Global Energy Management System Market By Product (Building Energy Management Systems, Industrial Energy Management Systems, and Home Energy Management Systems), By Component(Hardware, Software, Services), By Solution(Demand Response Management, Utility Billing & Customer Information System, Carbon Energy Management), By Deployment Mode(On-Premises, Cloud-Based), By End-Use(Manufacturing, Retail & Offices, Healthcare, Power and Energy, IT & Telecommunication, Residentias) Industry, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the Global Energy Management System Market was valued at USD 55.2 Billion and is expected to grow to around USD 208.4 Billion by 2032. Between 2023 and 2032, this market is estimated to register the highest CAGR of 14.6%.

The energy management system offers endurance and remote monitoring for businesses and industries like healthcare, power & energy, IT & telecommunications, and many more. An energy management system collects the information needed for saving energy and tracks the usage of data.

It also tracks and monitors the data usage meter and adjusts its results. An energy management system focuses on reducing electronic waste and replacing it with technology that helps to save energy.

The rapid pace of digitization in the energy sector and the ideal shift in electrification are boosting the demand for software in energy management systems. An energy management system plays a crucial role in helping organizations identify opportunities to improve and adopt energy-saving technologies.

The energy management system needs to gain momentum to ensure the stability of the energy supply with increased efficiency and flexibility. The Green Energy Consumer Framework highlights the quality and occupancy sensors to regulate energy consumption. Technologies that minimize energy consumption can lead to decarbonization trends to avoid the use of fossil fuels and move toward renewable energy.

Key Takeaways

• Market Growth: In 2022, the global energy management system market reached USD 55.2 billion with projected expansion to approximately USD 208.4 billion by 2032 and an impressive compound annual growth rate of 14.6% between 2023-2032.
• Energy Management System Types: Software currently dominates the market due to its flexibility and integration abilities; however, hardware components are expected to grow rapidly over time.
• Product Analysis: The building energy management systems for buildings (BEMS) market is anticipated to experience rapid compound annual growth over the coming years due to the increasing penetration of Internet of Things devices and connectivity services.
• Component Analysis: Hardware was the sector with the highest market revenues in 2022, followed by energy management systems (EMSs). This can be explained by the increased use of communications and sensing technology.
• Solution Analysis: Of all available solutions, carbon energy management was determined to have the largest market share for energy management systems by 2022.
• Deployment Mode Analysis: As part of these deployment modes, On-premise deployment had the largest market share and revenue in 2022.
• End-Use Industry Analysis: Manufacturing is by far the industry with the greatest market share using energy management systems as end users by 2022, accounting for 59%. Energy management solutions enable manufacturers to run machinery at its optimal performance while conserving energy consumption.
• Drivers: Rising energy needs, government regulations promoting sustainable practices, and cost-cutting initiatives are prime market forces that drive this market segment.
• Restraints: High initial implementation costs and integration complexities may impede market expansion for small enterprises, particularly through slow market development.
• Opportunities: Technological advances in energy management systems, increased adoption of renewable energy and an increasing emphasis on smart grid development provide market players with exciting growth prospects.
• Trends: Demand for real-time energy monitoring and analysis is on the rise, along with the integration of Artificial Intelligence (AI) in energy management systems as a notable trend in this market.
• Regional Dominance: North America held the greatest market share for energy management systems worldwide at 33.6% of total revenues generated.
• Key Players in the Energy Management System Market: Key companies involved include Emerson Process Management, Elster Group GmbH, Daintree Networks, Siemens AG, and Honeywell International Inc. amongst others in this space.

Drivers

Efficient Energy Use and Favoring Government Regulations

Loss of energy by the usage of fossil fuels has become a global issue. Governments across the world are investing in the development of secure, efficient, and long-term energy systems, which is boosting the growth of energy management systems in the market.

Additionally, the increasing energy demand due to urbanization and the adoption of Industry 4.0 has forced organizations and businesses to adopt the energy management system. Moreover, global warming, climate change, and natural calamities have made businesses adopt energy efficiency systems like energy management systems. This is anticipated to boost the market during the forecast period.

