Energy Management Systems Market By Type (SCADA, PLC, DCS), By Application (Retail, Grocery, Restaurant Sites), By Region, And Segment Forecasts, 2023 to 2032
Report Id: 44189 | Published Date: May 2024 | No. of Pages: 10 | Base Year for Estimate: May 2024 | Format:
The global energy management systems (EMS) market is experiencing rapid growth due to increasing energy consumption, rising energy costs, and the need for sustainability across various industries. The energy sector is also rapidly digitising and this, combined with the paradigm shift witnessed in electrification has fostered demand for energy management system software. When it comes to assisting businesses in identifying and implementing energy-saving technologies, EMS is also likely to receive impetus to improve energy efficiency, flexibility in power generation and stability in energy supply.
The Energy Management Systems Market was valued at USD 40.8 in 2024 and is projected to reach USD 75.7 billion by 2029, growing at a CAGR of 13.3% from 2024-2029. The need for EMS has increased due to an increase in the control of energy use in public, commercial and industrial sectors of organisations. To limit greenhouse gas emissions, lessen potential exposure to fluctuating energy prices, and increase productivity it will be more advantageous to implement advanced energy-efficient technologies and reduce energy waste.
Premium Insights:
EMS helps in significant cost-savings by optimising energy consumption and reducing wastage
Stringent government regulations and policies promoting energy efficiency are propelling market growth.
Advancements in IoT, AI and machine learning are enhancing EMS capabilities leading to more efficient and automated energy management solutions.
Energy Management Systems Market Dynamics:
Drivers: Rising energy costs, advancements in technology and data analytics and integration with smart buildings & IoT
The global rise in energy prices is prompting businesses and organizations to seek ways to optimize energy consumption and reduce costs. Energy management systems provide valuable tools for monitoring, analyzing, and managing energy usage, leading to significant cost savings.
The development of advanced sensors, communication technologies, and data analytics tools is enhancing the capabilities of energy management systems. This allows for more precise monitoring, real-time data analysis, and predictive maintenance, leading to improved energy efficiency.
The growing trend of smart buildings and the integration of Internet of Things (IoT) devices creates new opportunities for energy management systems. This allows for seamless data
collection from various building systems and equipment, enabling comprehensive energy monitoring and control.
Restraints: the complexity of integration, lack of awareness & expertise, limited standardisation & interoperability and cybersecurity concerns
Integrating an energy management system with existing building systems and infrastructure can be complex and require specialized expertise. Compatibility issues and data migration challenges can hinder smooth implementation.
Not all organizations have a full understanding of the benefits of energy management systems or the expertise needed to effectively implement and utilize them. This can lead to hesitant adoption or inefficient use of the technology.
The lack of complete standardization across different energy management systems can create compatibility issues and hinder seamless integration with other building systems and technologies.
Energy management systems collect and store sensitive data about energy consumption and building operations. Robust cybersecurity measures are crucial to protect this data from cyberattacks and ensure system integrity.
Opportunities: Cloud-based solutions, development of mobile-friendly interfaces and integration with renewable energy sources.
The adoption of cloud-based energy management systems offers cost-effective and scalable solutions with easier deployment and maintenance, making them accessible to a wider range of organizations.
Developing mobile-friendly interfaces for energy management systems allows for real-time access to energy data and facilitates on-site monitoring and control, enhancing operational efficiency.
Integrating AI and machine learning capabilities into energy management systems can provide deeper insights into energy consumption patterns, predict potential issues, and enable proactive energy optimization strategies.
Market By Energy Management System Type Insights:
Based on component type, the market is segmented into Hardware, Software and Services. The hardware segment held the largest market share in 2023 owing to the growing penetration of sensing technology and communication. Wired sensor networks in particular are becoming more popular because they are more dependable, have longer service lives and are less susceptible to interface and disruptions.
Based on System Type, the market is segmented into Services, HEMS, BEMS, and IEMS. Building Energy Management Systems occupied over 15% of the market share of the global EMS market in 2023. The process of reducing energy waste in buildings and optimising building operations requires access to a diverse and integrated set of data and hence BEMS can be used out of the many that can be used to operate buildings more efficiently.
Based on Deployment, the market is segmented into On-premise and Cloud-based. Among the two segments, the On-Premise segment accounted for the largest market share in 2023. Although the need to reduce costs and address carbon emissions will drive the global market significantly for cloud-based energy management systems, Systems for cloud computing have also increased organisational flexibility and made it possible to visualise, monitor and evaluate data from a distance.
Market By End-Use Insights:
Based on end-use, the manufacturing segment accounted for the largest market share in 2023, under which the automotive sector has emerged as a promising sub-segment in the energy management systems market mainly due to the global shift towards sustainable modes of transportation. The demand for EMS has increased due to growing environmental concerns and increased awareness of the benefits of electric vehicles.
Market By Region Insights:
Based on regional coverage, the market is segmented into North America, Asia-Pacific and Europe. North America accounted for the largest market share exceeding over 30% in 2023. The US and Canada are anticipated to present lucrative prospects due to the rapid adoption of smart grids and increased infrastructure investment. The US is one of the main sources of infrastructure investment. Furthermore, there has been a noticeable uptake of smart energy demand in the region, which has encouraged stakeholders to contribute money to EMS.
Competitive Scenario:
Key players include Schneider Electric SE, Honeywell International Inc., GridPoint, Siemens AG, Johnson Controls, ABB, Inc., General Electric and International Business Machines Corporation.
Scope of Work-Energy Management Systems Market
Key Market Developments
May 2022- General Electric signed a contract to supply medium voltage cubicles, energy management systems and automation technology, as well as deliver protection, control and supervision systems for the generating units, GIS substation and the existing 500 kV transmission lines to upgrade a 14 GW hydropower plant in Brazil.
September 2022- A favourably scalable Linux and Kubernetes-based platform, the next generation of IBM's LinuxONE server is intended to support thousands of workloads within the footprint of a single strategy. With IBM LinuxONE Emperor 4, customers could run workloads at higher densities and capacities by turning on unused cores without increasing their energy consumption and related greenhouse gas emissions. This was achieved through a planned scale-out on scale-up approach.
July 2022-Eaton collaborated with the Flow consortium to develop and present an integrated electric vehicle charging infrastructure that was approved by the European Union. Eaton's role in the consortium was to apply further developing EV charging technologies and establishing electric vehicle charging solutions based on the experience gained in the development of its buildings as a grid approach, merging the power needs of buildings and EVs with on-site renewable power generation.
Frequently Asked Questions (FAQs)
What are the main drivers of the EMS market?
Ans. Key drivers include rising energy costs, advancements in technology and data analytics and integration with smart buildings & IoT
What are the primary challenges faced by the market?
Ans. The primary challenges are the complexity of integration, lack of awareness & expertise, limited standardisation & interoperability and cybersecurity concerns
Who are the major players in the EMS market?
Ans. The major players are Schneider Electric SE, Honeywell International Inc., GridPoint, Siemens AG, Johnson Controls, ABB, Inc., General Electric and International Business Machines Corporation.
What opportunities exist in the market?
Ans. Opportunities consist of Cloud-based solutions, development of mobile-friendly interfaces and integration with renewable energy sources.
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