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Asia Pacific Energy Management Systems Market - Growth, Trends, and Forecasts (2020 - 2025)

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  • 120 Pages
  • June 2020
  • Region: Asia Pacific
  • Mordor Intelligence
  • ID: 5120207
The Asia Pacific Energy Management Systems Market is expected to register a CAGR of XX% during the forecast period from 2020 to 2025. Asia-Pacific has been the most rapidly industrializing over the last quarter-century. Energy management requirements and the growing emphasis on reducing utility costs continue to drive the adoption of energy management systems (EMS) in APAC The majority of the large buildings in the region are equipped with these systems.
  • Proactive measures taken by government organizations in the region for the implementation of standards, such as ISO 50001 (energy-management-system standard) in the building sector, have the potential to stimulate the integration of EMS.
  • Consequently, more opportunities for automation can now be found across small-to-medium buildings in the region. In the Asia Region, the number of households has grown exponentially over the last two decades. The United Nations expects that urbanization in Asia will reach 64.1% by 2050, which will further open up opportunities for the building and construction industry in the region.
  • Governments across countries have been actively involved in setting the limits for energy consumption. For instance, structural shifts in the national economy compelled the Government of Vietnam to establish a reduction of energy consumption per unit of GDP ratio as one of the economic targets of the national Sustainable Development Strategy for 2011-2020; as the country remained the most energy-intensive economy in East Asia, behind China, Indonesia, Thailand, Malaysia, and the Philippines.
  • NTELS, a Korean tech firm, developed a BEMS where energy data from heating, ventilation, and air conditioning (HVAC) systems were collected. Then, depending on their characteristics, the system identified energy consumption patterns of buildings and created proper energy consumption plans. It also has forecasting and building operations monitoring features, which leads to the optimization of energy efficiency in buildings. Such BEMS technology can transform the energy efficiency of the buildings.
  • Despite multiple factors that prompt growth potential, the market faces some challenges, especially in developing countries such as India, such as lack of capital on the part of the utilities for energy efficiency projects. Capital, in terms of both money and physical resources, is needed for implementing EMS projects are very scarce, and lack of energy consumption data and tools to evaluate energy data can prove deterrent to implementation of EMS projects.
  • Since the novel coronavirus has been declared a pandemic, most of the businesses and factories are closed or are under severe restrictions. On the other hand, energy consumption in homes, as well as hospitals, has increased drastically. However, the power and energy consumption has decreased overall, mainly due to the hault of manufacturing activity in China, Japan, and India. Nevertheless, relaxation on the restrictions may be apparent in the months ahead. Given the government initiatives to reduce energy consumption, the region is likely to provide opportunities over the forecast period.

Key Market Trends

Residential sector to Provide Significant Opportunity
  • In December 2018, The Ministry of Power, India, announced the Energy Conservation Building Code for residential buildings (ECBC-R). This is expected to boost energy efficiency in the residential sector, its occupants, and the broader environment by promoting energy efficiency in the design and construction of homes, apartments, and townships, which is expected to impact the market in the region positively.
  • As a part of their Korea Energy Master Plan - outlook and policies to 2035 (2nd Energy Masterplan), the country aims to develop energy service companies (ESCOs) with EMS technologies as demand-side management businesses/aggregators and revise regulations to allow energy saved through efficiency improvements to be traded in the power market, taking into consideration the progress in demand-side bidding and the growth of demand management businesses, such as ESCO.
  • As a part of their smart grid initiatives, South Korea has started a smart grid pilot project on Jeju Island to make investigate the potential and effects of a smart grid network. So far, over 7,000 homes have been included in the smart grid pilot that is set to change the way electricity is supplied to their homes.
  • The further stage planned to span 2012-2020 is aimed at expanding this system to metropolitan areas (intelligent consumers). The final step, scheduled to be executed from 2021 through 2030, is designed after a nationwide power grid (smart power grid). Each of these stages entails specific opportunities for international companies.
  • Such initiatives are likely to persuade the residential customer to adopt EMS, as it allows to monitor real-time information and price signals from utility and create settings to automatically use power when prices are lowest.

