Market Research Report
Global Energy Management Systems Market Size, Share & Industry Trends Analysis Report By Component (Solution and Services), By Type, By Application, By End User, By Regional Outlook and Forecast, 2022 - 2028
|Global Energy Management Systems Market Size, Share & Industry Trends Analysis Report By Component (Solution and Services), By Type, By Application, By End User, By Regional Outlook and Forecast, 2022 - 2028|
Published: April 29, 2022
Content info: 275 Pages
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The Global Energy Management Systems Market size is expected to reach $107.1 billion by 2028, rising at a market growth of 15.6% CAGR during the forecast period.
An energy management system, or EMS, is a set of computer-assisted tools used by electric utility grid managers to track, control, and improve the performance of their generating and transmission systems. It can be utilized in microgrids as well as other small-scale systems. It is an emerging technology that allows an organization to acquire real-time data on energy use by monitoring, analyzing, and displaying energy consumption. This approach not only helps make data-driven judgments and improve enterprise-level operations and financial decisions, but it also analyses the consumption of energy.
A computer system specifically developed for the monitoring and automated control of those electromechanical systems in a building that consumes significant amounts of energy, such as heating, ventilation, and lighting installations is referred as an Energy Management System. The scope can range from a single structure to a collection of structures, like office buildings, university campuses, retail store networks, or industries. The majority of these energy management systems also allow users to read electricity, gas, and water meters.
The information received from these meters can subsequently be utilized to perform frequent self-diagnostic and optimization algorithms, as well as annual consumption and trend analysis estimates. Individual commercial entities frequently employ energy management systems to measure, monitor, and control the electrical loads of their building. Energy management systems can also be used to operate devices such as HVAC units and lighting systems from a central place, such as a retail store, a grocery store, or a restaurant. Metering, monitoring, and submetering, capabilities in energy management systems enable facilities and building managers to collect data and information that allows them to make better-informed decisions about energy operations throughout their facilities.
The COVID-19 outbreak caused a significant downfall to various economies all over the world. The outbreak of the novel coronavirus slowed down numerous businesses globally. In addition, due to the rapid spread of the infection, governments were forced to impose countrywide lockdowns. Due to the travel restrictions under the lockdown, the supply chain of various goods, as well as intermediate goods, was significantly disrupted. Moreover, the lockdown also caused a considerable hindrance to various manufacturing facilities worldwide. In addition, the energy management system market was also disrupted by the pandemic, due to the closure of manufacturing utilities all over the world, the production of components that are used in the composition of energy management systems, such as smart meters and smart grids, was hindered.
Market Growth Factors
Rising demand for home energy management systems
Home area networks have experienced a revolutionary change in numerous areas of power consumption domains, such as energy conservation at electricity usage patterns and consumption premises, due to rapid improvements in technologies such as network communication, bidirectional communication mediums, smart grid, energy conservation methodologies, information infrastructures, and various techniques. Because of the growing concern about energy efficiency, there is an increasing focus on implementing energy-saving equipment in homes all over the world. Irrespective of national energy pricing, usage, or climatic considerations, energy management systems are considerably cost-effective in almost all residential structures.
Volatility in energy prices
Variations in demand and supply cause fluctuations in energy prices. Extreme weather, supply availability, and economic conditions are only a few of the elements that influence energy prices. In addition, according to the World Energy Outlook, energy consumption is estimated to rise by 60% over the next 25 years with developing countries contributing to the majority of this surge. In rising countries, fossil fuels like thermal power plants and coal currently offer a significant amount of energy. This is the most cost-effective non-renewable energy source. Increased energy demand and natural resource depletion are anticipated to further drive alternative and more costly types of energy generation forward, leading to rising energy prices.
Market Restraining Factors
Lack of awareness
With the increasing industrialization across the world, the level of pollution is also rising due to the increasing carbon waste by manufacturing companies. Small businesses, particularly in growing economies have a key role in increasing the amount of pollution in the environment. This is owing to the apathetic attitude of businesses toward pollution avoidance, as well as their lack of environmental understanding. Unlike small businesses, large businesses typically invest heavily in energy management and pollution control. Additionally, enforcement of pollution rules is unequal, with only government-owned companies being targeted for pollution penalties, environmental monitoring, and fines.
