Energy Management System Market Size was valued at USD 29,588 million in 2022. The Energy Management System Market industry is projected to grow from USD 34,152.4 million in 2023 to USD 88,478.8 million by 2030, exhibiting a compound annual growth rate (CAGR) of 14.6% during the forecast period (2023 - 2030). An energy management system (EMS) is software that allows you to control and monitor the electric utilities and devices that use electricity. For instance, an energy management system may be used to handle the individual HVAC units in each guest room at any hotel. The EMS provides you with information on energy usage in order to maximize functionality and comfort while minimizing consumption and utility expenses.
In addition to the EMS interface, an EMS typically consists of three components: energy usage metering sensors, a control system that sends commands from the EMS interface, and the actual controlled equipment, such as air conditioners, fans, or lights.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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.
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 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.
Increased energy demand and natural resource depletion are expected to propel alternative, more expensive forms of energy generation further, resulting in rising energy prices. The amount of energy used has decreased dramatically across the spectrum. A considerable reduction in energy use across various markets is expected to lower energy prices, especially when compared to the impact of growing energy demand. As a result, factors such as limited energy supply and rising energy costs due to fluctuation in energy prices are likely to fuel the expansion of the energy management systems market.
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.
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. The Industrial energy management system market segment dominated the global market with the largest revenue share of 58.4% in 2022. An industrial energy management system offers industry-specific functionality for monitoring, reporting, control, and automation that is highly customizable, fully integrated, and end-to-end. Industrial energy management systems provide accurate monitoring and analysis of energy consumption, automated alerts and alarms, system events, and system monitoring based on each application's needs. A Building Energy Management System is a computerized system for monitoring and controlling energy-related plants and equipment in buildings, such as HVAC systems, lighting, power systems, etc. Despite sometimes being used interchangeably with Building Management Systems (BMS), Building Energy Management Systems are able to monitor and control a wide array of building systems, such as fire, smoke detectors, motion detectors, CCTV, access control, security, and access control, lifts, etc. Specifically, Building Energy Management Systems deal with energy-related systems. The home energy management system is a technology platform with both hardware and software for monitoring energy usage and production as well as controlling and/or automating energy consumption within a home. Hardware components of the system include a 'hub' device that acts as a link between the homeowner and connected appliances and devices.
By component segment of the energy management system market has been segmented into hardware, software, and services. The Hardware segment dominated the Energy Management System Market with the largest market revenue share of 59.3% in 2022 Energy Management System hardware is primarily the central monitoring unit which is crucial to its operation. Power distribution within the house is handled by this unit, which is installed on the house's main electrical switchboard. The software in an Energy Management System regulates communications between devices and users. In order to relay information between the Energy Management System, the supplier, and the user, the communication network is utilized. Additionally, the software includes an algorithm that analyzes the energy consumption data and looks for opportunities to optimize it. There are many ways to improve energy efficiency and reduce energy costs for the business if the user knows where to look. Various services such as supply solutions, demand solutions, renewable energy solutions, utility energy management solutions, price risk management solutions, and EV charging stations are provided by companies.
By deployment segment of the Energy Management System market has been segmented into On-Premises and Cloud. The Cloud segment dominated the Energy Management System Market with the largest market revenue share of 79.3% in 2022. On premise, energy management software typically has a one-time cost or license fee. Moreover, on-premises solutions usually incur additional costs in terms of set-up, installation, and extra hardware. Depending on the size of the project, users will need servers and IT environments costing from $10,000 to $50,000 for deploying a system with advanced analytics capabilities. 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.
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. The Manufacturing segment dominated the Energy Management System Market with the largest market revenue share of 21.7% in 2022. According to sources in the telecommunications industry, there are over one million cell sites in the region. Private property is typically leased by owners of these sites. In order to reimburse the property owner for their share of utility bills, telecommunications companies monitor the energy consumption and demand of their cell sites on leased properties. Power management primarily focuses on enhancing electrical reliability. It is essential for critical power buildings to have reliable, high-quality, and manageable power. The energy management system is more concerned with saving money and integrating existing energy streams to analyze the power distribution systems across all energy-related aspects of a building with the aim of reducing costs and maximizing energy efficiency. It requires planning and corporate commitment for energy consumption to be reduced effectively. For instance, consider a product that is dried in a natural gas dryer, cured, and dried in an electric dryer before coating. If an individual manager responded to a "mandate to save energy," the first dryer might use less gas. A large amount of energy is required in oil refineries in order to produce electricity that is used to generate heat and power various equipment and motors. Complete stages of petroleum production include drilling, processing, refining, and transporting the final product to end users.
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.
November 2022: ABB Ability OPTIMAX has been brought into the green hydrogen market with the goal of reducing production costs over the lifecycle of a hydrogen plant, from simulation during the design and engineering phases to real-time visualization and monitoring when in operation.According to ABB, the platform provides a level of transparency that can be utilized to improve the efficiency and safety of each electrolyze module operating within the plant by limiting each module's speed and ensuring it is only used when needed.
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.
| Attribute/Metric | Details |
| Market Size 2022 | USD 29,588 Million |
| Market Size 2030 | USD 88,478.8 Million |
| Compound Annual Growth Rate (CAGR) | 14.6% (2023-2030) |
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Historical Data | 2019 & 2021 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Component, Deployment, Industry Verticals & Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
| Countries Covered | US, Canada, Mexico, Germany, UK, France China, India, Japan |
| Key Companies Profiled | 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, Eaton Corporation Plc, Cisco Systems Inc, IBM Corporation |
| Key Market Opportunities | · Technological advancement in energy management system · Rise in Opportunities in the Home Energy Management division |
| Key Market Dynamics | · Rising inclination towards energy efficiencies and government support to boost growth · Energy price volatility · Rise in Awareness About Carbon Footprint Management |
Frequently Asked Questions (FAQ) :
The North America region dominated the Energy Management System Market with the largest market revenue share of 37.7% in 2022.
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, Eaton Corporation Plc, Cisco Systems Inc, IBM Corporation
The Industrial energy management system market segment dominated the global market with the largest revenue share of 58.4% in 2022.
The Hardware segment dominated the Energy Management System Market with the largest market revenue share of 59.3% in 2022.
The Cloud segment dominated the Energy Management System Market with the largest market revenue share of 79.3% in 2022.
The Manufacturing segment dominated the Energy Management System Market with the largest market revenue share of 21.7% in 2022.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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