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A00506 | Pages: 285 | Charts: 63 | Tables: 179 |
The global energy management systems market size was valued at USD 36.2 billion in 2020, and is projected to reach USD 161.9 billion by 2030, growing at a CAGR of 16.2% from 2021 to 2030.
An energy management system (EMS) is a system of computer-aided tools used by operators of electric utility grids to monitor, control, and optimize the performance of the generation or transmission system. It can be used in small scale systems such as microgrids. It is one of the emerging technologies that enable an organization to collect real-time information on the energy use through monitoring, assessing, and visualizing energy consumption. This concept not only monitors energy consumption however also helps make data driven decisions and enhance enterprise-level operation & financial decisions.
Energy management solutions have gained popularity since they help gain competitive advantage, increase productivity, and reduce energy cost. In addition, the government policies toward energy conservation & the limited availability of fossils is drawing attention of the corporate. Every industry small or big is running with the help of energy, so it is essential to deploy energy management system. Although technology is advancing at a brisk pace, the end-use clients may not be adopting the same as quickly. Most of the potential buyers of energy management systems are at a stage where they are aware about the benefits of implementing such system, however preferably utilizing traditional technology and applications which impedes energy management systems industry. Financial barriers, limited expertise, and fragmented stakeholders are some of the key challenges for the energy management systems market.
Conversely, the energy management systems market is expected to offer several opportunities for new players in the market. Rise in the demand for energy management systems across industrial, commercial, and residential sectors is driven by their ability to improve energy efficiency. By analyzing consumption patterns, EMS can optimize energy usage, minimize waste, and help organizations reduce costs while meeting their sustainability goals. In addition, the increase in the integration of Internet of Things (IoT) devices and Artificial Intelligence (AI) enables improved predictive analytics, demand-response solutions, and automated energy optimization, enhancing efficiency and reducing costs. This innovative approach offers substantial growth potential, as it enables smarter, more responsive energy management across various sectors.
For instance, on July 17, 2024, OBM, Inc. launched a first-to-market solution to address the energy demands of artificial intelligence (AI) computing. This new product, an extension of their Foreman platform, offers pause-less energy curtailment, allowing AI compute to continue without interruptions during grid balancing events. This innovation aims to reduce the significant energy consumption of AI models, providing a critical solution for the industry.
Furthermore, building energy management systems are gaining traction with the rise of smart buildings and the focus on energy-efficient construction. These systems optimize the management of HVAC, lighting, and other energy-consuming components, enhancing overall energy efficiency, essential in sustainable building practices and cost-effective facility management. These factors are expected to provide remunerative energy management systems market opportunities for the growth of the market.
For instance, on September 9, 2024, TeraHive launched three intelligent energy management solutions: the TeraHive Energy Suite, Charging Station Management Solution, and Enterprise Energy Management. These solutions aim to optimize energy storage, usage, efficiency, and performance. The TeraHive Energy Suite is a modular and scalable residential energy management and battery system, while the Charging Station Management Solution supports EV charging infrastructure. The Enterprise Energy Management solution is designed for commercial applications, providing data collection, analytics, and intelligent forecasting.
Furthermore, the surge in the energy independence and localized solutions has spurred the growth of microgrid technology. Energy management systems are essential in managing microgrids, monitoring and optimizing performance, and ensuring efficient energy distribution and fault tolerance, providing reliable and resilient energy management. In addition, the rise in the demand for advanced data analytics offers valuable insights into energy consumption patterns, enabling businesses to optimize their energy use. Energy Management Systems (EMS) that incorporate predictive maintenance, performance optimization, and real-time data monitoring can significantly reduce energy costs and operational inefficiencies. These factors are expected to offer lucrative energy management systems market opportunities for growth.
For instance, on June 04, 2024, ABB launched the ReliaHome™ Smart Panel energy management solution in the U.S. and Canada. This innovative solution provides on- and off-grid energy optimization and insights, allowing homeowners to better control their electricity use and save on energy costs through a user-friendly app1. The ReliaHome Smart Panel is compatible with third-party devices such as batteries, solar inverters, electric vehicle chargers, and standby generators, making it suitable for both new and retrofit installations.
