Energy Management System Market Size, Share, and Industry Analysis By Type (System, Services), By End-User (Oil and Gas, Manufacturing, Building Automation, Energy and Utilities, Automotive, Pharmaceutical, and Others) and Regional Forecast, 2019 - 2026

KEY INDUSTRY INSIGHTS

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The global energy management system market size valued at USD 18,269.6 Million in 2018 and is projected to reach USD 48,901.1 Million by the end of 2026, exhibiting a CAGR of 13.7% during the forecast period (2019 - 2026).

If it weren’t a global need to save energy, the term ‘Energy Management’ would not have been coined. In today’s scenario, there is a worldwide need to save energy across organizations and industries. The energy management system is key to saving energy. Day by day, the organizations are becoming more energy-conscious. Significant technological developments have boosted researchers to think about efficient energy management solutions.

Energy management refers to controlling, conserving, and monitoring energy usage in buildings and industries. Energy management enables organizations to reduce cost as energy prices are rapidly inflating. It also reduces carbon emissions which will ultimately promote the green, sustainable energy usage and minimize the risk by decreasing the demand for energy supply by controlling the energy usage with efficient energy management systems.

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Inflation of the oil prices, raising concerns about global warming and other environmental issues, competitiveness between the energy suppliers have driven the interest of the government, as well as various private and public organizations to invest in the energy management systems. Additional benefits, including, improved operational cost, profitability, and enhanced productivity, would drive the energy management system market in the coming years.

Smart energy management would lead to the wise use of renewable as well as non-renewable resources across organizations. Having a well-defined energy management process would help the organization in identifying energy waste and improve the same. Implementing technologically developed, innovative, and cost-effective energy-saving technologies would help the organizations to stay on track in the competitive market and gain more significant productivity goals in the future.

"Adoption of smart grid technologies, cloud computing platforms, and digitalization of energy infrastructure to boost growth"

Smart Grid represents the integration of digital technologies, sensors, and information and technology to empower and manage the use of energy in a reliable and enhanced way. Owing to the various benefits of smart grids including reduced balancing cost, better customer service, optimized utility bills, fraud detection, and energy losses, adoption of smart grid technology would drive the global energy management system market growth.Whereas, innovations in the cloud computing platforms and increasing focus of organizations towards the digitalization of energy infrastructure are the major factors driving the market.

MARKET SEGMENTATION

"Active participation and strict rules regarding energy conservation to propel the market"

The government is actively participating in taking initiatives and maintaining mandatory rules and regulations on the conservation of energy as well as the energy resources. Governments have posed specific rules and regulations regarding energy efficiency, controlling carbon emission, maximizing utility, reducing cost, improve reliability, and transparency across organizations, which would indirectly contribute to energy conservation. Some governments have also established independent committees to handle energy management issues. Such active participation and initiatives of the government will boost the overall energy management system market revenue.

"The industrial energy management system segment to remain dominant in the coming years"

Mainly, in the emerging and developing economies, the industrial sector accounts for the highest energy consumption and greenhouse gas emissions. This will continue to drive the growth of global energy management in the coming years across the industrial sector. To extricate economic growth and industrial development from energy consumptions, industries need to increase their operational efficiency and adopt low- carbon and low-emission technologies.

As per the German Federal Environmental Agency, the ultimate goal of energy management is to ensure that minimum energy input is required for a predetermined performance associated with the integration of planned and executable actions. A well-defined energy management system in the industry would offer benefits such as energy cost monitoring, energy cost allocation, energy manager, pay-off criteria, environmental policy, long-term strategy, and management support.

A general change of attitude has been observed towards energy management in the industrial sector. Today, domestic appliances are categorized in energy efficiency classes. A modern washing machine uses 35% less electricity and 46% less water than the one manufactured long back around 1993. A low-energy light bulb consumes 80% less power than an incandescent bulb of approximately the same brightness, while an LED lamp consumes up to 89% less energy compared to the other lights.

Energy management is dynamically associated with logistics, manufacturing, and production chain. Energy-related data and analysis, and control of production activities via a system would surely enhance the overall efficiency of the industry. However, energy cost savings is regarded as the ultimate goal of the sectors to deploy energy management systems.

"Monitoring and control services segment is anticipated to hold the largest market share in the projected period"

Owing to the advancements in technologies such as IoT, artificial intelligence, machine learning, and big data analytics, ubiquitous opportunities have been emerged for developing smart energy management systems. However, due to the presence of several devices, and sensors integrated with the energy management systems, there is a need for monitoring and control services.

Monitoring and control services include information acquisition, information processing, and

information presenting. Information acquisition and processing would help organizations in making intelligent business decisions based on the data, which would lead to efficient energy management. This will boost the market growth of monitoring and control services.

