PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1303615
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1303615
The global energy management systems market is estimated to grow from USD 75.6 billion by 2028 from an estimated of USD 40.7 billion in 2023; it is expected to record a CAGR of 13.2% during the forecast period. Increasing energy comsumption is driving the demand of energy management systems market.
"Software: The fastest- growing segment of the Energy management systems market"
Based on by application of Energy management systems the industrial type segment is estimated to be the fastest-growing market from 2023 to 2028. Energy management is a need of any organization in any industry; therefore, specifically cloud-based energy management software has become the dominant tool. Cloud computing enables service providers to access an elastic pool of IT resources such as storage, servers, and computation, allowing them to scale computing capabilities up and down as client demands expand and change. Heating, ventilation, and air conditioning (HVAC); lighting, energy, and security are all automated in smart buildings. Sensor data, such as indoor and outdoor temperature and humidity, carbon dioxide concentration, and occupancy status, are required for automation. Smart buildings use data through a variety of ways to improve their energy efficiency.
"IEMS: The largest segment by type in Energy management systems market"
The IEMS segment, by type, is projected to hold the largest market size during the forecast period. With the rise of Industry 4.0 within manufacturing environments, sensors, and cloud analytics can move towards smart energy management that includes not only heating and cooling of all spaces, such as warehouses and production floors, but also pumps, power plants, industrial equipment, and even vehicles and lighting. Many industrial sectors are among the hardest to decarbonize due to the long lifetimes of many industrial facilities and because many of the needed technologies are not yet commercially available. Furthermore, ensuring efficient equipment operations and maintenance helps to guarantee optimal energy performance. This can be reinforced by implementing energy management systems. Developing plant-level action plans and sharing best practices can also help improve energy efficiency, while governments can accelerate the process by adopting energy efficiency targets and regulations.
"On-premise: The largest segment by deployment in Energy management systems market"
The On-premise segment, by deployment, is projected to hold the largest market size during the forecast period. On-premise means that the energy management system is installed locally on a company's own servers and is far more expensive to design, build, and maintain. They are harder to evolve and update, with high maintenance costs. On-premise solution means that the control and data storage happens on a physical server. With the on-premise option, data can be read from the site in which it is installed and the hardware connected to this local network. Also, the real-time data can be seen, but it does not have analysis tools. On-premise deployments are more expensive because of the total cost of ownership, which generally includes hardware, network, backup, and development systems.
"Europe: The second largest region in Energy management systems market"
Europe is estimated to hold the second largest poistion in the Energy management systems market. The energy management systems market in Europe, by country, has been segmented into the UK, Germany, France, Italy, and the Rest of Europe.
The European Commission (EU) introduced the initial phase of its "Fit for 55" package in July 2021, aiming to achieve a 55% reduction in the EU2's carbon emissions by 2030 compared to 1990 levels. This ambitious target sets the foundation for attaining climate neutrality in the EU by 2050, primarily through increased utilization of renewable energy sources. With well-established power generation, transmission, and distribution systems in Europe, the EU is now prioritizing the modernization of aging infrastructure, the integration of solar and wind power, and the establishment of interconnections to enhance power and energy trading efficiency.
According to the European Commission, substantial investments exceeding USD 61 billion would be required annually for the expansion, replacement, and refurbishment of the power grid to integrate renewable energy production, a crucial step towards achieving the 55% emission reduction target by 2030. This presents an immense opportunity for the growth of the energy management systems market across the region. Moreover, the need to address supply power issues in Europe is expected to drive the demand for energy management systems, as monitoring and optimizing energy consumption becomes paramount in the transition to a more sustainable energy landscape.
By Company Type: Tier 1- 35%, Tier 2- 45%, and Tier 3- 20%
By Designation: C-Level- 35%, Director Levels- 25%, and Others- 40%
By Region: North America- 40%, Asia Pacific- 30%, Europe- 20%, the Middle East & Africa- 5%, and South America- 5%
Note: Others include product engineers, product specialists, and engineering leads.
Note: The tiers of the companies are defined on the basis of their total revenues as of 2021. Tier 1: > USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: < USD 500 million
The Energy management systems market is dominated by a few major players that have a wide regional presence. The leading players in the Energy management systems market are ABB (Switzerland), Schneider Electric (France), Siemens (Germany), General Electric (US), and Emerson (US).
The report defines, describes, and forecasts the global Energy management systems market, by component, type, deployment, end-use industry, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include an analysis of the competitive landscape, market dynamics, market estimates, in terms of value and volume, and future trends in the Energy management systems market.
Key Benefits of Buying the Report
The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the relay market and provides them information on key market drivers, restraints, challenges, and opportunities.
(lack of awareness in small and medium-sized businesses, hardware maintenance costs) influencing the growth of the energy management systems market.