The Global Energy Management System Market Size Was Valued At USD 24.73 Billion In 2021. The Market Is Expected To Grow From USD 27.31 Billion In 2022 To USD 60.54 Billion By 2030, Exhibiting A CAGR Of 12.0% During The Forecast Period.

Energy Management System Market Overview:

The effects of COVID-19 on the world have been unprecedented and shocking. For example, demand is lower than expected in all regions compared to levels before the pandemic. Based on what we found, the global market was 9.3% smaller in 2020 than it was in 2019.

We looked at solutions like EcoStructurePower Design, Electrical Calculation Tools, SIMATIC Energy Management, and the Advanced Energy Management System as part of the study. Smart metres and smart grids are becoming more popular, which is a big reason why the market value is going up. Aside from this, governments all over the world are taking steps to digitise their national energy systems to make them more efficient and valuable, which will help the economy grow. Governments in many different countries are focusing on building energy systems that are sustainable, safe, and cheap, which is driving a lot of market growth. Energy management is also important because the government has strict rules and policies about using green and sustainable energy.

Global energy issues, like maximising the use of renewable energy sources, reducing our carbon footprint, controlling greenhouse gas emissions, and lowering our energy use, will drive the adoption. The different standards and measures for saving energy increase the need for a sustainable energy framework. Also, the market has been moved by the growing investments in energy-efficient smart buildings, smart cities, and smart industry projects.

Market Dynamics:

Latest Trends:

The energy management infrastructure is changing because of the digital transformation of EMS.

Digitalization has made a big difference in changing many business and industrial processes, as well as how energy is managed. This trend of updating energy models makes them more efficient and also makes them worth more. When energy management processes are digitalized, all the network's equipment and devices can be connected and coordinated, which makes the network more efficient. Smart power grids can talk to buildings that are connected to the internet. Also, the digitalization of EMS makes it possible to link energy data with operational data to learn more about how energy is used. These ideas can help the people who run the system cut down on unplanned downtime and make the equipment more reliable. So, the digitization of energy processes can change the energy management infrastructure.

Driving Factors:

Government policies that make it easier to use renewable energy will cause demand to go up.

The steady drop in energy intensity from traditional resources like coal is now a global problem. Governments all over the world have put their money and time into making an energy system that is reasonable, safe, and can last for a long time. Also, fast industrialization is increasing the need for energy, which makes governments in many different countries more likely to adopt efficient energy management systems. On top of that, there is more competition between energy providers, and energy prices are going up, which forces governments to put more money into renewable energy.

Climate change, global warming, and the increasing number of natural disasters are just some of the environmental problems that are making global and local energy groups put in place strict rules for using energy efficiently. For example, in the U.S., a number of states and local governments have raised their standards for renewable energy portfolios to show more support for clean energy. In this way, government efforts to make energy use and management more efficient are driving the growth of the energy management system market.

Putting in more smart grids and smart metres will help growth.

Modernizing the energy and utility industries is putting a lot of effort into building smart infrastructure so that they can be more efficient. As more money goes into smart projects like smart buildings, smart cities, and smart farming, there is a huge demand for advanced energy management. Smart metres and smart grids are being used more and more, which also helps the market grow. Smart grids also have benefits, such as lowering utility bills, improving reliability, lowering costs, detecting fraud, and so on. These and other benefits are making smart grids more popular. Smart grids and metres also have the ability to collect and analyse data, which can be used to learn important things. So, smart grids and smart energy metres that use the latest technology are likely to help the market grow.

Restraining Factors:

Adoption is limited by a lack of knowledge and high costs to put it into action.

Demand for solutions to manage energy is growing all over the world. But a lot of small and medium-sized businesses still don't know about the benefits of energy management. This thing is slowing the growth of the market as a whole. Large companies are more likely to use advanced energy management solutions because they have better infrastructure. On the other hand, setup costs and implementation costs are making it hard for small and medium-sized businesses to use it.

Segmentation Analysis:

By Type Analysis:

The market is split into systems and services based Type . The system will have a big share of the market, while the services segment is expected to grow quickly over the next few years. Most of the demand for energy systems comes from the industry 4.0 revolution and factory automation. Modern "energy-as-a-service" models are easy to scale up, which speeds up their implementation and lets businesses focus on more important business tasks. These kinds of improvements in energy management services will help the segment grow quickly over the next few years.

