Energy Management System Market Size, Share & COVID-19 Impact Analysis, By System Type (Home Energy Management System, Building Energy Management System, and Industrial Energy Management System), By End User (Residential/Smart Homes, Commercial Building/Complex, and Industrial), By Application (Property Safety, Automation, Energy Distribution, Design, e-Mobility, and Others), By Industry (Oil & Gas, Manufacturing, Energy & Utilities, Automotive, Healthcare, and Others), and Regional Forecast, 2023-2030

The global energy management system market size was valued at USD 28.25 billion in 2022 and is projected to grow from USD 31.75 billion in 2023 to USD 82.34 billion by 2030, exhibiting a CAGR of 12.6% during the forecast period.

In the scope of the study, we have considered solutions such as EcoStructurePower Design, Electrical Calculation Tools, SIMATIC Energy Management, and Advanced Energy Management System, among others.

The increasing adoption of smart meters and smart grids play a vital role in enhancing the market value. Apart from this, governments worldwide are taking initiatives to digitize their national energy systems to boost efficiency and their value to strengthen economic growth. Governments across various countries have directed their vision toward sustainable, secure, and affordable energy systems, thereby driving the market growth. Moreover, stringent government policies and regulations for green and sustainable energy usage reinforce the significance of energy management.

Global energy concerns, such as optimizing renewable energy sources, decreasing carbon footprints, managing greenhouse gas emissions, and reducing energy consumption, will drive the product adoption. Various energy-efficient measures and standards enhance the demand for a sustainable energy framework. Further, growing investments in energy-efficient smart buildings, smart cities, or smart industry projects have animated market dynamics.

COVID-19 IMPACT

Demand for Industrial Energy Exhibited Major Decline during COVID-19 Pandemic

The global COVID-19 pandemic has severely obstructed industrial activities and the livelihood of society. Key players operating in the market recorded a significant decline in their revenues due to the pandemic. The closure of major industries and production plants has led to a considerable drop in energy as well as electricity demand across the world. In August 2020, the World Economic Forum (WEF) stated that energy demand across the U.S., France, India, and the U.K. had been reduced by a minimum of 15% during the lockdown. Italy showcased a reduction in the demand for electricity by 75%. Thus, the COVID-19 global pandemic adversely affected energy management market growth.

Remote working trends have reduced commuting needs, resulting in lower carbon emissions. According to the ‘World Energy Investment Report’ published by the International Energy Agency (IEA) in April 2020, worldwide CO2 emissions declined by almost 2.6 gigatonnes (Gt) or 8% in 2020. Thus, the reduced community environmental impacts have slowed down the adoption of the Energy Management System (EMS). The COVID-19 pandemic has diminished the energy usage of heavy industries such as petroleum, coal, and natural gas. This has led to deflated energy demand across the key economies, including the U.S., Italy, Germany, the U.K., and many more. Thus, market growth has been obstructed mostly due to reduced industrial activities during the pandemic.

However, the market survived owing to increasing household energy consumption. The imposition of lockdown has increased home activities such as online shopping, remote work, powering home appliances, cooling or heating homes, and streaming entertainment services. These factors suddenly transformed the energy consumption on weekdays, which has spiked energy bills in the residential sector. Hence, the sudden explosion in household energy and electricity bills fueled the demand for energy management.

LATEST TRENDS

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Digital Transformation of EMS is Reshaping the Energy Management Infrastructure

Digitalization has significantly contributed to the transformation of various industrial and commercial processes, along with energy management. This trend of modernization of energy models offers superior efficiency and is also increasing their value. The digitalization of energy management processes allows for connecting and coordinating all the network's equipment and devices, which leads to greater efficiency gains. The connectivity of buildings can enable communication with smart power grids. For instance,

• In February 2023, Emerson integrated its power-sector expertise and renewable energy capabilities to deploy the Ovation Green platform. The platform aided power generation companies in meeting consumer demands for green energy transition and management. It also incorporated Mita-Teknik software to enhance green energy initiatives and expand sustainable operations in the market.

Besides, the transformation of the EMS allows us to link energy data with operational data to achieve valuable perceptions about energy consumption. These perceptions can be helpful for the system operators to reduce unplanned downtime and increase equipment reliability. Thus, the digitization of energy processes can reshape the infrastructure of energy management.