The energy management systems market size is expected to witness several noteworthy trends in the market. One of the significant trends is the rise in integration energy management systems with smart offering significant market potential. Smart grids enhance electricity distribution and improve grid resilience, making them crucial for modern energy infrastructure, driving efficiency and sustainability in energy management. In addition, the increase in the integration of renewable energy sources has led to the surge in the high demand for energy management systems that helps to optimize the use of solar, wind, and other renewable sources. These EMS solutions are essential for managing the intermittency and variability of renewable energy, ensuring a smoother and more efficient integration with the grid. Furthermore, there is a growing demand for energy management systems that enable organizations to monitor, report, and reduce carbon footprints. This trend presents a significant opportunity for software providers to develop solutions that help businesses comply with these new regulations, driving both environmental sustainability and regulatory adherence.
For instance, August 10, 2024, ABB partnered with Samsung Electronics to enhance user experience in energy management. This collaboration aims to integrate ABB's InSite energy management system with Samsung's SmartThings and SmartThings Pro platforms. The goal is to provide a more seamless and efficient way to manage energy consumption in both residential and commercial buildings. This partnership aimed to help users monitor and control various devices and systems, such as HVAC, lighting, and security, through a single application. By optimizing energy usage, it can lead to significant cost savings and a reduction in carbon emissions.
Another notable trend in the market is the upsurge in the use of renewable energy, energy storage systems that help to manage and optimize, balancing supply and demand, especially with intermittent renewable sources. This integration ensures a more stable and efficient energy supply, highlighting the importance of advanced EMS solutions in the renewable energy landscape. In addition, the shift in preference toward demand-response programs allow companies to adjust their energy consumption based on grid demand, helping to reduce peak demand and prevent power shortages. Energy management systems automate energy load adjustments, enhancing grid stability and providing significant cost savings and operational benefits for utilities and participating companies. Furthermore, there is a growing trend toward the interconnectivity of energy systems, which has led to the rise in the demand for robust cybersecurity solutions. EMS providers that integrate secure protocols to protect against cyber threats can capitalize on market opportunities. Securing energy systems is vital for maintaining operational integrity and safeguarding critical infrastructure.
For instance, on August 6, 2024, gridX partnered with greenblocks to revolutionize energy management for households in the Rhine-Main region. This collaboration aimed to provide a comprehensive energy solution by integrating distributed energy resources (DERs) such as photovoltaic systems, battery storage, heat pumps, and wallboxes with energy-efficient refurbishments. The core of their offering is the "liya" energy manager, which connects all locally-installed DERs, allowing customers to maximize the usage of their own solar energy and optimize all energy flows from generation to consumption. This partnership is expected to significantly improve energy efficiency and reduce energy costs for households in the region.
The global energy management systems market is segmented on the basis of component, end user, type, application, and region. The component segment is bifurcated into solution and service. By end user, the market is segmented into energy and utilities, IT and telecom, manufacturing, retail, healthcare, and others. Furthermore, on the basis of type, the market is categorized into home energy management systems, building energy management systems, and industrial energy management systems. By application, the market is broadly classified into residential and commercial. In addition, to gain further diverse insight, the market is analyzed across major regions, namely, North America, Europe, Asia-Pacific, and LAMEA.
[COMPONENTGRAPH]
Depending on component, the solution segment holds the largest energy management systems market size as the solutions allow for real-time gathering of key data and energy readings which further enables effective management of energy resources. In addition, increase in interest in EMS across different industry verticals as well as technological advancements, availability of cheap labour, and low manufacturing cost are some of the major factors that drive the energy management systems market growth. However, service segment is expected to witness growth at the highest rate during the forecast period, as large organizations are opting for third party energy management solutions to better optimize their energy resources.