Rapid developments in the wireless sensor network platform and cloud computing has driven interest of service providers in cloud-based solutions for energy management systems. Such services would provide intelligent energy management solutions. Innovations and research in cloud-based monitoring and control services remain competitive across industries.

"Increasing usage of energy management systems to propel the oil and gas segment"

The oil and gas industry contributes to a significant share in meeting global energy needs. The oil and gas industrial activities mainly include extracting, processing and marketing fuels. This also accounts for a remarkable share of global primary energy use.

Energy management systems help as a powerful environmental tool by reducing the carbon intensity in processes and reducing carbon emissions in the atmosphere. This is why, oil and gas industries have heavily invested in deploying efficient technologies along the supply chain, and are planning to invest more in the future in enhanced energy management systems.

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Enhancing energy efficiency is the primary need for the oil and gas industries. Efficient energy management would increase the life of non-renewable resources and help to keep energy affordable to consumers without increasing the operational cost and investments. In the coming years, it is a fact that petroleum would continue to serve as the world’s primary resource.

Also, in other sectors such as manufacturing, building automation, etc. limited availability of raw materials and raising concerns about global warming due to excessive CO2 emissions, efficient energy management is gaining traction. Growing population leads to the enormous consumption of energy and resources. This may lead to miserable and devastating environmental conditions.

REGIONAL ANALYSIS

North America generated a revenue of US$ 6,952.4 Mn in 2018 and is anticipated to emerge dominant in the global energy management market during the forecast period. Several states in North America have proposed energy efficiency resource standards, and some have introduced energy efficiency goals.

The energy management system market size in the United States continues to be a growing market for energy analytics as well as energy certifications. Also, as industries are socially pressurized regarding the environmental issues and in some cases, to uphold a certain amount of energy efficiency in buildings and business practices, energy management becomes a necessity.

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In Canada, the energy efficiency act and regulations form the backbone of national energy regulation that boosts businesses to manage their energy use more effectively. Canada industry program for energy conservation of natural resource helps industries to improve their energy management capabilities.

In 2018, Europe generated a revenue of US$ 4585.6 Mn and is forecasted to hold the second-largest position during the forecast period in the global market. The European energy efficiency directive promotes a common framework of measures for the promotion of energy efficiency in the European Union.

However, long payback periods, uncertain energy prices, lack of relevant and understandable information for investors, etc. would hinder the market growth in the region. Therefore, an efficient network needs to be established to ensure optimized investments of public and private sectors.

KEY PLAYERS

'Eaton, Honeywell International Inc. to hold a remarkable market position in terms of revenue generation"

Eaton has been actively working in offering energy-efficient products and energy management services to monitor and track efforts, being made to enhance energy usage. Such an energy management service provides the organization with accurate information to maintain an efficient workflow. Eaton offers independent service of energy management through intelligent hardware.

Honeywell’s Energy management systems provide customizable hardware, software, and services to enhance energy efficiency and reduce greenhouse effects due to the industrial process. Honeywell’s energy management systems enable organizations to purchase and produce energy more efficiently and economically by reducing harmful environmental impacts and improving regulatory compliance.

LIST OF THE KEY COMPANIES PROFILED IN THE REPORT

• IBM Corporation


• Rockwell Automation Inc.


• Honeywell International Inc.


• Mitsubishi Electric Corporation


• General Electric Co.


• Schneider Electric SE


• Cisco Systems Inc.


• Tendril Networks Inc.


• Eaton


• Enel X


• SAP SE


• Siemens

Report Coverage

"A growing trend observed in the penetration of the energy management systems across the industries."

The report provides qualitative and quantitative insights on the energy management system market and detailed analysis of market size & growth rate for all possible segments in the market. The market is segmented by type, end-user, and geography. Based on type, the market is divided into system and services. By system type, the market is bifurcated into the Home Energy Management System (HEMS), Building an Energy Management System (BEMS), and Industrial Energy Management System (IEMS). By services, the global market is classified into monitoring & control, implementation & integration, maintenance, and consulting & training

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By end-user, the market is segmented into oil and gas, manufacturing, building automation, energy and utilities, automotive, pharmaceutical, and others. Geographically, the market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. The regions are further categorized into countries.

Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key industry trends, competitive landscape and company profiles.

SEGMENTATION

INDUSTRY DEVELOPMENT

• May 2019: Eaton launched ‘Energy-Aware,’ a frequency response energy solution based on Eaton’s reserve power technology. Energy-Aware enables organizations that use large amounts of electricity to stabilize the grid and contribute to renewable power.


• June 2019: Enel X, one of the prominent providers of digital solutions partnered with Panasonic Solar. This partnership enables Panasonic to offer its photovoltaic panels by Enel X with tailored solutions based on customer needs.