An energy management system (ems) allows for remote monitoring and sustainability in a business or a building. These contemporary technologies monitor data consumption and compile the data required for energy saving. 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.
The market for energy management systems in 2021 was USD 37.33 billion, and by 2030 it will be worth USD 162.03 billion, at a 16.73% CAGR during the forecast period.
Some of the reasons driving the growth of the energy management system market include increased use of smart grid services, escalating industrial business competition, rising demand from emerging economies for cost-effective products, and government regulations and incentives. The demand for energy is soaring due to increasing urbanization, expanding populations, and people’s increasing wants. For the efficient use of energy as well as to save costs, increase profitability, and adhere to environmental standards, an effective energy management system is required.
Market Dynamics
Drivers
- Rising energy costs: With energy costs rising, businesses are finding ways to manage their energy consumption more effectively. Energy management systems can help organizations track their energy usage and identify areas where energy savings can be made.
- Government regulations and incentives: Governments worldwide are implementing regulations and providing incentives to encourage the adoption of energy-efficient technologies. This is driving the growth of the EMS market, as organizations are looking for ways to comply with regulations and take advantage of incentives.
- Increasing awareness of environmental issues: The rising awareness of environmental issues and the need to reduce carbon emissions is driving the adoption of energy-efficient technologies. EMS can help organizations reduce their carbon footprint by improving energy efficiency.
- Growing demand for smart buildings: The increasing demand for smart buildings that are energy-efficient and environmentally sustainable is driving the growth of the EMS market. Smart buildings use EMS to control and monitor energy usage and improve energy efficiency.
Restraints
Over time, there has been a growth in the need 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, nevertheless. As a result, the worldwide market for energy management systems isn’t growing since people aren’t aware of them.
Opportunity
The growth of smart infrastructure is driving up demand for improved energy management systems. This has directly influenced 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 seeing strong development due to the spike in smart meter and grid installation.
Market Segmentation
By Product
In 2022, the industrial energy management systems (IEMS) category held a maximum position in the market. Systems for managing energy are widely used across many different sectors and businesses. Systems for managing energy are widely used in the industrial industry.
The building energy management systems segment is the fastest-growing market segment. Over the projected period, the sector will develop due to rising energy management system awareness and an increase in building and construction projects.
By Component
In 2022, the hardware sector held the highest market share of over 60%. This is due to the expanding adoption of communication and sensor technologies. Hardware components may boost the market prediction of energy managements systems during the forecast period as monitoring and managing building activities gain traction to incorporate intelligence.
By End-User
In 2022, the power and energy segment was the largest market contributor. The electricity and energy industries make extensive use of energy managements systems. Energy usage is regularly tracked and monitored with the aid of energy managements technologies. Additionally, this facilitates the seamless running of the industry. As a result, this element is fueling the segment’s expansion.
Regional Analysis
In 2022, North America held the biggest market share of over 35%. With the increasing use of smart grids and investment in infrastructure, the United States and Canada are expected to offer prospects for producing money. According to the IEA, investments in energy grids would increase by 10% in 2021, with the U.S. serving as one of the primary countries investing in infrastructure. Additionally, the need for smart energy has significantly increased throughout the area, motivating stakeholders to invest money in EMS. The building, residential, and commercial sectors are expected to strongly demand IoT-based solutions.
Key Players
- Honeywell International Inc.
- Cisco Systems, Inc.
- Schneider Electric SE
- Johnson Controls, Inc.
- Siemens AG
- General Electric
- International Business Machines Corp.
- GridPoint
- ABB
The market for energy managements systems in 2021 was USD 37.33 billion, and by 2030 it will be worth USD 162.03 billion, at a 16.73% CAGR during the forecast period. The EMS market will expand due to the rising demand for energy-efficient solutions and the rising acceptance of renewable energy sources.
Related Reports:
Surgical Sutures Market Report – The global surgical sutures market will witness a robust CAGR of 6.23%, valued at $4.04 billion in 2021, expected to appreciate and reach $6.97 billion by 2030, confirms Strategic Market Research.