Based on Component, the market is segmented into Solution and Services. In 2021, the solution segment acquired the largest revenue share of the energy management systems market. The rising growth of the segment is owing to the fact that these technologies offer a real-time gathering of crucial data and energy readings, allowing more effective energy resource management. Additionally, the increasing trend of EMS across several industrial verticals, technical developments, the availability of low-cost labor, and low production costs are some of the primary drivers that are increasing the demand for energy management systems. Moreover, the demand for energy solutions is primarily being driven by factory automation and the industry 4.0 revolution. The modern energy-as-a-service approach, which is easily scalable, is aiding in their implementation and allowing organizations to emphasize on crucial business activities. Such developments in energy management services would propel the growth of this segment throughout the forecast period.
Based on Type, the market is segmented into Industrial, Building, and Home. In 2021, the home segment acquired a significant revenue share of the energy management systems market. The growth of this segment is being fueled by a growing awareness of power conservation and efficient energy management among homeowners. Fusion Home intends to make it easier for residents to create, store, and manage power. It also helps with power consumption monitoring and provides an easy-to-adapt experience of utilizing renewable energy at home. This device allows homeowners to effectively monitor their energy needs as well as obtain information on the electricity consumption patterns and data of individual appliances. A hub that can be installed on an electrical board is part of the system's hardware.
Based on Application, the market is segmented into Commercial and Residential. In 2021, the commercial segment registered the highest revenue share of the energy management systems market. Due to increased energy costs and government initiatives incentivizing firms to reduce their carbon impact, the commercial segment is observing increased growth. This industry encompasses a wide range of office spaces, enterprises, and shopping malls, all of which use a lot of electricity. The rising awareness of power optimization and lower operating costs in large and small-scale companies is likely to increase demand.
End User Outlook
Based on End User, the market is segmented into Energy & Utilities, IT & Telecom, Manufacturing, Retail, Healthcare & Life Sciences, and Others. In 2021, the healthcare and life sciences segment recorded a substantial revenue share of the energy management systems market. The surging growth of this segment is due to the fact that healthcare organizations are expected to put a major emphasis on energy in their overall environmental management processes and systems, including defining goals for enhancing energy efficiency and choosing the most cost-effective energy procurement choice. Healthcare operations personnel can use energy management to not only develop more efficient methods to work, but also to conserve money and crucial resources. When it comes to energy management, hospitals can be more attentive and robust when disaster strikes. Operations data changes from being stored on paper and in binders to being live data that can be used to make split-second decisions with the help of a system.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2021, North America acquired the highest revenue share of the energy management systems market. The growth of the regional market is increasing as a result of increased digitization and data generated by IoT devices Moreover, with the region's expanding high carbon footprint and energy needs many enterprises are turning to energy management systems to optimize their operations' energy resources.
The major strategy followed by the market participants is Acquisitions and Mergers. Based on the Analysis presented in the Cardinal matrix; Honeywell International, Inc. and Siemens AG are the forerunners in the Energy Management Systems Market. Companies such as Johnson controls international Plc, Schneider Electric SE are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include General Electric (GE) Co., Siemens AG, Yokogawa Electric Corporation, Honeywell International, Inc., Schneider Electric SE, DEXMA Sensors, SL, Delta Electronics, Inc., Johnson Controls International PLC, C3.ai, Inc., and GridPoint, Inc.
Recent Strategies deployed in Energy Management Systems Market
Partnerships, Collaborations and Agreements
Sep-2021: Delta came into a partnership with International Information Technology, a leading service provider of enterprise IT infrastructure. Under this partnership, the companies would focus on upcoming IT infrastructure and data center projects across Oman and in the Middle East. Moreover, IITC would also supply Delta's range of uninterruptible power supply and cooling systems.
Sep-2021: GridPoint came into a partnership with Leap, an energy marketplace developer. With this partnership, the companies would develop virtual power plants and leverage flexible electricity for energy resilience across the United States in order to offer energy efficiency savings and flexible electricity capacity during peak demand periods as well as harsh weather events.
