes, has led to the commercialization of EMS modules across the sectors.

The retail & offices segment is expected to witness the fastest growth over the forecast period, owing to energy-efficiency management initiatives taken up by numerous enterprises. This segment includes offices, business parks, and shopping malls. Rising awareness about the benefits of energy management and ever-increasing number of enterprises deploying them for reducing operating costs and improving efficiency are few attributes that will drive growth over the forecast period. The healthcare segment is also expected to witness increase in the number of EMS software platforms over the next six years.

End-Use Insights

The market has been segmented based on end-use industry into residential and commercial sectors. EMS has been more widely deployed in the commercial sector compared to residential sector. This sector includes various businesses, office spaces, and shopping malls that frequently require higher power consumption.

Rising awareness of power optimization and reducing operating costs in large and small-scale industries are expected to drive demand over the next six years. Meanwhile, the residential segment is expected to register the highest growth rate over the forecast period. EMS has a lower penetration rate in the residential sector owing to lack of awareness. However, factors such as rising power generation costs and growing need for managing and conserving energy efficiently in residential buildings, smart homes, and societies are expected to boost the demand for EMS in the residential sector.

Regional Insights

Based on regional market, North America dominates the market owing to a well-established infrastructure network and widespread adoption of EMS across verticals such as manufacturing, retail, power, and other industries. This industry in Europe is expected to witness decent growth owing to favorable government projects such as Neighbourhood Oriented Brokerage and Electricity and monitoring systems. Also, high demand to curtail power losses in countries such as France, Germany, and the U.K. is further expected to propel the market growth in the region.

Encouraging government initiatives, tax exemptions, and the need to sustain a clean environment by companies are a few key factors driving the adoption of EMS across the end-use industries. Energy efficiency is of immense significance for consumers of battery-powered devices and those having limited access to energy supply. Favorable government incentives in the U.S. are expected to drive market growth in the residential sector. Energy management systems aim at achieving energy-efficiency through process optimization by reporting granular energy use data by individual pieces of equipment. Cloud-based EMS offer the ability to remotely manage HVAC and other energy-consuming equipment and gather detailed & real-time data for energy-consuming electronic devices and appliances. Cloud-based EMS also generate specific, intelligent, and real-time guidance on finding & capturing energy-saving opportunities. For instance, the patented SiteSage system developed by Powerhouse Dynamics centrally analyzes & controls equipment and delivers actionable intelligence to help multi-unit retail, restaurant, and convenience store chains save energy.

The energy management systems market is expected to witness the highest growth rate in the Asia Pacific region. Rapid industrialization, rebates, and tax incentives from various governments across the region, especially in China and India, are expected to further propel the sales. There is also considerable amount of growth indicated in the Middle Eastern and African regions. Large population growth and rapid industrialization are few reasons to drive the growth of EMS in the region.

Growing concerns regarding the rising carbon footprint of several industries and the rising need for reusing waste heat in facilities are expected to drive the demand for high-efficiency and cost-effective EMS modules over the next few years. Better efficiency is the primary factors that are expected to drive the demand for energy management system market over the forecast period. Both manufacturing and power & energy verticals lie in high penetration and low growth quadrant.

Rising environmental concerns have led the Middle Eastern region to make steady progress in energy consumption and efficiency through sustainable development. For example, Dubai has introduced the Energy Strategy 203 to manage energy consumption efficiently and reduce considerable carbon emissions by 2030. Similar projects are expected to be rolled out in Saudi Arabia and Jordan while framing regulatory framework to drive clean, feasible energy-efficient projects in the region.

Likewise, in South Africa, the National Cleaner Production Centre (NCPC) is focusing on boosting the implementation of energy efficiency systems across many industries. Furthermore, for various industries, the government has introduced the Energy Efficiency Tax Incentive for energy savings achieved on every Kilo-watt hour equivalent.

Key Companies & Market Share Insights

The global market is a consolidated market with Honeywell Inc., Schneider Electric, and Siemens AG. holding major shares in the market. Numerous small and mid-sized companies are also present in the market that focus on offering high-quality integrated systems, components, software, and services to strengthen their position in the competitive market.

Other key industry players operating in the market include C3 Energy, General Electric Company, Emerson Process Management, Daikin Industries, Daintree Networks, Jones Sang LaSalle, Gridpoint Inc., Schneider Electric, Siemens AG, Honeywell International Inc., Elster Group GmbH, ABB, IBM, Toshiba Corporation, and Johnson’s Control International. Constant product innovation with easy-to-operate features is one of the major ways to expand the market share and sustain competition in the market. Most top industry players are continuously investing large capital in research & development activities, forging partnerships, and acquiring other companies to gain a foothold in emerging economies.

For instance, Schneider Electric has developed its IoT-enabled, interoperable architecture and platform, EcoStruxure, to efficiently manage energy in buildings, IT and power infrastructure, manufacturing industries, data centers, and plant and grid. This IoT-enabled platform was implemented for future-proofing few data center sites across India. It involved remote monitoring of predictive maintenance by Schneider experts for scalable solutions. The end result included efficiency in generator capacity and better maintenance of enterprises.

Energy Management Systems Market Report Scope

Segments Covered in the Report

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, Grand View Research 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)

  • Sensors

  • Controllers

  • Software

  • Batteries

  • Display Devices

  • Others

• 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

  • Manufacturing

  • Retail & Offices

  • Healthcare

  • Others

• End-Use Outlook (Revenue, USD Billion, 2014 - 2025)

  • Residential

  • Commercial

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • India

    • Japan

    • Indonesia

    • Singapore

    • Thailand

    • South Korea

    • Malaysia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)