Industry: IT and Telecommunication
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Report Type: Ongoing
Report ID: PMRREP7042
The global market is expected value at US$98.0 Bn in 2031 from US$41.9 Bn in 2024. The market is estimated to expand at a remarkable CAGR of 12.9% during the forecast period between 2024 and 2031.
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Attributes |
Key Insights |
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Energy Management System Market Size (2024E) |
S$41.9 Bn |
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Projected Market Value (2031F) |
US$98.0 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
12.9% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
9.2% |
Energy management system Market (EMS) is a solution including software and associated hardware and communication systems for energy efficiency improvement. EMS have wide application areas spread across different verticals such as telecom and IT, power and energy, commercial and office buildings, and university systems.
The energy management systems (EMS) market is highly fragmented with various offerings extending from simple to complex energy monitoring dashboards and software including analytics of high degree.
The adoption of energy management systems depends mainly upon rigorous government regulations regarding conservation and energy efficiency. The organization focuses more on production than on energy efficiency in the business setups.
Energy management system in electric vehicle allows to increase the capacity of the present electrical infrastructure by getting control over the electric supply to the vehicle.
A novel strategy on the basis of swarm optimization as well as variance flatness control is employed by the energy management of electric vehicle. The proposed EMS vital forces lie in making use of a mixture of balancing properties of two properties named Differential Flatness (DF), and Slap Swarm Optimization.
EMS solutions were primarily adopted by large industrial and commercial facilities seeking to optimize energy usage and reduce operational costs. Increasing energy efficiency regulations, rising energy costs, and growing awareness of sustainability issues are the factors fuelled the market during the historic period.
The future market growth outlook for the energy management system (EMS) market remains highly favourable due to the factors such as the growing emphasis on energy efficiency and the convergence of EMS with building automation systems.
The EMS market serves a number of different industries such as healthcare, retail, manufacturing, IT & telecom, and residential sectors. Every sector has unique energy management requirements as well as challenges, fueling the demand for tailored EMS solutions.
EMS solutions are increasingly integrating renewable energy sources such as solar and wind power with the growing emphasis on sustainability. This integration requires sophisticated EMS platforms capable of managing both traditional as well as renewable energy sources efficiently.
The rise of smart buildings, and smart grids is driving the adoption of EMS solutions. These technologies enable centralized control and automation of energy systems within buildings and across the grid, optimizing energy usage and improving overall efficiency.
Governments and businesses worldwide are recognizing the importance of efficient energy management in achieving their economic and environmental goals, fuelling the demand for EMS solutions.
Key Trends Shaping the Market
The Proliferation of Cloud-based Energy Management System Market Platforms
Cloud-based EMS platforms offer a cost-effective solution compared to traditional on-premises systems. They eliminate the need for costly hardware installation, maintenance, and upgrades, making them more accessible to a wider range of businesses, including small and medium-sized enterprises (SMEs).
Cloud-based EMS platforms often incorporate advanced data analytics and machine learning capabilities. These platforms can analyse large volumes of energy data in real-time, providing valuable insights into energy usage patterns, identifying inefficiencies, and recommending optimization strategies to improve energy efficiency and reduce costs.
Increasing Global Focus on Sustainability, and Energy Efficiency
Energy-efficient operations lead to cost savings for businesses. By optimizing energy consumption, companies can reduce their utility bills and operational expenses. Energy management systems enable businesses to identify areas of energy waste, implement energy-saving measures, and track the impact of these initiatives on their bottom line.
Companies are increasingly recognizing the importance of sustainability in their corporate social responsibility initiatives. Adopting energy management systems helps businesses demonstrate their commitment to reducing their environmental footprint, which can enhance their brand image and reputation among environmentally conscious consumers and investors.
Sustainability and energy efficiency have become important differentiators in the market. Businesses that prioritize sustainability can gain a competitive advantage by attracting environmentally conscious customers, partners, and investors.
Energy management systems enable companies to measure and communicate their environmental performance, positioning them as leaders in their industries
Government Policies Contribute Towards Enhancing Energy Efficiency
Energy efficiency is the utilization of less energy for performing the similar task. Energy-efficient buildings as well as homes employ less energy to cool, heat and run appliances and electronics. Less energy is used by energy-efficient manufacturing facilities for the production of goods.
Different organization are realizing the significance of publicizing their energy conservation start-ups. They obtain a competitive edge by placing themselves as an eco-friendly company since this assists them in gaining customer confidence. Several leading global manufacturers are emphasising on becoming eco-friendly manufactures.
The increasing volatility in energy costs as well as the imperative for reducing operation costs are forcing organization for investing in technologies, which optimize energy consumption and reduce waste.
