Global Energy Management System Market Overview
Energy Management System Market Size was valued at USD 33.83 biillion in 2023. The Energy Management System market industry is projected to grow from USD 38.80301 Billion in 2024 to USD 101.36 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.75 % during the forecast period (2024 - 2032).
A framework for managing energy use is known as an energy management system (EnMS), and it is used by organizations in the industrial, commercial, and public sectors. It assists businesses in locating possibilities to implement and enhance energy-saving technology, including those that may not necessarily require a significant financial outlay. The majority of the time, personnel training and specialist knowledge are necessary for an EnMS to be implemented successfully.
This study on the Energy Management System Market provides detailed information on industry trends, market dynamics, market size, competitive landscape, and growth opportunities. This research report categorizes the Energy Management System Market by type, component, deployment, industry verticals and region/country.
FIGURE 1: ENERGY MANAGEMENT SYSTEM MARKET 2018-2032
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Covid-19 Analysis
The market for energy management systems has developed dramatically in recent years. However, the market saw a significant decline in 2020 due to the outbreak of the COVID-19 pandemic. This is attributed to lower energy use in heavy sectors such as petroleum, coal, and natural gas. This has resulted in lower energy demand in key economies such as the United States, Italy, Germany, the United Kingdom, and others. The sector, however, has persisted due to an increase in demand from residential energy usage.
Lockdown has boosted household activities like internet shopping, remote work, powering home appliances, cooling or heating the home, and streaming entertainment services. As a result, the usage of energy management systems in residential energy consumption has grown during the COVID-19 pandemic, having a positive impact on the market.
The breakout of the COVID-19 pandemic has had a detrimental influence on the world economy, significantly affecting numerous sectors such as technology and energy management system industry. The epidemic has led to the introduction of lockdown restrictions and travel restrictions in several nations around the world, disrupting the supply chain of commodities and materials as well as market demand.
Furthermore, trade restrictions, the closure of manufacturing sites, a decrease in production rate, cash flow constraints, and a lack of labour have resulted in a decrease in the cash flow margins of global market stakeholders. Because of the imposed lockdown constraints and the personnel being benched to their home and local regions, the growth and availability of professionals to deploy the combined system remotely were not possible in some countries, making it difficult to adapt the technologies.
Energy Management System Market Dynamics
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Rising Inclination Towards Energy Efficiencies And Government Support To Boost Growth
Energy is the primary fuel of social and economic advancement. Every industry need energy to function, and due to a highly competitive market and technological advancements, there is a steady demand for energy. The industrial sector, in particular, necessitates a large amount of power. There is also an increasing awareness of the need to optimise and save energy. Furthermore, in response to market pressure and public awareness of environmental sustainability, businesses have pushed to use energy more efficiently. The aim to decrease and optimise energy use is expected to be a major market driver.
The continual decrease of energy intensity from traditional resources such as coal has become a global problem. Governments throughout the world have committed resources to creating an acceptable, secure, and long-term energy system. Furthermore, rising energy demand as a result of increasing industrialization drives governments in various countries to implement effective energy management systems. Furthermore, rising energy supplier competition and price inflation are compelling governments to enhance investments in sustainable energy.
Technological Advancement in Energy Management System
The rapid digitization of the energy sector, combined with the paradigm shift in electrification, has increased demand for energy management system. EMS is extremely useful in assisting businesses in identifying possibilities to improve and implement energy-saving solutions. EMS is projected to get momentum to provide energy stability, flexibility in power generation, and increased energy efficiency. Furthermore, to regulate energy consumption, the environmentally friendly energy consumer framework will focus quality and occupancy sensors. Technologies that reduce energy usage may lead to a decarbonization trend that avoids the use of fossil fuels.
Edge AI, for example, has gained significant traction throughout established and emerging nations, owing mostly to the onslaught of the COVID-19 epidemic. The proliferation of hybrid work cultures and rotational schedules aided the smart building management trend. Furthermore, cutting-edge AI has emphasised building management systems (BMS) to improve safety, reduce energy consumption, better utilise building assets, and provide greater occupant comfort. The outbreak pushed building managers to prioritise AI-powered building management systems to optimise and automate energy usage.
According to the post-COVID forecast, a focus on EMS might pave the road for low-carbon economic growth. To obtain worldwide momentum, the competitive landscape alludes to strategic planning, such as technology improvements, collaborations, product offers, mergers and acquisitions, and geographical growth. Eaton, for example, joined with the EU-backed Flow Consortium (24 external partners and six prominent universities from around Europe) in July 2022 to build and test an integrated electric vehicle charging infrastructure. The USD 10.4 million project, which is funded by the EU's Horizon Europe Research and Innovation initiative, might last through March 2026.
