Energy Management Systems Market is Representing 14.30% Growth by 2032

Published Date : 11 Apr 2024

The global energy management systems market size was exhibited at USD 52.35 billion in 2023 and is anticipated to touch around USD 174.30 billion by 2032, expanding at a CAGR of 14.30% from 2023 to 2032. The energy management systems market is expected to grow in the management of energy use across industrial, commercial, and public sector organizations.

Energy Management Systems Market Size and Growth Rate From 2023 to 2032

Market Overview

The energy management systems market deals in various sectors, such as industrial, commercial, and public sector organizations. An energy management system is a system used by electricity grid operators to optimize and control the energy usage of devices such as lighting, pumps, fans, and HVAC that are generally found in large buildings such as factories, hospitals, and schools. The rising adoption of smart meters and smart grids is playing a major role in increasing the EMS market value. In addition, governments across the world are working to digitize national energy systems, enhancing their value and increasing their efficiency to drive economic market growth. The governments of various countries are focusing their vision towards affordable, safe, and sustainable energy systems; hence, it helps to enhance the market growth.

Cost reduction of energy management system fuels market growth

One important benefit of executing a facilities management system is reducing functional costs such as water services, lighting, cooling, and heating. An energy management system helps consistently track energy intake over a period and stores this data so you can have constant access to buildings' energy performance, permitting you to make calculated cost forecasts for future intake.

Integration of IoT with smart meters and smart grids to fuel the market growth

IoT is a growing technology that can be used to manage energy usage in residential, commercial, and industrial smart environments. The growth of IoT in the power and energy sector is developing smart infrastructure advancements to decrease the complications of the energy crisis. It also aims to decrease human interference in performing critical functions that further enhance workplace safety. Smart grids are designed to decrease permanent costs through power redirection of quick recovery and intelligent energy IoT monitoring solutions when power outages are detected. Rising investments in smart projects, including smart cities, smart buildings, and smart farming, create a high demand for advanced energy management systems. These factors may drive the growth and demand of the energy management systems market.

However, the initial high installation cost can restrain the growth of the market. In the long run, the systems are useful in saving energy and cost-cutting, but when they require a huge initial amount for installation. It causes issues when it comes to small businesses or businesses that are not able to make much profit. Such companies avoid installing energy management systems due to high cost. Apart from that, countries that are underdeveloped or developing are also notable for using these systems in many places due to their high cost.

Energy Management Systems Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 52.35 Billion
Projected Forecast Revenue by 2032 USD 174.30 Billion
Growth Rate from 2023 to 2032 CAGR of 14.30%
Largest Market Asia Pacific
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Energy Management Systems Market Key Players

  • Gridpoint Inc.
  • Hopewind
  • Cumins India
  • IBM Corporation
  • Daikin Industries
  • Eaton Corporation
  • C3 Energy
  • Schneider Electric
  • ABB Limited
  • Elster Group GmbH
  • Emerson Process Management
  • General Electric Company
  • Honeywell Inc.
  • Siemens AG

Recent Development by Hopewind

  • In January 2024, the hopecloud 4.0 was released by Hopewind. This state-of-the-art platform for energy management monitors cloud computing power and big data technologies. Energy management systems are expected to improve in the future thanks to this inventive version.

Recent Developments by GridPoint Inc.

  • In June 2023, a leader in energy optimization and management technology, GridPoint Inc., announced that HASI invested US$ 150 million to fulfill the growing demand for an award-winning platform for energy optimization. It will help in better technology adoption and will also remove upfront financial barriers. 

Regional Insights

North America is expected to grow fastest during the forecast period. The government regulations related to energy management and storage are boosting the energy management systems market in North America. The government is executing policies that support the adoption of energy management systems.  

In the U.S. energy management systems market, the value chain includes various important segments, including end-use, verticals, implementers, distributors, and manufacturers. The U.S. is a hub for various industries and organizations, including electronics, electrical, automation, and many more, which highly need energy management systems. The U.S. has become a great place of ongoing and new opportunities for the growth of the energy management systems market. The country is also known for innovation and integration of new technologies, which helps it grow further.

  • For instance, in November 2023, SB and Stem Energy launched Advanced AI-enabled technology energy management of utility-scale renewables. SB and Stem Energy are a global leader in AI-driven clean energy services and solutions and a leading U.S. developer.

Asia Pacific dominated the energy management systems market in 2023. Urbanization and industrialization are creating the growth and demand of the EMS market. China and Japan are leading in technology and industrialization. The countries, along with South Korea, provide great opportunities for energy management systems.

The Chinese government has set various standards for managing energy in transportation, trade, commerce, and other industries that use 10,000 or more tons of coal for energy production. There are many other actions taken by China to manage energy.

  • For instance, in September 2023, China launched the country’s first “smart brain” intelligent energy system.  The system is able to perform coordinated management of many energy sources at one go. The system is developed by the State Power Investment Corporation (SPIC).

In today’s rapidly developing technological platform, India positions itself as a major innovator in the global energy management sector. India’s positive approach to revolutionizing its energy management platform is epitomized by the development and adoption of smart grid technology. According to the Ministry of Power, the Indian Smart Grid Forum plays an important role in EMS transformation. These advanced smart meters offer a plethora of advantages that align with India's advanced energy management needs. Their capacities expand beyond energy measurement to include eco-friendly features, improved cost-efficiency, and data management.

  • In December 2023, Cummins India launched the DATUM energy management system at EXCON DATUM. The company said Cummins will distribute and market an intelligent energy management system for diesel applications in India.

Market Potential and Growth Opportunities

Artificial Intelligence and Machine Learning

Artificial intelligence and machine learning are estimated to transform energy management by making it more adaptive and predictive. These modern technologies can identify vast amounts of data collected from different sources, such as smart devices and sensors, to identify usage patterns, optimization opportunities, and anomalies. This allows for the innovation of anticipating models that can provide real-time recommendations and expect energy demands for energy-saving actions.

  • For instance, AI-powered systems can automatically adjust heating, ventilation, and air conditioning (HVAC) settings based on weather forecasts and occupation patterns, ensuring maximum comfort while minimizing energy usage. This AI and ML technology may drive the growth of the energy management systems market.

Energy Management Systems Market News

  • In February 2024, Voltfang, a Cleantech company, launched its web application to improve energy management, including software solutions and integrated hardware, which offered greater security and improved monitoring for energy efficiency.
  • In January 2024, Honeywell launched an automated building management platform. This innovative management system supported improved operational effectiveness and energy efficiency.
  • In June 2023, in Amsterdam, Stellantis launched a 360-degree ecosystem called Free2move Charge. This ecosystem delivers charging and energy management to fulfill all-electric vehicle customers' demands anywhere across the world.

Market Segmentation

By Product

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

By Component

  • Sensors
  • Controllers
  • Software
  • Batteries
  • Display Devices
  • Others

By Solution

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

By Deployment

  • On-Premises
  • Cloud

By Vertical

  • Power & Energy
  • Telecom & IT
  • Manufacturing
  • Retail & Offices
  • Healthcare
  • Others

By End Use

  • Residential
  • Commercial

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