An energy management systems (ems) allows for remote monitoring and sustainability in a business or a building. These contemporary technologies monitor data usage and compile the data required for energy conservation. The automatic energy management systems monitor the data meter’s performance and control its results. Energy management systems (ems) emphasize the need to conserve energy, deal with common electrical waste, and replace waste with technology.
In 2021, the market for energy management systems was worth USD 37.33 billion, and by 2030 it will be worth USD 162.03 billion, growing at a 16.73% CAGR during the forecast period.
Factors accelerating the growth of the energy management system market include an increase in the use of smart grid services, escalating industrial enterprise competition, rising demand from emerging economies for cost-effective products, and government regulations and incentives.
Market Dynamics
Drivers
Governments worldwide are constantly attempting to limit or curb carbon and greenhouse gas emissions in response to growing environmental concerns. Helpful government measures are driving the demand for energy management systems. The government is also funding programs to develop the infrastructure. Because of these considerations, the market for energy management systems is expanding.
Restraints
Over time, there has been a growth in the demand for energy management systems. Every industry sector has embraced energy management systems. Energy management systems aid in reducing energy use. Small and medium-sized businesses are unaware of energy management systems. As a result, the global market for energy management systems is not expanding because of lack of awareness among people.
Opportunity
The growth of smart infrastructure is driving up demand for improved energy management systems. This has had a direct impact on both industrialized and developing countries adoption of smart grids and meters. The implementation of a smart grid allows for cost reduction and increased productivity. As a result, the market for energy management systems is experiencing strong growth due to the spike in smart meter and grid installation.
Market Segmentation
By System Type
On the basis of system type, the market is segmented into building energy management system, industrial energy management system, and home energy management system.
The industrial energy management system (IEMS) held the largest market in 2022, with 70% of the revenue share. Systems for managing energy are widely used across many different sectors and businesses. Systems for managing energy are widely used in the manufacturing industry.
The building energy management system segment is the fastest growing market segment. Over the forecast period, the segment will grow as a result of rising energy management system awareness and an increase in building and construction projects.
By Component
On the basis of components, the market is segmented into services, hardware, and software.
In 2022, the hardware segment held the largest market, with a revenue share of 60% due to the expanding adoption of communication and sensor technology. Bridges and sensors have also become more popular, with wired sensor networks seeing increased adoption due to their increased dependability, longer service lives, and reduced susceptibility to interference and interruptions.
By End-User
On the basis of end-user, the market is segmented into residential, manufacturing, energy & power, telecom & I.T., retail, healthcare, and others.
With a share of 37.17% in 2022, the Energy & Power category held the majority of the market. E.M.S. helps in easing the Energy and Power sector’s workflow process, consequently improving market growth. E.M.S. solutions help the energy and power sector lower production risk, lower quality and compliance costs, and improve energy efficiency. Stakeholders in this industry employ smart IEMS to streamline effective energy management and real-time monitoring of the metering locations, minimize downtime, maximize energy savings, and reduce OPEX.
Regional Overview
In 2022, North America was the biggest regional market, with a revenue share of 35%. With the increasing use of smart grids and investment in infrastructure, the United States and Canada will offer prospects for producing money. Also, the need for smart energy has significantly increased throughout the region, motivating stakeholders to invest money in E.M.S. The building, residential, and commercial sectors will have the strongest demand for IoT-based solutions.
Key Players
- Cisco Systems, inc.
- ABB
- International Business Machines Corp.
- GridPoint
- General Electric
- Johnson Controls, Inc.
- Siemens AG
- Schneider Electric SE
- Honeywell International Inc.
In 2021, the market for energy management system was worth USD 37.33 billion, and by 2030 it will be worth USD 162.03 billion, growing at a 16.73% CAGR during the forecast period. The need for E.M.S. software has expanded due to the energy sector’s fast digitization and a paradigm change in electrification. It is very helpful in supporting businesses in locating opportunities to enhance and put into practice energy-saving solutions. Additionally, it will gain traction in order to offer energy stability, flexibility in power generation, and improved energy efficiency.
The serious scene insinuates vital preparation, like innovative progressions, joint efforts, item contributions, consolidations and acquisitions, and geological extension to worldwide pick up speed. For example, in July 2022, Eaton teamed up with the EU-supported Stream Consortium (24 outside accomplices and six driving colleges across Europe) to create and show a coordinated electric vehicle charging framework. The USD 10.4 million task, under the aegis of EU’s Viewpoint Europe Exploration and Development program, could traverse till Walk 2026.
The hearty speed of digitization in the energy scene, alongside the change in perspective saw in zap, has cultivated the interest for energy the board framework programming. EMS assumes a significant part in assisting organizations with distinguishing chances to upgrade and embrace energy-saving advancements. EMS is probably going to get driving force to give soundness in energy arrangement, adaptability in power age and lift energy productivity. Besides, the harmless to the ecosystem energy buyer structure will stress quality and inhabitance sensors to manage energy utilization. Advancements to limit energy utilization might prompt the decarbonization pattern to try not to utilize petroleum derivatives.
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