Energy Management System Market Segment Insights
Energy Management System Product Insights
By type segment of energy management system market has been segmented into the industrial energy management system, building energy management system, and home energy management system. During the projected period, the demand for home energy management system segment is expected to rise rapidly.
FIGURE 2: ENERGY MANAGEMENT SYSTEM MARKET SIZE (USD MN) BY PRODUCT 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Energy Management System Component Insights
By component segment of the energy management system market has been segmented into hardware, software, and services. During the projected period, the demand for software segment is expected to grow rapidly.
FIGURE 3: ENERGY MANAGEMENT SYSTEM MARKET SIZE (USD MN) BY COMPONENT 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Energy Management System Deployment Insights
By deployment, the energy management system market has been segmented into On-Premises and Cloud. During the projected period, the cloud segment is expected to rise rapidly. Cloud-based energy management software is the dominant tool for managing energy in any organization, regardless of industry. By using cloud computing, service providers can access elastic IT resources such as storage, servers, and computing, which allows them to scale up and down as client needs change.
FIGURE 4: ENERGY MANAGEMENT SYSTEM MARKET SIZE (USD MN) BY DEPLOYMENT 2022 VS 2032 
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Energy Management System Industry Vertical Insights
By Industry Vertical segment of the energy management system market has been segmented into IT & Telecom, power & energy, manufacturing, oil & gas, automotive, healthcare, residential, pharmaceutical, and others. Power & Energy segment expected to experience significant growth during the forecast period.
FIGURE 5: ENERGY MANAGEMENT SYSTEM MARKET SIZE (USD MN) BY VERTICAL 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Energy Management System Regional Insights
Geographically, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa and South America region.
North America is expected to have a significant share of the Energy Management System Market during the projected period.
The region's need for energy management systems is anticipated to be driven by the region's growing emphasis on grid modernization, rising smart meter usage, and deployment of household energy management systems to monitor and manage electricity consumption. Higher efficiency goals are the focus of regional government strategies aimed at lowering energy use. Additionally, North America has historically had a robust industrial sector. As a result, increasing industrial energy efficiency through the adoption of energy management systems assumes a relatively significant role, ultimately fueling the expansion of the local market.
Due to the growing use of smart grids and increased investment in infrastructure, the United States and Canada are expected to offer chances for revenue generation. According to the IEA, investments in energy grids would increase by 10% in 2021, with the U.S. serving as one of the primary countries investing in infrastructure. Additionally, the need for smart energy has significantly increased throughout the region, motivating stakeholders to invest money in EMS. The building, residential, and commercial sectors are expected to show the strongest demand for IoT-based solutions.
The increase in energy usage for space heating and cooling is primarily responsible for the development trajectory. For instance, the U.S. Energy Information Administration referenced the Annual Energy Outlook 2022 in June 2022 to claim that heating and cooling accounted for about 50% of the energy used in U.S. buildings in 2021. In order to reduce carbon emissions and access the global market, it is also projected that electricity providers and business and industrial organizations will focus clean energy technology and connectivity.
FIGURE 6: ENERGY MANAGEMENT SYSTEM MARKET SIZE (USD MN) BY REGION 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Energy Management System Key Market Players & Competitive Insights
The energy management system market has witnessed significant growth over the forecast period due to rising inclination towards energy efficiencies, energy price volatility and rise in awareness about carbon footprint management. There are several domestic, regional, and global players operating in the energy management system market who continuously strive to gain a significant share of the overall market.
During the study, MRFR has analyzed some of the major players in the Energy management system market who have contributed to the market growth. These include C3 energy, Delta Electronics Inc, Dexma, General electric company, Gridpoint Inc,. Honeywell international Inc, Johnson controls international plc, Schneider electric SE, Siemens AG, Yokogawa electric corporation, Mitsubishi Electric Corporation, ABB Ltd, Cisco System Inc., IBM Corporation, CA Technologies, Eaton Corporation, and Rockwell Automation.
October 2022: New York State has issued a new executive order mandating that all state agencies use the NYPA's (NYPA) NY Energy Manager program as the system of record for their energy data as part of a significant sustainability initiative. A system created and implemented by C3 AI is used by the NY Energy Manager to track and assist in reducing energy use at more than 1,000 state agencies and other clients.
Key Companies in the Energy Management System market include
- Delta Electronics Inc
- Dexma
- General electric company
- Gridpoint Inc
- Honeywell international Inc
- Johnson controls international plc
- Schneider electric SE
- Siemens AG
- Yokogawa electric corporation
- Mitsubishi Electric Corporation
- ABB Ltd
- Cisco System Inc.
- IBM Corporation
- CA Technologies
- Eaton Corporation
- Rockwell Automation
Energy Management System Industry Developments
January 2024: Honeywell declared that, it launched the Advance Control for Buildings, which is a building management system that can use the existing wiring of a building “to provide more efficiency control options to building managers hence improving occupants comfort while advancing energy management goals”.