Data Security and Privacy Concerns
With the increasing reliance on IoT devices and cloud-based platforms, data security and privacy concerns have become prominent barriers to EMS adoption. Organizations are wary of potential cybersecurity threats and the risk of sensitive energy data being compromised, leading to reluctance in embracing cloud-based EMS solutions.
EMS solutions typically involve the collection, transmission, and storage of sensitive energy data from various sources, including IoT devices, sensors, and metering systems. The interconnected nature of these systems increases the risk of cybersecurity threats such as data breaches, hacking, malware attacks, and ransomware, which can compromise the integrity, confidentiality, and availability of energy data.
Organizations, particularly in critical infrastructure sectors like utilities and manufacturing, are cautious about deploying EMS solutions due to concerns about potential cyberattacks and their consequences on operational safety and reliability.
Integrating Solutions with Smart Grid Infrastructure
Smart grids enable utilities to implement demand response programs, which incentivize consumers to reduce their energy consumption during peak demand periods. By integrating with smart grid infrastructure, EMS solutions can automatically adjust energy usage in response to signals from the grid, helping businesses participate in demand response programs and earn incentives for reducing their energy usage when demand is high.
Integrating EMS solutions with smart grid infrastructure enables bi-directional communication between energy consumers and utilities. EMS platforms can provide valuable grid insights and participate in grid optimization initiatives such as voltage regulation, load balancing, and renewable energy integration.
By actively managing energy consumption and generation in response to grid conditions, EMS solutions contribute to grid stability and reliability.
Hardware Components Account for the Largest Share
Hardware components such as sensors, meters, and actuators market form the foundational infrastructure of EMS solutions. These devices are deployed to collect real-time data on energy consumption, production, and distribution within buildings, industrial facilities, and utility networks.
Sensors monitor various parameters such as electricity usage, temperature, humidity, lighting levels, and equipment status, providing valuable insights into energy usage patterns and inefficiencies.
Hardware components such as building automation systems (BAS), heating, ventilation, and air conditioning (HVAC) controllers, and lighting controls are integral to EMS solutions for commercial and residential buildings.
These systems enable centralized control, scheduling, and optimization of building systems, improving energy efficiency, occupant comfort, and operational performance.
F&B Creates Demand in Line with Adoption of Sustainability Initiatives
The food and beverages industry is known for its energy-intensive operations, including food processing, refrigeration, heating, cooling, and packaging. Energy constitutes a significant portion of operational costs for food and beverage manufacturers, making energy management a top priority for optimizing production efficiency and reducing expenses.
Many food and beverage companies have adopted sustainability initiatives to reduce their environmental footprint and demonstrate corporate responsibility. EMS solutions play a crucial role in supporting these initiatives by optimizing energy usage, reducing greenhouse gas emissions, and promoting renewable energy integration within manufacturing facilities.
North America Represents a Sizeable Share of the Market
There is a strong awareness of sustainability and environmental issues among businesses and consumers in North America. Many companies in the region have sustainability goals and initiatives in place to reduce their carbon footprint and improve energy efficiency. EMS solutions play a crucial role in helping businesses achieve these goals by providing tools, and insights to monitor, manage, and optimize energy usage.
North America has made significant investments in smart grid infrastructure to modernize the electric grid and improve grid reliability and efficiency. The integration of EMS solutions with smart grid infrastructure creates opportunities for businesses to participate in demand response programs, dynamic pricing schemes, and grid optimization initiatives, driving the adoption of EMS solutions in the region.
Strategic partnerships and collaborations play a significant role in the competitive landscape of the EMS market, enabling companies to expand their market reach, access new customer segments, and leverage complementary technologies and expertise.
Partnerships between EMS providers, energy service companies (ESCOs), utilities, technology vendors, and system integrators facilitate the development and delivery of integrated EMS solutions that address complex energy management challenges.
The EMS market features a mix of established players and emerging startups, each vying for market share by offering a wide range of EMS solutions tailored to specific industry verticals and customer requirements.
Major players include multinational corporations such as Siemens AG, Schneider Electric SE, Honeywell International Inc., ABB Ltd., and General Electric Company, which offer comprehensive EMS platforms and services.
Recent Developments
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
By Type
By Component
By End-Use Industry
By Region
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The proliferation of cloud-based energy management system platforms is driving the market growth.
Hardware segment exhibits the significant share of the market.
Integrating solutions with smart grid infrastructure presents key opportunity for the market players.
Siemens, Emerson, and Cisco Systems, Inc. are some of the top industry players operating in the market.
North America is anticipated to lead the market.
