PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1200943
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1200943
The Latin America energy management systems market registered a CAGR of 21.5% during the forecast period, 2022-2027 (hereafter, referred to as the forecast period). Electricity consumption has risen year after year due to rising urbanization and population, as well as rising human requirements. It becomes vital to implement efficient energy management systems to maximize energy efficiency while lowering expenses, increasing profitability, and adhering to environmental standards.
There has been a rise in energy-efficient systems and a reduction in carbon footprint due to developments in the newest technologies in EMS, such as tiny signal analysis. Furthermore, firms like IBM Corporation, Honeywell International Inc., and Schneider Electric have incorporated data analytics software into their current EMS modules to monitor data efficiently. These companies have also created and launched sector-specific EMS software platforms to help businesses regulate and supply adequate solutions, which is likely to boost the scalability of new products in the Latin American EMS industry.
The industry is being driven by the growing use of smart grids and smart meters. With rising energy consumption and outdated power infrastructure, governments worldwide are increasingly turning to smart grid technologies to modernize their energy infrastructures. The market for energy efficiency solutions is growing as many governments embark on modernization initiatives to modernize their power grids.
According to UN predictions, Latin America and the Caribbean would have over 750 million people by 2050, up by 16% from now. In January 2021, the IAEA and international experts held a workshop to illustrate how MAED and the Agency's other energy modeling tools may be used to analyze demand scenarios and plan appropriately to help foresee and prepare for the region's expanding energy need.
Because of the recent COVID-19 pandemic, the worldwide residential power sector experienced a considerable increase due to quarantines. In contrast, industrial energy consumption fell dramatically in the first quarter of 2020. According to the CEO of Wind Europe, the firm expects delays in new wind farm projects due to the COVID-19 pandemic, which may force developers to miss deployment dates in nations' auction systems and suffer financial penalties as a result.
The Brazilian government announced funding of around USD 200 million to develop smart grids. It also announced plans to deploy smart meters in the entire country by 2021. The aforementioned factors, coupled with Brazil's strong focus on renewable energy generation, are expected to drive the Brazilian smart gas meter market.
With the growing need for natural gas and the construction of pipelines in Brazil, the utility sector is now leveraging the benefits of the Internet of Things to bring about smart gas meters in various businesses. Smart gas metering systems have become the most desirable option, and they are now providing billing accuracy, real-time data monitoring, and improved customer service.
The smart gas meter market acts as a lucrative vertical for the overall smart metering industry in Brazil, and it was recently bestowed with unprecedented gains driven by robust product deployment across the biofuel and natural gas sectors in the region. Besides, the smart gas metering concept is now present in six Brazilian states, including Sao Paulo, Rio de Janeiro, Parana, and the Amazonas, involving local providers and consequently boosting the market growth.
Enel accomplished a significant smart city track record in its areas of presence. Some smart city projects across the Latin American region have strived to make broadband accessible to the public, such as Brazil's Rede Cidade Digital, which comprises 300 municipalities.
Latin America is a huge potential market for smart energy globalization. According to the Smart Energy International Projections, by 2029, the area would have deployed over 85 million smart meters. Countries like Brazil, Argentina, Mexico, Colombia, Chile, and Peru are leading the way and will have deployed millions of smart meters by then. Importantly, it is a location where the smart grid's benefits can result in significant increases in energy supply efficiency and reliability, as well as a fair distribution of energy to all.
At the same time, there are unique obstacles that this region faces. Local energy brokering, distributed generation and storage, micro-grids, and electric vehicles also present significant opportunities for LATAM. Investments in technology that address the problems raised above can also serve as the foundation and enablers for a smart energy transition that incorporates these advances.
With increased urbanization and economic growth in the region, there is a greater need for energy services and infrastructure. As a result, towns in the region have the option to integrate renewable energy from the start of the urban planning process and in the extension of existing infrastructure, allowing them to make use of the large renewable resources accessible locally. For example, Santiago de Chile, with a population of around 6.8 million people, is one of the main cities in Latin America, pushing the region's energy revolution. The city has pushed hard for electric buses to be included in its public transportation system.
The energy management systems market is competitive and consists of several major players. However, in terms of market share, few of the major players currently dominate the market. With a prominent share in the market, these market players are focusing on expanding their customer bases across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market shares and profitability. The key players are IBM Corporation and Rockwell Automation Inc. Recent developments in the market are -