The market is further broken down into home EMS, building EMS, and industrial EMS based on the systems. Due to the speed with which automation technologies are being used in industrial processes, industrial energy management will have a large share of the market for energy management systems. Together, smart infrastructure development and government support bring in a lot of money for residential and commercial projects like smart homes, smart buildings, and smart hospitals. These infrastructures are making more people want energy systems that are efficient, which is growing the need for building energy management systems.

Based on the services, the market is divided into monitoring and control, implementation and integration, maintenance, and consulting and training. Among these, monitoring and control is likely to have a big share of the market. Modern technologies like the Internet of Things (IoT), artificial intelligence (AI), cloud computing, big data analytics, and machine learning are helping to improve the way energy is made and used (ML). These new technologies make it possible to analyse data and keep an eye on energy from afar. Also, the EMS network has a lot of smart devices, sensors, and integrated circuits that need to be constantly watched, controlled, and maintained. So, it's likely that monitoring and control services will have a big share of the market.

By End-user Analysis:

In terms of end-user analysis, the market has been split into oil & gas, manufacturing, building automation, energy & utilities, automotive, pharmaceutical, and other sectors. Due to rising energy needs, the oil and gas industry has a large share of the market. Also, governments all over the world are putting strict rules on the oil and gas industry to make it use energy more efficiently and keep the environment safe. By using power management systems, businesses can save a lot of energy and reduce their carbon emissions in a way that saves money. So, oil and gas companies have to use advanced power management solutions because of strict government rules. The goal of the petrochemical and refinery industries is to cut costs, which can be done with the help of energy management systems.

Carbon (CO2), Sulfur Oxide (SOx), and Nitrogen Oxide (NOx) emissions come mostly from the energy and utility industry. Energy management systems are a good way to control these emissions and keep track of quotas and credits, which is why they are being used more and more in the energy and utility industries. Smart building and smart city projects are putting in place a lot of smart systems to cut down on the huge amount of resources and energy used in cities.

Regional Insights:

Presently, North America has the biggest share of the market, and this is likely to stay the case. The adoption of energy systems across the region is being driven by ISO 50001 measures that help with LEED certification. Also, politics are having a big impact on how energy rules are changed in the U.S. Changes in policies are having a direct effect on adoption. Leading companies in North America, like Microsoft, Apple, IBM, and others, are investing in developing advanced EMS solutions to cut down on wasted energy. So, the support of business giants for infrastructure that uses less energy is steadily growing. The market is also getting a boost from industry programmes like the North American Energy Management Pilot Program, which helps save energy and natural resources.

Europe also has a big share of the market because there are more and more people looking for smart grid solutions to update the old power grids. Also, the European Union is pushing for different standards and measures to make energy use more efficient. This is increasing the demand for the power management system across Europe.

During the time frame of the forecast, Asia Pacific is expected to have the highest CAGR. This growth will be driven by the way the region's infrastructure for clean energy is changing. Smart grid and smart metering solutions are needed to make the best use of energy as industrial and residential architectures change. Also, the fact that the regional energy associations have set up an ambitious agenda for sustainable energy supports the demand for next-generation solutions and services for energy management.

During the next few years, the markets in Latin America, the Middle East, and Africa are expected to grow slowly. These places want to build smart cities and cut down on carbon emissions, so they use smart technologies to cut down on these harmful gaseous emissions.

Scope Analysis

Recent Development:

• December 2021 – General Electric acquires Opus One Solutions Energy Corporation, a software company that helps optimize energy planning and operations. The acquisition enables General Electric to plan, optimize and transact renewable and distributed energy resources (DER) to power the modern grid.
• March 2020 – Yokogawa India Ltd. acquired capital from Japan-based APB Corporation to expand its EMS business.

Market Segmentation

By Type:

• System
  • Home Energy Management System
  • Building Energy Management System
  • Industrial Energy Management System
• Services
  • Monitoring & Control
  • Implementation & Integration
  • Maintenance
  • Consulting & Training
• Others

By End-user:

• Oil & Gas
• Manufacturing
• Building Automation
• Energy & Utilities
• Automotive
• Pharmaceutical
• Others

By Companies:

• General Electric Company (Massachusetts, U.S.)
• IBM Corporation (New York, U.S.)
• Honeywell International Inc. (North Carolina, U.S.)
• Rockwell Automation Inc. (Wisconsin, U.S.)
• Schneider Electric SE(Rueil-Malmaison, France)
• SAP SE (Walldorf, Germany)
• Siemens (Munich, Germany)
• Eaton (Dublin, Ireland)
• Mitsubishi Electric Corporation (Tokyo, Japan)
• Cisco System Inc. (California, U.S.)
• Others