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Energy Management Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 187 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 5175397
The global market for energy management systems is expected to register a CAGR of 15.65% during the forecast period. The market is growing rapidly due to the increase in demand in terms of multiple smart meter applications across end users and investments in smart grid and smart building technologies.

With the rapid improvements in technologies, like network communication, smart grid, bidirectional communication mediums, information infrastructures, energy conservation methodologies, and various techniques, home area networks (HANs) are experiencing a revolutionary change in multiple areas of power consumption domains, like energy conservation at consumption premises and electricity usage patterns.

According to Exxon Mobile, energy demand is expected to increase across the industrial sector by 2040, accounting for 123 quadrillion British thermal units, driving the need for EMS solutions. Energy efficiency has been increasingly becoming the primary focus of private enterprises and government authorities worldwide. The increasing economic activities have led to high-energy consumption rates and have pushed the global electricity grids to their limits.

Due to government regulations, cost savings, and energy consumption optimization, homes, industries, and enterprises have increasingly been adopting energy management solutions. The primary component of EMS measuring, communication, and software application helps reduce costs. According to a study by MIT, buildings waste at least 30% of their energy, and this can be saved with the help of EMS.

Energy management systems have become advanced with technological developments through the incorporation of smart meters, smart sensors, and other devices. The installation of the entire system is expensive, as it integrates various technologies to maintain energy efficiency. This poses a challenge to the market's growth.

The outbreak of COVID-19 had a mixed impact on the energy management system market since vendors were serving end-user industries, which were deemed vital by governments internationally, thereby driving the deployment of energy management systems.

Energy Management Systems Market Trends

Rising Investments in Energy Efficiency to Drive the Market

Global investments toward having a more energy-efficient infrastructure have been growing steadily, with governments investing in various initiatives, such as renewable energy, adopting solutions that enhance the power grid's efficiency, and sanctions on the use of technologies that are not efficient.

There have been various vendors operating in the energy efficiency space that enable governments to adopt such solutions, and such enterprises have been seeing growth in their investments. Under the Biden administration, the United States is expected to be carbon neutral by 2050 with investments from the federal government.

Companies in North America are also urging for expanding programs and demanding potential investments from the government. In addition, many of the organizations are focusing on tapping funds from the American Rescue Plan Act of 2021 and the bipartisan Infrastructure Investment. Therefore, such a need for energy efficiency is expected to provide opportunities for the market studied.

The Turkish public and private sectors have joined hands to invest over USD 10 billion in energy efficiency over the next ten years, according to the Turkish energy and natural resources ministry. The investment is expected to generate USD 30 billion in savings until 2033; such developments have further augmented the demand for EMS in this space.

With the growing investments in energy efficiency, Europe has been leading the global numbers in such investments. The Asia-Pacific region has also been seeing growth in the number of investments made in the numbers. According to IEA, Southeast Asia's energy Outlook 2022, between 2016 and 2020, the annual average energy investment in the region was around USD 70 billion, of which around 40% went to clean energy technologies that mostly involved grids, solar, and wind. This is expected to drive the demand for the market studied.

Europe Holds Major Market Share

The United Kingdom remains one of the forerunners in adoption, aided by favorable energy policies and regulations targeting to reduce the country's carbon footprint through smart meter rollouts, energy-efficient buildings, and systems, among others.

The UK government mandates that energy suppliers must install smart meters in 26 million homes. The accelerating smart meter rollout and growing awareness of the energy crisis, coupled with the European directive to reduce 80% of carbon emissions by 2050, have been identified as the significant factors influencing the country's home energy management system's growth.

Germany has been focusing on sustainable long-term energy since 2010. The country adopted a strategic roadmap for renewable energy adoption called Energy Concept. This strategy establishes a pathway that is looking toward 2050 with renewable energy as its foundation.

The German government is on course to become one of the world's most energy-efficient and environment-friendly countries through the National Action Plan Energy Efficiency plan, which addresses funding schemes for energy efficiency measures and audits. According to the Ministry for Economic Affairs, the country plans to reduce primary energy consumption by 30% by 2030, compared to the 2008 levels.

The energy shortfall forced France to lean more heavily on its coal-fired power stations, tap coal-generated electricity from Germany, and rely on natural gas imports as prices spiked amid the conflict between Russia and Ukraine. The energy crisis drove up the prices of natural gas and electricity to record highs.

Energy Management Systems Market Competitor Analysis

The market studied is very competitive in nature. The market has a low concentration due to various small and large players. Some of the significant players in the market are IBM Corporation, Rockwell Automation Inc., General Electric, Schneider Electric, Eaton, ABB, Oracle Corporation, and many more. The companies are expected to increase the market share by forming multiple partnerships and investing in introducing new solutions to earn a competitive edge during the forecast period.
  • In September 2022, IBM unveiled the next generation of its LinuxONE server, a highly scalable Linux and Kubernetes-based platform designed to deliver scalability to support thousands of workloads in the footprint of a single system. IBM LinuxONE Emperor 4 is an engineered scale-out-on-scale-up system designed to enable clients to run workloads at sustained high density and increase capacity by turning on unused cores without increasing their energy consumption and associated greenhouse gas emissions.
  • In July 2022, Eaton collaborated with the Flow Consortium, which receives assistance from the European Union, to create and present an Integrated Electric Vehicle Charging Infrastructure. Based on expertise gained in advancing its Buildings as a Grid approach to combining the power needs of buildings and electric vehicles with on-site renewable energy generation, Eaton's role in the consortium will involve further developing electric vehicle charging technologies as well as demonstrating electric vehicle charging solutions.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

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 Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Energy Management Systems Market
5.1 Market Drivers
5.1.1 Increasing Usage of Smart Grids and Smart Meters
5.1.2 Rising Investments in Energy Efficiency
5.2 Market Challenges
5.2.1 High Initial Installation Costs Coupled with Maintenance Costs
6.1 By Type of EMS
6.1.1 BEMS
6.1.2 IEMS
6.1.3 HEMS
6.2 By End User
6.2.1 Manufacturing
6.2.2 Power and Energy
6.2.3 IT and Telecommunication
6.2.4 Healthcare
6.2.5 Residential and Commercial
6.2.6 Other End Users
6.3 By Application
6.3.1 Energy Generation
6.3.2 Energy Transmission
6.3.3 Energy Monitoring
6.4 By Component
6.4.1 Hardware
6.4.2 Software
6.4.3 Services
6.5 By Geography
6.5.1 North America United States Canada
6.5.2 Europe United Kingdom Germany France Spain Rest of Europe
6.5.3 Asia-Pacific China India Japan South Korea Rest of Asia-Pacific
6.5.4 Latin America Brazil Argentina Mexico Rest of Latin America
6.5.5 Middle East and Africa United Arab Emirates Saudi Arabia South Africa Rest of Middle East and Africa
7.1 Company Profiles
7.1.1 IBM Corporation
7.1.2 Rockwell Automation Inc.
7.1.3 General Electric
7.1.4 Schneider Electric
7.1.5 Eaton
7.1.6 Enel X
7.1.7 SAP SE
7.1.8 Siemens AG
7.1.9 ABB
7.1.10 Oracle Corporation
7.1.11 Honeywell International Inc.

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
  • Schneider Electric
  • Eaton
  • Enel X
  • SAP SE
  • Siemens AG
  • ABB
  • Oracle Corporation
  • Honeywell International Inc.