According to the company’s statement, this new BMS platform is designed to utilize Honeywell’s recent partnership with NXP Semiconductors so as to enhance machine learning and autonomous decision-making for energy management and also its integration of Analog Devices’ technology, which enables greater digital connectivity as well as advanced signal conversion across various applications.
September 2023: Energy o (Nasdaq: TYGO) announced today its new line of energy products under the GO brand on September 2023. The Tigo GO product line offers advanced modular-component-based intuitive-install optimized working-together flexible solar solutions for homes. For the US market, two residential market products will be released first under this brand, namely, Tigo Go ATS with generator support and Tigo Go Battery.
Power loads and sources such as solar power systems or battery systems are controlled by a hub called Automatic Transfer Switch (ATS), which is represented here by TIGO GO ATS having generator support features; also expandable storage capacity for time-of-use or whole-home backup coverage can be configured through partial power provided by an expandable storage system known as TIGO GO BATTERY.
January 2023: GM Energy – an energy firm established by General Motors Corporation (GM) primarily involved in battery sales, charger vending machines installation services, delivery utility-scale solar panels distribution software development, among other activities within residential, commercial sectors announced on Monday its maiden batch of domestic power controls items; these shall be accessible via their home division dubbed Ultium Home].
At launch, there will be three different package deals offered; two specifically designed around bi-directional charging capabilities present certain electric vehicles produced by General Motors, while one does not require an electric motor manufactured by General Motors at all]. With this technology, owners can use their parked cars as sources of backup electricity supply during blackouts.
April 2022: GE Digital said that Petroleum Development Oman (PDO), the top oil and gas production and exploration firm in the Sultanate of Oman, has purchased its Advanced Energy Management System (AEMS). To maintain the efficiency and dependability of its oil production plants, PDO may plan, regulate, and optimize the creation of renewable energy using the GE Digital software.
October 2022: An innovative platform with artificial intelligence (AI) capabilities and seamless integration with energy infrastructure (solar energy and energy storage), DeltaGrid EVM, has been introduced by Delta, and it is improving the power stability and operational efficiency of EV charging stations around the globe.
June 2022: GE Renewable Energy will expand India's new "Renewable Hybrid" facility to 9GW. GE will increase production of its utility-scale storage solution, FLEXRESERVOIR, which can also combine with its digital FLEXIQ platform, and its power conversion solution, FLEXINVERTER (previously LV5+), as a result of growth in its manufacturing backlog and solid underlying demand
Energy Management System Market Segmentation
Energy Management System Type Outlook
- Industrial Energy Management System
- Building Energy Management System
- Home Energy Management System
Energy Management System Component Outlook
- Hardware
- Software
- Services
Energy Management System Deployment Outlook
Energy Management System Industry Vertical Outlook
- IT & Telecom
- Power & Energy
- Manufacturing
- Oil & Gas
- Automotive
- Healthcare
- Residential
- Pharmaceutical
- Others
Energy Management System Regional Outlook
- North America
- Mexico
- Europe
- Germany
- France
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Rest of Asia-Pacific
- Middle East & Africa
- South America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 33.83 Billion |
| Market Size 2024 |
USD 38.80301 Billion |
| Market Size 2032 |
USD 101.36 Billion |
| Compound Annual Growth Rate (CAGR) |
12.75% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2021- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Growth Factors, Market Competitive Landscape, and Trends |
| Segments Covered |
Type, Deployment Mode, Industrial Verticals, Component, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
General Electric Company (U.S.), IBM Corporation (U.S.), Honeywell International Inc. (U.S.), Rockwell Automation Inc. (U.S.), Schneider Electric SE (France), SAP SE (Germany), Siemens (Germany), Eaton (Ireland), Mitsubishi Electric Corporation (Japan), and Cisco System Inc. (U.S.) |
| Key Market Opportunities |
Favorable governmental initiatives and updated policies |
| Key Market Dynamics |
The rising demand for services in various end-user industry |
Frequently Asked Questions (FAQ) :
The Energy Management System Market size is Projected to grow at USD 101.36 Billion in 2032
The global market is projected to grow at a CAGR of 12.75 % during the forecast period, 2024 - 2032
From 2024 to 2032, North America has the potential to achieve the top position in the global market.
C3 energy, Delta Electronics Inc, Dexma, General electric company, Gridpoint Inc,. Honeywell international Inc, Johnson controls international plc, Schneider electric SE, Siemens AG, Yokogawa electric corporation, Mitsubishi Electric Corporation, ABB Ltd, Cisco System Inc., IBM Corporation, CA Technologies, Eaton Corporation, and Rockwell Automation.