China is Expected to Hold Significant Share
  • Over the years, Beijing has pursued an energy intensity target relative to GDP, allowing China to proceed to grow at a tremendous pace. However, just like the European Union, China has also put a cap on energy use by 2020. The Government in these regions is proactive when it comes to planning for smart meter installation. For instance, China’s State Grid installed 300 million smart meters by 2015 and is aiming to reach up to 380 million by 2020.
  • According to the World Green Building Council, China is the largest building construction market globally, with up to 2 billion square meters constructed annually, accounting for nearly half of new construction globally in the coming decade. It is also the world’s largest emitter of greenhouse gas emissions, which offers the country an opportunity to invest in green buildings, using energy management systems.
  • Local vendors, especially in China, are active in having AI in their core strategy, and few of them have been successfully raising funds. For instance, R&B Technology Holding, which specializes in creating energy management software for commercial and industrial (C&I) building sectors, led BP Ventures in its latest series of investments, raising USD 3.6 million. R&B’s energy management systems are specifically designed to predict, control, and improve building energy use. This solution supports BP Alternative Energy’s focus on low-carbon power, storage, digital energy value chain, and more comprehensive Energy as a Service (EaaS) offers.
  • According to the study prepared by the China National Renewable Energy Center and the State Research Institute and Energy Reform Institute in December 2019, China must step up renewables deployment to meet its Paris Agreement commitments. To meet the demands, China needs to install an average of 58 GW of solar and 53 GW of wind power generation capacity per year from next year to 2025, the report found. That requirement was up from last year’s 44 GW and 21 GW for solar and wind, respectively.

Competitive Landscape

The Asia Pacific Energy Management Systems Market is moderately fragmented with the presence of various international players such as IBM, Honeywell, Schneider Electric, Rockwell Automation, General Electric Company, among others. The companies in the market are launching products with the latest technological developments and are collaborating with various governments and organizations to increase their market share. Some of the recent developments are:
  • January 2020 - Schneider Electric unveiled its upgrade to the traditional fusebox to homeowners looking for a better power management system with the company’s Energy Center product. The new product is part of a wide range of Square D home energy management devices that the company is aiming at homeowners.
  • April 2020 - GE Renewable Energy’s Grid Solutions business has been awarded a technology-driven grid modernization project by Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPL)(India) of the utility’s roadmap to implement grid initiatives and augment renewable energy. GE’s Advanced Energy Management Systems will provide real-time data monitoring to understand better current and future energy usage and enable informed, proactive decisions about the transmission of renewable energy.

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
5.1 Market Drivers
5.1.1 Increasing Usage Of Smart Grids and Smart Meters
5.1.2 Increasing Focus on Green Buildings and Government Initiatives Towards Energy Efficiency
5.2 Market Challenges
5.2.1 Absence of Technology Alignment and High Acquisition and Implementation Costs
6.1 By Type of EMS (Energy Management System)
6.1.1 BEMS (Building EMS)
6.1.2 IEMS (Industrial EMS)
6.1.3 HEMS (Home EMS)
6.2 By End-User Industry
6.2.1 Manufacturing
6.2.2 Power and Energy
6.2.3 IT and Telecommunication
6.2.4 Healthcare
6.2.5 Other End-user Industries
6.3 By Component
6.3.1 Hardware
6.3.2 Software
6.3.3 Services
6.4 By Country
6.4.1 China
6.4.2 India
6.4.3 Japan
6.4.4 South Korea
6.4.5 Rest of Asia-Pacific
7.1 Company Profiles
7.1.1 IBM Corporation
7.1.2 Rockwell Automation Inc.
7.1.3 General Electric Company
7.1.4 Schneider Electric SE
7.1.5 Cisco Systems Inc.
7.1.6 Uplight Inc.
7.1.7 Eaton Corporation
7.1.8 Enel X S.r.l.
7.1.9 Elster Group SE (Elster Group)

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • IBM Corporation
  • Rockwell Automation Inc.
  • General Electric Company
  • Schneider Electric SE
  • Cisco Systems Inc.
  • Uplight Inc.
  • Eaton Corporation
  • Enel X S.r.l.
  • Elster Group SE (Elster Group)