The energy management systems (EMS) market report provides a comprehensive analysis of the sector, including global and regional market size estimates, growth projections, and key industry trends. It delves into the primary drivers, challenges, and opportunities influencing the EMS market, with a particular focus on the impact of energy efficiency regulations, sustainability goals, and the integration of renewable energy sources. The report further examines shifting consumer preferences toward smarter, more efficient energy solutions and how these factors are shaping market dynamics.
Key deliverables include detailed market forecasts, alongside an in-depth exploration of competitive strategies adopted by key market players. The report also provides valuable insights into the technological advancements within the EMS industry, particularly the role of IoT, AI, and big data analytics in optimizing energy consumption and operational efficiency.
The key players that operate in the energy management systems market are C3, Inc., Delta electronics, Inc., Dexma, General Electric company, Gridpoint, Honeywell international Inc., Johnson controls international plc, Schneider Electric S.E, Siemens and Yokogawa electric corporation. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the energy management systems industry.
In July 2024, Schneider Electric launched an AI-powered home energy management feature for its Wiser Home app. This new feature optimizes energy management for two of the biggest power loads in the home water heaters and electric vehicle chargers. By using predictive algorithms, it learns from user habits, real-time weather forecasts, tariff data, and solar production capabilities to optimize energy savings. This innovation aims to help homeowners reduce their energy bills and manage their energy consumption more efficiently.
[REGIONGRAPH]
Region wise, the energy management systems market share was dominated by Asia-Pacific in 2020 and is anticipated to grow at a significant rate during the forecast period, due to the rise in digitization and increase in data generated by IoT devices. Moreover, with the growing energy needs and high carbon footprint of the region, many organizations are leaning towards energy management systems are to optimize the energy resources for their operations.
The report explores the E energy management systems market, focusing on the different types of energy management solutions available, including hardware, software, and services. EMS are designed to monitor, control, and optimize energy consumption across various industries, helping organizations reduce costs and improve energy efficiency. The report outlines the key features and benefits of these systems, such as real-time energy monitoring, data analytics, and predictive maintenance capabilities.
The market for EMS is rapidly growing, driven by increasing energy costs, sustainability initiatives, and the need for regulatory compliance. Key differences between EMS types are highlighted, such as the distinction between enterprise-level systems and more localized, sector-specific solutions. The report also emphasizes the importance of integrating EMS with smart grids, renewable energy sources, and IoT technologies for enhanced performance.
By providing a detailed analysis of the EMS market, the report offers valuable insights into the evolving landscape of energy management. It highlights the role of EMS in reducing carbon footprints and achieving energy efficiency goals, making them an essential tool for both commercial and industrial applications. This comprehensive understanding of the EMS market helps stakeholders make informed decisions and capitalize on emerging opportunities.
Energy is the primary source of social and economic progress. Every sector needs energy to operate and due to highly competitive market and technological improvements, there is a constant demand for energy. The industrial sector, in particular, requires a lot of power. There is also a growing awareness of the need to optimize energy use and save it. Furthermore, due to market pressure and public awareness of environmental sustainability, enterprises have attempted to use energy more effectively. The desire to reduce and optimize energy use is projected to be a major market driver.
Energy prices fluctuate owing to of changes in supply and demand. Energy prices are influenced by a variety of factors, including extreme weather, economic conditions, and supply availability. According to the World Energy Outlook, energy consumption is expected to rise by 60% in the next 25 years, with developing countries accounting for the majority of this increase. Fossil fuels such as coal and thermal power plants currently provide a substantial quantity of energy in emerging countries. This is the most affordable non-renewable kind of generating energy. Increased energy demand and the depletion of natural resources are predicted to push other, more expensive forms of energy generation forward, resulting in higher energy prices. There has been a huge drop in the amount of energy used across the board. A significant reduction in energy consumption across several markets is anticipated to decrease the energy prices, particularly relative to the impact of the increased energy demand. Hence, factors such as constrained energy supply and increased energy cost due to volatility in energy prices are expected to fuel the energy management systems market demand.
Key Market Segments
Key Market Players