Energy Management System Market

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.

Climate change, global warming, and the rising frequency of natural disasters are forcing global and local energy associations to implement tight restrictions for efficient energy use. Several states and municipal governments in the United States, for example, have increased their renewable energy portfolio mandates to demonstrate their commitment to clean energy. As a result, government measures to reduce energy usage and improve management efficiency are propelling the growth of the energy management system market.

The modernisation of the energy and utility industries is aggressively promoting smart infrastructure improvements for increased efficiency. Increased investment in smart projects such as smart buildings, smart cities, and smart farms creates a huge demand for enhanced energy management. The increased deployment of smart metres and smart grids also contributes to market growth. Furthermore, smart grid benefits such as reduced electricity bills, increased reliability, lower costs, fraud detection, and others are increasing smart grid implementation. Furthermore, smart grids and metres are outfitted with data collection and analysis capabilities that might yield useful insights.

Thus, technologically upgraded smart grids and smart energy metres are expected to drive market growth.

Energy price volatility

Energy prices fluctuate due to supply and demand fluctuations. Extreme weather, economic conditions, and supply availability are all factors that influence energy prices. The World Energy Outlook predicts that energy consumption would rise by 60% over the next 25 years, with developing countries accounting for the majority of this increase. In rising countries, fossil fuels such as coal and thermal power plants currently offer a significant amount of energy. This is the most cost-effective non-renewable energy generation method. Energy management systems contribute to the lowering of energy costs.

Even governments in both developed and developing countries are implementing various programmes and policies to encourage the development and acceptance of energy management systems in the global market. Energy management system is recognised as one of the most inventive solutions for the power and energy industries.

Rise in Awareness About Carbon Footprint Management

The entire amount of greenhouse gases (GG) that result from routine economic and human activities is represented by the carbon footprint. It's critical to understand an activity's carbon footprint, which is expressed in tonnes of CO2 emissions, before taking any action or starting any initiatives to reduce it as much as feasible. The World Meteorological Organization (WMO) reports that atmospheric greenhouse gas concentrations hit a record high in 2019 and that current CO2 levels are equal to those from more than three million years ago.

According to environmental NGO The Nature Conservancy, each person on the earth generates nearly four tonnes of CO2 annually, while this number is higher in nations like the United States which is up to four times that per person and per year. Businesses have several choices for reducing or offsetting their carbon footprints, including increasing energy efficiency, using only energy that is 100% renewable, funding environmental initiatives, paying green taxes, and purchasing tonnes of CO2 on the global emissions market.

The global market for energy management systems is expanding. Automatic energy management systems have become more popular during the past few decades. The market for energy management systems is expanding and developing due to rising concerns about pollution and carbon emissions. Additionally, the government is highlighting the significance of energy usage, which is fueling the expansion of the market for energy management systems.

The Global Energy Management System Market Industry is significantly influenced by the escalating costs of energy. As energy prices continue to rise, organizations are increasingly seeking solutions to optimize their energy consumption and reduce operational expenses. This trend is particularly evident in sectors such as manufacturing and commercial real estate, where energy costs can account for a substantial portion of operational budgets. By implementing energy management systems, companies can achieve substantial savings, which is crucial in a market projected to reach 38.9 USD Billion in 2024. The drive towards cost efficiency is likely to propel the adoption of these systems across various industries.

The Global Energy Management System Market Industry is shaped by stringent regulatory frameworks aimed at promoting energy efficiency and sustainability. Governments worldwide are implementing policies that mandate organizations to monitor and reduce their energy consumption. For instance, regulations such as the Energy Efficiency Directive in the European Union compel companies to adopt energy management practices. Compliance with these regulations not only helps organizations avoid penalties but also enhances their reputation as environmentally responsible entities. As the market evolves, the need for compliance is expected to drive the adoption of energy management systems, contributing to the anticipated growth to 174.9 USD Billion by 2035.

The Global Energy Management System Market Industry is poised for substantial growth, with projections indicating a market size of 38.9 USD Billion in 2024 and an anticipated increase to 174.9 USD Billion by 2035. This growth reflects a compound annual growth rate (CAGR) of 14.64% from 2025 to 2035. Such projections underscore the increasing recognition of energy management systems as essential tools for optimizing energy consumption and enhancing operational efficiency. The market dynamics are influenced by various factors, including rising energy costs, regulatory compliance, technological advancements, corporate sustainability initiatives, and the demand for renewable energy. These elements collectively contribute to a robust growth outlook for the industry.

Technological innovations play a pivotal role in the Global Energy Management System Market Industry, facilitating the development of more sophisticated and efficient energy management solutions. The integration of Internet of Things (IoT) devices, artificial intelligence, and big data analytics enables organizations to monitor energy usage in real-time and make informed decisions. These advancements allow for predictive maintenance, automated energy optimization, and enhanced reporting capabilities. As organizations increasingly recognize the value of data-driven insights, the demand for advanced energy management systems is likely to surge. This trend aligns with the projected CAGR of 14.64% from 2025 to 2035, indicating a robust growth trajectory.

