The Energy management systems market - growth, trends and forecast (2020 - 2027) size was US$ 8.64 Billion in 2019 and is expected to reach US$ 19.12 Billion by 2027; This converts into a compounded annual growth rate (CAGR) of 10.44% for the forecast period.
Energy management systems (EMS) involve the use of software, that collect and analyse data, with an objective to reduce energy consumption, improve reliability, predict performance, etc. EMS applications use real-time data such as frequency, actual generation, tie-line load flows and plant units’ controller status to monitor and control systems as desired.
The energy management systems market is estimated to witness a growth during the forecast years, despite the setback due to lockdowns during the pandemic. The expansion of organizations and improvement in economic conditions will drive the demand for EMS. Transition from traditional energy grids to smart grids may provide opportunities for the market to flourish. However, affordability of such systems may affect the expansion of the market.
The use of smart grids and meters offer several advantages, the most essential ones being optimized utility bills, reduced costs and collection & analysis of data. These energy units are therefore preferred for use in smart buildings or smart city projects. They are largely managed using an EMS. Hence, the rising demand for smart grids and meters will drive the demand for EMS. Furthermore, the growing investments for the development of energy efficient devices or equipments that offer similar benefits as smart energy units will propel the market forward.
On the flip side, the high implementation and maintenance costs deters small & medium-scale organizations as well as individuals from adopting EMS. Therefore, affordability is a major restricting factor for the market.
"The industrial EMS (IEMS) segment accounted for over 40% of the energy management systems market share which is equivalent to around USD 3.5 billion in revenue in 2019. The rising adoption of automation technologies, that conserve energy, among organizations is a major driving force for the segment. The home EMS (HEMS) segment, on the other hand, is predicted to witness the highest CAGR of more than 15%, between 2020 and 2027, due to factors such as surge in electricity consumption, rising awareness regarding these technologies, easy setup and more.
The booming IT & telecom industry will generate a high demand for EMS solutions. Therefore, the segment is anticipated to expand at a CAGR of approximately 14.5% over the forecast period. However, in 2019, the power & energy segment led the market, capturing more than 35%, owing to the widespread use of EMS in the sector. It garnered over USD 3 billion in revenues
The hardware segment held a little under 70% of the market in 2019. The ability of hardware systems to permit collection & analysis of data and rising demand for building automation has led to the segment’s dominance. Faster implementation and easy scalability, USPs of the services segment, will ensure a high CAGR of around 14% from 2020 to 2027.
Well-established infrastructure network, implementation of the ISO 50001 measure and LEED certification, investments by leading corporations, development of energy conservation programs, and more are factors that placed North America at the top of the global energy management systems market in 2019. Asia – Pacific, the estimated fastest-growing region, will be positively influenced by rapid industrialization, development of sustainable energy infrastructure, supportive government policies, and more. While Europe is expected to display a moderate growth rate due to the transition towards smart grids, Middle East is envisaged to grow on account of rising government projects and regulations.
Some of the key players operating in the energy management systems market - growth, trends and forecast (2020 - 2025) include, but not limited to:
IBM Corporation; Rockwell Automation Inc.; General Electric Company; Schneider Electric SE; Cisco Systems Inc.; Uplight Inc.; Eaton Corporation PLC; Enel X SRL; SAP SE; Siemens AG; Honeywell International Inc.; Mitsubishi Electric Corporation.
A few key players of the market include, but not limited to: IBM Corporation, Rockwell Automation Inc., General Electric Company, Schneider Electric SE, Cisco Systems Inc., Uplight Inc., Eaton Corporation PLC, Enel X SRL, SAP SE, Siemens AG, Honeywell International Inc., Mitsubishi Electric Corporation.