The demand for energy is growing exponentially with progressing urbanization, population growth, and increasing necessities of individuals. Efficient energy management systems are required to tackle these problems and use energy effectively, reduce costs, improve profitability, and comply with environmental regulations.

Energy management systems cut fuel consumption in half and manage energy more efficiently by lowering the company’s operating costs. These factors are propelling the growth of the energy management system market.

Restraints

The High Installation Cost for Energy Management Systems

The need for energy management systems is growing across the world. However, some small & medium size enterprises are still largely unaware of the benefits of energy management systems, which can hinder the growth of the energy management system market.

Large companies use advanced energy management systems in their organizations owing to their big infrastructure. On the other hand, the high cost of installation and implementation limits its acceptance in small & medium size enterprises.

Product Analysis

The Industrial Energy Management Systems (IEMS) Segment Leads the Market

Energy management systems are divided on the basis of products into building energy management systems (BEMS), industrial energy management systems (IEMS), and home energy management systems (HEMS).

Among all the products, the industrial energy management systems (IEMS) segment dominated the global energy management system market in 2022 by accounting for a major revenue share in the market. The growth of this market is due to the increasing shift towards energy efficiency. This is anticipated to drive the growth of the energy management systems market during the forecast period.

After the industrial energy management systems, the building energy management systems (BEMS) segment is anticipated to grow at a significant CAGR over the forecast period. The growth of this segment is owing to the increasing use of Internet of Things integrated devices and connectivity.

Smart buildings are expected to adopt digital building solutions and the Internet of Things to monitor real-time data for efficient management of buildings. Also, the massive shift towards Industry 4.0 has boosted the growth of this segment in the market.

Component Analysis

The Hardware Segment Dominated the Market in 2022

Based on components, the energy management system is classified into hardware, software, and services. From all these components, the hardware segment accounted for the largest revenue share in 2022 for the energy management system market. The growth of this segment is due to the increasing adoption of communication and sensing technology.

Apart from the hardware segment, the software segment is anticipated to grow at a high CAGR during the forecast period. This segment’s growth is owing to software’s importance in minimizing energy consumption by giving information related to energy consumption patterns.

Software is gaining popularity for advantages like reducing energy costs, monitoring the data, and streamlining workflow. These factors are anticipated to drive the growth of the software segment throughout the forecast period.

Solution Analysis

Carbon Energy Management System Dominates the Market

Solutions have divided the energy management system into carbon energy management, utility billing & customer information systems, and demand response management. Among these solutions, the carbon energy management segment accounted for the largest energy management system market share in 2022.

The growth of this segment is attributed to a rising inclination towards environmental awareness and the depletion of fossil fuel reserves. Moreover, the carbon energy management system is used to reduce greenhouse gas emissions and carbon emissions. These factors are propelling the growth of this segment.

The utility billing and customer information system segment is expected to be the fastest-growing CAGR segment. The utility billing and customer information system helps to manage customer data very efficiently and effectively. It also helps to reduce the cost of management for customers. These factors are driving the growth of this segment in the market.

Deployment Mode Analysis

On-Premise Deployment Mode Holds the Major Part

Deployment mode has divided the energy management system into on-premise and cloud-based deployments. From these deployment modes, the on-premise deployment mode covered the largest market revenue share in 2022. The growth of the on-premise deployment mode is attributed to the increasing adoption of this deployment mode in developed countries.

Cloud-based deployment mode is expected to grow significantly over the forecast period. The growth of this segment is driven by factors like reduced cost and carbon emissions in the environment. Cloud-based deployment mode helps businesses and organizations by accessing and monitoring the data remotely. These factors are anticipated to boost the cloud-based deployment mode segment in the energy management system.