DRIVING FACTORS

Favorable Government Policies for Sustainable Energy Usage to Surge Demand

The consistent weakening of energy intensity from conventional resources such as coal has become a global concern. Governments across the world have devoted their resources toward a reasonable, secure, and sustainable energy system. Moreover, growing energy demand due to rapid industrialization encourages governments across various countries to adopt efficient EMS. Besides this, growing competition between the energy suppliers and inflation in energy prices are forcing governments to increase investments in sustainable energy. For instance,

• In March 2023, Schneider Electric launched improved solutions for constructing environment-friendly, sustainable buildings with net-zero emissions after the conclusion of the Middle East Energy 2023. The region aims to achieve net-zero status by 2050, and is thus looking for energy management solutions. These solutions centralized the charging station data analytics to improve reliability and efficiency.

Rising environmental issues, such as climate change, global warming, and the increasing frequency of natural disasters, are compelling global and local energy associations to impose strict regulations for efficient energy use. For example, several states and local governments across the U.S. have raised their renewable energy portfolio standards to strengthen their support for clean energy. In this way, governmental initiatives toward improving energy consumption and management efficiency will increase the global EMS market size.

Increasing Installation of Smart Grids and Smart Meters to Boost Market Growth

The modernization of the energy and utility industries is ambitiously supporting smart infrastructure developments for better efficiency. Increasing investments in smart projects, including smart buildings, smart cities, and smart farming, create a massive demand for advanced energy management. The rising deployment of smart meters and smart grids also feeds market growth.

Further, advantageous features of smart grids, including optimized utility bills, improved reliability, reduced cost, fraud detection, and others are enhancing the adoption of smart grids. Additionally, smart grids and meters are equipped with data collection and analysis capabilities that can extract valuable insights. Thus, technologically advanced smart grids and smart energy meters are anticipated to promote the progress of the market.

RESTRAINING FACTORS

Lack of Awareness and High Implementation Cost to Limit Adoption

The demand for energy management solutions is escalating globally. However, several small and medium-sized industries are still unaware of the advantageous features of energy management. This factor is hindering the overall market growth. The developed infrastructure of large companies is leading them to adopt advanced energy management solutions. On the other hand, large setup and higher implementation costs are confining the adoption across small and medium-sized industries.

SEGMENTATION

By System Type Analysis

Growing Energy Consumptions across Industry to Boost Market Share

Based on system type, the market is segmented into home EMS, building EMS, and industrial EMS.

Industrial energy management system segment to gain dominant segment share during the forecast period. The industry 4.0 revolution and factory automation are primarily driving demand for the systems. A modern, scalable ‘energy-as-a-service’ approach is helping to speed up their implementation and enabling organizations to focus on critical business activities. Such advancements in the system will support the segment’s high growth rate during the forecast period.

Smart infrastructure development coupled with government support drives substantial investments into residential and commercial projects such as smart buildings, smart hospitals, and smart homes. These infrastructures are escalating the demand for efficient homes and building energy systems, which is expanding the market share.

By End User Analysis

Rapid Digital Transformation to Propel Industrial Segment Growth

In terms of end user, the market is categorized into residential/smart homes, commercial building/complex, and industrial.

Industrial segment to gain maximum share during the forecast period, owing to the rapidly growing automation and digital transformation. Industries are the largest energy consumers, and thus have become essential to enhance management capabilities.

Commercial building/complexes are implementing various technologies such as security, water and energy distribution, and more. This is expected to boost the system market growth.

Residential/smart homes segment is expected to showcase a rapid growth rate during the forecast period. The increasing adoption of smart grid, smart metering solutions, and more is expected to boost the residential/smart homes segment.

By Application Analysis

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Increasing Number of Enterprises to Boost the Energy Distribution Segment Share

In terms of application, the market is segmented into property safety, automation, energy distribution, design, e-mobility, and others.

Energy distribution segment is expected to gain maximum share during the forecast period. The increasing number of industries along with the significant shift of people into metro cities is driving the energy supply. Thus, to ensure the proper supply and efficiency, it is expected to boost the energy management system market share.

Automation is expected to witness a rapid CAGR during the forecast period owing to the increasing focus on rapid production and digitalized industrial operations. Similarly, increasing demand for electric vehicles and rising fuel costs will boost EMS adoption in e-mobility.

By Industry Analysis

Government’s Stringent Rules will Fuel Oil and Gas Segment Growth

In terms of industry, the market is fragmented into oil & gas, manufacturing, energy & utilities, automotive, healthcare, and others. The oil & gas segment holds a major market share owing to growing energy demand. Also, governments across the world are imposing strict regulations on the oil and gas sector for efficient energy consumption and the sustainability of the environment. Implementing power management systems can offer industries considerable energy savings and reduced carbon emissions in a cost-optimized way.

The energy and utility industry is a major source of carbon dioxide (CO2), sulfur oxide (SOx), and nitrogen oxide (NOx) emissions. Energy management system provides a suitable solution to control these emissions and manage quotas and credits, driving the adoption of such systems across the energy and utility industry. The developing smart building or smart city projects are massively deploying intelligent systems to reduce enormous consumption of resources and energy in urban spaces. This is expected to boost the EMS market growth in future.

