Detailed insights into energy management systems market
An automation system of computer-aid tools use to monitor, regulate, and optimize the operation of the transmission or generation system is known as an energy management system (EMS). Some of the popular EMS types include residential, commercial, and industrial. Operators of electric utility networks frequently employ it to regulate and keep an eye on equipment that consumes energy, including fans, heating, and cooling systems, pumps, dampers, and lighting. A smart panel, consumption monitors, smart circuits, and a monitoring and control app are some parts that make up an EMS.
The market worth of energy management systems in 2021 was USD 37.33 billion and will be worth USD 162.03 billion by 2030 at a 16.73% CAGR during 2021-2030.
The primary factor propelling the energy management system market growth is an increase in industrial sectors’ knowledge of the effective use of energy consumption. In addition, rising awareness of the need to reduce carbon emissions is a significant driver of the market for energy management systems.
Market Dynamics
Drivers
The progressively decreasing energy intensity of conventional fuels like coal has become a growing concern worldwide. Additionally, governments in many countries are force to set up efficient energy management systems due to the rapid industrialization that has increase energy consumption. Additionally, governments are under pressure to increase their investments in renewable energy due to the inflation of energy prices and competition among suppliers. Through the modernization of the energy and utility sectors, efficiency is increase through the vigorous backing of smart infrastructure initiatives. Growing investments in smart projects like smart buildings and smart farms create a significant need for efficient energy management. The utilization of smart meters and grid is growing, encouraging market expansion.Restraints
- Absence of a performance monitoring system to track individual energy usage, efficiency, and other factors.
- The absence of high-frequency data, historical data, and analytic techniques make identifying and addressing inefficiencies difficult.
Opportunity
Governments worldwide are developing a wide range of strategies to lessen the negative consequences of climate change to achieve the ultimate goal of net zero carbon emissions by 2050, which will, in turn, create a wealth of prospects for future market success.Market Segmentation
On the basis of system type, the market is segment into IEMS/Industrial energy management systems, HEMS/Home energy management systems, and BEMS/Building energy management systems.
In 2022, the industrial management system segment led the entire market with the largest share of 70%. EMS is a fully customized, end-to-end energy management solution that provides industry-specific functions for monitoring, reporting, and controlling carbon emissions. IEMS is designed and created to adequately monitor energy use, analyze operational data, send automatic alerts and alarms, and trigger system events that satisfy each application’s operational needs.On the basis of components, the market is segmented into hardware, services, and software.
With the largest market share of 60%, the hardware segment led the entire market in 2022. Because of the increasing prevalence of sensing and communication technology, the hardware segment could account for a considerable part of the global market. Bridges and sensors have also become popular, with wired sensor networks seeing increase adoption due to their increase dependability, longer service lives, and reduce susceptibility to interference and interruptions. With monitoring and regulating building operations gaining traction as a means of embedding intelligence, hardware components can boost the energy management systems market.By end-user, the market is segment into manufacturing, energy, and power, telecom & IT, residential, retail, healthcare, and others.
In the year 2022, the energy and power segment held a maximum market position with a 37.17% share. Energy management systems are widely utilize in the power and energy industries. Energy management systems aid in the tracking and monitoring of energy consumption regularly. This also aids in the seamless operation of the industry.Regional Insights
North America rule the market with the largest share of 38.42% in 2022. With the increasing use of smart grids and investment in infrastructure, the United States and Canada are expect to offer prospects for producing money. According to the IEA, investments in energy grids would increase by 10% in 2021, with the U.S. as one of the primary countries investing in infrastructure. Additionally, the need for smart energy has significantly increase, motivating stakeholders to invest money in EMS. The building, residential, and commercial sectors are expect to show the strongest demand for IoT-base solutions.Key Players
- Siemens AG
- Honeywell International Inc.
- Schneider Electric SE
- Johnson Controls, Inc.
- International Business Machines Corp.
- General Electric
- GridPoint
- ABB
- Cisco Systems, Inc.