End-Use Industry Analysis

Factors like Reduced Costs and Emissions

The energy management system is used in many industries. Some of them are manufacturing, healthcare, power & energy, IT & telecommunications, retail & office, residential, etc. Among all the end-use industries, the manufacturing segment dominates the market by accounting for a major market share in 2022. The energy management system allows manufacturing companies to run the machines at optimal functioning, saving energy.

The power and energy segment is anticipated to grow at the fastest CAGR during the forecast period of 2023 to 2032. The energy management system is used in the power and energy sector to monitor and track energy utilization in real-time. Energy management systems help the power and energy sector through seamless and energy-saving operations. These factors are driving the growth of this segment through the forecast period.

Market Key Segments

Product

• Building Energy Management Systems (BEMS)
• Home Energy Management Systems (HEMS)
• Industrial Energy Management Systems (IEMS)

Component

• Hardware
• Software
• Services

Solution

• Demand Response Management
• Utility Billing & Customer Information System
• Carbon Energy Management

Deployment Mode

• On-Premises
• Cloud-Based

End-Use Industry

• Manufacturing
• Retail & Offices
• Healthcare
• Power and Energy
• IT & Telecommunication
• Residential
• Other End-Use Industries

Opportunities

Smart Meters and Smart Grids

The development of advanced infrastructure in rising urbanization has increased the demand for advanced energy management systems. This has led to a direct impact on the adoption of smart grids and meters in both developed and developing countries.

Implementing a smart grid in organizations can reduce costs and increase efficiency for the organization. The increasing installation of smart meters and grids is expected to create lucrative opportunities for the energy management system market throughout the forecast period.

Trends

The Rise of Edge AI

The COVID-19 pandemic has made organizations in developing countries adopt technologies like edge artificial intelligence. Common hybrid work cultures and rotating timetables have fueled the trend toward intelligent building management.

The edge AI has offered a building management system that enhances security makes better use of building resources, minimizes energy consumption, and provides better occupant comfort. These factors are expected to drive the growth of the energy management market during the forecast period.

Moreover, the COVID-19 pandemic outbreak has forced organizations to adopt the artificial intelligence-powered building management system to optimize and automate energy use.

Regional Analysis

North America Secured a Major Market Share of 33.6%

North America dominated the global energy management system market by accounting for a major revenue share of 33.6%. The domination of North America is attributed to the United States and Canada, which are expected to offer revenue-generating opportunities in the market. Smart grid adoption and infrastructure spending have significantly increased in this region.

According to reports, investments in power grids are expected to grow, making the United States the leading source of infrastructure investment. Moreover, the demand for smart energy has been remarkably accepted across the region, prompting stakeholders to invest in the energy management system. Strong demand for Internet of things based solutions is expected in the commercial, residential, and construction sectors.

After North America, the Asia Pacific region is anticipated to grow at a significant CAGR over the forecast period. The growth of the Asia Pacific region is due to the advantages offered by the agencies in the region, like tax advantages, industrial growth, and subsidies. These factors are driving the growth of the energy management system market in the Asia Pacific region.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Key players and start-ups are investing in the energy management system by prioritizing organic and inorganic strategies like technological advances, innovation, product offerings, collaborations, and mergers and acquisitions.

Some of the key players in the market are Honeywell International Inc., Cisco Systems  Inc., General Electric Company, Elster Group GmbH, Daintree Networks, Emerson Process Management, Siemens AG, Schneider Electric, Daikin Industries, C3 Energy, Johnson Controls  Inc., etc.

Market Key Players

• Emerson Process Management
• Elster Group GmbH
• Daintree Networks
• Siemens AG
• Honeywell International Inc.
• General Electric Company
• Cisco Systems
• Schneider Electric
• C3 Energy
• Daikin Industries
• Johnson Controls
• Other Key Players

Recent Developments

• In December 2021, General Electric acquired Opus One Solutions Energy Corporation. It is a software company that offers help to optimize energy planning and operations.
• In March 2020, Yokogawa India Ltd. Partnered with APB Corporation of Japan to develop an energy management system business in India.

Report Scope