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The Global Energy Management Systems (EMS) Market size is estimated to grow at a CAGR of 14.2% between 2022 and 2027. The market size is forecast to increase by USD 37.22 billion. The accelerated growth of the market is by various factors, including the growing demand for energy-efficient solutions in industries and households, the increasing concerns about greenhouse gas emissions and climate change, and the growing adoption of renewable energy sources.
This energy management systems market report extensively covers market segmentation by deployment (on-premises and cloud), end-user (manufacturing, power and energy, telecom and IT, residential and commercial, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for energy-efficient solutions in industries and households is driving growth in the energy management system market. The worldwide market for energy management systems in both industries and households has been experiencing an increase in demand for energy efficiency solutions. This trend can be attributed to the increasing awareness among consumers about the need to reduce energy consumption and adopt sustainable practices such as turning off lights and electronic devices when not in use, replacing traditional light bulbs with energy-efficient LED bulbs, and several other practices.
However, the demand for energy efficiency solutions is not restricted to developing countries, but to emerging economies as well. Advanced energy management systems integrate advanced technologies, e.g. AI and ML machine learning, in order to increase the efficiency of power consumption. These technologies enable the energy management system to analyze large amounts of data and make informed decisions about energy usage, resulting in increased efficiency and cost savings. Therefore, it is anticipated that demand for energy management systems will increase in light of these factors, which will fuel the growth of the global energy management systems market during the forecast period.
The advancements in technology in energy management systems are a primary trend in the energy management systems market. The way in which energy management systems are approached is revolutionized by technological progress. Among these advancements are the Internet of Things (IoT) and AI, which have made it possible to create more advanced and accessible energy systems for various industries and consumers. Energy management systems have also become more accessible to consumers using smart home devices. Smart home energy monitors give users real-time insight into their energy usage and provide recommendations on ways to reduce their energy consumption and save money on their bills.
However, by using the Internet of Things and artificial intelligence technologies, renewable energy consumption has also been made easier. By incorporating sensors and data analysis into renewable energy systems such as solar panels and wind turbines, operators can optimize their performance and predict energy output more accurately. This will make renewable energies more affordable and effective, with a view to increasing their uptake and reducing dependence on fossil fuels. Thus, the above-mentioned factors are expected to propel the growth of the market in focus during the forecast period.
The high initial costs for the installation and implementation of energy management systems are a major challenge in the energy management systems market. As the global shift to renewable sources and energy efficiency becomes more pronounced, energy management systems become increasingly relevant. However, the initial costs of installing and implementing such systems can be high. Depending upon the size of the plant, its type of energy management system, the level of integration needed, and the number of buildings located on-site, the cost of Energy Management Systems may differ significantly.
Moreover, personnel costs can also become a significant factor in implementing an energy management system. The operation of the system shall be overseen by a special energy manager. The manager will typically be responsible for analyzing and interpreting the data generated by the energy management systems, identifying the areas where energy can be saved, and developing and implementing energy-saving strategies. The degree of integration needed can also lead to an increase in energy management system costs. It may be that a building control system currently exists, but the software for energy management systems does not yet work in combination with it and therefore requires both hardware and software solutions to ensure seamless coordination between these systems. Thus, the above-mentioned factors are expected to hinder the growth of the market in focus during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Energy Management Systems Market Customer Landscape
The on-premises segments are estimated to witness significant growth during the forecast period. The on-premises segment of the EMS market is experiencing significant growth in recent years. The increasing demand for efficient energy management solutions in a number of sectors, such as manufacturing, health care, retail, and others, may contribute to this trend. On-premises energy management systems offer several benefits over cloud-based solutions, especially when it comes to data security and privacy.
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The on-premises segment was the largest segment and was valued at USD 16.48 billion in 2017. Control is one of the most significant advantages of implementing energy management systems on-premises. All of their data is under complete control by the companies operating on-premises systems. This means they are better equipped to address data breaches and other security threats. Similarly, on-premises systems allow them to customize their energy management protocols, which is not possible with cloud-based solutions. This helps companies optimize their energy consumption profile and fine-tune their operations.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the EMS market during the forecast period. The North American region has been witnessing a substantial surge in demand for energy-efficient solutions and technologies in recent years. The need to address the growing concerns pertaining to energy scarcity, environmental sustainability, and rising energy costs has fueled the adoption of energy management systems across industries and households in the regional market in focus.
In 2020, the outbreak of COVID-19 spread widely across North America, especially in the US. Owing to the rising number of deaths due to COVID-19. But since the middle of 2020, this EMS market has started to recover. As a result of the introduction of large-scale vaccination campaigns, the need for energy management systems in North America has increased in 2021 as a result of the lifting of lockdowns and the resumption of operations in the end-user industries. There was an augment for the need for energy management systems in the region. As a result, it is anticipated that the North American energy management systems market will grow faster during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Carrier Global Corp. - The company offers energy management such as eco reports energy management package which helps to take information from an existing building and makes the data meaningful.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The energy management systems market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Energy Management Systems Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.2% |
Market growth 2023-2027 |
USD 37.22 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
13.72 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Capgemini Service SAS, Carrier Global Corp., Cisco Systems Inc., Comcast Corp., ecobee, Inc., General Electric Co., Honeywell International Inc., Intel Corp., Johnson Controls International Plc, Lennox International Inc., Liricco Technologies Ltd., Panasonic Holdings Corp., Resideo Technologies Inc., Robert Bosch GmbH, Schneider Electric SE, Siemens AG, Snap One LLC, tado GmbH, Vivint Inc., and Emerson Electric Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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