The Global Energy Management System Market Industry is increasingly driven by corporate sustainability initiatives as organizations strive to reduce their carbon footprint and enhance their environmental stewardship. Companies are adopting energy management systems to align with sustainability goals, improve energy efficiency, and demonstrate their commitment to responsible resource management. This trend is particularly pronounced among multinational corporations that face pressure from stakeholders to adopt sustainable practices. By integrating energy management systems, these organizations can track their energy consumption, set reduction targets, and report progress transparently. This alignment with sustainability objectives is expected to contribute to the market's growth as it approaches 174.9 USD Billion by 2035.

The Global Energy Management System Market Industry is influenced by the growing demand for renewable energy sources as organizations seek to transition away from fossil fuels. The integration of renewable energy into existing energy management systems allows organizations to optimize their energy mix and enhance sustainability. This shift is driven by both consumer preferences for greener energy options and government incentives promoting renewable energy adoption. As more organizations invest in solar, wind, and other renewable sources, the need for effective energy management systems becomes paramount. This trend is likely to support the market's growth trajectory, aligning with the projected CAGR of 14.64% from 2025 to 2035.

Based on Region, the Energy Management System Market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The North America region dominated the Energy Management System Market with the largest market revenue share of 37.7% in 2022. 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 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.

Among these, General Electric, Eaton, Schneider Electric, Honeywell international inc, Siemens AG , and Mitsubishi Electric Corporation are among the top 5 players in Energy management system market. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.

General Electric focuses on R&D within all its product lines and services for control systems to improve its global market share. It designed its Entellisys low voltage switchgear solution, which provides advanced protection and control for hospitals and airports, corporate data centers, oil and gas plants, manufacturing centers, and wastewater treatment plants.

Eaton holds broad industrial expertise with a wide customer base worldwide. The company aims to improve the quality of life with a sustainable environment as its long-term vision. For this reason, Eaton carefully develops its product portfolio, considering customers' insights and the challenges they face in their day-to-day business operations. Additionally, the company aims to improve safety, reliability, efficiency, and sustainability in ways that matter to employees, customers, shareholders, and the communities it deals with.

Schneider is focused on achieving organic growth by providing world-class services and software. The company plans to accelerate the growth of its profitable businesses by improving its systems and equipment. Digitization forms the core of the company’s key strategy; it aims to support the digital transformation for its customers and strategic partners. It strategizes to invest in research & development to modernize its existing facilities in key industries to maintain its market position.

The key strategy of Honeywell is aimed at organic growth. The company constantly focuses on innovations and R&D to ensure a strong market presence and product portfolio. It is also focused on tapping into new regional markets and segments. The company aims to expand its regional presence and customer base through collaborations and partnerships.

Siemens is continuously expanding its product portfolio with significant investments in R&D. The company is focused on enhancing its service offerings and expanding its global presence through mergers & acquisitions to strengthen its expertise in technology. These strategic acquisitions also help Siemens to strengthen its presence in the competitive market. Currently, the company aims at expanding its business in China; however, it faces strict government rules and regulations.

Mitsubishi Electric focuses on an organic growth strategy. It aims to accelerate the growth of its core businesses through global expansion, continuous innovation, and creating strong business relationships. The company constantly reviews and refreshes its product portfolio to offer its partners and customers state-of-the-art services. It also plans to resolve energy and resource issues through its products, systems, and services to maintain a strong brand name.

C3 ENERGY: C3 is an AI software supplier that offers the C3 AI Suite for creating, implementing, and running large-scale AI, predictive analytics, and IoT applications for any enterprise value chain in any sector. A framework for model-driven AI that improves data science and application development forms the basis of the C3.ai solution. Predictive maintenance, fraud detection, supply network optimization, energy management, and anti-money laundering are just a few of the pre-built applications from C3.ai that are suitable for a range of sectors. Some of the biggest organizations in the world, such as Shell, Bank of America, the U.S.

Air Force, Koch Industries, ENGIE, and others, employ C3 AI software to find significant solutions to previously intractable issues. C3 AI Energy Management empowers sustainability, facilities, and operations managers to achieve targets for energy cost, GHG emissions, water consumption, and waste reduction.

Delta Electronics, Inc: Delta Electronics, Inc has three business segments: Power electronics, automation, and infrastructure. The Power Electronics segment provides inductors, transformers, networking products, EMI filters, solenoids, and current sensing resistors for mobile devices, automotive electronics, cloud computing, and other applications. It also provides switching power supplies, modules, external and embedded power, industrial and medical power, and industrial battery charging products. DC brushless fans and blowers, motors, thermal management products, cabinet thermal solutions, indoor air quality solutions, and automotive fans are also offered in this market segment.

The Automation segment provides products and services for industrial automation, including display and visualization products and building automation solutions, such as building energy management systems, building management and control, LED lighting, video surveillance, and UNOnext indoor air quality monitor technologies.