The Market is estimated to grow at a CAGR of 22.52% to reach USD 55.81 billion by the end of 2021, from the estimate of USD 16.5 billion in 2016.
Energy is one of the most important aspects of our lives. At present, most of our energy needs are being met by either conventional energy sources like coal, natural gas and oil or by non-conventional energy sources like wind, tidal, solar, etc. With the increasing urbanization and growing populations, along with the escalating needs of people, the demand for electricity is skyrocketing. It becomes necessary to have efficient energy management systems in place for the effective utilization of energy as well as to reduce costs, improve profitability and comply with the environmental regulations.
Energy management systems are used in power generation, transmission and distribution. They generally allow an organization to gather real-time information on the energy usage through monitoring, assessing, and visualizing energy consumption. It also helps to make data-driven decisions and augment enterprise-level operations and financial decisions. The demand for these systems is growing because of the incentives being provided by the various governments as well as the benefits associated with the deployment of such solutions.
Rapid advancements in this technology have further led to provide greater insights into energy procurement and energy usage globally and helps in gaining competitive advantage, increase productivity at a reduced energy cost. Growing demand for power consumption and rising demand and supply gap has led energy management systems to be the most popular choice worldwide, by identifying the energy-saving opportunities.
Increasing usage of smart grid services, growing competition among industrial enterprises, cost efficiency increasing the demand from emerging economies and government policies & incentives are some of the factors augmenting the growth of the market. However, lack of skilled personnel, lack of awareness among stakeholders, lack of finance and non-standardized guidelines has served as a key impediment hindering the growth of the market.
The global energy management systems market has been broadly segmented by applications, solution type, type of energy management system (EMS) and industry verticals. On the basis of applications, the market has been bifurcated into commercial application and residential application. Whereas, on the basis of solution type, the market is divided into hardware and software. Home Energy Management System (HEMS), Building Energy Management system (BEMS) and Factory Energy Management System (FEMS) are the different types of energy management system. On the basis of industry verticals, the market has been segmented into manufacturing, energy, construction, telecommunications, healthcare and others.
By the end of 2021, energy industry will hold the largest market share in the overall market owing to the improving production and volatility in the energy prices across different regions whereas, Building Energy Management System (BEMS) will be the major revenue contributor to the market and will occupy the largest market share by end of 2021.
The global energy management systems market has also been geographically segmented into North America (the United States, Canada, Mexico and others), Europe (Germany, the United Kingdom, Spain, France and others), Asia-Pacific (China, Japan, South Korea, India and others), Latin America (Brazil, Chile and others) and Middle East and Africa (United Arab Emirates, South Africa and others).
In 2016, North America holds the largest market share in the global energy management systems market with the United States being the key driver accelerating the growth of the market. Asia-Pacific is still in its nascent stage in the energy management system market; opening a gateway of opportunities for the domestic and foreign vendors.
Some of the companies mentioned in the report are IBM, Rockwell Automation, Schneider Electric, Honeywell, General Electric, Cisco, Eaton Corporation, SAP, Elster Group, Siemens, CA Technologies and Tendril.
Key Deliverables in the Study