Jul-2021: Honeywell partnered with Nexii Building Solutions, a green construction technology company. Under this partnership, the companies would focus on the development of buildings with lesser environmental impact. Moreover, this partnership would strengthen Honeywell's position as an exclusive building technologies provider for new buildings built by Nexii.
Jun-2021: C3 AI partnered with NCS, a leader in providing leading technology services. This partnership aimed to focus on delivering enterprise AI solutions to its customers in Australia/New Zealand and Southeast Asia across various industries, such as financial services, government, transportation, telecommunications, and several others.
2May-2021: Siemens Energy formed a partnership with International Renewable Energy Agency (IRENA). This partnership aimed to improve the global energy transition based on renewable energy, along with sustainable development goals and climate action. In this partnership, the companies would cooperate, facilitate, and strengthen collaboration in areas to improve the global energy transition based on renewable energy.
Sep-2020: Schneider Electric partnered with Green Energy Options, a leading supplier of in-home displays. This acquisition aimed to expedite the UK's strategy of net-zero homes. In addition, the companies would incorporate geo's agile and innovative data insights and product development with the extensive channel network and energy management technology of Schneider.
Jan-2020: Delta Electronics teamed up with GKN Automotive, a world leader in delivering electric drives. Through this partnership, the companies aimed to focus on the rapid acceleration of advanced integrated 3-in-1 eDrive systems of power classes from 80kW to 155kW. In addition, the new eDrive technology would be an integration of inverters supplied by Delta Electronics and GKN Automotive's gearbox systems and eMotor in a 3-in-1 solution.
Acquisitions and Mergers
Jan-2022: Johnson Controls acquired FogHorn, a leader in developing Edge AI software. With this acquisition, the company aimed to complement its strategy of smart and autonomous buildings, which can constantly adapt, learn, and autonomously respond to the demands of people and the environment.
Jan-2022: Schneider Electric took over Zeigo, a start-up climate-tech platform. Through this acquisition, the company aimed to improve its digital capabilities in sustainability, energy, and environmental commodity consulting. In addition, this acquisition would also complement Schneider Electric's offerings of clean energy solutions and services and advance the digital energy transformation ambitions of the company.
Dec-2021: Yokogawa Electric took over PXiSE Energy Solutions, a subsidiary of Sempra Energy. Under this acquisition, the company would deliver stable and reliable power by managing distributed and renewable energy resources in real-time.
Dec-2021: GE Digital completed its acquisition of Opus One Solutions Energy, a software company. Through this acquisition, GE would integrate the renewable energy planning capabilities of Opus One into its network management and optimization offerings in order to aid utilities in making decisions on the integrations of Distributed and renewable Energy Resources at scale across the electric grid.
Oct-2021: Siemens completed its acquisition of Wattsense, a French IoT startup. This acquisition aimed to expand its building energy management and automation portfolio across the French markets. In addition, the company would allow the adoption of energy management practices in facilities with lower or no building management system technology by leveraging its IoT solution.
Oct-2020: Honeywell took over Rocky Research, a leader in technology-based in Nevada. This acquisition aimed to expand Honeywell's energy storage, power generation systems, and thermal and power management systems offerings. Moreover, it would also incorporate the proven research and development capabilities of Rocky Research into Honeywell's expertise in engineering integration, production, and testing along with its global reach.
Product Launches and Product Expansions
Oct-2021: Johnson Controls released Openblue, an all-in-one solution. With this launch, the company aimed to empower building operators to track sustainability and health and wellness metrics and lower the use of water, waste, energy, and carbon emission. The OpenBlue Performance Advisor application complements the Johnson Controls OpenBlue Enterprise Manager solution's rich capabilities in order to support organizations seeking to attain sustainability and clean air targets via artificial intelligence, data tracking software, and intuitive dashboards.
Oct-2020: Schneider Electric rolled out InsightFacility and InsightHome, additions to its Energy Management ecosystem. The new products are smart edge devices that can incorporate Schneider Electric solar and storage systems of customers to the Insight app. Moreover, the InsightHome aids in the residential solar and storage market, while InsightFacility aids in large residential, commercial solar, and storage systems.
Market Segments covered in the Report:
By End User
Unique Offerings from KBV Research
List of Figures