Energy Management Systems Market By Type of EMS (BEMS, IEMS, HEMS), By End-User (Manufacturing, Power & Energy, IT & Telecommunication, Hospitals & Healthcare, Other), By Component (Hardware, Software, Services) and By Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2017 To 2027

Energy Management Systems Market Definition and Estimation:

Energy management systems (EMS) consist of a collection of tools used to monitor, control and optimize the performance of generation and transmission systems. It involves the use of a software control system that collects and analysis data to reduce energy consumption, improve reliability, predict performance, and more. To modify the system as per desired, EMS applications use real-time data such as frequency, actual generation, tie-line load flows, and plant units’ controller status.

The energy management system market size was USD 8.64 billion in 2019 and expected to reach USD 19.12 billion by 2027; this converts into a compound annual growth rate (CAGR) of 10.44% for the forecast period.

Energy Management Systems Market Overview:

The energy industry is witnessing the modernization of energy models to improve efficiency. The adoption of EMS in buildings or industrial complexes enables communication with smart power grids, thereby achieving valuable perceptions regarding energy consumption. Due to the resulting demand, the EMS market is projected to witness growth in the upcoming years. However, temporary halts/closures in industrial activity, due to the pandemic, resulted in a decelerated growth rate of the market. The situation is anticipated to improve post-lockdown.

The Energy Management Systems Market is Segmented to include:

By type of EMS:

• BEMS
• IEMS
• HEMS

By End-user:

• Manufacturing
• Power & energy
• IT & telecommunication
• Hospitals & healthcare
• Other

By Component:

• Hardware
• Software
• Services

Rising electricity consumption, upgradations of home electricity units, growing investments in wireless technology to control power consumption, easy setup, user-friendly interface, etc. are some of the factors contributing to the growth of the home EMS (HEMS) segment. Subsequently, the segment is envisaged to register a CAGR of approximately 15% during the forecast years. However, the industrial EMS (IEMS) segment led the market, capturing more than 40% due to the rapid adoption of automation technologies. The segment garnered close to USD 3.5 billion in revenue in 2019.

Within the power & energy industry, electrical units act as indicators to the overall health and maintenance requirement of pumps and transformers. The implementation of EMS in this industry assists in monitoring and optimizing this equipment which in turn, improves overall efficiency. This has, therefore, led to the dominance of the power & energy segment in 2019. It held over 35% of the market, accumulating more than USD 3 billion in revenues. The expansion of the IT & telecom industry and the corresponding rise in energy automation requirements is predicted to boost the growth of the segment at a faster CAGR of over 14.5%.

The hardware segment accounted for just under USD 6 billion in 2019 which corresponds to nearly 70% of the energy management systems market. The dominance of the segment can be attributed to the rising demand for building automation on account of occupant comfort, lower operating costs, energy-efficient operations, and more. Also, the ability of hardware systems to permit the collection and analysis of live data has encouraged its growth. Nevertheless, the services segment is estimated to register a CAGR of more than 14% from 2020 to 2027. Easy scalability, energy-as-a-service approach, faster implementation, and other advancements will support the segment’s growth.

Energy Management Systems Market by Geography Overview:

Based on geography, the market is segmented as below:

• North America
• Europe
• APAC
• Latin America (LATAM)
• Middle East & Africa (MEA)

The global energy management systems market was led by the North American region in 2019. A well-established infrastructure network coupled with the widespread adoption of EMS across industry verticals due to the ISO 50001 measure and LEED certification has contributed significantly in the market’s growth. Furthermore, investments by leading companies such as IBM, Apple, Microsoft, etc. across the region to reduce energy wastage is propelling the market expansion. The implementation of the North American energy management pilot program for energy conservation bolstered the market growth further.

The European market will witness substantial growth due to the demand generated as a result of the shift towards smart grids from traditional power grids. Favorable government projects similar to the neighbourhood-oriented brokerage electricity and monitoring systems coupled with the high demand to curtail power losses in countries such as France, Germany, and the U.K. will drive the market forward.

The Middle Eastern region is, also, making steady progress in the market. The introduction of the energy strategy 2030 in Dubai to manage energy consumption and carbon emissions will encourage market growth. Similar projects are anticipated to be introduced in Saudi Arabia and Jordan. South Africa’s national cleaner production center (NCPC) is focusing on the implementation of energy efficiency systems across industries. The regional market is, hence, projected to grow in the coming years.

Rapid industrialization, growing population, tax incentives, rebates, and development of sustainable energy infrastructure will grow the Asia – Pacific market at the highest CAGR during the forecast period. Supportive government regulations along with rising disposable incomes is motivating individuals and corporations alike to implement EMS. Projects such as smart cities launched in India will further boost the regional market.

Energy Management Systems Market Dynamics:

Drivers:

• Increasing usage of smart grids and smart meters.

The innovation in the energy & utility industry has led to the development of smart meters and smart grids. These energy units offer advantages such as optimized utility bills, improved reliability, reduced costs, fraud detection, etc. Additionally, they possess data collection and analysis capabilities that give in-depth insights of energy consumption. As a result, the growing demand for smart grids and meters in projects such as smart buildings, cities, and more will fuel the requirements for smart grids and meters. The use of these energy units is likely to promote the progress of the market.

• Rising investments in energy efficiency.

Energy-efficient devices are referred to as those that utilize comparatively lower energy to perform the same task and hence minimize overall costs. These devices include lighting & lighting controls, HVAC systems, variable frequency drives, energy-saving appliances, etc. Organizations and individuals are investing in them due to the economic benefits they provide. Consequently, the growing investments in energy efficiency will propel the energy management systems market forward.

Restraint:

• High installation costs coupled with maintenance costs.

Large-scale enterprises have a developed infrastructure that motivates them to adopt EMS. However, the use of EMS in small & medium enterprises as well as homes is limited due to the high procurement and installation costs. Moreover, this equipment requires timely maintenance which works out quite expensive. Therefore, the high installation and maintenance costs are major restraining factors for the expansion of the energy management systems market.

The market is studied by analyzing all the key market participants across the ecosystem. The key players 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.

Recent News and Developments in the Energy Management Systems Market:

• Eaton Corporation PLC’s home-as-a-grid solution, launched in February 2021, can harness essential load management and behind-the-meter capabilities, using energy management circuit breaker, wi-fi smart devices, etc.
• In January 2021, Mitsubishi Electric Corporation in collaboration with the Tokyo Institute of Technology developed a blockchain technology that optimizes peer-to-peer (P2P) energy trading. The technology is projected to provide more effective use of surplus electricity from renewable energy.
• Yokogawa Electric Corporation and Power Factors LLC announced a global reseller agreement in December 2020. As per the agreement, Yokogawa will market Power Factors’ drive software platform of asset performance management solution for renewable power facilities.

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