The automotive segment is expected to witness a rapid growth rate during the forecast period owing to the increasing number of on-road vehicles across the globe. Similarly, the growing demand for electric vehicles is expected to further boost market growth. Healthcare segment to showcase significant growth considering the increasing adoption of automated machines and digital tools.

REGIONAL INSIGHTS

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The global market is classified across five regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

Presently, North America holds the largest market share and is expected to dominate the market during the forecast period. ISO 50001 measures in support of LEED certification are driving the adoption of energy systems across the region. Besides, energy regulations in the U.S. are drastically changing due to political influences. These changing policies are directly affecting adoption. Leading companies across North America, including Microsoft Corporation, Apple, Inc., IBM Corporation, and others are investing in developing advanced EMS solutions to reduce energy waste. Thus, the support of industry giants for energy-efficient infrastructure is steadily growing. Moreover, industry programs such as the North American Energy Management Pilot Program for energy conservation of natural resources are further stimulating the market.

Europe also holds a substantial market share owing to the growing demand for smart grid solutions to modernize traditional power grids. Besides, the European Union is promoting various energy efficiency measures and standards, accelerating the demand for the power management system across Europe. 

Asia Pacific is anticipated to hold the highest CAGR during the forecast period. This growth will be fueled by the evolving sustainable energy infrastructure across the region. The development of industrial and residential architectures is creating demand for smart grid and smart metering solutions to optimize energy utilization. Moreover, the regional energy associations' set-up of an ambitious sustainable energy agenda supports the demand for next-gen energy management solutions and services.

The market in Latin America and the Middle East & Africa is expected to grow moderately during the forecast period. These regions are inclined toward the development of smart cities and reducing carbon emissions, due to which they adopt smart technologies to reduce such harmful emissions.

KEY INDUSTRY PLAYERS

Key Players to Enhance Product Portfolios for Sustaining their Positions

Product launches, collaborations, partnerships, and acquisitions are strategies adopted by key players to compete in this market. Moreover, companies are also focusing on continuous product enhancement with easy-to-operate features, which helps them to sustain competitiveness and raise their brand value. Several industry players are investing their capital in research and development activities. Various emerging players are offering superior components, integrated systems, software, and services to strengthen their market position.

January 2023 – Landis+GYR collaborated with MicroEJ, which provides software components for embedded and Internet of Things (IoT) devices, to enhance the application development environment for smart meters. The collaboration established a digital foundation for promoting energy efficiency and sustainable energy management. MicroEJ implemented the company’s Revelo meter due to advanced waveform sampling capabilities, resulting in accurate sensor data collection and enhancements in data analytics.

February 2023 – Emerson integrated its power-sector expertise and renewable energy capabilities to deploy the Ovation Green platform. The platform aided power generation companies in meeting consumer demands for green energy transition and management. It also incorporated Mita-Teknik software to enhance green energy initiatives and expand sustainable operations in the market.

List of Key Companies Profiled:

• General Electric Company (U.S.)


• IBM Corporation (U.S.)


• Honeywell International Inc. (U.S.)


• Schneider Electric SE (France)


• Siemens AG (Germany)


• Eaton Corporation (Ireland)


• ABB Limited (Switzerland)


• Johnson Controls International PLC (U.S.)


• Emerson Electric Company (U.S.)


• NEC Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS

• January 2023 – Johnson Controls acquired Hybrid Energy AS, which enabled Johnson Controls to offer cost-effective solutions to consumers while also contributing to de-carbonization and sustainability in Europe and other regions.


• January 2023 – C3.ai launched C3, the Generative AI Product Suite, which featured generative AI for enterprise search. The solution enabled enterprise users to improve user experience, by utilizing a natural language interface to locate, and retrieve analytics data, resulting in enhanced data monitoring and management.


• February 2022 – Eaton collaborated with LG to integrate its EMS and EV charging technology, enabling critical data and load management for solar and storage solutions. This collaboration accelerated Eaton’s Home as a Grid approach toward energy transition.


• August 2021 – Mitsubishi Electric Corporation completed the acquisition of U.K. based Smarter Grid Solutions (SGS). The acquisition is aimed at strengthening the company’s distributed energy resource management solution.

REPORT COVERAGE

An Infographic Representation of Energy Management System Market

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The report provides a comprehensive analysis of the market. It focuses on key aspects such as prominent companies and leading applications of the product. Besides this, the report highlights key industry developments and offers insights into the market trends. In addition to the aforementioned factors, the report includes several factors that have contributed to the growth of the market in recent years.

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